Federal Register / Vol. 74, No. 123 / Monday, June 29, 2009 / Notices 31081 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 59919 

(May 14, 2009), 74 FR 23915 (May 21, 2009). 

4Make or Take volume is excluded when 

determining a Market Maker’s monthly trading 

volume for purposes of the Volume Discount and 

is not eligible to have a Volume Discount applied 

to it. 

5See Securities Exchange Act Release No. 56948 

(December 12, 2007), 72 FR 72426 (December 20, 

2007) (SR–BSE–2007–52). 

6 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 60163; File No. SR–BX–2009– 

025] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Order 

Approving Proposed Rule Change To 

Retroactively Amend the Fee Schedule 

To Clarify and Correct References to 

the Volume Discount Given to Market 

Makers 

June 23, 2009. 

On May 8, 2009, NASDAQ OMX BX, 

Inc. 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 amend the Fee 

Schedule of the Boston Options 

Exchange Group, LLC (‘‘BOX’’) on a 

retroactive basis to clarify and correct 

references relating to the volume 

discount (‘‘Volume Discount’’) given to 

Market Makers. The proposed rule 

change was published for comment in 

the Federal Register on May 21, 2009.3

The Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

The Exchange proposes to amend 

Section 3 of the BOX Fee Schedule, 

dealing with Market Maker Trading 

Fees, on a retroactive basis. BOX 

currently applies, and historically has 

applied, a Volume Discount to the fees 

charged to BOX Market Makers who 

engage in particularly active trading 

volume on BOX. The proposed changes 

will clarify and correct the Fee Schedule 

to reflect that trading volume in options 

classes included within the Liquidity 

Make or Take Pricing Structure (‘‘Make 

or Take’’), as set forth in Section 7 of the 

BOX Fee Schedule, is excluded when 

determining a Market Maker’s Volume 

Discount.4 The text explicitly stating 

this used to be included in the BOX Fee 

Schedule, but was inadvertently 

removed in a prior filing, SR–BSE– 

2007–52.5 The Exchange requests that 

the proposed rule change be made 

effective retroactive to November 30, 

2007, which is the date of filing and 

effectiveness of SR–BSE–2007–52. 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.6 In particular, the 

Commission believes that the proposal 

to retroactively modify the Exchange’s 

fee schedule such that trading volume 

in options classes included within the 

Make or Take is excluded when 

determining a Market Maker’s Volume 

Discount it is consistent with and 

Section 6(b)(4) of the Act,7 in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

issuers and other persons using its 

facilities. 

The Commission notes that the 

Exchange has represented that the 

inadvertent elimination of the language 

in question from the BOX Fee Schedule 

on November 30, 2007 did not alter 

BOX Market Makers’ understanding that 

Make or Take volume was excluded 

from the calculation of the Volume 

Discount. The Commission also notes 

that the proposed change is intended to 

eliminate any gap in the actual 

treatment of Make or Take volume when 

calculating the Volume Discount. 

Accordingly, the Commission believes 

that the proposed changes to Section 3 

of the BOX Fee Schedule do not raise 

any new or novel issues and merely are 

designed to accurately reflect the fee 

structure the Exchange and its 

participants understood to be in effect. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–BX–2009– 

025), be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–15268 Filed 6–26–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60158; File No. SR–BX– 

2009–028] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

of Proposed Rule Change To Adopt 

Rules To Implement the Options Order 

Protection and Locked/Crossed Market 

Plan 

June 22, 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 16, 

2009, the NASDAQ OMX BX, Inc. 

(‘‘BX’’ or ‘‘Exchange’’), 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 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 the 

Rules of the Boston Options Exchange 

Group, LLC (‘‘BOX’’) to reflect the 

Exchange’s filing to become a 

participant in the proposed Options 

Order Protection and Locked/Crossed 

Market Plan (‘‘Decentralized Plan’’). The 

text of the proposed rule change is 

available from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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. 


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3See Securities Exchange Act Release No. 43086 

(July 28, 2000), 65 FR 48023 (August 4, 2000) (File 

No. 4–429) (Order approving the Linkage Plan and 

the original parties thereto). The Exchange became 

a party to the Linkage Plan on January 14, 2004 by 

executing a copy of said Linkage Plan with the 

Commission as well as completing the other steps 

required. Terms not otherwise defined herein shall 

have the meaning assigned to them in the BOX 

Rules, the Decentralized Plan, or the Linkage Plan, 

respectively. 

4The systems and data communications network 

that link electronically the Eligible Exchanges for 

the purposes specified in the former Linkage Plan 

shall be referred to as the ‘‘OCC Hub’’. See proposed 

Chapter XII, Section 4(g)(3) of the BOX Rules. See 

also proposed Chapter I, Section 1(a)(35) of the BOX 

Rules. 

5See Securities Exchange Act Release No. 59647 

(March 30, 2009), 74 FR 15010 (April 2, 2009) (File 

No. 4–546) (Joint Industry Plan; Notice of Filing of 

Proposed Options Order Protection and Locked/ 

Crossed Market Plan). The Exchange will also seek, 

upon approval of the Exchange’s participation in 

the Decentralized Plan, the Commission’s approval 

to contemporaneously withdraw from the Linkage 

Plan. This proposed rule change, if approved, will 

become effective upon the Exchange’s withdrawal 

from the current Linkage Plan and the effectiveness 

of the new Decentralized Plan. 

6See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496 (June 29, 2005). 

7See Sections 5(a)(i) and 5(b)(iv) of the proposed 

Decentralized Plan. See also proposed Chapter XII, 

Section 2(b)(4) of the BOX Rules. 

8See Section 2(9) of the proposed Decentralized 

Plan. See also proposed Chapter XII, Section 1(g) of 

the BOX Rules which, as proposed, defines the term 

ISO as ‘‘a Limit Order for an options series that, 

simultaneously with the routing of the ISO, one or 

more additional ISOs, as necessary, are routed to 

execute against the full displayed size of any 

Protected Bid, in the case of a Limit order to sell, 

or any Protected Offer, in the case of a Limit order 

to buy, for the options series with a price that is 

superior to the limit price of the ISO’’. 

9See e.g. the definitions of ‘‘Broker/Dealer’’ in 

Section 1(c), ‘‘NBBO’’ in Section 1(i), ‘‘Non-Firm’’ 

in Section 1(j), and ‘‘OPRA Plan’’ in Section 1(k). 

10See e.g. the definitions of ‘‘Best Bid’’ and ‘‘Best 

Offer’’ in Section 1(a), ‘‘Bid’’ or ’’Offer’’ in Section 

1(b), ‘‘Intermarket Sweep Order (‘‘ISO’’)’’ in Section 

1(g), and ‘‘Quotation’’ in Section 1(p). 

11See Rule 611(b)(l) under the Exchange Act. 

12See Section 8(c)(iii)(E) of the Linkage Plan. 

13See Rule 611(b)(3) under the Exchange Act. 

14See Rule 611(b)(4) under the Exchange Act. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to adopt 

certain rules and definitions necessary 

to implement the proposed 

Decentralized Plan. The proposed 

definitions and rules will replace 

current Chapter XII of the BOX Rules in 

its entirety. The proposed rule changes 

will also amend various other BOX 

Rules to accommodate the Decentralized 

Plan. 

Background of the Decentralized Plan 

and Implementing Rules 

The Exchange is presently a party to 

the Plan for the Purpose of Creating and 

Operating an InterMarket Option 

Linkage (‘‘Linkage Plan’’).3 The purpose 

of the Linkage Plan is to enable the 

options exchanges to act jointly in 

planning, developing, operating and 

regulating the systems and data 

communications network that 

electronically links the options 

exchanges to one another.4 Accordingly, 

current Chapter XII of the BOX Rules 

contains rule text adopted specifically 

to achieve the purpose of the Linkage 

Plan. 

The Exchange proposes to amend 

Chapter XII of the BOX Rules, as 

necessary, to reflect the Exchange’s 

filing to become a plan participant 

(‘‘Plan Participant’’) in the proposed 

Decentralized Plan.5 Unlike the Linkage 

Plan which exclusively required use of 

the OCC Hub, the purpose of the 

Decentralized Plan is to enable the Plan 

Participants thereto to act jointly in 

establishing a framework for a nonexclusive method of providing and 

achieving order protection and 

addressing Locked and Crossed Markets 

in Eligible Options Classes. If approved, 

the Decentralized Plan would 

completely replace the current Linkage 

Plan. 

Operation of the Decentralized Plan 

The Decentralized Plan essentially 

would apply the Regulation NMS 6

price-protection provisions to the 

options markets. Similar to Regulation 

NMS, the Decentralized Plan would 

require Plan Participants to adopt rules 

‘‘reasonably designed to prevent TradeThroughs’’, while exempting 

Intermarket Sweep Orders (‘‘ISOs’’) 

from that prohibition.7 The proposed 

definition of an ISO is essentially the 

same as under Regulation NMS.8 The 

remaining exceptions to the tradethrough prohibition, discussed more 

specifically below, either track those 

under Regulation NMS or correspond to 

unique aspects of the options market, or 

both. 

Description of the Implementing Rules 

The proposal seeks to include rule 

text and definitions for certain terms 

within Chapter XII designed to 

accomplish the purpose of the new 

Decentralized Plan. As proposed, 

current Chapter XII rule text will be 

removed and replaced completely with 

new Chapter XII rule text titled ‘‘Order 

Protection; Locked and Crossed 

Markets’’. The proposed ‘new’ Chapter 

XII will contain the following rules: 

Chapter XII, Section 1—Definitions 

The proposed rule change 

incorporates all the operative 

definitions from the Decentralized Plan 

into the BOX Rules. With one exception, 

the parties to the Decentralized Plan 

derived all such definitions either from 

the Linkage Plan9 or Regulation NMS.10

The one exception is the definition of 

‘‘Complex Trade’’ in Section 1(d). A 

‘‘Complex Trade’’ is exempt from tradethrough liability. The exemption in the 

Linkage Plan simply refers to complex 

trades ‘‘as that term may be defined by 

the [Linkage] Operating Committee from 

time to time.’’ Based on that provision, 

the Exchange adopted current Chapter 

XII, Section 1(c) of the BOX Rules, 

which is substantially identical to the 

rules of the other options exchanges. 

The Exchange proposes to carry forward 

that definition unchanged into the new 

proposed Chapter XII. 

Chapter XII, Section 2—Order 

Protection 

Proposed Chapter XII, Section 2(a) 

provides that, subject to certain 

specified exceptions, Options 

Participants shall not effect tradethroughs. Proposed paragraph (b) 

provides for the following trade-through 

exceptions: 

• System Issues: Section 5(b)(i) of the 

proposed Decentralized Plan 

corresponds to the system-failure 

exception in Regulation NMS 11 for 

equity securities and permits trading 

through an Eligible Exchange that is 

experiencing system problems. 

• Trading Rotations: Section 5(b)(ii) 

of the proposed Decentralized Plan 

carries forward the current TradeThrough exception in the Linkage 

Plan 12 and is the options equivalent to 

the single price opening exception in 

Regulation NMS for equity securities.13

Options exchanges use a trading 

rotation to open an option for trading, 

or to reopen an option after a trading 

halt. The rotation is effectively a single 

price auction to price the option and 

there are no practical means to include 

prices on other exchanges in that 

auction. 

• Crossed Markets: Section 5(b)(iii) 

corresponds to the crossed quote 

exception in Regulation NMS for equity 

securities.14 If a Protected Bid is higher 

than a Protected Offer, it indicates that 

there is some form of market dislocation 

or inaccurate quoting. Permitting 

transactions to be executed without 

regard to Trade-Throughs in a Crossed 

Market will allow the market to quickly 

return to equilibrium. 

• Intermarket Sweep Orders (‘‘ISOs’’): 

These two exceptions correspond to the 

ISO exceptions in Regulation NMS for 


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15See Rule 611(b)(5) and (6) under the Exchange 

Act. 

16See Rule 611(b)(8) under the Exchange Act. 

17See Section 8(c)(iii)(C) of the Linkage Plan. 

18See Section 8(c)(iii)(G) of the Linkage Plan. 

19See Rule 611(b)(9) under the Exchange Act. 

20For a further discussion on how this exemption 

operates refer to the Regulation NMS Adopting 

Release. See Securities Exchange Act Release No. 

51808 (June 9, 2005), 70 FR 37496 (June 29, 2005) 

at notes 322–325. 

21See Chapter V, Section 18 of the BOX Rules. 

22See Rule 611(b)(7) under the Exchange Act. 

23See Section 6 of the proposed Decentralized 

Plan. See also proposed Chapter XII, Section 3 of 

the BOX Rules. 

24These rules are within proposed Chapter XII, 

Temporary Section 4. 

equity securities.15 Section 5(b)(iv) of 

the proposed Decentralized Plan 

permits a Plan Participant to execute 

orders it receives from other Plan 

Participants or members that are marked 

as ISO even when it is not at the NBBO. 

Section 5(b)(v) of the proposed 

Decentralized Plan allows a Plan 

Participant to execute inbound orders 

when it is not at the NBBO, provided it 

simultaneously ‘‘sweeps’’ all betterpriced interest displayed by Eligible 

Exchanges. 

• Quote Flickering: Section 5(b)(vi) of 

the proposed Decentralized Plan 

corresponds to the flickering quote 

exception in Regulation NMS for equity 

securities.16 Options quotations change 

as rapidly, if not more rapidly, than 

equity quotations. Indeed, they track the 

price of the underlying security and 

thus change when the price of the 

underlying security changes. This 

exception provides a form of ‘‘safe 

harbor’’ to market participants to allow 

them to trade through prices that have 

changed within a second of the 

transaction causing a nominal TradeThrough. 

• Non-Firm Quotes: Section 5(b)(vii) 

of the proposed Decentralized Plan 

carries forward the current non-firm 

quote Trade-Through exception in the 

Linkage Plan.17 By definition, an 

Eligible Exchange’s quotations may not 

be firm for automatic execution during 

this trading state and thus should not be 

protected from Trade-Throughs. In 

effect, these quotations are akin to 

‘‘manual quotations’’ under Regulation 

NMS. 

• Complex Trades: Section 5(b)(viii) 

of the proposed Decentralized Plan 

carries forward the current complex 

trade exception in the Linkage Plan 18

and will be implemented through rules 

adopted by the Plan Participants and 

approved by the Commission. Complex 

trades consist of multiple transactions 

(‘‘legs’’) effected at a net price, and it is 

not practical to price each leg at a price 

that does not constitute a TradeThrough. Narrowly-crafted 

implementing rules will ensure that this 

exception does not undercut TradeThrough protections. 

• Customer Stopped Orders: Section 

5(b)(ix) of the proposed Decentralized 

Plan corresponds to the customer 

stopped order exception in Regulation 

NMS for equity securities.19 It permits 

broker dealers to execute large orders 

over time at a price agreed upon by a 

customer, even though the price of the 

option may change before the order is 

executed in its entirety.20

• Stopped Orders and Price 

Improvement: Section 5(b)(x) of the 

proposed Decentralized Plan would 

apply if an order is stopped at price that 

did not constitute a Trade-Through at 

the time of the stop. In this case, an 

exchange could seek price improvement 

for that order, even if the market moves 

in the interim, and the transaction 

ultimately is effected at a price that 

would trade through the then currentlydisplayed market. This exception would 

be particularly useful for executions 

effected pursuant to such mechanisms 

as BOX’s Price Improvement Period 

(‘‘PIP’’).21

• Benchmark Trades: Section 5(b)(xi) 

of the proposed Decentralized Plan 

would cover trades executed at a price 

not tied to the price of an option at the 

time of execution, and for which the 

material terms were not reasonably 

determinable at the time of the 

commitment to make the trade. An 

example would be a volume-weighted 

average price trade, or ‘‘VWAP’’. This 

corresponds to a Trade-Through 

exemption in Regulation NMS for equity 

trades.22 BOX does not currently permit 

these types of options trades, and any 

transaction-type relying on this 

exemption would require the Plan 

Participant to adopt implementing rules, 

subject to Commission review and 

approval. 

Chapter XII, Section 3—Locked and 

Crossed Markets 

The proposed Decentralized Plan also 

addresses locked and crossed markets.23

Similar to Regulation NMS, the 

proposed Decentralized Plan requires 

the Plan Participants to adopt, maintain 

and enforce rules requiring exchange 

Options Participants: to reasonably 

avoid displaying locked and crossed 

markets; to reconcile such markets; and 

to prohibit Options Participants from 

engaging in a pattern or practice of 

displaying locked and crossed markets. 

However, the Plan Participants in the 

proposed Decentralized Plan, including 

the Exchange, have proposed certain 

exceptions, as detailed below, from the 

aforementioned prohibition. The 

Exchange’s proposed exceptions are as 

follows: 

• The locking or crossing Quotation 

was displayed at a time when BOX was 

experiencing a failure, material delay, or 

malfunction of its systems or 

equipment; 

• The locking or crossing Quotation 

was displayed at a time when there is 

a Crossed Market; 

• The BOX Options Participant 

simultaneously routed an ISO to execute 

against the full displayed size of any 

locked or crossed Protected Bid or 

Protected Offer; or 

• With respect to a locking Quotation, 

the order entered on the Eligible 

Exchange that will lock a Protected Bid 

or Protected Offer, is: 

Æ Not a Public Customer order, and 

the Eligible Exchange can determine via 

identification available pursuant to the 

Options Price Reporting Authority 

(‘‘OPRA’’) Plan that such Protected Bid 

or Protected Offer does not represent, in 

whole or in part, a Public Customer 

order; or 

Æ A Public Customer order, and the 

Eligible Exchange can determine via 

identification available pursuant to the 

OPRA Plan that such Protected Bid or 

Protected Offer does not represent, in 

whole or in part, a Public Customer 

order, and, on a case-by-case basis, the 

Public Customer specifically authorizes 

the Participant to lock such Protected 

Bid or Protected Offer. 

Chapter XII, Temporary Sec. 4— 

Temporary Rules Governing P and P/A 

Orders 

If this proposal is approved, the 

current text within Chapter XII 

corresponding to the Linkage Plan will 

be completely removed and replaced 

with the new proposed rule text 

corresponding to the proposed 

Decentralized Plan. Included within the 

proposed rule changes is certain rule 

text from current Chapter XII which the 

Exchange proposes to retain and 

continue to enforce regarding the 

sending and receipt of P and P/A 

orders.24 BOX and BOX Options 

Participants currently utilize the 

sending of P and P/A orders to fulfill 

their obligations to seek the best price 

available for their customers and to 

prevent Trade-Throughs. Although ISOs 

will be accepted and executed on the 

BOX market as of the Decentralized 

Plan’s implementation date, the BOX 

facility itself will not send ISOs or route 

orders through private routing 


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25This period of delay is anticipated to last 

approximately 2–8 weeks past the prospective 

implementation date. Although the BOX facility 

does not contemplate sending ISOs itself 

immediately upon implementation of the 

Decentralized Plan, BOX Options Participants that 

have developed the systems capability to send ISOs 

will immediately be able to do so via their own 

order routing arrangements, separate and 

independent from BOX, on the prospective 

implementation date. See Supplementary Material 

.01 to proposed Chapter XII, Section 2. 

26The Exchange will submit a proposed rule 

change seeking Commission approval for such rule 

change. 

27The Exchange will submit a separate filing with 

the Commission discussing the details of the BOX 

private routing arrangements and certain proposed 

rule text pertaining to such routing. 

28 15 U.S.C. 78f(b). 

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

arrangements to away exchanges until 

some time after such implementation.25

In connection with approval of this 

proposal the Exchange will also request, 

under separate cover, that the 

Commission grant a temporary limited 

exemption from Section 5(a) of the 

proposed Decentralized Plan to permit 

BOX Options Participants to send P and 

P/A Orders to prevent Trade-Throughs 

on the BOX market. Subject to the 

Commission’s approval of the 

aforementioned request for exemption 

from Section 5(a) of the Decentralized 

Plan, BOX and its Options Participants 

will continue to utilize the sending of P 

and P/A orders to away markets in order 

to fulfill their obligations to seek the 

best available price for customers. 

BOX has negotiated with the OCC to 

arrange for the continued maintenance, 

operation and functionality of the OCC 

Hub during this period of time to 

accommodate BOX. Additionally, the 

other options exchanges which have 

similarly filed proposals to become Plan 

Participants in the proposed 

Decentralized Plan have agreed to 

accept and execute P and P/A Orders, 

and maintain and enforce pertinent rule 

text, for so long as BOX shall continue 

to send them through the OCC Hub. The 

Exchange proposes to include 

Temporary Section 4 within Chapter XII 

until BOX no longer sends or receives 

P and P/A Orders and such rules are no 

longer deemed necessary, at which 

point, upon approval of the 

Commission, they will be removed from 

Chapter XII.26

When BOX develops the ability to 

send ISOs, or a similar order type to 

accomplish the same end result, and the 

ability to route orders through private 

routing arrangements,27 the Exchange 

will submit a proposal to remove 

Temporary Section 4 of Chapter XII, at 

which point, if approved by the 

Commission, this requested exemption 

shall lapse and the Exchange will no 

longer utilize P and P/A Orders to 

prevent Trade-Throughs on the BOX 

market. 

Other Proposed Amendments to BOX 

Rules To Accommodate Decentralized 

Plan 

The Exchange additionally proposes 

to amend several sections of the BOX 

Rules other than within Chapter XII. 

These changes are as follows: 

• Chapter I, Section 1: Section 1 

defines certain terms which are 

referenced throughout the BOX Rules. 

The Exchange proposes to include 

‘‘OCC Hub’’ as a defined term, not only 

within Chapter XII, but within the 

entirety of the BOX Rules. 

• Chapter V, Section 14: Section 14 

governs order entry on BOX and the 

types of orders permissible for entry. 

The Exchange proposes to include 

‘‘ISO’’ as a permissible order type for 

entry on BOX. 

• Chapter V, Section 16: Section 16 

governs execution and price/time 

priority and, in particular, the 

circumstances under which inbound 

orders will be ‘filtered’ against the 

NBBO. The Exchange proposes to 

exclude ISOs from those orders that are 

filtered against NBBO. The Exchange 

also proposes to remove references to 

‘‘Intermarket Linkage’’, as such a term 

will not exist upon implementation of 

the Decentralized Plan, and, where 

appropriate, replace such term with 

‘‘OCC Hub’’. The Exchange also 

proposes to correct cross-references to 

certain sections of Chapter XII, as the 

referenced text within Chapter [sic] will 

continue to exist, but will be located in 

updated subsections. The Exchange also 

proposes to remove references to ‘‘Firm 

Principal Quote Size’’ and replace such 

references with the term ‘‘Displayed 

Size’’, as this term is defined in 

proposed Chapter XII, Section 4(g). 

• Chapter V, Section 20: Section 20 

governs Obvious and Catastrophic 

Errors. The Exchange proposes to revise 

a cross-reference to the defined term, 

‘‘primary market,’’ resulting from the 

renumbering of certain defined terms in 

Chapter I, Section 1. 

• Chapter V, Section 29: Section 29 

governs the Universal Price 

Improvement Period (‘‘UPIP’’) and, in 

particular, when BOX, upon satisfaction 

of certain conditions, will automatically 

initiate a UPIP auction. The Exchange 

proposes to add to the list of conditions 

that the eligible order not (emphasis 

added) be an ISO. Section 29 also 

includes rule text describing the 

filtering of UPIP Orders to prevent trade 

throughs. The Exchange proposes to 

replace specific circumstances upon 

which UPIP Orders will be filtered with 

a general reference to the trade through 

exceptions in proposed Chapter XII, 

Section 2(b). 

• Chapter VI, Section 5: Section 5 

governs the obligations of BOX Market 

Makers and certain of these obligations 

with respect to P and P/A Orders. As 

described above, the Exchange proposes 

to remove references to Intermarket 

Linkage and replace them with OCC 

Hub where appropriate. 

• Chapter X, Section 2: Section 2 

governs penalties for violations of the 

BOX Minor Rule Violation Plan and 

such penalties as they pertain to 

violations of the respective rules 

governing locked and crossed markets 

and trade throughs on BOX. As 

described above, the Exchange proposes 

to correct cross-references to the locked 

and crossed markets and trade through 

rules, as the respective subsection 

numbering is modified in proposed 

Chapter XII. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Act,28 in general, and Section 6(b)(5) of 

the Act,29 in particular, in that it is 

designed to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

to prevent fraudulent and manipulative 

acts, 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. 

Specifically, the proposed rule change 

will allow the Exchange to implement 

and enforce the rules as made necessary 

by its filing to become a Plan Participant 

in the proposed Decentralized Plan. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 74, No. 123 / Monday, June 29, 2009 / Notices 31085 

30 17 CFR 200.30–3(a)(12). 

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–BX–2009–028 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–BX–2009–028. 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–BX– 

2009–028 and should be submitted on 

or before July 20, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–15267 Filed 6–26–09; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 6684] 

Postponement of the United StatesChile Environment Affairs Council and 

Joint Commission for Environmental 

Cooperation Meetings 

ACTION: Notice of meetings; 

postponement. 

SUMMARY: The Department of State 

(DOS) and the Office of the United 

States Trade Representative (USTR) are 

hereby providing notice that the fifth 

meeting of the United States-Chile 

Environment Affairs Council (the 

‘‘Council’’) and the third meeting of the 

Joint Commission for Environmental 

Cooperation (the ‘‘Commission’’), which 

were previously scheduled for July 1, 

2009, have been postponed. The 

meetings have not yet been rescheduled. 

DOS and USTR will publish notice in 

the Federal Register of the date, time 

and agenda for the rescheduled 

meetings, and will invite interested 

agencies, organizations, and members of 

the public to submit written comments 

or suggestions regarding agenda items 

when arrangements for the meetings are 

complete. The Department of State and 

USTR originally provided notice of the 

meetings on June 11, 2009, at 74 FR 

27858 (2009). 

Dated: June 24, 2009. 

Robert A. Sorenson, 

Acting Director, Office of Environmental 

Policy, Department of State. 

[FR Doc. E9–15334 Filed 6–26–09; 8:45 am] 

BILLING CODE 4710–09–P 

DEPARTMENT OF TRANSPORTATION 

Federal Transit Administration 

[FTA Docket No. FTA–2009–31] 

Notice of Request for Approval of an 

Information Collection 

AGENCY: Federal Transit Administration, 

DOT. 

ACTION: Notice of request for comments. 

SUMMARY: In accordance with the 

Paperwork Reduction Act of 1995, this 

notice announces the intention of the 

Federal Transit Administration (FTA) to 

request the Office of Management and 

Budget (OMB) to approve the following 

new information collection: 

Over-the-Road Bus (OTRB) Accessibility 

Program. 

DATES: Comments must be submitted 

before August 28, 2009. 

ADDRESSES: To ensure that your 

comments are not entered more than 

once into the docket, submit comments 

identified by the docket number by only 

one of the following methods: 

1. Web site: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments 

on the U.S. Government electronic 

docket site. (Note: The U.S. Department 

of Transportation’s (DOT’s) electronic 

docket is no longer accepting electronic 

comments.) All electronic submissions 

must be made to the U.S. Government 

electronic docket site at http:// 

www.regulations.gov. Commenters 

should follow the directions below for 

mailed and hand-delivered comments. 

2. Fax: 202–493–2251. 

3. Mail: U.S. Department of 

Transportation, 1200 New Jersey 

Avenue, SE., Docket Operations, M–30, 

West Building, Ground Floor, Room 

W12–140, Washington, DC 20590–0001. 

4. Hand Delivery: U.S. Department of 

Transportation, 1200 New Jersey 

Avenue, SE., Docket Operations, M–30, 

West Building, Ground Floor, Room 

W12–140, Washington, DC 20590–0001 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

Instructions: You must include the 

agency name and docket number for this 

notice at the beginning of your 

comments. Submit two copies of your 

comments if you submit them by mail. 

For confirmation that FTA has received 

your comments, include a selfaddressed stamped postcard. Note that 

all comments received, including any 

personal information, will be posted 

and will be available to Internet users, 

without change, to http:// 

www.regulations.gov. You may review 

DOT’s complete Privacy Act Statement 


sroberts on PROD1PC70 with NOTICES