Federal Register / Vol. 74, No. 123 / Monday, June 29, 2009 / Notices 31077 

6 17 CFR 200.30–3(a)(27). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Currently, under subsection (a)(xxxiv) to Rule 

1001A, the Exchange has authority to list Mini-NDX 

options at $2.50 strike price intervals. 

II. Rule 601(a) 

A. Equity Securities for Which 

Transaction Reports Shall be Required 

by the Plan. 

Not applicable. 

B. Reporting Requirements 

Not applicable. 

C. Manner of Collecting, Processing, 

Sequencing, Making Available and 

Disseminating Last Sale Information 

Not applicable. 

D. Manner of Consolidation 

Not applicable. 

E. Standards and Methods Ensuring 

Promptness, Accuracy and 

Completeness of Transaction Reports 

Not applicable. 

F. Rules and Procedures Addressed to 

Fraudulent or Manipulative 

Dissemination 

Not applicable. 

G. Terms of Access to Transaction 

Reports 

Not applicable. 

H. Identification of Marketplace 

Execution 

Not applicable. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed 

Eleventh Charges Amendment 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–CTA–2008–01 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–CTA–2008–01. 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 Plan amendment that 

are filed with the Commission, and all 

written communications relating to the 

Plan amendment 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 CTA Plan amendment also 

will be available for inspection and 

copying at the principal office of the 

CTA. 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–CTA–2008–01 and should 

be submitted on or before July 20, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–15223 Filed 6–26–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60156; File No. SR–Phlx– 

2009–46] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX, Inc. Relating to $1 Strikes 

for Reduced Value Nasdaq 100 Options 

(MNX) 

June 22, 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 12, 

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 and 

II 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 amend 

Phlx Rules 1012 (Series of Options 

Open for Trading) and 1101A (Terms of 

Options Contracts) to allow the 

Exchange to list options that are based 

on 1/10th the value of the Nasdaq-100 

Index and are known as Reduced Value 

Nasdaq 100 Options, at $1 strike price 

intervals. 

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 

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 

The purpose of the proposed rule 

change is to amend Phlx Rules 1012 

(Series of Options Open for Trading) 

and 1101A (Terms of Options Contracts) 

by adding a new interpretation that 

would allow the Exchange to list 

options that are based on 1/10th the 

value of the Nasdaq-100 Index (‘‘NDX’’) 

and are known as Reduced Value 

Nasdaq 100 Options (‘‘MNX’’ or ‘‘MiniNDX’’), at $1 or greater strike price 

intervals.4

Specifically, the Exchange proposes 

that the minimum strike price interval 

Mini-NDX options will be $1 or greater. 

The Exchange believes that $1 strike 

price intervals in Mini-NDX option 

series will provide investors with 

greater flexibility by allowing them to 


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31078 Federal Register / Vol. 74, No. 123 / Monday, June 29, 2009 / Notices 

5See Securities Exchange Act Release Nos. 58924 

(November 10, 2008), 73 FR 68464 (November 18, 

2008) (SR–CBOE–2008–96) (approval order); 58997 

(November 21, 2008), 73 FR 72887 (December 1, 

2008) (SR–ISE–2008–88) (notice of filing and 

immediate effectiveness); and 59129 (December 22, 

2008), 73 FR 79945 (December 30, 2008) (SR–BSE– 

2008–57) (notice of filing and immediate 

effectiveness). 

6This is consistent with Rule 1101A(a)(xxxv). 

7 15 U.S.C. 78f(b). 

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

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b4(f)(6)(iii) requires the self-regulatory organization 

to submit to the Commission written notice of its 

intent to file the proposed rule change, along with 

a brief description 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. 

11For 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. See 

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

establish positions that are better 

tailored to meet their investment 

objectives. The rule changes proposed 

herein are consistent with existing rules 

and practices that allow other options 

exchanges to list and trade Mini-NDX 

options at $1 or greater strike price 

intervals.5

For initial series, the Exchange would 

list at least two strike prices above and 

two strike prices below the current 

value of the MNX at or about the time 

a series is opened for trading on the 

Exchange. As part of this initial listing, 

the Exchange would list strike prices 

that are within five (5) points from the 

closing value of the MNX on the 

preceding day. 

As for additional series, the Exchange 

would be permitted to add additional 

series when the Exchange deems it 

necessary to maintain an orderly 

market, to meet customer demand or 

when the underlying MNX moves 

substantially from the initial exercise 

price or prices. To the extent that any 

additional strike prices are listed by the 

Exchange, such additional strike prices 

shall be within thirty percent (30%) 

above or below the closing value of the 

MNX. The Exchange would also be 

permitted to open additional strike 

prices that are more than 30% above or 

below the current MNX value provided 

that demonstrated customer interest 

exists for such series, as expressed by 

institutional, corporate or individual 

customers or their brokers. MarketMakers trading for their own account 

would not be considered when 

determining customer interest. In 

addition to the initial listed series, the 

Exchange may list up to sixty (60) 

additional series per expiration month 

for each series in Mini-NDX options. In 

addition, the Exchange confirms that it 

shall not list LEAPS on Reduced Value 

Nasdaq 100 Options at intervals less 

than $2.50.6

The Exchange is also proposing to set 

forth a delisting policy with respect to 

Mini-NDX options. Specifically, the 

Exchange would, on a monthly basis, 

review series that are outside a range of 

five (5) strikes above and five (5) strikes 

below the current value of the MNX and 

delist series with no open interest in 

both the put and the call series having 

a: (i) Strike higher than the highest 

strike price with open interest in the put 

and/or call series for a given expiration 

month; and (ii) strike lower than the 

lowest strike price with open interest in 

the put and/or call series for a given 

expiration month. 

Notwithstanding the proposed 

delisting policy, customer requests to 

add strikes and/or maintain strikes in 

Mini-NDX options in series eligible for 

delisting shall be granted. 

Further, in connection with the 

proposed delisting policy, if the 

Exchange identifies series for delisting, 

the Exchange shall notify other options 

exchanges with similar delisting 

policies regarding eligible series for 

listing, and shall work with such other 

exchanges to develop a uniform list of 

series to be delisted, so as to ensure 

uniform series delisting of multiply 

listed Mini-NDX options. 

It is expected that the proposed 

delisting policy for Mini-NDX options 

will be adopted by other options 

exchanges that list and trade Mini-NDX 

options. 

The Exchange also proposes to add 

new Commentary .09 to Rule 1012, 

which would be an internal cross 

reference stating that the intervals 

between strike prices for Mini-NDX 

option series would be determined in 

accordance with proposed new 

Commentary .02 to Rule 1101A. 

Phlx has analyzed its capacity and 

represents that it believes the Exchange 

and the Options Price Reporting 

Authority have the necessary systems 

capacity to handle the additional traffic 

associated with the listing and trading 

of $1 strikes or greater for Mini-NDX 

options. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act8

in particular, in that it is 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, by 

allowing the Exchange to list Reduced 

Value Nasdaq 100 Options at $1 strike 

price intervals. 

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 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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act9 and Rule 19b– 

4(f)(6) thereunder.10

The Exchange has requested that the 

Commission waive the 30-day operative 

delay and designate the proposed rule 

change immediately operative, so that 

the Exchange may, for competitive 

reasons, list Reduced Value Nasdaq 100 

Options at the same $1 strike price 

intervals currently listed by other option 

exchanges. The Commission believes 

such waiver is consistent with the 

protection of investors and the public 

interest.11 Accordingly, the Commission 

designates the proposed rule change 

operative upon filing with the 

Commission. 

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. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 74, No. 123 / Monday, June 29, 2009 / Notices 31079 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78s–1(b)(3)(A)(ii). 

3 17 CFR 240.19b–4(f)(2). 

4The Commission has modified parts of these 

statements. 5Securities Exchange Act Release No. 46339 

(August 12, 2002), 67 FR 53828 (August 19, 2002) 

(File No. SR–OCC–2002–17). 

6For example, in 2006 OCC reduced the tiered fee 

structure to reflect changes in infrastructure and 

disaster recovery protocols. Securities Exchange Act 

Release No. 53812 (May 16, 2006), 71 FR 29699 

(May 23, 2006) (SR–OCC–2006–03). 

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–Phlx–2009–46 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–Phlx–2009–46. 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–Phlx– 

2009–46 and should be submitted on or 

before July 20, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–15224 Filed 6–26–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60144; File No. SR–OCC– 

2009–11] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change Relating to 

Ancillary Fee Changes 

June 19, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

May 28, 2009, The Options Clearing 

Corporation (‘‘OCC’’) 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 

prepared primarily by OCC. OCC filed 

the proposed rule change pursuant to 

Section 19(b)(3)(A)(ii) of the Act 2 and 

Rule 19b–4(f)(2) 3 thereunder so that the 

proposal was 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 proposed rule change would (i) 

reduce ancillary service fees charged to 

Tier I, II, III, and IV clearing members 

and (ii) reduce leased line charges for 

subscribing clearing members. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of such statements.4

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The principal purpose of this rule 

change is to effect certain fee changes 

with respect to OCC’s ancillary services 

program. 

In addition to clearing and settlement 

services, OCC provides its clearing 

members with a number of ancillary 

services, which range from on-line 

access to OCC systems to report and 

data distribution offerings. Hardware 

and communication lines support these 

ancillary service offerings. In August 

2002, OCC implemented a four-tiered 

fee structure for its ancillary services 

with a different bundle of services 

offered at a fixed cost for each tier and 

revised its leased line charges for 

subscribing clearing members.5 OCC 

periodically reviews these fees based on 

changes in costs, infrastructure, and 

operational changes.6

Pursuant to such a review, effective 

June 1, 2009, OCC will reduce the fixed 

monthly ancillary fees charged to Tier I, 

II, III, and IV clearing members and the 

leased line charges for subscribing 

clearing members. The following chart 

summarizes the ancillary services 

associated with each tier and the related 

fee changes: 

Tier Ancillary services 

Cost 

Previous June 2009 

I .............................................. ENCORE Access ................................................................... $2,100/month ............... $1,500/month. 

MyOCC Access 

Data Service—proprietary position and trade data (includes 

transmission to service bureau) 

Report Bundle 

Series File 

Open Interest File 


sroberts on PROD1PC70 with NOTICES