Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Notices 28081 

29See id. 30 15 U.S.C. 78f(b)(5). 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

Linkage, such a reference is no longer 

necessary and we thus propose to delete 

this reference to the Linkage Plan.29

Finally, Rule 10.12, Minor Rule Plan, 

describes certain violations which are 

part of an expedited disciplinary 

process, and their attendant fines. The 

exchange proposes to modify those 

violations which are related to the 

Linkage and make them applicable to 

the Plan and the proposed Rules. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 

(the ‘‘Act’’). The basis under the Act for 

this proposed rule change is found in 

Section 6(b)(5) of the Act,30 in that the 

proposed rule change is designed to 

promote just and equitable principles of 

trade, 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. In 

particular, the Exchange believes that 

adopting rules that implement the Plan 

will facilitate the trading of options in 

a national market system by establishing 

more efficient protection against tradethroughs and locked and crossed 

markets. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission will: 

(A) By order approve the proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 

No. SR–NYSEArca–2009–45 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2009–45. 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 also will 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 Number SR– 

NYSEArca–2009–45 and should be 

submitted on or before July 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13811 Filed 6–11–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60053; File No. SR–MSRB– 

2009–07] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to the Termination of 

the CDINet System 

June 5, 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 May 29, 

2009, the Municipal Securities 

Rulemaking Board (‘‘MSRB’’ or 

‘‘Board’’), 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 

MSRB. The MSRB has filed the proposal 

as a ‘‘non-controversial’’ rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act,3 and Rule 19b–4(f)(6) 

thereunder,4 which renders the proposal 

effective upon filing with 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 

The MSRB is proposing to terminate 

the MSRB’s CDINet system for material 

event notices received pursuant to 

Exchange Act Rule 15c2–12 on July 1, 

2009. The text of the proposed rule 

change is available on the MSRB’s Web 

site at (http://www.msrb.org/msrb1/ 

sec.asp), at the MSRB’s principal office, 

and at the Commission’s Public 

Reference Room. The full text of MSRB 

facilities is available at http:// 

www.msrb.org/msrb1/rulesandforms. 

28082 Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Notices 

5 See Exchange Act Release No. 59061 (December 

5, 2008), 73 FR 75778 (December 12, 2008) (File No. 

SR–MSRB–2008–05). 6 15 U.S.C. 78o–4(b)(2)(C). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). The MSRB has satisfied 

the five-day pre-filing requirement of Rule 19b– 

4(f)(6)(iii). 

9See Section 19(b)(3)(C) of the Act, 15 U.S.C. 

78s(b)(3)(C). 

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 

MSRB 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 MSRB 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 proposed rule change would 

terminate the MSRB’s CDINet system for 

material event notices received pursuant 

to Exchange Act Rule 15c2–12 on July 

1, 2009. CDINet is operated as a system 

of the MSRB’s Municipal Securities 

Information Library system. The 

Commission has previously approved 

the establishment of a continuing 

disclosure service of the MSRB’s 

Electronic Municipal Market Access 

system (‘‘EMMA’’), which will be 

placed into operation on July 1, 2009 

and will replace CDINet.5

In addition, the MSRB expects to 

commence operation of a pilot phase of 

the continuing disclosure service (the 

‘‘continuing disclosure pilot’’) on June 

1, 2009. The continuing disclosure pilot 

would permit voluntary submission and 

public dissemination of continuing 

disclosure documents prior to the 

commencement of operation of the 

permanent EMMA continuing 

disclosure service. The MSRB would 

view electronic submissions of material 

event notices to the continuing 

disclosure pilot as having been 

submitted to the MSRB for purposes of 

any existing continuing disclosure 

undertakings entered into consistent 

with Exchange Act Rule 15c2–12 

pursuant to which an issuer or obligated 

person has undertaken to provide such 

documents to the MSRB. The MSRB 

urges, but does not require, submitters 

currently using CDINet in connection 

with their material event notice filings 

to instead make submissions on or after 

June 1, 2009 to the continuing 

disclosure pilot, solely in electronic 

format, upon the launch of the 

continuing disclosure pilot until such 

time as all submissions must be made to 

the permanent EMMA continuing 

disclosure service. 

2. Statutory Basis 

The MSRB believes that the proposed 

rule change is consistent with Section 

15B(b)(2)(C) of the Act,6 which provides 

that the MSRB’s rules shall: 

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 regulating, clearing, 

settling, processing information with respect 

to, and facilitating transactions in municipal 

securities, to remove impediments to and 

perfect the mechanism of a free and open 

market in municipal securities, and, in 

general, to protect investors and the public 

interest. 

The MSRB believes that the proposed 

rule change is consistent with the Act. 

The replacement of CDINet with the 

continuing disclosure service of EMMA 

will remove impediments to and help 

perfect the mechanisms of a free and 

open market in municipal securities, 

assist in preventing fraudulent and 

manipulative acts and practices, and 

will in general promote investor 

protection and the public interest by 

ensuring significantly more efficient 

submissions of a broader, more 

comprehensive array of continuing 

disclosure documents to the MSRB and 

the broader, more efficient 

dissemination of such continuing 

disclosure documents to the public 

through the EMMA Web portal and to 

subscribers. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Board does not believe that the 

proposed rule change will impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. CDINet and the 

subscription service provided 

thereunder will be replaced on July 1, 

2009 by the continuing disclosure 

service of EMMA as a source of 

continuing disclosure documents to the 

general public through the EMMA Web 

portal and to subscribers through a 

continuing disclosure subscription 

service. The continuing disclosure 

subscription service will make 

continuing disclosure documents 

available on an equal basis without 

imposing restrictions on subscribers 

from re-disseminating such documents 

or otherwise offering value-added 

services and products based on such 

documents on terms determined by each 

subscriber. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change 

does not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

filing (or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest), the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 7 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.8

At any time within 60 days of the 

filing of the 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.9

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–MSRB–2009–07 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–MSRB–2009–07. This file 

number should be included on the 

Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Notices 28083 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3AUTOM is the Exchange’s electronic order 

delivery, routing, execution and reporting system, 

which provides for the automatic entry and routing 

of equity option and index option orders to the 

Exchange trading floor. See Exchange Rule 1080. 

See also proposed rule change SR–Phlx–2009–32 

which proposes to amend Rule 1080 to state, 

‘‘AUTOM and AUTO–X were replaced by the Phlx 

XL System, such that references to both terms refer 

to Phlx XL.’’ Therefore, in light of proposed rule 

change SR–Phlx–2009–32, references throughout 

this rule filing to AUTOM-delivered orders would 

be referenced as electronically delivered orders 

upon the approval of SR–Phlx–2009–32. 

4A cancel-replacement order is a contingency 

order consisting of two or more parts which require 

the immediate cancellation of a previously received 

order prior to the replacement of a new order with 

new terms and conditions. If the previously placed 

order is already filled partially or in its entirety the 

replacement order is automatically canceled or 

reduced by such number. See Exchange Rule 

1066(c)(7). 

5See Securities Exchange Act Release Nos. 53226 

(February 3, 2006), 71 FR 7602 (February 13, 2006) 

(SR–Phlx–2005–92); and 53670 (April 18, 2006), 71 

FR 21087 (April 24, 2006) (SR–Phlx–2006–21). 

6A 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. 

7See e.g. Exchange Rule 1080(b)(i)(A) ‘‘* * * is 

any order entered on behalf of a public customer, 

and does not include any order entered for the 

account of a broker-dealer, or any account in which 

a broker-dealer or an associated person of a brokerdealer has any direct or indirect interest.’’ 

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, 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 the MSRB. 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 

Number SR–MSRB–2009–07 and should 

be submitted on or before July 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13810 Filed 6–11–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60046; File No. SR–Phlx– 

–2009–44] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Cancellation Fee 

June 4, 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 June 1, 

2009, NASDAQ OMX PHLX, Inc. 

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

Securities and Exchange Commission 

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

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by the Exchange. 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 

The Exchange proposes to: (i) Increase 

the Cancellation Fee from $1.10 per 

order to $2.10 per order; (ii) modify the 

Cancellation Fee by limiting its 

applicability to cancelled AUTOMdelivered customer orders instead of all 

cancelled AUTOM-delivered orders; 

and (iii) specify the types of order 

activity that are exempt from the 

Cancellation Fee. The Exchange also 

proposes to amend an endnote to reflect 

recently approved Exchange By-Laws 

and a Rule. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.com/ 

NASDAQOMXPHLX/Filings/, 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 the proposed rule 

change is to amend the Cancellation Fee 

to assist the Exchange in recouping 

costs associated with a large number of 

order cancellations. Specifically, the 

costs arise from increased bandwidth 

and capacity concerns related to 

increased message traffic. 

The Exchange proposes to increase 

the Cancellation Fee from $1.10 per 

order for each cancelled AUTOMdelivered 3 order in excess of the 

number of orders executed on the 

Exchange by a member organization in 

a given month to $2.10 per order. The 

Exchange believes this increase will 

cover costs to the Exchange associated 

with system congestion resulting from a 

rising number of cancellation orders. 

Currently, the Exchange assesses a 

Cancellation Fee of $ 1.10 per order on 

member organizations for each 

cancelled AUTOM-delivered order in 

excess of the number of orders executed 

on the Exchange by that member 

organization in a given month. The 

Exchange calculates the Cancellation 

Fee by aggregating all orders and 

cancels received by the Exchange and 

totaling those orders by member 

organization. At least 500 cancellations 

must be made in a given month by a 

member organization in order for a 

member organization to be assessed the 

Cancellation Fee. The Cancellation Fee 

is not assessed in a month in which 

fewer than 500 AUTOM-delivered 

orders are cancelled. Simple cancels 

and cancel-replacement orders are the 

types of orders that are counted when 

calculating the number of AUTOMdelivered orders.4 Also, pre-market 

cancellations 5 are not included in the 

calculation of the Cancellation Fee as 

well as Complex Orders 6 that are 

submitted electronically. 

The Exchange proposes to modify the 

Cancellation Fee to limit its 

applicability to cancelled AUTOMdelivered customer 7 orders instead of 

all cancelled AUTOM-delivered orders. 

This proposal would assess the $2.10