32998 Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

that is routed away from the Exchange 

through CYCLE or RECYCLE. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6 of the Act.5

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act,6 in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among members and other 

persons using any facility or system 

which the Exchange operates or 

controls. The Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive. 

Finally, the Exchange believes that the 

proposed rates are equitable in that they 

apply uniformly to all Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

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 

The foregoing proposed rule change 

has been designated as a fee change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 7 and Rule 19b–4(f)(2) thereunder,8

because it establishes or changes a due, 

fee or other charge imposed on members 

by the Exchange. Accordingly, the 

proposal is effective 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, 

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–BATS–2009–021 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 No. 

SR–BATS–2009–021. 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 such filing will also 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 No. 

SR–BATS–2009–021 and should be 

submitted on or before July 30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16182 Filed 7–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60213; File No. SR–BX– 

2009–032] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Penny Pilot Program on the Boston 

Options Exchange Facility 

July 1, 2009. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on June 25, 

2009, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act,3 and Rule 19b–4(f)(6) thereunder,4

which renders the proposal 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 amend 

Chapter V, Section 33 (Penny Pilot 

Program) of the Rules of the Boston 

Options Exchange Group, LLC (‘‘BOX’’) 

to extend, through October 31, 2009, the 

pilot program that permits certain 

classes to be quoted in penny 

increments on BOX (‘‘Penny Pilot 

Program’’). 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/. 


rmajette on DSK29S0YB1 with NOTICES
Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 32999 

5The Penny Pilot Program has been in effect on 

BOX since January 26, 2007. See Securities 

Exchange Act Release No. 55155 (January 23, 2007), 

72 FR 4741 (February 1, 2007) (SR–BSE–2006–49). 

The Penny Pilot Program was later extended 

through September 27, 2007. See Securities 

Exchange Act Release No. 56149 (July 26, 2007), 72 

FR 42450 (August 2, 2007) (SR–BSE–2007–38). A 

subsequent rule filing by the Exchange on 

September 27, 2007 initiated a two-phased 

expansion of the Penny Pilot Program. See 

Securities Exchange Act Release No. 56566 

(September 27, 2007), 72 FR 56400 (October 3, 

2007) (SR–BSE–2007–40). See also Securities 

Exchange Act Release No. 57566 (March 26, 2008), 

73 FR 18013 (April 2, 2008) (SR–BSE–2008–20). 

The Penny Pilot Program was later extended and is 

currently set to expire on July 3, 2009. See 

Securities Exchange Act Release No. 59629 (March 

26, 2009), 74 FR 15021 (April 2, 2009) (SR–BX– 

2009–017). The extension of the effective date is the 

only change to the Penny Pilot Program being 

proposed at this time. 

6BOX has previously delivered several Penny 

Pilot Reports to the Commission composed of data 

from preceding time periods during which the 

Penny Pilot Program has been in effect on BOX. 

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 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 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. 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

sections A, B, and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The proposed rule change seeks to 

extend the effective date of the Penny 

Pilot Program on BOX for approximately 

four additional months, through October 

31, 2009.5 The Penny Pilot Program 

permits certain classes to be quoted in 

penny increments on BOX. The 

minimum price variation for all classes 

included in the Penny Pilot Program, 

except for the QQQQs, will continue to 

be $0.01 for all quotations in option 

series that are quoted at less than $3 per 

contract and $0.05 for all quotations in 

option series that are quoted at $3 per 

contract or greater. The QQQQs will 

continue to be quoted in $0.01 

increments for all options series. The 

Exchange is not currently proposing any 

changes to the classes included within 

the Penny Pilot Program. 

BOX will deliver a report (‘‘Penny 

Pilot Report’’) to the Commission which 

will be composed of data from 

approximately three months of trading, 

from May 1, 2009 through July 31, 2009. 

This Penny Pilot Report will be 

delivered to the Commission during the 

month of August 2009. The Penny Pilot 

Report will analyze the impact of penny 

pricing on market quality and options 

system capacity.6

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,7

in general, and Section 6(b)(5) of the 

Act,8 in particular, in that it is designed 

to foster cooperation and coordination 

with persons engaged in regulating, 

clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. Specifically, the 

proposed extension will allow the 

Penny Pilot Program to remain in effect 

on BOX without interruption. 

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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date 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) 9 of the Act and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) 11 normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) 12 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The Exchange 

states that such waiver will permit the 

Exchange to immediately implement the 

proposed rule change without 

interruption of the Penny Pilot Program 

and allow BOX to remain competitive 

with other exchanges. 

The Commission believes waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver will 

allow the Penny Pilot Program to 

continue without interruption through 

October 31, 2009.13 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, 

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–BX–2009–032 on the 

subject line. 


rmajette on DSK29S0YB1 with NOTICES
33000 Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 57579 

(March 28, 2008), 73 FR 18587 (April 4, 2008) (SR– 

NASDAQ–2008–026) (notice of filing and 

immediate effectiveness). The Pilot was 

subsequently extended through July 3, 2009. See 

Securities Exchange Act Release No. 59632 (March 

26, 2009), 74 FR 14829 (April 1, 2009) (SR– 

NASDAQ–2009–030) (notice of filing and 

immediate effectiveness). 

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

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

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–BX–2009–032. 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 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 No. 

SR–BX–2009–032 and should be 

submitted on or before July 30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16181 Filed 7–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60212; File No. SR– 

NASDAQ–2009–061] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Extension of the Penny Pilot Program 

July 1, 2009. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on June 25, 

2009, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ 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 Nasdaq. 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 

NASDAQ is filing a proposal for the 

NASDAQ Options Market (‘‘NOM’’ or 

‘‘Exchange’’) to amend Chapter VI, 

Section 5 to extend until October 31, 

2009, a pilot program to quote and to 

trade certain options in pennies. 

The text of the proposed rule change 

is available on Nasdaq’s Web site at 

http://nasdaq.cchwallstreet.com, at 

Nasdaq’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, 

Nasdaq 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. Nasdaq has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects 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 extend the Exchange’s pilot 

program in Chapter VI, Section 5 that 

allows quoting and trading certain 

options in penny increments (the 

‘‘Penny Pilot Program’’ or ‘‘Pilot’’). 

Pursuant to the Exchange’s Penny 

Pilot Program that has been operational 

since 2008, as many as sixty-three 

options are quoted in increments of 

$0.01.3 The purpose of the proposed 

rule change is to extend the Pilot 

through October 31, 2009. 

Prior to the Penny Pilot Program, 

options were being quoted in nickel and 

dime increments. For options that are 

not in the Pilot, the minimum price 

variation for quotations in options series 

that are priced (trading) at less than $3 

per contract is $0.05 and the minimum 

price variation for quotations in options 

series that are priced at $3 per contract 

or greater is $0.10. 

Under the Penny Pilot Program, 

market participants are able to quote in 

penny increments in certain series of 

option classes. The minimum price 

variation for all classes included in the 

Pilot, except for the QQQQs, is $0.01 for 

option series that are priced at less than 

$3 per contract and $0.05 for series that 

are priced at $3 per contract or greater. 

The QQQQs are quoted in $0.01 

increments for all options series. 

During the extended Penny Pilot 

Program, the Exchange will submit a 

report addressing the impact of the Pilot 

on the quality of the Exchange’s markets 

and option quote traffic and capacity by 

August 31, 2009, covering the period 

from May 1, 2009, through July 31, 

2009. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 4 in general, and furthers the 

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

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 

extending the Penny Pilot Program to 

the benefit of market participants and 

the public. 


rmajette on DSK29S0YB1 with NOTICES