54112 Federal Register / Vol. 74, No. 202 / Wednesday, October 21, 2009 / Notices 

3 15 U.S.C. 78s(b)(3)(A) [sic]. 

4 17 CFR 19b–4(f)(2). 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ISE proposes to adopt a fee for 

ISE market maker orders sent to the 

Exchange by Electronic Access Members 

(‘‘EAMs’’). The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.ise.com), at the 

principal office of the Exchange, 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, the 

Exchange 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. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to adopt a fee for ISE market 

maker orders sent to the Exchange by 

EAMs. Specifically, the Exchange 

proposes to adopt a fee of $0.20 per 

contract for such orders. Market maker 

orders sent to the Exchange by EAMs 

are currently charged per the Exchange’s 

market maker sliding scale. Market 

maker orders sent by EAMs, however, 

are essentially broker-dealer orders and 

thus should be billed at the rate the 

Exchange currently charges for brokerdealer orders. The Exchange treats 

broker-dealer orders as Firm Proprietary 

orders for the purpose of the Exchange’s 

fee schedule and charges a fee of $0.20 

per contract. ISE proposes to implement 

this fee change on October 1, 2009. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Exchange 

Act’’) for this proposed rule change is 

the requirement under Section 6(b)(4) 

that an exchange have an equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. In 

particular, the proposed fee change will 

align fees charged by the Exchange for 

market maker orders sent by EAMs with 

the fees charged by the Exchange for 

broker-dealer orders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose 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 on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3) of 

the Act 3 and Rule 19b–4(f)(2) 4

thereunder. 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 proposed rule 

change 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 

Number SR–ISE–2009–76 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 

Number SR–ISE–2009–76. 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 change 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, on official business days between 

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

of such filing will also be available for 

inspection and copying at the principal 

office of the Exchange. 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–ISE–2009– 

76 and should be submitted on or before 

November 12, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–25201 Filed 10–20–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60823; File No. SR– 

NYSEAmex–2009–59] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Order Granting Approval of 

Proposed Rule Change Amending 

NYSE Amex Options Rule 915 

October 14, 2009. 

On August 19, 2009, NYSE Amex, Inc. 

(‘‘NYSE Amex’’ 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 

Commentary .11(5) to NYSE Amex Rule 

915 to permit options on Futures-Linked 

Securities to be based on products 


jlentini on DSKJ8SOYB1PROD with NOTICES
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. 


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