Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices 30345 

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 


sroberts on PROD1PC70 with NOTICES
30346 Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices 

4Exchange Rule 515(n)(C)(1). 

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

6CBOE Rule 8.7(b)(iv)(C). 

7 ISE Rule 803(b)(4). 

8 15 U.S.C. 78s(b)(1). 9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

conditions,’’ 4 such as those in the 

current environment. Nevertheless, OCX 

believes that for the integrity of the 

marketplace, that the $5 spread be 

codified. 

2. Statutory Basis 

The proposed rule change is 

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

Act 5 in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to protect investors 

and the public interest, and to remove 

impediments to and perfect the 

mechanism for a free and open market 

and a national market system. Further, 

this proposed rule change is nearly 

identical to those of the CBOE 6 and the 

ISE 7 and therefore under Section 

6(h)(3)(C), the requirements for listing 

standards and conditions for trading for 

security futures must ‘‘be no less 

restrictive than comparable listing 

standards for options traded on a 

national securities exchange * * *.’’ 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

OneChicago does not believe that the 

proposed rule change will have an 

impact on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Comments on the OneChicago 

proposed rule change have not been 

solicited and none has been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change will 

become effective on June 9, 2009. At any 

time within 60 days of the date of 

effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refilled in accordance 

with the provisions of Section 19(b)(1) 

of the Act.8

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–OC–2009–02 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–OC–2009–02. 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–OC–2009–02 and should be 

submitted on or before July 16, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14958 Filed 6–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60146; File No. SR–ISE– 

2009–32] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of Proposed Rule 

Change Relating to the Penny Pilot 

Program 

June 19, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that, on June 11, 

2009, the International Securities 

Exchange, LLC (‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission (the ‘‘SEC’’ or the 

‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ISE proposes to amend its rules 

relating to a pilot program to quote and 

to trade certain options in pennies. The 

text of the proposed rule change is as 

follows, with deletions in [brackets] and 

additions in italics: 

Rule 710. Minimum Trading 

Increments 

(a) The Board may establish minimum 

trading increments for options traded on 

the Exchange. Such changes by the 

Board will be designated as a stated 

policy, practice, or interpretation with 

respect to the administration of this 

Rule 710 within the meaning of 

subparagraph (3)(A) of Section 19(b) of 

the Exchange Act and will be filed with 

the SEC as a rule change for 

effectiveness upon filing. Until such 

time as the Board makes a change in the 

increments, the following principles 

shall apply: 

(1) if the options contract is trading at 

less than $3.00 per option, $.05; and 

(2) if the options contract is trading at 

$3.00 per option or higher, $.10. 

(b) Minimum trading increments for 

dealings in options contracts other than 

those specified in paragraph (a) may be 

fixed by the Exchange from time to time 

for options contracts of a particular 

series. 


sroberts on PROD1PC70 with NOTICES