4062 Federal Register / Vol. 74, No. 13 / Thursday, January 22, 2009 / Notices 

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

2 17 CFR 240.19b-4. 

3See Securities Exchange Act Release No. 59053 

(December 4, 2008), 73 FR 76078 (the ‘‘Notice’’). 

4According to ISE, at times, the Exchange is 

unable to list new products because existing PMMs 

are not interested in trading the options class. At 

other times, ISE must delist certain products due to 

lack of PMM interest. ISE represents that this occurs 

most frequently with respect to options on stocks 

that have pending corporate actions and options 

products that are not listed at any other options 

exchange. ISE believes that despite the lack of PMM 

interest, these products may be of interest to other 

market making firms at the Exchange. 

5Only CMMs that own or lease CMM Rights shall 

be eligible to be appointed as an Alternative PMM. 

That is, Electronic Access Members acting as 

market makers in the Second Market will not be 

eligible to be appointed as Alternative PMMs. 

6For example, Alternative PMMs would enjoy 

privileges that include, among other things, 

participation rights and small order execution 

preference while accepting responsibilities that 

include, among other things, the obligation to 

provide continuous quotations in the options class 

to which the Alternative PMM is appointed, and the 

obligation to conduct the opening rotation on a 

daily basis for as long as the Alternative PMM is 

appointed to that options class. 

7 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). 

8 15 U.S.C. 78f(b)(5). 

receives securities of another 

investment company as a dividend or as 

a result of a plan of reorganization of a 

company (other than a plan devised for 

the purpose of evading section 12(d)(1) 

of the Act); or (b) acquires (or is deemed 

to have acquired) securities of another 

investment company pursuant to 

exemptive relief from the Commission 

permitting such Underlying Fund to: (i) 

Acquire securities of one or more 

investment companies for short-term 

cash management purposes, or (ii) 

engage in interfund borrowing and 

lending transactions. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–1083 Filed 1–21–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: [74 FR 1734, January 

13, 2009]. 

STATUS: Closed Meeting. 

PLACE: 100 F Street, NE., Washington, 

DC. 

DATE AND TIME OF PREVIOUSLY ANNOUNCED

MEETING: Thursday, January 15, 2009 at 

1 p.m. 

CHANGE IN THE MEETING: Additional 

Item. 

The following item has been added to 

the Thursday, January 15, 2009 Closed 

Meeting agenda: 

A matter related to a financial 

institution. 

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. 552(b)(c)(7), (8) (9)(B) and and 17 

CFR 200.402(a)(7), (8) and (9)(B) permit 

consideration of the scheduled matter at 

the Closed Meeting. 

Commissioner Aguilar, as duty 

officer, determined that Commission 

business required the above change and 

that no earlier notice thereof was 

possible. 

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: January 15, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–1241 Filed 1–21–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59250; File No. SR–ISE– 

2008–90] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Order Approving Proposed Rule 

Change Relating to Alternative Primary 

Market Makers 

January 14, 2009. 

I. Introduction 

On November 21, 2008, the 

International Securities Exchange, LLC 

(‘‘ISE’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

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

of 1934 (the ‘‘Act’’),1 and Rule 19b–4 

thereunder,2 a proposed rule change 

relating to the introduction of 

Alternative Primary Market Makers 

(‘‘Alternative PMMs’’) on the Exchange. 

The proposed rule change was 

published for comment in the Federal 

Register on December 15, 2008.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to amend ISE 

Rule 802 to provide for Alternative 

PMMs. Currently, when the ISE lists 

new options classes, it allocates them to 

one of its Primary Market Makers 

(‘‘PMMs’’) under ISE Rule 802. Pursuant 

to power delegated to the Board, an 

Allocation Committee, which consists of 

representatives of Electronic Access 

Members, makes allocation decisions 

according to the guidelines contained in 

ISE Rule 802. Under ISE Rule 802, 

allocations are voluntary.4 To better 

enable the Exchange to list and retain 

options classes that PMMs do not wish 

to trade, ISE proposes to appoint 

Competitive Market Makers (‘‘CMMs’’) 

that meet certain qualifications as 

Alternative PMMs when none of the 

PMMs want an allocation.5

Under the proposal, if no PMMs or 

Second Market PMMs (as applicable) 

want the allocation, the Alternative 

PMMs would be offered the opportunity 

to serve as PMM in the options class in 

accordance with the Exchange’s regular 

allocation procedures. Once appointed 

to an options class, the Alternative 

PMM would have all of the 

responsibilities and privileges of a PMM 

under the ISE Rules with respect to all 

appointed options classes.6 If an 

Alternative PMM ceases trading of an 

options class, that options class will be 

reallocated by the Exchange. An 

Alternative PMM will not have any 

transferable rights in options classes to 

which it is appointed nor will it have 

any PMM voting rights. 

III. Discussion and Commission 

Findings 

After careful review, 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.7 In particular, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,8 which requires that an exchange 

have rules designed to promote just and 

equitable principles of trade, 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. 

The Commission believes that the 

proposed rule change, which is 

intended to allow the Exchange to 

allocate more new products and to 

facilitate the continued listing of 

existing products, is consistent with the 

Act. The Commission believes that the 

introduction of Alternative PMMs on 


rmajette on PRODPC74 with NOTICES
Federal Register / Vol. 74, No. 13 / Thursday, January 22, 2009 / Notices 4063 

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3An SQT is an Exchange Registered Options 

Trader (‘‘ROT’’) who has received permission from 

the Exchange to generate and submit option 

quotations electronically through an electronic 

interface with AUTOM via an Exchange approved 

proprietary electronic quoting device in eligible 

options to which such SQT is assigned. See 

Exchange Rule 1014(b)(ii)(A). 

4An RSQT is an ROT and participant in the 

Exchange’s electronic trading system, ‘‘Phlx XL’’ 

who has received permission from the Exchange to 

trade in options for his own account, and to 

generate and submit option quotations 

electronically from off the floor of the Exchange 

through AUTOM in eligible options to which such 

RSQT has been assigned. See Exchange Rule 

1014(b)(ii)(B). 

5A Complex Order is composed of two or more 

option components and is priced as a single order 

(a ‘‘Complex Order Strategy’’) on a net debit or net 

credit basis. See Exchange Rule 1080, Commentary 

.08. For a complete description of the Exchange’s 

Complex Order System, see Securities Exchange 

Act Release No. 58361 (August 14, 2008), 73 FR 

49529 (August 21, 2008) (SR–Phlx–2008–50). 

6See Securities Exchange Act Release No. 50100 

(July 27, 2004), 69 FR 46612 (August 3, 2004) (SR– 

Phlx–2003–59). 

7This proposal and the Exhibits attached hereto 

include amendments to the Exchange’s fee schedule 

that were submitted on December 30, 2008 as part 

of SR–Phlx–2008–86. Beginning with transactions 

settling on or after January 2, 2009, the Exchange 

will assess an option transaction charge of $0.22 per 

contract for ROTs, $0.24 per contract for Firms that 

submit proprietary orders, and $0.14 for Firm 

facilitation orders. The Commission notes that the 

preceding sentence refers to the ‘‘Summary of 

Equity Option, and MNX, NDX, RUT and RMN 

Charges’’ on the fee schedule as amended by File 

No. Phlx–2008–86. 

8The Commission notes that prior to this filing, 

Phlx did not assess transaction charges for Complex 

Orders. 

the Exchange should add liquidity to 

the market in the options classes that 

PMMs on the Exchange decline to seek 

an allocation, and therefore should 

provide trading opportunities that 

should benefit all market participants. 

In addition, the Commission notes that 

Alternative PMMs will have all of the 

responsibilities and all of the privileges 

of a PMM under the ISE’s rules with 

respect to all appointed options classes. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–ISE–2008–90) 

be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–1230 Filed 1–21–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59097; File No. SR–FINRA– 

2008–057] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Update Rule CrossReferences and Make Other Various 

Non-Substantive Technical Changes to 

FINRA Rules 

Correction 

In notice document E8–30319 

beginning on page 78412 in the issue of 

Monday, December 22, 2008, make the 

following correction: 

On page 78412, the subject should 

read as set forth above. 

[FR Doc. Z8–30319 Filed 1–21–09; 8:45 am] 

BILLING CODE 1505–01–D 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59247; File No. SR–Phlx– 

2008–87] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending the 

Phlx Fee Schedule 

January 14, 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 December 

31, 2008, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Summary of Equity Option, and MNX, 

NDX, RUT and RMN Charges; Summary 

of Index Option Charges; and Summary 

of U.S Dollar-Settled Foreign Currency 

Option Charges fee schedules. 

Specifically, the Exchange proposes to 

assess an option transaction charge of 

$0.08 per contract side for specialists 

and Registered Options Traders 

(‘‘ROTs’’), including Streaming Quote 

Traders (‘‘SQTs’’) 3 and Remote 

Streaming Quote Traders (‘‘RSQTs’’) 4

on contracts that are executed 

electronically as part of a Complex 

Order 5 in equity options on the 

Exchange’s electronic trading platform 

for options, Phlx XL.6 Market 

participants other than specialists and 

ROTs would be assessed the applicable 

current equity options transaction 

charge. 

The Exchange proposes to assess any 

applicable option transaction charges to 

participants, including specialists and 

ROTs, on contracts in Index Options 

and U.S. Dollar-Settled Foreign 

Currency Options that are executed 

electronically as part of a Complex 

Order.7

This proposal is effective upon filing 

and will be implemented for 

transactions settling on or after January 

2, 2009. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/micro.

aspx?id=PHLXRulefilings. 

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 the proposed rule 

change is to provide an incentive for 

specialists and ROTs to provide 

liquidity in Complex Orders sent to the 

Exchange for execution, and to enhance 

Exchange revenues, by assessing an 

equity option transaction charge of 

$0.08 per contract side for specialists 

and ROTs instead of the current 

applicable charges that apply to simple 

option transactions in equity options.8

Respecting Complex Orders in equity 

options for other market participants, 

the equity option transaction charges in 

effect on the Exchange for simple orders 

would be assessed. 

Respecting Complex Orders in index 

and foreign currency options, the index 

option and foreign currency option 


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