Federal Register / Vol. 74, No. 118 / Monday, June 22, 2009 / Notices 29525 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78a et seq. 

5 17 CFR 240.19h–1. 

6Exchange Act Rule 19h–1(a)(2), 17 CFR 

240.19h–1(a)(2), provides that a notice need not be 

filed with the Commission, pursuant to Exchange 

Act Rule 19h–1, regarding an associated person 

subject to a statutory disqualification if the person’s 

activities with respect to the member are solely 

clerical or ministerial in nature and such person 

does not have access to funds, securities, or books 

and records. 

7Exchange Act Rule 19h–1(a)(3), 17 CFR 

240.19h–1(a)(3), provides that a notice need not be 

filed with the Commission, pursuant to Exchange 

Act Rule 19h–1, regarding a person or member 

subject to a statutory disqualification if the person 

or member proposed for continued association or 

membership, respectively, satisfies the 

requirements of Exchange Act Rule 19h–1(a)(3)(i)– 

(vi). 

8See Securities Exchange Act Release No. 56614 

(October 4, 2007), 72 FR 58132 (October 12, 2007) 

(SR–CBOE–2007–14). 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–14673 Filed 6–18–09; 11:15 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60106; File No. SR–CBOE– 

2009–033] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Proposed Rule Change Regarding 

Statutory Disqualification Procedures 

June 12, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’),2 and Rule 19b–4 

thereunder,3 notice is hereby given that 

on May 26, 2009, the Chicago Board 

Options Exchange, Incorporated 

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

the Securities and Exchange 

Commission (the ‘‘SEC’’ or 

‘‘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 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing to amend 

its rule regarding members and 

associated persons who are or become 

subject to a statutory disqualification. 

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.cboe.org/legal), at the 

Exchange’s Office of the Secretary, 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 those 

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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Exchange Rule 3.18(a) provides that 

the Exchange may determine not to 

permit a member or an associated 

person of a member who is or becomes 

subject to a statutory disqualification 

under the Exchange Act,4 to continue in 

membership or in association with a 

member. Under Rule 3.18(b), a member 

or an associated person who is or 

becomes subject to a statutory 

disqualification and wishes to continue 

in membership or in association with a 

member must submit an application to 

the Exchange to do so. When the 

Exchange receives such an application, 

or otherwise becomes aware that a 

member or an associated person is 

subject to a statutory disqualification, 

the Exchange is required to appoint a 

panel to conduct a hearing under the 

procedures set forth in Rule 3.18 to 

determine whether to allow the member 

or associated person to continue in 

membership or in association with a 

member. The purpose of this rule filing 

is to expand the ability of the Exchange 

to waive the requirement to conduct a 

hearing under Rule 3.18 if the Exchange 

intends to grant a member’s application 

for continued membership or an 

associated person’s application for 

continued association with a member. 

Exchange Act Rule 19h–1 5 prescribes 

the form and content of, and establishes 

the mechanism by which the 

Commission reviews, proposals 

submitted by self-regulatory 

organizations (‘‘SROs’’), such as the 

Exchange, to allow a member or 

associated person subject to a statutory 

disqualification to become or remain a 

member or associated with a member. 

Among other things, Exchange Act Rule 

19h–1 provides for Commission review 

of notices filed by SROs proposing to 

admit any person to, or continue any 

person in, membership or association 

with a member, notwithstanding a 

statutory disqualification. However, 

Exchange Act Rule 19h–1(a)(2) 6 and 

Exchange Act Rule 19h–1(a)(3) 7 provide 

that for certain persons, and in limited 

circumstances, a notice does not need to 

be filed. 

Interpretation and Policy .03 to Rule 

3.18 currently permits the Exchange to 

waive the hearing provisions of Rule 

3.18 when the Exchange intends to grant 

an associated person’s application for 

continued association and the Exchange 

is not required to make a notice filing 

with the Commission under Exchange 

Act Rule 19h–1(a)(2).8 The Exchange is 

proposing to expand its ability to waive 

the hearing provisions of Rule 3.18 to 

when the Exchange intends to grant a 

member’s or associated person’s 

application for continued membership 

or association and the Exchange is not 

required to make a notice filing with the 

Commission under Exchange Act Rule 

19h–1(a)(3). 

The Exchange is also proposing to 

waive the hearing provisions of Rule 

3.18 when the Exchange determines to 

allow a member to continue in 

membership, or an associated person to 

continue in association with a member, 

and the Exchange determines that it is 

otherwise appropriate to waive the 

hearing provisions of Rule 3.18 under 

the circumstances. For example, a 

settlement agreement for a disciplinary 

matter involving CBOE and multiple 

regulators or SROs could fully address 

statutory disqualification issues, 

obviating the need for a CBOE hearing 

on those same issues. The Exchange 

might also choose to exercise this 

waiver authority when no regulatory 

purpose would be served by conducting 

a hearing under Rule 3.18, such as when 

the Commission initiated the 

proceeding regarding the underlying 

conduct that resulted in the statutory 

disqualification and the sanction 

imposed in the matter does not inhibit 

the applicable party’s ability to continue 

as an Exchange member or associated 

person. 

Interpretation and Policy .01 to Rule 

3.18 (‘‘Rule 3.18.01’’) provides that the 

Exchange may waive the provisions of 

Rule 3.18 when a proceeding is pending 

before another SRO to determine 

whether to permit a member or an 

associated person to continue in 

membership or association with the 


pwalker on PROD1PC71 with NOTICES
29526 Federal Register / Vol. 74, No. 118 / Monday, June 22, 2009 / Notices 

9 15 U.S.C. 78f(b). 

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

11 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. 59881 

(May 7, 2009), 74 FR 22615 (May 13, 2009) 

(‘‘Commission’s Notice’’). 

4See Securities Exchange Act Release No. 59061 

(December 5, 2008), 73 FR 75778 (December 12, 

member notwithstanding a statutory 

disqualification. When the Exchange 

exercises this waiver authority, Rule 

3.18.01 currently provides that the 

Exchange Department of Financial and 

Sales Practice Compliance shall 

determine whether the Exchange will 

concur in any the Exchange Act Rule 

19h–1 filing made by another SRO. The 

Exchange is proposing to make two 

clarifying changes to this provision. 

First, the Exchange proposes to replace 

the reference to the ‘‘Department of 

Financial and Sales Practice 

Compliance’’ with the ‘‘Exchange’’ 

because the Exchange no longer has a 

department by that name. The Exchange 

is also proposing to include the words 

‘‘member or’’ in the last sentence of 

Rule 3.18.01 to clarify that the Exchange 

may concur in any Exchange Act Rule 

19h–1 filing made by another SRO with 

respect to a member or an associated 

person. This change is consistent with 

the rest of Rule 3.18.01. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Exchange Act,9 in general, 

and furthers the objectives of Section 

6(b)(5) of the Exchange Act,10 which 

requires, among other things, that the 

Exchange’s rules be designed to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and 

protect investors and the public interest. 

The Exchange believes that the 

proposed rule change would better 

enable the Exchange to streamline the 

administration of its statutory 

disqualification program and better 

protect investors and the public interest 

by focusing Exchange resources on 

circumstances sufficient to warrant a 

statutory disqualification hearing. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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 Exchange 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 self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such 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 Exchange 

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–CBOE–2009–033 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–CBOE–2009–033. 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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

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

Copies of the filing will also be available 

for inspection and copying at the 

principal office of CBOE. 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–CBOE– 

2009–033 and should be submitted on 

or before July 13, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14530 Filed 6–19–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60121, File No. SR–MSRB– 

2009–05] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Order Granting Approval of 

Proposed Rule Change Relating to the 

Subscription Service for Continuing 

Disclosure Documents Through the 

Electronic Municipal Market Access 

System (EMMA®) 

June 16, 2009. 

On April 22, 2009, the Municipal 

Securities Rulemaking Board (‘‘MSRB’’), 

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 establish a real-time 

subscription to the document collection 

of the continuing disclosure service of 

the MSRB’s Electronic Municipal 

Market Access system (‘‘EMMA’’). The 

proposed rule change was published for 

comment in the Federal Register on 

May 13, 2009.3 The Commission 

received no comment letters about the 

proposal. This order approves the 

proposed rule change. 

The Commission has previously 

approved the establishment of the 

continuing disclosure service of EMMA, 

which will commence operation on July 

1, 2009.4 The proposed rule change 


pwalker on PROD1PC71 with NOTICES