34606 Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4The Commission notes that the suspension 

period under this filing commenced at the time that 

the proposed rule change was filed on July 2, 2009 

and will continue through July 31, 2009. 

5Section 802.01C provides that a company will 

be considered to be below compliance standards if 

the average closing price of a security as reported 

on the consolidated tape is less than $1.00 over a 

consecutive 30 trading day period. Once notified, 

the company must bring its share price and average 

share price back above $1.00 by six months 

following receipt of the notification. A company is 

not eligible to follow the cure procedures outlined 

in Sections 802.02 and 802.03 with respect to this 

criteria. The company must, however, notify the 

Exchange, within 10 business days of receipt of the 

notification, of its intent to cure this deficiency or 

be subject to suspension and delisting procedures. 

In the event that at the expiration of the six-month 

cure period, both a $1.00 share price and a $1.00 

average share price over the preceding 30 trading 

days are not attained, the Exchange will commence 

suspension and delisting procedures. 

Notwithstanding the foregoing, if a company 

determines that, if necessary, it will cure the price 

condition by taking an action that will require 

approval of its shareholders, it must so inform the 

Exchange in the above referenced notification, must 

obtain the shareholder approval by no later than its 

next annual meeting, and must implement the 

action promptly thereafter. The price condition will 

be deemed cured if the price promptly exceeds 

$1.00 per share, and the price remains above the 

level for at least the following 30 trading days. 

6See Securities Exchange Act Release No. 59510 

(March 4, 2009), 74 FR 10636 (March 11, 2009) (SR– 

NYSE–2009–21). 

7See, e.g., Securities Exchange Act Release No. 

58588 (September 18, 2008), 73 FR 55174 

(September 24, 2008) (‘‘The Commission is aware 

of the continued potential of sudden and excessive 

fluctuations of securities prices and disruption in 

the functioning of the securities markets that could 

threaten fair and orderly markets. Given the 

importance of confidence in our financial markets 

as a whole, we have also become concerned about 

sudden and unexplained declines in the prices of 

securities. Such price declines can give rise to 

questions about the underlying financial condition 

of an issuer, which in turn can create a crisis of 

confidence without a fundamental underlying basis. 

This crisis of confidence can impair the liquidity 

and ultimate viability of an issuer, with potentially 

broad market consequences.’’). 

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 the CHX. 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–CHX–2009–06 and should 

be submitted on or before August 6, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16860 Filed 7–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60273; File No. SR–NYSE– 

2009–64] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC To Extend Its 

Suspension of its Dollar Stock Price 

Continued Listing Standard to July 31, 

2009 

July 9, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on July 2, 2009, New York Stock 

Exchange LLC (the ‘‘NYSE’’ 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 eligible for 

immediate effectiveness pursuant to 

Rule 19b–4(f)(6) 3 under the Exchange 

Act. 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 extend 

through July 31, 2009, the suspension of 

the application of its price criteria for 

capital and common stock set forth in 

Section 802.01C of the Exchange’s 

Listed Company Manual (the 

‘‘Manual’’).4

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 NYSE 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 

From mid-2008 through the first 

quarter of 2009, the U.S. and global 

equities markets experienced extreme 

volatility and a precipitous decline in 

trading prices of many securities. As a 

consequence of these market conditions, 

the Exchange experienced an unusually 

high number (as compared to historical 

levels) of listed companies having stock 

prices that either fell below the 

Exchange’s $1.00 price requirement for 

capital and common stock set forth in 

Section 802.01C of the Manual (i.e., the 

average closing price of their stock has 

fallen below $1.00 over a consecutive 30 

trading day period) (the NYSE’s ‘‘dollar 

price continued listing standard’’).5 In 

response, the Exchange suspended the 

application of the dollar price continued 

listing standard until June 30, 2009.6

This suspension provided temporary 

relief to companies in response to the 

extreme volatility and a precipitous 

decline in trading prices of many 

securities experienced in the U.S. and 

global equities markets, which the 

Commission had acknowledged 

constituted a threat to the fair and 

orderly functioning of the securities 

markets and could lead to a crisis of 

confidence among investors regarding 

the viability of companies whose stock 

prices have declined significantly.7

Since the initial suspension of the 

Exchange’s dollar price continued 

listing standard, market conditions have 

improved somewhat and a significant 

number of companies have cured their 

noncompliance with that standard. 

However, major market indices have 

recovered only a fraction of their losses 

and are still significantly below the 

levels of the first half of 2008. 


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Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 34607 

8The Exchange notes that there are not currently 

any companies in the Exchange’s delisting appeal 

process whose stock is continuing to trade on the 

Exchange that have been sent a delisting 

notification for noncompliance with the dollar price 

continued listing standard. The Exchange also notes 

that it is continuing to identify companies in a 

compliance period as below compliance with the 

dollar price continued listing standard, including 

by continuing to append an indicator to the 

company’s stock ticker to identify it as being below 

compliance with that standard and including the 

company on a list of companies that are below 

compliance with that standard posted to the 

Exchange’s Web site, unless the company regains 

compliance during the suspension. A company will 

continue to be subject to delisting for failure to 

comply with other listing requirements. 

9A company will continue to be subject to 

delisting for failure to comply with other listing 

requirements. 

10For example, if a company was four months 

into its compliance period for noncompliance with 

the dollar price continued listing standard when the 

suspension started and the company does not 

regain compliance during the suspension, the 

company will have an additional two months 

starting on August 1, 2009, to regain compliance. 

11 15 U.S.C. 78f(b). 

12See 15 U.S.C. 78a. 

13 15 U.S.C. 78f(b)(5). 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(6). Pursuant to Rule 19b– 

4(f)(6)(iii) under the Act, the Exchange is required 

to give 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 Commission 

has determined to waive this requirement. 

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 240.19b–4(f)(6)(iii). 

Consequently, there are still a 

significantly larger number of listed 

companies that are below compliance 

with the dollar price continued listing 

standard than the historical norm. As 

such, the Exchange proposes to extend 

the period of the suspension by an 

additional month, through July 31, 

2009. The Exchange believes that doing 

so will potentially enable a number of 

companies that are currently below 

compliance with the dollar price 

continued listing standard, but 

otherwise suitable for auction market 

trading, to regain compliance, as has 

been the case with a significant number 

of companies during the initial period of 

the suspension. 

Under the proposed extended 

suspension of the Exchange’s dollar 

price continued listing standard, 

companies will not be notified of new 

events of noncompliance with that 

standard during the suspension period. 

Companies that were in a compliance 

period at the time of commencement of 

the suspension 8 will still be deemed to 

have regained compliance during the 

rule suspension period if, at the 

expiration of their respective six-month 

cure periods established prior to the 

commencement of the rule suspension, 

they have a $1.00 closing share price on 

the last trading day of the period and a 

$1.00 average share price based on the 

preceding 30 trading days. In addition, 

any company that was in a compliance 

period at the time of commencement of 

the rule suspension can return to 

compliance if on July 31, 2009, such 

company has a $1.00 closing share price 

and a $1.00 average share price based on 

the 30 trading days preceding the end of 

such month.9 Any company that was in 

a compliance period at the time of 

commencement of the rule suspension 

that does not regain compliance during 

the suspension period will recommence 

its compliance period upon reinstitution 

of the dollar price continued listing 

standard and receive the remaining 

balance of its compliance period.10

Following the temporary rule 

suspension, any new events of 

noncompliance with the Exchange’s 

dollar price continued listing standard 

will be determined based on a 

consecutive 30 trading-day period 

commencing on August 1, 2009. 

The proposed extended suspension of 

the Exchange’s dollar price continued 

listing standard will enable companies 

to remain listed in the current difficult 

market conditions with the prospect of 

a future recovery in their stock prices 

enabling them to comply with the 

applicable listing requirements upon the 

standard’s reinstatement. During the 

period between now and July 31, 2009, 

the Exchange will consider whether it is 

appropriate to propose further revisions 

to these requirements. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 11 of the Securities 

Exchange Act of 1934 (the ‘‘Act’’),12 in 

general, and furthers the objectives of 

Section 6(b)(5) 13 of the Act in particular 

in that it is designed to promote just and 

equitable principles of trade, 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 of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. The 

proposed rule change is designed to 

remove uncertainty regarding the ability 

of certain companies to remain listed on 

the NYSE during the current highly 

unusual market conditions, thereby 

protecting investors, facilitating 

transactions in securities, and removing 

an impediment to a free and open 

market. 

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 Exchange 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 

Because the proposed rule change: 

(i) Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) 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 proposed rule change has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 14 and Rule 19b– 

4(f)(6) thereunder.15

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 16 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 17

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has 

requested that the Commission waive 

the 30-day operative delay. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because it will allow NYSE to extend, 

through July 31, 2009, the temporary 

suspension of its $1.00 price continued 

listing requirement for capital and 

common stock. The Commission notes 

that the extension of the temporary 

suspension will continue to provide 

certain companies with temporary relief 

from receiving a non-compliance or 

delisting notification, or from being 

delisted, and will provide some 

additional time to allow companies to 

regain compliance after the market 

volatility and conditions experienced 

earlier this year and last fall. The 

Commission notes that this action is 

temporary in nature, and that following 

the suspension, companies currently in 


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34608 Federal Register / Vol. 74, No. 135 / Thursday, July 16, 2009 / Notices 

18For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that the proposed 

regulatory fees are as follows: 

Initial Regulatory Review Fee: This fee is charged 

to any CBSX Trading Permit Holder applicant that 

applies for a CBSX Trading Permit that, if approved, 

would result in CBOE serving as the Trading Permit 

Holder’s designated examining authority. The 

amount of the fee is $2,500. 

Monthly Regulatory Fee: This fee is charged to 

any CBSX Trading Permit Holder for whom CBOE 

acts as the Trading Permit Holder’s designated 

examining authority. The amount of the fee is 

$2,500 per month. 

4The Commission notes that the proposed 

inactivity fee is as follows: 

This fee is charged to any CBSX Trading Permit 

Holder that trades less than an average of 50,000 

shares per day over a calendar month period. This 

fee will be calculated monthly. The amount of this 

fee is $5,000 per month. 

the compliance period will resume at 

the same stage and receive the 

remaining balance of its compliance 

period if they remain non-compliant 

with these standards. For these reasons, 

the Commission designates that the 

proposed rule change become operative 

immediately upon filing.18

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the 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 Exchange 

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–2009–64 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–2009–64. 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 am and 3 pm. 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– 

2009–64 and should be submitted on or 

before August 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16859 Filed 7–15–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60264; File No. SR–CBOE– 

2009–045] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its CBOE 

Stock Exchange (‘‘CBSX’’) Fees 

Schedule To Establish Regulatory and 

Inactivity Fees 

July 8, 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 1, 

2009, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities 

and Exchange Commission (the 

‘‘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 its 

CBOE Stock Exchange (‘‘CBSX’’) Fees 

Schedule to establish regulatory and 

inactivity fees. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.org/legal), at the Exchange’s 

Office of the Secretary, and at the 

Commission. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

CBSX Fees Schedule to impose new 

CBSX regulatory fees 3 and an inactivity 

fee. 4 Currently, CBOE charges no fee to 

CBSX Trading Permit Holders who 

either apply for CBOE to act as their 

designated examining authority or for 

whom CBOE acts as the designated 

examining authority. However, 

processing these applications and acting 

as the regulatory authority can be costly 

and time-intensive, so it is necessary 

that CBOE be compensated for these 

expenses so that CBOE can pay the costs 

associated with them. The proposed 

Inactivity Fee will ensure that Trading 

Permit Holders are sufficiently active on 

CBSX (CBSX is only authorized to issue 

100 CBSX Trading Permits). The 

Exchange believes the regulatory fees 

are reasonable in that they help offset 

costs incurred in connection with CBSX 

regulation. The Exchange also believes 

the inactivity fee is appropriate since 

CBSX is only permitted to issue a finite 

number of Trading Permits and when 


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