33008 Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 57358 

(February 20, 2008), 73 FR 11173 (February 29, 

2008) (notice of filing and immediate effectiveness 

of NYSEArca–2008–17); See Securities Exchange 

Act Release No. 55347 (February 26, 2007), 72 FR 

9823 (March 5, 2007) (notice of filing and 

immediate effectiveness of NYSEArca–2007–19); 

See Securities Exchange Act Release No. 54385 

(August 30, 2006), 71 FR 53150 (September 8, 

2006), (notice of filing and immediate effectiveness 

of NYSEArca–2006–49); See Securities Exchange 

Act Release No. 51286 (March 1, 2005), 70 FR 

11297 (approval notice for PCX–2003–55); See 

Securities Release Act No. 45737 (April 11, 2005), 

[sic] 67 FR 18975 (approval order for PCX–2000– 

45). 

5See NYSE Amex Rule 905(a)—Exercise Limits. 

6See PHLX Rule 1002.—Exercise Limits. 

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

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

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60200; File No. SR– 

NYSEArca–2009–57] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change by NYSE Arca, Inc. 

Amending Rule 6.9—Exercise Limits 

June 30, 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 24, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 6.9—Exercise Limits. The text of 

the proposed rule change is attached as 

Exhibit 5 to the 19b–4 form. A copy of 

this filing is available on the Exchange’s 

Web site at http://www.nyse.com, at the 

Exchange’s principal office and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

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 this filing to revise 

Rule 6.9—Execise [sic] Limits, to clarify 

that exercise limits applicable to a 

particular class of options shall be 

determined in accordance with the 

position limits established pursuant to 

Rule 6.8. 

Rule 6.9(a) states that except with the 

prior approval of the Exchange, no OTP 

Holder or OTP Firm shall exercise a 

long position in any option contract if 

as a result thereof such OTP Holder or 

OTP Firm has or will have exercised 

within any five (5) consecutive business 

days aggregate long positions in that 

particular class of options in excess of 

such number of option contracts as shall 

be fixed from time to time by the 

Exchange as the exercise limit for that 

particular class of options. 

Commentary .01 to Rule 6.9 goes on 

to list certain tiers for exercise limits, 

starting at 25,000 contracts and going up 

to 250,000 contracts. These exercise 

limits are equivalent to applicable 

position limits for a particular options 

class as prescribed by Rule 6.8.06(a)–(e). 

Commentary .01 goes on to say that 

whether an exercise limit is 25,000 or 

50,000 or 75,000 or 200,000 or 250,000 

shall be determined in the manner 

described in Rule 6.8.06. Rule 6.8.06, 

specifically subsections (f)–(g), also 

contains position limits, for certain 

specific products, that differ from the 

tiers cited in Rule 6.9.01. In addition, 

Rule 6.8.07–.09 contains provisions that 

exempt certain positions from standard 

position limits. 

Because Rule 6.8.06 prescribes 

additional position limits that are not 

cited in Rule 6.9.01, plus the fact that 

Rule 6.8 contains Commentary other 

than .06, which includes additional 

criteria for determining position limits 

other than what is already cited in Rule 

6.9.01, the Exchange now proposes to 

adopt new rule text to Rule 6.9.01 that 

explicitly states the exercise limits 

pursuant to Rule 6.9(a) shall be 

equivalent to the corresponding position 

limit, for the same particular class of 

options, as determined by Rule 6.8. and 

Commentary thereto. 

The purpose of this rule change is to 

offer clarity to the existing rules 

governing exercise limits. It does not in 

any way attempt to alter the method in 

which the Exchange calculates position 

or exercise limits. NYSE Arca notes that 

over the years, it has at times, revised 

Rule 6.8 to increase position limits, as 

well as the sizes and scopes of available 

hedge exemptions to the applicable 

position limits.4 While it has always 

been the intent to determine exercise 

limits based on the applicable position 

limits, Rule 6.9.01 has not necessarily 

been revised to reflect the various 

changes made to Rule 6.8. The rule 

simply serves to make it perfectly clear 

that the exercise limits for a particular 

class of options shall be equivalent to 

the corresponding position limit for the 

same particular class of options as 

determined by Rule 6.8 and any 

Commentary thereto. 

In addition, rule changes contained in 

this proposal are consistent with similar 

rules of NYSE Amex LLC (‘‘NYSE 

Amex’’), 5 and NASDAQ OMX PHLX 

(‘‘PHLX’’), 6 governing the exercise of 

options contracts. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with section 6(b) 

of the Act,7 in general, and furthers the 

objectives of section 6(b)(5) of the Act,8

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, promote just and 

equitable principles of trade, 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. This rule change simply 

serves to offer clarity to an already 

existing rule. In addition, adopting 

similar rules to those that are in place 

at other options exchanges will help to 

alleviate any confusion on the part of 

market participants, when exercising 

option contracts. 

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 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. 


rmajette on DSK29S0YB1 with NOTICES
Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices 33009 

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

10 17 CFR 240.19b–4(f)(6). Rule 19b–4(f)(6)(iii) 

requires that a self-regulatory organization 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 the five-day pre-filing notice 

requirement. 

11 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). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

At any time within 60 days of the 

filing of such 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–NYSEArca–2009–57 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–NYSEArca–2009–57. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of the filing also will be available 

for inspection and copying at the 

principal office of NYSE Arca. 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–NYSEArca–2009–57 and 

should be submitted on or before July 

30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16173 Filed 7–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60204; File No. SR–BATS– 

2009–020] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend BATS Rule 

11.9, Entitled ‘‘Orders and Modifiers,’’ 

and BATS Rule 11.12, Entitled ‘‘Priority 

of Orders’’ 

July 1, 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 29, 

2009, BATS Exchange, Inc. (‘‘BATS’’ or 

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 Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

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

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it 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 is proposing to amend 

BATS Rule 11.9, entitled ‘‘Orders and 

Modifiers,’’ and BATS Rule 11.12, 

entitled ‘‘Priority of Orders,’’ to permit 

Users to use a ‘‘Replace Message’’ to 

modify certain types of information 

originally submitted with an order 

without modifying the priority of such 

order. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.com, 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 

Exchange 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 

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 permit Users of the 

Exchange to change additional terms of 

an order through the use of a Replace 

Message. Currently, Rule 11.9(e)(3) 

states that the only terms of an order 

that may be changed through use of a 

Replace Message are the price and 

quantity terms of an order, including 

changing a limit order to a market order. 

Also, current Rule 11.12(a)(3) states that 

a decrease to the size of an order is the 

only change that a User can make that 

will not result in a loss of priority for 

an order compared to other orders in the 

BATS Book. The Exchange believes that 

Users should also be permitted to 


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