Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 34611 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 ISE began trading FX options on April 17, 2007 

pursuant to Commission approval. See Securities 

Exchange Act Release No. 55575 (April 3, 2007), 72 

FR 17963 (April 10, 2007) (SR–ISE–2006–59) (the 

‘‘FX Options Filing’’). 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. More specifically, the 

Exchange believes that, because the 

proposed rule change will permit the 

Corporation to consider a broader range 

of experienced and knowledgeable 

individuals to serve as directors of the 

Corporation while also preserving the 

principle that effective boards of 

directors exercise independent 

judgment in carrying out their 

responsibilities, it will thereby 

contribute to perfecting the mechanism 

of a free and open market and a national 

market system and is also consistent 

with the protection of investors and the 

public interest. 

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. 

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 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 

Number SR–NYSE–2009–60 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–NYSE–2009–60. 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 

Section, 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 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–NYSE–2009–60 and should 

be submitted on or before August 6, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16857 Filed 7–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60274; File No. SR–ISE– 

2009–48] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Foreign Currency 

Options Closing Settlement Values 

July 9, 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 July 2, 

2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change as described in Items I, II, 

and III 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 ISE proposes to amend its rules 

regarding Foreign Currency Options 

(‘‘FX Options’’).3 The text of the 

proposed rule amendment is as follows, 

with deletions in [brackets] and 

additions italicized: 

Rule 2212. Foreign Currency Options 

Closing Settlement Value 

(a) The closing settlement value for 

foreign currency options shall be 

determined by using the WM/Reuters 

Intraday Spot rate [day’s announced 

Noon Buying Rate, as determined by the 

Federal Reserve Bank of New York,] on 

the last trading day during expiration 

week. [If the Noon Buying Rate is not 

announced by 5 p.m. Eastern time, the 

closing settlement value will be the 

most recently announced Noon Buying 

Rate, unless the Exchange determines to 

apply an alternative closing settlement 

value as a result of extraordinary 

circumstances. In the event the Noon 

Buying Rate is not published for an 

underlying currency, the Exchange will 

apply the WM/Reuters Closing Spot rate 

to determine the closing settlement 

value. If the Federal Reserve Bank of 

New York determines to publish a Noon 


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34612 Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 

4Pursuant to the FX Options Filing, the Exchange 

has the ability to use the WM/Reuters Closing Spot 

rate for six currencies to determine their closing 

settlement value because the FRBNY does not 

publish a Noon Buying Rate for these currencies. 

Those six currencies are the Czech koruna, the 

Hungarian forint, the Israeli shekel, the Korean 

won, the Polish zloty and the Russian ruble. 

5The Australian dollar, British pound, Canadian 

dollar, Czech koruna, Danish krone, euro, Japanese 

yen, New Zealand dollar, Norwegian krone, 

Singapore dollar, South African rand, Swedish 

krona, and Swiss franc are all considered by WM/ 

Reuters to be ‘‘trade currencies,’’ while all others 

are considered ‘‘non-trade currencies.’’ All of the 

‘‘trade currencies’’ have been approved for trading 

by the Exchange except the Danish krone and the 

Singapore dollar. See supra note 1. 

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

7 15 U.S.C. 78f(b)(5). 

Buying Rate in the future for a currency 

for which it currently does not publish 

such rate, the Exchange will apply the 

Noon Buying Rate in place of the WM/ 

Reuters Composite Spot rate to 

determine the closing settlement value 

for such currency.] 

(b) No Change. 

(c) The closing settlement value[, 

whether based on the Noon Buying Rate 

or the WM/Reuters Closing Spot rate,] 

will also be modified using the 

applicable modifier, i.e., 1, 10 or 100, 

that is used in calculating the respective 

modified exchange rate, and will be 

posted by the Exchange on its Web site. 

* * * * * 

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 

ISE proposes to amend its rules 

regarding FX Options. Currently, ISE’s 

rule for determining closing settlement 

value for FX Options states that the 

closing settlement value shall be the 

day’s announced ‘‘Noon Buying Rate,’’ 

as determined by the Federal Reserve 

Bank of New York (‘‘FRBNY’’), on the 

last trading day during expiration week. 

If the Noon Buying Rate is not 

announced by 5 p.m. Eastern time, the 

closing settlement value will be the 

most recently announced Noon Buying 

Rate, unless the Exchange determines to 

apply an alternative closing settlement 

value as a result of extraordinary 

circumstances. ISE’s experience with 

the Noon Buying Rate indicates that the 

FRBNY is becoming increasingly 

unreliable in the timeliness of its 

publication of the Noon Buying Rate. 

On at least one occasion earlier this 

year, the FRBNY delayed publication of 

the Noon Buying Rate. As a result, ISE 

resorted to the WM/Reuters Closing 

Spot rate, as permitted under current 

rules, to determine the closing 

settlement value for expiring FX 

Options.4

ISE recently entered into an 

agreement with The World Markets 

Company, PLC (‘‘WM’’), publisher of a 

number of foreign currency reference 

rates, pursuant to which WM will 

provide ISE with the WM/Reuters 

Intraday Spot rate. The calculation 

methodology of the Intraday Spot rate is 

the same as that used for the Closing 

Spot rate. The only difference between 

the two rates is the time and frequency 

at which they are calculated. The 

Closing Spot rate is calculated at 16:00 

UK time while the Intraday Spot rates 

are calculated every hour. Going 

forward, instead of using the Noon 

Buying Rate, the Exchange intends to 

use the WM/Reuters Intraday Spot rate, 

as of 12 p.m., New York time, to 

determine closing settlement value for 

all the currency pairs approved in the 

FX Options Filing. As noted above, the 

WM/Reuters Intraday Spot rate is 

calculated every hour, from Monday 7 

a.m. Sydney time (Sunday 5 p.m. New 

York time) to Friday 10 p.m. UK time 

(Friday 5 p.m. New York time). Those 

times are also known as the ‘fix’ times. 

WM/Reuters typically publishes its rates 

15 minutes after the fix time. The 

Reuters System is the primary source of 

spot foreign exchange rates used in the 

calculation of the WM/Reuters Intraday 

Spot rate. WM/Reuters, however, may 

use alternative sources such as a 

country’s Central Bank or rates from 

EBS, which is another major FX venue 

and market data service provider for 156 

currencies, including all of the 

currencies approved by the FX Options 

Filing. 

WM/Reuters has two main methods 

for calculating its Intraday Spot rate. 

The methodology used depends on 

whether a currency is determined by 

WM/Reuters to be a ‘‘trade currency’’ or 

a ‘‘non-trade currency.’’ 5 WM/Reuters 

applies a unique methodology for each 

category. Intraday Spot rates for ‘‘nontrade currencies’’ are determined 

primarily by using data from Reuters. 

This methodology involves taking 

snapshots of quoted bids and offers for 

each currency at 15-second intervals 

over a two minute period. The median 

is then calculated independently for 

each currency’s bid and offer. The 

midpoint of that median bid and offer 

becomes the final value. 

Intraday Spot rates for ‘‘trade 

currencies’’ are determined primarily by 

using data from both Reuters and EBS. 

This methodology involves taking 

snapshots of actual traded rates every 

second for a period of 30 seconds before 

the fix to 30 seconds after the fix. Trades 

are identified as a bid or offer and a 

spread is applied to calculate the 

opposite bid or offer. The spread 

applied is determined by the spread 

between buy and sell orders captured at 

the same time. The median is then 

independently calculated for each 

currency’s bid and offer, resulting in a 

midpoint trade rate. The midpoint of 

that median bid and offer becomes the 

final value. 

ISE proposes to amend its rules by 

replacing all references to the FRBNY’s 

Noon Buying Rate with WM/Reuters 

Intraday Spot rate. This proposed rule 

change will allow the Exchange to adopt 

an industry-recognized vendor for 

foreign currency rates and do so without 

causing any disruption in the 

calculation of the closing settlement 

value for FX Options. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

under the Act applicable to a national 

securities exchange and, in particular, 

the requirements of Section 6(b) of the 

Act.6 Specifically, the Exchange 

believes the proposed rule change is 

consistent with Section 6(b)(5) of the 

Act’s 7 requirements that the rules of a 

national securities exchange be 

designed to promote just and equitable 

principles of trade, to prevent 

fraudulent and manipulative acts and, 

in general, to protect investors and the 

public interest. In particular, the 

proposed rule change will allow the 

Exchange to adopt an industryrecognized value to determine the 

closing settlement value for FX Options 

traded on the Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 


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Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 34613 

8 17 CFR 240.19b–4(f)(6). 9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

This proposed rule change does not 

significantly affect the protection of 

investors or the public interest, does not 

impose any significant burden on 

competition, and, by its terms, does not 

become operative for 30 days after the 

date of the filing, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest. The 

Exchange provided 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 

the proposed rule change as required by 

Rule 19b–4(f)(6).8 For the foregoing 

reasons, the Exchange believes the 

proposed rule filing qualifies for 

expedited approval as a ‘‘noncontroversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 of the 

Act. 

The Exchange believes the proposed 

rule change is non-controversial in that 

it will allow the Exchange to adopt an 

industry-recognized value to determine 

the closing settlement value for FX 

Options traded on the Exchange. The 

Exchange also believes that the 

proposed rule change does not raise any 

new, unique or substantive issues, and 

is beneficial for competitive purposes 

and to promote a free and open market 

for the benefit of investors. 

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–ISE–2009–48 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–ISE–2009–48. 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 the 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–ISE– 

2009–48 and should be submitted on or 

before August 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16854 Filed 7–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60265; File No. SR– 

NASDAQ–2009–058] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Modify Port Fees 

July 8, 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 24, 

2009, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’) 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 NASDAQ. The Commission 

is publishing this notice to solicit 

comments on the proposed rule from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NASDAQ proposes to modify fees 

charged to members and non-members 

for ports used to enter orders into 

NASDAQ systems. The text of the 

proposed rule change is available from 

the principal office of NASDAQ and 

from the Commission, and is also 

available at http:// 

www.cchwallstreet.com/nasdaq. 

NASDAQ will implement the proposed 

rule change on the first day of the 

month immediately following 

Commission approval (or on the date of 

approval, if on the first business day of 

a month). 

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. 


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