Federal Register / Vol. 74, No. 202 / Wednesday, October 21, 2009 / Notices 54113 

3See Securities Exchange Act Release No. 60622 

(September 3, 2009), 74 FR 46826. 

4 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

7For purposes of Commentary .11 to NYSE Amex 

Rule 915, Reference Assets collectively refers to 

Equity Reference Assets, Commodity Reference 

Assets, Currency Reference Assets, Fixed Income 

Reference Assets, Futures Reference Assets, and 

Multifactor Reference Assets. 

8 Despite the fact that Index-Linked Securities are 

linked to an underlying index, each trade as a 

single, exchange-listed security. Accordingly, rules 

pertaining to the listing and trading of standard 

equity options apply to options on Index-Linked 

Securities. 

9See Securities Exchange Act Release No. 60535 

(August 19, 2009), 74 FR 46826 (August 26, 2009) 

(NYSEAmex–2009–55); see also Securities 

Exchange Act Release No. 58968 (November 17, 

2008), 73 FR 71082 (November 24, 2008) (SR– 

NYSEArca–2008–111). 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The Grandfathered Rules are operative to the 

extent that they apply to the Boston Options 

Exchange Group, LLC (‘‘BOX’’) and to Options 

Participants on the Exchange, and are to be read in 

conjunction with the Rules of the BOX. 

4See Securities Exchange Act Release No. 60591 

(August 31, 2009), 74 FR 46288. 

5Securities Exchange Act Release No. 58324 

(August 7, 2008), 73 FR 46936 (August 12, 2008) 

(SR–BSE–2008–02, –23, –25; SR–BSECC–2008–01) 

(‘‘Release No. 34–58324’’). 

6 15 U.S.C. 78f(c). 

linked to CBOE Volatility Index Futures 

(‘‘VIX Futures’’). The proposed rule 

change was published for comment in 

the Federal Register on September 11, 

2009 for a 21-day comment period.3 The 

Commission received no comment 

letters regarding the proposal. This 

order approves the proposed rule 

change. 

Commentary .11 to NYSE Amex Rule 

915 designates the listing and trading of 

options on Equity Index-Linked 

Securities, Commodity-Linked 

Securities, Currency-Linked Securities, 

Fixed Income Index-Linked Securities, 

Futures-Linked Securities, and 

Multifactor Index-Linked Securities, 

collectively known as Index-Linked 

Securities (as defined in NYSE Amex 

Company Guide Section 107(H)) that are 

principally traded on a national 

securities exchange and an ‘‘NMS 

Stock’’ (as defined in Rule 600 of 

Regulation NMS under the Act). 

Futures-Linked Securities pay at 

maturity an amount of cash based on the 

performance of a ‘‘Futures Reference 

Asset,’’ currently defined as an index of 

futures on Treasury Securities, GSE 

Securities, supranational debt and debt 

of a foreign country or a subdivision 

thereof, or interest rate futures, or 

options or derivatives on any of the 

foregoing. The Exchange proposes to 

include VIX Futures in this definition. 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 4 and, in 

particular, the requirements of Section 6 

of the Act.5 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,6 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Currently, the Exchange will consider 

listing and trading options on IndexLinked Securities, including options on 

Futures-Linked Securities, provided the 

Index-Linked Securities meet the 

criteria for underlying securities set 

forth in Commentary .01 to NYSE Amex 

Rule 915. Underlying Index-Linked 

Securities must meet the criteria and 

guidelines for underlying securities set 

forth in Commentary .01 to NYSE Amex 

Rule 915; or the Index-Linked Securities 

must be redeemable at the option of the 

holder at least on a weekly basis 

through the issuer at a price related to 

the applicable underlying Reference 

Asset.7 After the addition of VIX 

Futures to the definition of a Futures 

Reference Asset in Commentary .11(5) 

to NYSE Amex Rule 915, options on 

Index-Linked Securities, including 

options on Futures Linked Securities, 

would continue to be subject to all 

Exchange rules governing the trading of 

equity options 8 and the current 

continuing or maintenance listing 

standards applicable to the trading of 

options on Index-Linked Securities on 

NYSE Amex. The Commission also 

notes that it has previously approved an 

amendment to Section 107H of the 

Amex Company Guide to add the VIX 

Futures to the definition of ‘‘Futures 

Reference Asset’’ for the listing and 

trading of Futures-Linked Securities.9

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (SR–NYSEAmex– 

2009–59) is hereby approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25205 Filed 10–20–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60818; File No. SR–BX– 

2009–048] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Order 

Approving a Proposed Rule Change To 

Amend the Grandfathered Rules of the 

Exchange 

October 13, 2009. 

On August 17, 2009, NASDAQ OMX 

BX, Inc. (‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend the Grandfathered Rules of the 

Exchange.3 The proposed rule change 

was published for comment in the 

Federal Register on September 8, 2009.4

The Commission received no comments 

on the proposal. 

The proposed rule change would 

incorporate certain provisions of the 

former Constitution of the Boston Stock 

Exchange, Incorporated (‘‘BSE’’) 5 into 

the Grandfathered Rules. The provisions 

to be added to the Grandfathered Rules 

relate to the following: (1) Participation 

(formerly Membership) rules, to 

supplement the By-Laws and the 

Grandfathered Rules to direct the BOX 

Options Participants (‘‘Participants’’) 

and prospective participants to Section 

6(c) of the Act,6 as cited in the proposed 

rule text regarding the investigation and 

acceptance of an applicant; (2) Nonliability of the Exchange provision, to 

reinforce to Participants the ‘‘nonliability’’ of the Exchange for damages 

sustained from use of the facilities of the 

Exchange; 

(3) Insolvent Participants, to provide 

guidance for Insolvent Participants to 

notify the Exchange, of such insolvency 

and to state that the Exchange will 

notify the Commission of such 

insolvency; and (4) Exchange Inquiries 

to remind Participants that they may be 

subject to expulsion or suspension for 

failure to respond to an Exchange 

Inquiry. 


jlentini on DSKJ8SOYB1PROD with NOTICES
54114 Federal Register / Vol. 74, No. 202 / Wednesday, October 21, 2009 / Notices 

7See supra note 5. 

8 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(2). 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 60621 

(September 3, 2009), 74 FR 46818. 

4 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

7For purposes of NYSE Arca Rule 5.3(j), 

Reference Assets collectively refers to Equity 

Reference Assets, Commodity Reference Assets, 

Currency Reference Assets, Fixed Income Reference 

Assets, Futures Reference Assets, and Multifactor 

Reference Assets. 

8 Despite the fact that Index-Linked Securities are 

linked to an underlying index, each trade as a 

single, exchange-listed security. Accordingly, rules 

pertaining to the listing and trading of standard 

equity options apply to options on Index-Linked 

Securities. 

9See Securities Exchange Act Release No. 58968 

(November 17, 2008), 73 FR 71082 (November 24, 

2008) (SR–NYSEArca–2008–111); see also 

Securities Exchange Act Release No. 60535 

(August 19, 2009), 74 FR 46826 (August 26, 2009) 

(NYSEAmex–2009–55). 

10 15 U.S.C. 78s(b)(2). 

The Exchange proposes to apply these 

provisions retroactively to the date on 

which proposals set forth in Release No. 

34–58324 were approved by the 

Commission.7

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange 8 and, in particular, the 

requirements of Section 6 of the Act 9

and the rules and regulations 

thereunder. The Commission finds 

specifically that the proposed rule 

change is consistent with Section 6(b)(5) 

of the Act,10 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest because it clarifies the 

provisions of the former BSE 

Constitution that will continue to apply 

to Participants. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (SR–BX–2009– 

048) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25202 Filed 10–20–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60822; File No. SR– 

NYSEArca–2009–77] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Approval of 

Proposed Rule Change Amending 

NYSE Arca Options Rule 5.3(j) 

October 14, 2009. 

On August 19, 2009, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 2 thereunder to amend the 

definition of Futures Reference Asset in 

NYSE Arca Rule 5.3(j)(1)(E) to permit 

options on Futures-Linked Securities to 

be based on products linked to CBOE 

Volatility Index Futures (‘‘VIX 

Futures’’). The proposed rule change 

was published for comment in the 

Federal Register on September 11, 2009 

for a 21-day comment period.3 The 

Commission received no comment 

letters regarding the proposal. This 

order approves the proposed rule 

change. 

NYSE Arca Rule 5.3(j) designates the 

listing and trading of options on Equity 

Index-Linked Securities, CommodityLinked Securities, Currency-Linked 

Securities, Fixed Income Index-Linked 

Securities, Futures-Linked Securities, 

and Multifactor Index-Linked securities, 

collectively known as Index-Linked 

Securities (as defined in NYSE Arca 

Equities Rule 5.2(j)(6)) that are 

principally traded on a national 

securities exchange and an ‘‘NMS 

Stock’’ (as defined in Rule 600 of 

Regulation NMS under the Act). 

Futures-Linked Securities pay at 

maturity an amount of cash based on the 

performance of a ‘‘Futures Reference 

Asset,’’ currently defined as an index of 

futures on Treasury Securities, GSE 

Securities, supranational debt and debt 

of a foreign country or a subdivision 

thereof, or interest rate futures, or 

options or derivatives on any of the 

foregoing. The Exchange proposes to 

include VIX Futures in this definition. 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 4 and, in 

particular, the requirements of Section 6 

of the Act.5 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,6 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Currently, the Exchange will consider 

listing and trading options on IndexLinked Securities, including options on 

Futures-Linked Securities, provided the 

Index-Linked Securities meet the 

criteria for underlying securities set 

forth in NYSE Arca Rule 5.3(a)–(b). 

Underlying Index-Linked Securities 

must meet the criteria and guidelines for 

underlying securities set forth in Rule 

5.3(a); or the Index-Linked Securities 

must be redeemable at the option of the 

holder at least on a weekly basis 

through the issuer at a price related to 

the applicable underlying Reference 

Asset.7 After the addition of VIX 

Futures to the definition of a Futures 

Reference Asset in NYSE Arca Rule 

5.3(j)(1)(E), options on Index-Linked 

Securities, including options on Futures 

Linked Securities, would continue to be 

subject to all Exchange rules governing 

the trading of equity options 8 and the 

current continuing or maintenance 

listing standards applicable to the 

trading of options on Index-Linked 

Securities on NYSE Arca. The 

Commission also notes that it has 

previously approved an amendment to 

NYSE Arca Equities Rule 5.2(j)(6)(v) to 

add the VIX Futures to the definition of 

‘‘Futures Reference Asset’’ for the listing 

and trading of Futures-Linked 

Securities.9

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (SR–NYSEArca– 

2009–77) is hereby approved. 


jlentini on DSKJ8SOYB1PROD with NOTICES