33492 Federal Register / Vol. 74, No. 132 / Monday, July 13, 2009 / Notices 

6See Securities Exchange Act Release No. 57293 

(February 8, 2008), 73 FR 8729 (February 14, 2008) 

(SR–CBOE–2008–12), which established the 

original Temporary Member access fee, for detail 

regarding the rationale in support of the original 

Temporary Member access fee and the process used 

to set that fee, which is also applicable to this 

proposed change to the Temporary Member access 

fee as well. 

7See Securities Exchange Act Release No. 58200 

(July 21, 2008), 73 FR 43805 (July 28, 2008) (SR– 

CBOE–2008–77), which established the original ITP 

access fee, for detail regarding the rationale in 

support of the original ITP access fee and the 

process used to set that fee, which is also applicable 

to this proposed change to the ITP access fee as 

well. 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(2). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

proposed Temporary Member access fee 

itself are appropriate for the same 

reasons set forth in CBOE rule filing SR– 

CBOE–2008–12 with respect to the 

original Temporary Member access fee.6

Similarly, the Exchange believes that 

the process used to set the proposed ITP 

access fee and the proposed ITP access 

fee itself are appropriate for the same 

reasons set forth in CBOE rule filing SR– 

CBOE–2008–77 with respect to the 

original ITP access fee.7

Each of the proposed access fees will 

remain in effect until such time either 

that the Exchange submits a further rule 

filing pursuant to Section 19(b)(3)(A)(ii) 

of the Act 8 to modify the applicable 

access fee or the applicable status (i.e., 

the Temporary Membership status or 

the ITP status) is terminated. 

Accordingly, the Exchange may, and 

likely will, further adjust the proposed 

access fees in the future if the Exchange 

determines that it would be appropriate 

to do so taking into consideration lease 

rates for transferable CBOE 

memberships prevailing at that time. 

The procedural provisions of the 

CBOE Fee Schedule related to the 

assessment of each proposed access fee 

are not proposed to be changed and will 

remain the same as the current 

procedural provisions relating to the 

assessment of that access fee. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,9 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act,10 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among persons using its 

facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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 

Because the foregoing rule change 

establishes or changes a due, fee, or 

other charge imposed by the Exchange, 

it has become effective pursuant to 

Section 19(b)(3)(A) of the Act 11 and 

subparagraph (f)(2) of Rule 19b–4 12

thereunder. 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–CBOE–2009–042 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–CBOE–2009–042. 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–CBOE–2009–042 and should be 

submitted on or before August 3, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16578 Filed 7–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60239; File No. SR–FINRA– 

2009–045] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change Relating to 

Transaction-Related Charges for Trade 

Reporting to the OTC Reporting 

Facility 

July 2, 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 July 1, 

2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 132 / Monday, July 13, 2009 / Notices 33493 

3At the time of the rule filing, the FINRA Rule 

7700 Series was the NASD Rule 7000 Series. The 

NASD Rule 7000 Series was renumbered as the 

FINRA Rule 7700 Series in 2008. See Securities 

Exchange Act Release No. 58643 (September 25, 

2008), 73 FR 57174 (October 1, 2008); see also 

FINRA Regulatory Notice 08–57 (October 2008). 

4See Securities Exchange Act Release No. 55538 

(March 27, 2007), 72 FR 15924 (April 3, 2007) 

(Notice of Filing and Immediate Effectiveness of 

SR–NASD–2007–018). 

5NASD Rule 7010 was later renumbered as 

FINRA Rule 7710. See Securities Exchange Act 

Release No. 58643 (September 25, 2008), 73 FR 

57174 (October 1, 2008). 

6See Securities Exchange Act Release No. 55538 

(March 27, 2007), 72 FR 15924 (April 3, 2007) 

(Notice of Filing and Immediate Effectiveness of 

SR–NASD–2007–018). 

7See FINRA Rule 6420(c), (d). 

8On June 17, 2009, FINRA filed a proposed rule 

change for immediate effectiveness that deleted the 

reference to OTC Equity Securities in the rule. See 

Securities Exchange Act Release No. 60168 (June 

24, 2009), 74 FR 31471 (July 1, 2009). 

9 15 U.S.C. 78o–3(b)(5). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to clarify the 

application of transaction-related 

charges for trade reporting to the OTC 

Reporting Facility (‘‘ORF’’) pursuant to 

FINRA Rule 7710. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 FINRA Rule 7700 Series, among 

other things, sets forth the pricing 

schedule for the ORF, the OTC Bulletin 

Board, and the Trade Reporting and 

Compliance Engine Services. On March 

1, 2007, FINRA filed a proposed rule 

change (SR–NASD–2007–018) for 

immediate effectiveness that deleted 

certain fee provisions from the FINRA 

Rule 7700 Series 3 and amended certain 

other provisions.4 In that filing, NASD 

Rule 7010(g) was renumbered as NASD 

Rule 7010, renamed, and amended to 

apply only to the ORF.5 The 

amendments became operative on 

March 5, 2007.6 As FINRA stated in the 

filing, the amendments made to the rule 

language were not intended to modify 

any of the charges relating to the ORF. 

Although there was no intent to 

modify any charges in connection with 

reporting transactions to the ORF, the 

rule language, as amended by SR– 

NASD–2007–018, omitted some 

securities from the rule because of the 

definition of ‘‘OTC Equity Security’’ in 

FINRA Rule 6420. The previous rule, 

NASD Rule 7010(g), included a catch-all 

provision that applied a charge of 

$0.029/side to the ‘‘reporting of all other 

transactions not subject to comparison.’’ 

This language included, for example, 

PORTAL equity securities, which are 

reported to the ORF pursuant to the 

PORTAL rules in the FINRA Rule 6630 

Series. The term ‘‘OTC Equity Security,’’ 

however, specifically excludes PORTAL 

securities and restricted securities from 

the definition.7 Thus, by using the 

defined term ‘‘OTC Equity Security’’ 

from March 5, 2007, until June 17, 2009, 

PORTAL equity securities were 

inadvertently omitted from the scope of 

the rule language.8

The proposed rule change deletes the 

prior reference to ‘‘OTC Equity 

Security’’ in FINRA Rule 7710 to clarify 

that, from March 5, 2007, until June 17, 

2009, the transaction reporting charges 

imposed pursuant to the rule applied to 

the reporting of transactions in any 

security, not just OTC Equity Securities, 

to the ORF that were not subject to 

comparison through the ORF. 

FINRA is proposing that the operative 

date of the proposed rule change be 

retroactive from March 5, 2007, to June 

17, 2009. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(5) of the Act,9 which 

requires, among other things, that 

FINRA rules provide for the equitable 

allocation of reasonable dues, fees and 

other charges among members and 

issuers and other persons using any 

facility or system that FINRA operates 

or controls. FINRA believes that the 

proposed rule change clarifies the 

charges that were assessed with respect 

to transactions that were reported to the 

ORF from March 5, 2007, until June 17, 

2009, and correctly reflects FINRA’s 

intent when it amended the rule in SR– 

NASD–2007–018. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA 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 

Written comments were neither 

solicited nor received. 

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 self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such 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 

Number SR–FINRA–2009–045 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–FINRA–2009–045. 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 

mstockstill on DSKH9S0YB1PROD with NOTICES

33494 Federal Register / Vol. 74, No. 132 / Monday, July 13, 2009 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Rule 11.11(c)(5) and (c)(8)(ii) of the National 

Stock Exchange, Rule 11.9(c)(6) of the BATS 

Exchange and Rule 7.31(w) of NYSE Arca. 

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

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

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 FINRA. 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 publicly available. All 

submissions should refer to File 

Number SR–FINRA–2009–045 and 

should be submitted on or before 

August 3, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16448 Filed 7–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60243; File No. SR–CHX– 

2009–09] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by the 

Chicago Stock Exchange, Inc. Adding 

the Post Only and Post Only ISO Order 

Types 

July 6, 2009. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on June 29, 

2009, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ or the ‘‘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 CHX. 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 

CHX proposes to amend its rules to 

add the Post Only and Post Only ISO 

order types. The text of this proposed 

rule change is available on the 

Exchange’s Web site at (http:// 

www.chx.com), at the principal office of 

the Exchange, and in 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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX 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 Exchange proposes to amend 

CHX Article 20, Rule 4 to add the Post 

Only and Post Only ISO order types. 

A Post Only Order is an order 

designed to encourage displayed 

liquidity on the Exchange. By its terms, 

a Post Only Order is posted on the 

Exchange and does not route away to 

another trading center. A Post Only 

Order will be immediately cancelled if 

it is marketable against a contra-side 

order in the Matching System when 

entered, or if it is at a price that would 

lock or cross a manual or protected 

quotation. 

A Post Only ISO Order is a type of 

ISO order that will be immediately 

cancelled without execution if it is 

marketable against a contra-side order in 

the Matching System when entered. If a 

Post Only ISO is not immediately 

cancelled, it will be posted on the 

Exchange at the entered limit price. By 

entering a Post Only ISO, a Participant 

represents that such Participant has 

simultaneously routed one or more 

additional limit orders marked ‘‘ISO,’’ 

as necessary, to away markets to 

executed against the full displayed size 

of any protected quotation for the 

security with a price that is superior or 

equal to the limit price of the Post Only 

ISO entered in the Matching System. 

Consequently, a Post Only ISO order 

will be displayed by the Exchange 

regardless of whether it will lock or 

cross another market center’s quote. 

Orders marked Post Only and Post 

Only ISO will always be considered 

‘‘liquidity providing’’ by the Exchange 

for purposes of application of the 

Exchange’s fees and rebate programs. By 

making a Post Only or Post Only ISO 

designation, Participants are able to 

avoid the risk that their orders will be 

considered ‘‘liquidity taking’’ for 

purposes of application of the 

Exchange’s fees and rebate programs. 

CHX notes that order types similar to 

the proposed Post Only and Post Only 

ISO order types are already in use by 

other market centers.3

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act in general,4 and 

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

in particular,5 in that it is designed to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transaction in securities, to 

remove impediments and perfect the 

mechanisms of a free and open market, 

and, in general, to protect investors and 

the public interest by allowing CHX to 

amend its rules to add the Post Only 

and Post Only ISO order types based on 

similar rules already in effect at other 

exchanges. The addition of these order 

types will benefit Exchange customers 

and promote competition among market 

centers. 

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 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

mstockstill on DSKH9S0YB1PROD with NOTICES