30342 Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices 

19 17 CFR 200.30–3(a)(12). 

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. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

6See SR–NYSE–2009–45 (filed June 8, 2009). 

7See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–NYSE–2008–60 and SR–Amex 2008–62) 

(approving the Merger). 

8 15 U.S.C. 78f. 

9See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63) (approving the Equities 

Relocation). 

10See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63) (approving the Equities 

Relocation); Securities Exchange Act Release No. 

58833 (October 22, 2008), 73 FR 64642 (October 30, 

2008) (SR–NYSE–2008–106) and Securities 

Exchange Act Release No. 58839 (October 23, 2008), 

73 FR 64645 (October 30, 2008) (SR–NYSEALTR– 

2008–03) (implementing the Bonds Relocation); 

Securities Exchange Act Release No. 59022 

(November 26, 2008), 73 FR 73683 (December 3, 

2008) (SR–NYSEALTR–2008–10) (adopting 

amendments to NYSE Amex Equities Rules to track 

changes to corresponding NYSE Rules); Securities 

Exchange Act Release No. 59027 (November 28, 

2008), 73 FR 73681 (December 3, 2008) (SR– 

NYSEALTR–2008–11) (adopting amendments to 

Rule 62—NYSE Amex Equities to track changes to 

corresponding NYSE Rule 62). 

11See NYSE Amex Equities Rule 124(a). 

12 Id. Odd-lot orders are in effect netted against 

one another and executed; however, since the DMM 

is buying the same amount that he or she is selling, 

there is no economic consequence to the DMM in 

this type of pairing-off of orders. Any imbalance of 

buy or sell odd-lot market orders are executed 

should be submitted on or before July 

16, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority. 19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14972 Filed 6–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60139; File No. SR– 

NYSEAmex–2009–18] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending NYSE Amex 

Equities Rule 124 To Clarify the Pricing 

Methodology for the Odd-Lot Portion 

of a Part of a Round-Lot Order; Clarify 

the Systems Capable of Accepting PRL 

Orders; and Clarify the Systems 

Capable of Accepting a Good ‘Til 

Cancelled Order During the 

Implementation of Exchange System 

Enhancements 

June 18, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on June 8, 

2009, NYSE Amex LLC (the ‘‘Exchange’’ 

or ‘‘NYSE Amex’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 

NYSE Amex filed the proposed rule 

change pursuant to Section 19(b)(3)(A) 

of the Act 4 and Rule 19b–4(f)(6) 

thereunder,5 which renders it 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 Exchange proposes to: (i) Amend 

NYSE Amex Equities Rule 124 (Odd-Lot 

Orders) to clarify the pricing 

methodology for the odd-lot portion of 

a part of a round-lot (‘‘PRL’’) order; (ii) 

clarify the systems capable of accepting 

PRL orders; and (iii) clarify the systems 

capable of accepting a Good ‘Til 

Cancelled Order (‘‘GTC’’) during the 

implementation of Exchange system 

enhancements. The text of the proposed 

rule change is available at the Exchange, 

the Commission’s Public Reference 

Room, and http://www.nyse.com. 

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 

self-regulatory organization 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Amex LLC (‘‘NYSE Amex’’ or 

‘‘the Exchange’’), formerly the American 

Stock Exchange LLC, proposes to: (i) 

Amend NYSE Amex Equities Rule 124 

(Odd-Lot Orders) to clarify the pricing 

methodology for the odd-lot portion of 

a part of a round-lot (‘‘PRL’’) order; (ii) 

clarify the systems capable of accepting 

PRL orders; and (iii) clarify the systems 

capable of accepting a Good ‘Til 

Cancelled Order (‘‘GTC’’) during the 

implementation of Exchange system 

enhancements. The text of the proposed 

rule change is attached hereto as Exhibit 

5. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of the New York Stock Exchange 

LLC (‘‘NYSE’’).6

I. Background 

As described more fully in a related 

rule filing,7 NYSE Euronext acquired 

The Amex Membership Corporation 

(‘‘AMC’’) pursuant to an Agreement and 

Plan of Merger, dated January 17, 2008 

(the ‘‘Merger’’). In connection with the 

Merger, the Exchange’s predecessor, the 

American Stock Exchange LLC 

(‘‘Amex’’), a subsidiary of AMC, became 

a subsidiary of NYSE Euronext now 

called NYSE Amex LLC, and continues 

to operate as a national securities 

exchange registered under Section 6 of 

the Securities Exchange Act of 1934, as 

amended (the ‘‘Act’’).8 The effective 

date of the Merger was October 1, 2008. 

In connection with the Merger, on 

December 1, 2008, the Exchange 

relocated all equities trading conducted 

on the Exchange legacy trading systems 

and facilities located at 86 Trinity Place, 

New York, New York, to trading systems 

and facilities located at 11 Wall Street, 

New York, New York (the ‘‘Equities 

Relocation’’). The Exchange’s equity 

trading systems and facilities at 11 Wall 

Street (the ‘‘NYSE Amex Trading 

Systems’’) are operated by the NYSE on 

behalf of the Exchange.9

As part of the Equities Relocation, 

NYSE Amex adopted NYSE Rules 1– 

1004, subject to such changes as 

necessary to apply the Rules to the 

Exchange, as the NYSE Amex Equities 

Rules to govern trading on the NYSE 

Amex Trading Systems.10 The NYSE 

Amex Equities Rules, which became 

operative on December 1, 2008, are 

substantially identical to the current 

NYSE Rules 1–1004 and the Exchange 

continues to update the NYSE Amex 

Equities Rules as necessary to conform 

with rule changes to corresponding 

NYSE Rules filed by the NYSE. 

II. Background of NYSE Amex Equities 

Rule 124 

Currently, odd-lot orders on the 

Exchange are processed and executed 

systemically by an Exchange system 

designated solely for odd-lot orders (the 

‘‘Odd-lot System’’).11 The Odd-lot 

System executes all odd-lot orders 

against the Designated Marker Maker 

(‘‘DMM’’) as the contra party.12


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against the DMM, up to the size of the round-lot 

transaction or the bid/offer size which ever is less. 13The volume limitation in section (c) of the rule 

is defined as the lesser of either the number of 

shares in the last round-lot transaction or the 

number of shares available at the national best bid 

(in the case of an odd-lot order to sell), or the 

national best offer (in the case of an odd-lot order 

to buy). 14Pursuant to NYSE Amex Equities Rule 124(d) 

odd-lot limit orders that are non-marketable upon 

receipt that become marketable are eligible to be 

netted and executed at the price of the next roundlot transaction. If an odd-lot limit order does not 

receive an execution pursuant to the netting 

provision, then the order is eligible to be executed, 

at its limit price, subject to the volume limitation 

of section (c) of the rule. 15As with marketable odd-lot orders, nonmarketable odd-lot limit orders which would 

otherwise receive a partial execution will be 

executed in full. A non-marketable odd-lot limit 

order that becomes marketable, that remains 

unexecuted within 30 seconds of receipt will be 

executed, in time priority of receipt, except that the 

order will be executed at its limit price. 16See Securities Exchange Act Release No. 56551 

(September 27, 2007), 73 FR 56415 (October 3, 

2007) (SR–NYSE–2007–82); See also Securities 

Exchange Act Release No. 49536 (April 7, 2004), 69 

FR 19890, 19893 (April 14, 2004) (SR–NYSE–2003– 

37); Securities Exchange Act Release No. 49745 

(May 20, 2004), 69 FR 29998 (May 26, 2004) (SR– 

NYSE–2003–37). 

17See Securities Exchange Act Release No. 58184 

(July 17, 2008), 73 FR 42853 (July 23, 2008) (SR– 

NYSE–2008–46) (Key changes in this filing served 

to enhance the Exchange technology). 

18See Securities Exchange Act Release No. 59614 

(March 20, 2009), 74 FR 13501 (March 27, 2009) 

(SR–NYSEALTR–2009–27). 

19This example assumes that the odd-lot portion 

of the PRL had priority of execution in the Odd-lot 

System because its original order entry time was 

12:00:00. 

Pursuant to NYSE Amex Equities Rule 

124(c), after odd-lot market orders and 

marketable odd-lot limit orders are 

received by the Odd-lot System, they are 

automatically executed at the price of 

the next round-lot transaction in the 

subject security on the Exchange. 

Specifically, marketable odd-lot orders 

and marketable odd-lot limit orders are 

executed in time priority of receipt at 

the price of the next round-lot 

transaction, pursuant to the netting 

provision described in footnote 12. The 

imbalance of marketable odd-lot orders 

that do not receive an execution as a 

result of the netting provision are 

executed in time priority of receipt at 

the price of the National Best Bid or 

Offer (‘‘NBBO’’), subject to a volume 

limitation.13 Any imbalances of odd-lot 

limit orders that were non-marketable 

upon receipt that subsequently become 

marketable receive an execution at their 

limit price.14 Marketable odd-lot orders, 

which would otherwise receive a partial 

execution pursuant to the volume 

limitation, are executed in full.15

Any marketable odd-lot orders that do 

not receive an execution because of the 

volume limitation are executed, in time 

priority of receipt at the price of the 

next round-lot transaction, following 

pricing and execution procedures 

described above. Marketable odd-lot 

orders (including odd-lot limit orders 

that were non-marketable upon receipt 

and subsequently become marketable) 

that remain unexecuted within 30 

seconds of receipt will be executed, in 

time priority of receipt, at the price of 

the NBBO (or at its limit price if the 

order is a non-marketable odd-lot limit 

order upon receipt that has become 

marketable). These orders are also 

subject to the volume limitation. 

Marketable odd-lot orders and nonmarketable odd-lot limit orders that 

have become marketable and remain 

unexecuted prior to the close of trading 

shall be executed, in time priority of 

receipt at the price of the closing 

transaction, subject to the netting 

provision and a volume restriction 

which is not to exceed the size of the 

closing transaction. 

PRL Pricing 

The Exchange believes that the most 

appropriate way to execute odd-lot 

orders is to represent them in the roundlot auction market where they would 

interact with all other market interest 

and be priced in accordance with 

supply and demand dynamics. The 

Exchange is committed to the goal of 

integrating odd-lots into the round-lot 

market and eliminating the separate 

handling of odd-lot and PRL 

transactions. However, until the 

requisite technology changes can be 

completed, the Exchange is proposing 

these modifications in order to further 

streamline the handling performed by 

its current systems. 

NYSE Amex Equities Rule 124 was 

amended as interim measures to 

accommodate the pricing and execution 

of odd-lot orders in a manner based on 

the prevailing market.16 Most recently, 

significant upgrades to the Exchange’s 

technology 17 made it possible for the 

Exchange systems that process orders 

sent to Display Book, the Exchange 

matching engine, to price odd-lot orders 

sent to the post that were consistent 

with the provisions of NYSE Amex 

Equities Rule 124(c) and (d). 

On March 11, 2009, the Exchange 

filed a proposed rule change with the 

Commission to amend NYSE Amex 

Equities Rule 124.40 to allow the oddlot portion of PRLs to be executed in the 

Odd-lot System pursuant to the pricing 

provisions of NYSE Amex Equities Rule 

124.18 As modified, the odd-lot portion 

of the PRL retains the time stamp of its 

original entry as a PRL and is sequenced 

for execution based on the initial entry 

time of the PRL. Once all round lot 

components of the PRL are fully 

executed, the odd-lot portion of the 

order is executed at a price consistent 

with other odd-lot orders subject to the 

provisions of NYSE Amex Equities Rule 

124(c) and (d). 

Example: A marketable order to sell 399 

shares of security XYZ is received by 

Exchange systems at 12:00:00. The 99 share 

portion of the order is eligible for execution 

only after the 300 share portion of the PRL 

order is sold. See table below. 

Time of 

execution 

Number of 

shares 

Price of 

execution Customer receives 

12:00:01 ........ 100 $30.22 Report of Execution 100 shares at a price of $30.22. 

12:01:00 ........ 100 30.21 Report of Execution 100 shares at a price of $30.21. 

12:01:47 ........ 100 30.22 Report of Execution 100 shares at a price of $30.22. 

12:01:48 ........ 99 1930.23 Report of Execution 99 shares at a price of $30.23. 

In the filing to amend the execution 

of PRL orders, the Exchange explained 

that the system enhancements to 

Display Book would be progressively 

implemented on a security by security 

basis. On March 16, 2009, the Exchange 

commenced migration of symbols to the 

enhanced systems. This migration is 

ongoing and PRL orders submitted to 

the Display Book in those migrated 

symbols are executed as described 

above. The list of securities that are 

operating on the enhanced systems, are 

available on the Exchange’s Web site at: 

http://www.nyse.com/attachment/ 

SDBK_SecurityRolloutList.xls. 

Systems that process orders sent to 

the Exchange to be executed by a Floor 

broker, collectively called Exchange 

Floor broker systems, are also being 

upgraded to provide improved 

functionality. The Exchange Floor 

broker systems can be divided into two 

categories—booth systems (Broker 


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20 15 U.S.C. 78f(b)(5). 

21 15 U.S.C. 78s(b)(3)(A). 

22 17 CFR 240.19b–4(f)(6). 

23 15 U.S.C. 78s(b)(3)(A). 

24 17 CFR 240.19b–4(f)(6). 

25See id. In addition, Rule 19b–4(f)(6)(iii) 

requires a self-regulatory organization to provide 

the Commission with written notice of its intent to 

file the proposed rule change, along with a brief 

descriptiption 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. The Exchange 

has satisfied this requirement. 

26For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition and capital formation. 15 

U.S.C. 78c(f). 

Booth Support Systems or ‘‘BBSS’’) and 

hand-held devices. As of yet, neither 

system has been provided with the 

newer PRL pricing functionality. As a 

result, PRLs sent to BBSS are processed 

pursuant to the prior provisions of 

NYSE Amex Equities Rule 124, 

Supplemental Material .40, which 

requires the odd-lot portion of a PRL to 

be executed only where no round lot 

portion thereof is cancelled and at the 

same price of the last round lot 

execution that would complete the 

round lot portion of the PRL. 

Example: An order to sell 399 shares of 

security XYZ is received by Exchange Floor 

broker systems at 12:00:00. The 99 share 

portion of the order is eligible for execution 

only after the 300 share portion of the PRL 

order is sold. See table below. 

Time of 

execution 

Number of 

shares 

Price of 

execution Customer receives 

12:00:01 ........ 100 $30.22 Report of Execution 100 shares at a price of $30.22. 

12:01:00 ........ 100 30.21 Report of Execution 100 shares at a price of $30.22. 

12:01:47 ........

12:01:47 ........

100 

99 

30.22 

30.22 

Report of Execution 199 shares at a price of $30.22. 

Until such time as the Exchange Floor 

broker systems can be enhanced to 

execute PRL orders pursuant to NYSE 

Amex Equities Rule 124(c) and (d), the 

Exchange proposes to amend the 

provisions of NYSE Amex Equities Rule 

124.40 to provide that the odd-lot 

portion of PRL orders transmitted to a 

Floor broker via the Floor broker booth 

system for execution will be executed at 

the same price of the last round lot 

execution that would complete the 

round lot portion of the PRL. 

The Exchange anticipates that the 

enhancements to the Exchange Floor 

broker systems will be completed no 

later than the end of the fourth quarter 

of 2009. 

Systems Capable of Accepting PRL and 

GTC Orders 

During the implementation of the 

Exchange Floor broker system 

enhancements, any PRL orders and GTC 

orders sent to a Floor broker’s hand-held 

device will be rejected. Furthermore, 

GTC orders in symbols that have been 

migrated to the enhanced systems noted 

above will not be accepted in any broker 

system. PRL and GTC orders (in nonmigrated symbols) must be transmitted 

to BBSS where the customer seeks to 

utilize a Floor broker’s business 

expertise in the execution of such 

orders. Once the full migration has been 

completed, GTC orders will not be 

accepted by broker systems or broker 

hand-held devices and PRL orders will 

not be accepted by broker hand-held 

devices. Therefore, the Exchange 

proposes to amend NYSE Amex Equities 

Rule 13 (Definitions of Orders) to state 

that GTC orders will not be accepted by 

broker hand-held devices or broker 

systems. Similarly, the Exchange 

proposes to amend NYSE Amex Equities 

Rule 124.40 to state that PRL orders will 

not be accepted by broker hand-held 

devices. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 20 that an 

Exchange have rules that are 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 

instant proposal is in keeping with these 

principles in that it seeks to clarify and 

temporarily modify the Exchange’s 

pricing methodology for PRL orders to 

provide customers the benefit of the 

Floor broker’s business expertise while 

the Exchange completes required system 

enhancements. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 21 and Rule 

19b–4(f)(6) thereunder.22 Because the 

foregoing proposed rule change: (1) 

Does not significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) by its 

terms does not become operative for 30 

days of this 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 23 and subparagraph (f)(6) of 

Rule 19b–4 thereunder.24

A proposed rule change filed under 

Rule 19b–4(f)(6) does not normally 

become operative prior to 30 days after 

the date of filing.25 However, Rule 19b– 

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

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposal may become 

operative immediately upon filing. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposed rule change seeks 

to avoid investor confusion by clarifying 

the systems capable of executing PRL 

and GTC orders and the pricing 

methodology for such orders. Therefore, 

the Commission designates the 

proposed rule change operative upon 

filing.26

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 


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27 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 17 CFR 240.19b–7. 

3 7 U.S.C. 7a–2(c). 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance 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–NYSEAmex–2009–18 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–NYSEAmex–2009–18. 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 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–NYSEAmex–2009–18 and 

should be submitted on or before July 

16, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14957 Filed 6–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60143; File No. SR–OC– 

2009–02] 

Self-Regulatory Organizations; One 

Chicago, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Widening the Bid/Ask 

Spread for Quoting Market-Makers 

June 19, 2009. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–7 under the Act 2

notice is hereby given that on June 9, 

2009, One Chicago, LLC (‘‘OneChicago’’ 

or ‘‘OCX’’) 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 self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. OneChicago 

also has filed the proposed rule change 

with the Commodity Futures Trading 

Commission (‘‘CFTC’’) under Section 

5c(c) of the Commodity Exchange Act 3

on June 9, 2009. 

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

OneChicago is proposing to amend its 

Rule 515(n)(C)(1)(y) to change the 

quoting requirements for Market 

Makers. Additionally, OCX is proposing 

to amend its ‘‘Market Maker Registration 

Policy and Procedures’’ to reflect this 

amendment. 

Presently a market-maker, when 

providing quotations, quotes with a 

maximum bid/ask spread of no more 

than the greater of $0.20 (the ‘‘20 Cent 

Spread’’) or 150% of the bid/ask spread 

in the primary market for the security 

underlying each Contract (the ‘‘150% 

Spread’’). The proposed rule change 

will raise the 20 Cent Spread to $5. A 

copy of this filing is available on the 

Exchange’s Web site at http:// 

www.onechicago.com, at the Exchange’s 

principal office 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 

self-regulatory organization 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. 

OneChicago 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 purpose of this proposed rule 

change is to modify the quoting 

requirements for OCX market makers. 

Presently a market-maker, when 

providing quotations, quotes with a 

maximum bid/ask spread of no more 

than the greater of the 20 Cent Spread 

or the150% Spread. The proposed rule 

change will raise the 20 Cent Spread to 

$5. Currently, the volatile market 

conditions have caused several 

OneChicago market makers to either 

stop quoting in a particular name or 

seek relief from OneChicago to widen 

their quotes to a competitive level, 

which could be $5. 

The proposed rule change would 

harmonize the maximum bid/ask spread 

requirements with those of the listed 

options exchanges, e.g. the Chicago 

Board Options Exchange (CBOE) and 

the International Securities Exchange 

(ISE). Both of those exchanges permit 

‘‘bidding and offering so as to create 

differences of no more than $5 between 

the bid and offering following the 

opening rotation * * *.’’ 

The Exchange believes that the 20 

Cent Spread is no longer necessary or 

appropriate considering the increased 

volatility of the underlying securities. 

The Exchange further believes that the 

current 20 Cent Spread could have a 

negative effect on investors because 

market makers, rather than complying 

with these requirements, will stop 

quoting a security futures product 

altogether, leaving the investor with the 

possibility of an illiquid position. The 

Exchange has been able to mitigate this 

problem by granting ‘‘relief’’ from the 20 

Cent Spread ‘‘during unusual market 


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