25584 Federal Register / Vol. 74, No. 101 / Thursday, May 28, 2009 / Notices 

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

2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 

by and hold discussions with 

representatives of the NRC staff, GEH, 

Dominion, and other interested persons 

regarding this matter. The 

Subcommittee will gather information, 

analyze relevant issues and facts, and 

formulate proposed positions and 

actions, as appropriate, for deliberation 

by the full Committee. 

Members of the public desiring to 

provide oral statements and/or written 

comments should notify the Designated 

Federal Official, Christopher Brown, 

(Telephone: 301–415–7111) five days 

prior to the meeting, if possible, so that 

appropriate arrangements can be made. 

Electronic recordings will be permitted 

only during those portions of the 

meeting that are open to the public. 

Detailed procedures for the conduct of 

and participation in ACRS meetings 

were published in the Federal Register 

on October 6, 2008 (73 FR 58268– 

58269). 

Further information regarding this 

meeting can be obtained by contacting 

the Designated Federal Official between 

6:45 a.m. and 3:30 p.m. (ET). Persons 

planning to attend this meeting are 

urged to contact the above named 

individual at least two working days 

prior to the meeting to be advised of any 

potential changes to the agenda. 

Dated: May 22, 2009. 

Cayetano Santos, 

Chief, Reactor Safety Branch A, Advisory 

Committee on Reactor Safeguards. 

[FR Doc. E9–12384 Filed 5–27–09; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold Closed Meetings 

on Wednesday, May 27, 2009 at 1 p.m. 

and Thursday, May 28, 2009 at 2 p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meetings. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meetings. 

Commissioner Casey, as duty officer, 

voted to consider the item listed for the 

Closed Meetings in closed sessions, and 

determined that no earlier notice of the 

May 27, 2009 Closed Meeting was 

possible. 

The subject matter of the Closed 

Meeting scheduled for Wednesday, May 

27, 2009 will be: Institution and 

settlement of injunctive actions; and 

other matters related to enforcement 

proceedings. 

The subject matter of the Closed 

Meeting scheduled for Thursday, May 

28, 2009 will be: Institution and 

settlement of injunctive actions; 

institution and settlement of 

administrative proceedings of an 

enforcement nature; an opinion; and 

other matters related to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: The Office of the Secretary at 

(202) 551–5400. 

Dated: May 21, 2009. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–12347 Filed 5–27–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59946; File No. SR–FINRA– 

2009–032] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Amendments 

to FINRA Rule 2360 (Options) 

Regarding Position Limits for Options 

on Exchange-Traded Funds and 

Registration Qualifications With 

Respect to Options Discretionary 

Accounts 

May 20, 2009. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on May 11, 

2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to amend FINRA 

Rule 2360 (Options) to (1) establish 

higher position limits for options on 

selected exchange-traded funds, (2) 

clarify the application of position limits 

to conventional options on exchangetraded funds, and (3) clarify the 

appropriate registration qualifications 

for accepting and reviewing the 

acceptance of options discretionary 

accounts. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. FINRA has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

parts of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The proposed rule change would add 

Supplementary Material to FINRA Rule 

2360 (Options) to (1) establish higher 

position limits for options on selected 

exchange-traded funds (‘‘ETFs’’) and (2) 

clarify the application of position limits 

to conventional options on ETFs. In 

addition, the proposed rule change 

would amend FINRA Rule 2360(b)(18) 

to clarify the appropriate registration 

qualifications for accepting and 

reviewing the acceptance of options 

discretionary accounts. 

Federal Register / Vol. 74, No. 101 / Thursday, May 28, 2009 / Notices 25585 

4A ‘‘conventional option’’ is an option contract 

not issued, or subject to issuance by, The Options 

Clearing Corporation. See FINRA Rule 2360(a)(9). 

Currently, position limits for standardized and 

conventional options are the same with respect to 

the same underlying security. 5See Rule 4.11 of the CBOE; Rule 412 of the ISE; 

Rule 1001 of NASDAQ OMX PHLX; Rule 904 of 

NYSE AMEX; Rule 6.8 of NYSE Arca; and Chapter 

III Section 7 of the BOX (collectively referred to as 

the ‘‘Options Exchanges’’). The Commission notes 

that the NASDAQ Options Market (‘‘NOM’’) also is 

an options exchange that has position limit rules 

that are consistent with the Options Exchanges. See 

Chapter III, Section 7 of the NOM rules. 

6Since 1999, FINRA has maintained position 

limit parity between conventional and standardized 

options on the same security. See Securities 

Exchange Act Release No. 40932 (January 11, 1999), 

64 FR 2930, 2931 (January 19, 1999). Prior to 1999, 

position limits on conventional options were three 

times greater than the limits for standardized 

options. See Securities Exchange Act Release No. 

40087 (June 12, 1998), 63 FR 33746 (June 19, 1998). 

7See FINRA Rule 2360(b)(3)(A)(viii)a.1. 

Conventional options are generally subject to a 

position limit equal to the greater of (i) the basic 

limit of 25,000 contracts or (ii) any standardized 

option position limit as set forth in Rule 

2360(b)(3)(A)(ii) through (v) (i.e., 50,000 to 250,000 

contracts) for which the underlying security 

qualifies. 

8See Securities Exchange Act Release No. 58932 

(November 12, 2008), 73 FR 69696 (November 19, 

2008) (Notice of Filing of Amendment No. 1 and 

Order Granting Accelerated Approval to a Proposed 

Rule Change, as Modified by Amendment No. 1; 

File No. SR–FINRA 2008–032). 

9See Regulatory Notice 08–78 (December 2008) 

(SEC Approves New Consolidated FINRA Rules). 

10See Letter from Melissa MacGregor, Vice 

President and Assistant General Counsel, Securities 

Industry and Financial Markets Association, to 

Florence E. Harmon, Acting Secretary, SEC, dated 

September 4, 2008. 

11See CBOE Rule 9.2.01 specifying that Options 

Principals are qualified by passing either the Series 

4 or the Series 9/10 and CBOE Rule 9.2.02 

specifying that the review of the acceptance of a 

discretionary account must be performed by a 

Series 4 qualified individual. 

12FINRA would leave unchanged the 

requirement that ‘‘frequent supervisory review by a 

ROP who is not exercising the discretionary 

authority’’ should be performed by a ROP (Series 

4) as stated in Amendment No. 1 to the Options 

Transfer Filing. 13 15 U.S.C. 78o–3(b)(6). 

Options on ETFs. FINRA Rule 

2360(b)(3) subjects standardized and 

conventional options 4 to one of five 

different position limits with the 

maximum limit of 250,000 contracts. 

FINRA’s position limits are consistent 

with those of the Options Exchanges.5

The Options Exchanges, however, have 

Supplementary Material that designates 

higher position limits for options on 

selected ETFs. The position limit for 

options on The DIAMONDS Trust (DIA) 

and the Standard and Poor’s Depositary 

Receipts Trust (SPY) is 300,000 

contracts. The position limit for options 

on The iShares Russell 2000 Index Fund 

(IWM) is 500,000 contracts, and the 

position limit for options on The 

PowerShares QQQ Trust (QQQQ) is 

900,000 contracts. FINRA proposes, in 

accordance with Rule 2360(b)(3)(A)(vi), 

to establish the same position limits on 

such options to ensure consistency with 

rules of the Options Exchanges. 

In addition, FINRA proposes to clarify 

that the position limits for conventional 

options on ETFs should be the same as 

position limits for other equity 

securities. Thus, if an ETF underlying a 

conventional option also underlies a 

standardized option, then the position 

limit on the conventional ETF option 

shall be the same as the position limit 

for the standardized ETF option.6

However, if an ETF underlying a 

conventional option does not also 

underlie a standardized option, then the 

position limit for the conventional ETF 

option shall be the basic limit of 25,000 

contracts.7 In order for such a 

conventional ETF option to qualify for 

a position limit greater than 25,000 

contracts, a member must apply for an 

increased position limit in accordance 

with FINRA Rule 2360(b)(3)(A)(viii)b by 

first demonstrating to FINRA’s Market 

Regulation Department that the 

underlying ETF security meets the 

standards for such higher options 

position limit and the initial listing 

standards for standardized options 

trading. 

Options Discretionary Accounts. On 

November 12, 2008, the SEC approved 

SR–FINRA–2008–032 (the ‘‘Options 

Transfer Filing’’), which adopted NASD 

Rules 2840 through 2853 regarding 

Trading in Index Warrants, Currency 

Index Warrants and Currency Warrants, 

2860 (Options), and 2865 (Security 

Futures) as FINRA Rules in the 

consolidated FINRA rulebook.8 The 

Options Transfer Filing renumbered 

NASD Rules 2840 through 2853 as 

FINRA Rules 2350 through 2359, NASD 

Rule 2860 as FINRA Rule 2360 and 

NASD Rule 2865 as FINRA Rule 2370 in 

the consolidated FINRA rulebook. The 

FINRA rules became effective on 

February 17, 2009.9

In response to a comment letter to the 

Options Transfer Filing,10 FINRA 

proposed in Amendment No. 1, 

consistent with the rules of the Chicago 

Board Options Exchange (‘‘CBOE’’), to 

amend FINRA Rule 2360(b)(18) to 

permit greater flexibility and allow a 

Limited Principal-General Securities 

Sales Supervisor (‘‘LP–GSSS’’) (Series 9/ 

10) in addition to a Registered Options 

Principal (‘‘ROP’’) (Series 4) to accept an 

options discretionary account.11 Also, 

consistent with the CBOE provision, 

FINRA retained the requirement that the 

review of the acceptance of a 

discretionary options account may only 

be performed by a ROP (Series 4).12

FINRA proposes to amend FINRA Rule 

2360(b)(18)(A)(i)b and (b)(18)(A)(ii) to 

ensure that the rule text more clearly 

reflects the policy approved in the 

Options Transfer Filing that either a 

ROP (Series 4) or a LP–GSSS (Series 9/ 

10) may accept an options discretionary 

account, but that the review of the 

acceptance must be performed by a ROP 

(Series 4). 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, such that 

FINRA can implement the proposed 

rule change immediately. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,13 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change regarding options 

on ETFs will promote consistent 

regulation by harmonizing FINRA’s 

position limits for options on ETFs with 

those of the Options Exchanges and 

clarifying the applicable position limits 

for conventional options on ETFs. In 

addition, FINRA believes that the 

proposed rule change regarding options 

discretionary accounts will clarify the 

appropriate registration qualifications 

that are required to approve and review 

the approval of such accounts. 

B. Self-Regulatory Organization’s 

Statement of Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments Regarding the 

Proposed Rule Changes Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Changes and Timing for 

Commission Action 

Because the foregoing rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

25586 Federal Register / Vol. 74, No. 101 / Thursday, May 28, 2009 / Notices 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and text of the 

proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. FINRA has satisfied this notice 

requirement. 

17 Id. 

18See supra note 5 and 11. 

19For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 14 and Rule 19b– 

4(f)(6) thereunder.15

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.16 However, Rule 19b– 

4(f)(6)(iii) 17 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. FINRA 

has requested that the Commission 

waive the 30-day operative delay. The 

Commission notes that FINRA’s 

proposal is substantially similar to the 

rules of the Options Exchanges and does 

not raise any new substantive issues.18

The Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver will 

allow FINRA to harmonize its rules with 

the rules of the Options Exchanges 

without undue delay. The Commission 

hereby grants FINRA’s request and 

designates the proposal operative upon 

filing.19

At any time within 60 days of the 

filing of such proposed rule change the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposal is 

consistent with the Act. Comments may 

be submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

No. SR–FINRA–2009–032 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File No. 

SR–FINRA–2009–032. This file number 

should be included on the subject line 

if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule changes between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of FINRA. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File No. 

SR–FINRA–2009–032 and should be 

submitted on or before June 18, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–12311 Filed 5–27–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59955; File No. SR–FINRA– 

2009–012] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change, as Modified 

by Amendment No. 1, To Implement an 

Interim Pilot Program With Respect to 

Margin Requirements for Certain 

Transactions in Credit Default Swaps 

May 22, 2009. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 11, 

2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items substantially have 

been prepared by FINRA. On May 19, 

2009, FINRA submitted Amendment 

No. 1 to the proposed rule change. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons and is 

simultaneously approving the proposed 

rule change as amended on an 

accelerated basis to establish an interim 

pilot program. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to adopt FINRA 

Rule 4240 (Margin Requirements for 

Credit Default Swaps). The proposed 

rule would implement an interim pilot 

program (the ‘‘Interim Pilot Program’’) 

with respect to margin requirements for 

transactions in credit default swaps 

(‘‘CDS’’) executed by a member 

(regardless of the type of account in 

which the transaction is booked), 

including those in which the offsetting 

matching hedging transactions 

(‘‘matching transactions’’) are effected 

by the member in CDS contracts that are 

cleared through the central counterparty 

clearing services of the Chicago 

Mercantile Exchange (the ‘‘CME’’). The 

proposed rule would expire on 

September 25, 2009. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA and at the 

Commission’s Public Reference Room.