Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices 35215 

5 If the Fund has been in operation fewer than six 

months, the measured period will being 

immediately following the Fund’s first public 

offering. 

6 If the Fund has been in operation fewer than five 

years, the measured period will being immediately 

following the Fund’s first public offering. 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

information as may be reasonably 

necessary to make an informed 

determination of whether the Plan 

should be continued or continued after 

amendment; 

(b) Will determine whether 

continuation, or continuation after 

amendment, of the Plan is consistent 

with the Fund’s investment objective(s) 

and policies and in the best interests of 

the Fund and its shareholders, after 

considering the information in 

condition V.B.1(a) above; including, 

without limitation: 

(1) Whether the Plan is accomplishing 

its purpose(s); 

(2) The reasonably foreseeable 

material effects of the Plan on the 

Fund’s long-term total return in relation 

to the market price and NAV of the 

Fund’s common shares; and 

(3) The Fund’s current distribution 

rate, as described in condition V.B 

above, compared with the Fund’s 

average annual taxable income or total 

return over the 2-year period, as 

described in condition V.B, or such 

longer period as the Board deems 

appropriate; and 

(c) Based upon that determination, 

will approve or disapprove the 

continuation, or continuation after 

amendment, of the Plan; and 

2. The Board will record the 

information considered by it, including 

its consideration of the factors listed in 

condition V.B.1(b) above, and the basis 

for its approval or disapproval of the 

continuation, or continuation after 

amendment, of the Plan in its meeting 

minutes, which must be made and 

preserved for a period of not less than 

six years from the date of such meeting, 

the first two years in an easily accessible 

place. 

VI. Public Offerings 

A Fund will not make a public 

offering of the Fund’s common shares 

other than: 

A. A rights offering below NAV to 

holders of the Fund’s common shares; 

B. An offering in connection with a 

dividend reinvestment plan, merger, 

consolidation, acquisition, spin-off or 

reorganization of the Fund; or 

C. An offering other than an offering 

described in conditions VI.A and VI.B 

above, provided that, with respect to 

such other offering: 

1. The Fund’s annualized distribution 

rate for the six months ending on the 

last day of the month ended 

immediately prior to the most recent 

distribution record date,5 expressed as a 

percentage of NAV per share as of such 

date, is no more than 1 percentage point 

greater than the Fund’s average annual 

total return for the 5-year period ending 

on such date; 6 and 

2. The transmittal letter 

accompanying any registration 

statement filed with the Commission in 

connection with such offering discloses 

that the Fund has received an order 

under section 19(b) to permit it to make 

periodic distributions of long-term 

capital gains with respect to its common 

stock as frequently as twelve times each 

year, and as frequently as distributions 

are specified in accordance with the 

terms of any outstanding preferred stock 

as such Fund may issue. 

VII. Amendments to Rule 19b–1 

The requested relief will expire on the 

effective date of any amendment to rule 

19b–1 that provides relief permitting 

certain closed-end investment 

companies to make periodic 

distributions of long-term capital gains 

with respect to their outstanding 

common stock as frequently as twelve 

times each year. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17140 Filed 7–17–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold an Open Meeting 

on Wednesday, July 22, 2009 at 2 p.m., 

in the Auditorium, Room L–002. 

The subject matter of the Open 

Meeting will be: 

The Commission will consider 

whether to propose a rule to address 

‘‘pay to play’’ practices by investment 

advisers. The proposal is designed, 

among other things, to prohibit advisers 

from seeking to influence the award of 

advisory contracts by public entities 

through political contributions to or for 

those officials who are in a position to 

influence the awards. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: The Office of the Secretary at 

(202) 551–5400. 

Dated: July 15, 2009. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–17234 Filed 7–17–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60295; File No. SR–CBOE– 

2009–049] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Market-Maker 

Guidelines 

July 13, 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 9, 

2009, the Chicago Board Options 

Exchange, Incorporated (‘‘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 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

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

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 

Rule 8.7, Obligations of Market-Makers, 

to: (i) Eliminate the provision providing 

for bids (offers) to be no more than $1 

lower (higher) than the last preceding 

transaction plus or minus the aggregate 

change in the last sale price of the 

underlying, and (ii) amend the 

provision pertaining to trades that are 

more than $0.25 below parity. 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. 


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35216 Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices 

5See Securities Exchange Act Release No. 24040 

(January 30, 1987), 52 FR 4070 (February 9, 1987) 

(SR–CBOE–86–34). 

6 Id. 

7 15 U.S.C. 78s(b)(1). 

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

9 15 U.S.C. 78f(b)(5). 

10The Exchange has fulfilled this requirement. 

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

12 17 CFR 240.19b–4(f)(6). 

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 

Rule 8.7, in part, provides that 

Market-Makers are expected ordinarily, 

except in unusual market conditions, 

not to bid more than $1 lower or offer 

more than $1 higher than the last 

preceding transaction price for the 

particular option contract plus or minus 

the aggregate change in the last sale 

price of the underlying security since 

the time of the last preceding 

transaction for the particular option 

contract (the ‘‘one point’’ rule). In 

addition, Market-Makers are expected 

ordinarily, except in usual market 

conditions, to refrain from purchasing a 

call option or a put option at a price 

more than $0.25 below parity. In the 

case of calls, parity is measured by the 

bid in the underlying security, and in 

the case of puts, parity is measured by 

the offer in the underlying security (the 

‘‘parity’’ rule). 

First, the Exchange is proposing to 

eliminate the one point rule. The one 

point rule was originally adopted as a 

guideline in 1987.5 Since that time, 

various market changes have rendered 

the rule obsolete and unnecessary. For 

example, Market-Makers now stream 

electronic quotes and are subject to 

various electronic quotation 

requirements, including bid/ask quote 

width requirements contained 

elsewhere in Rule 8.7. In addition, the 

options intermarket linkage plan was 

adopted and contains trade-through and 

locked/crossed market requirements 

(e.g., Rules 6.83 and 6.84). The 

Exchange has also adopted an obvious 

error rule that contains provisions on 

erroneous pricing errors (e.g., Rule 6.25) 

and has in place certain price check 

parameters that will not permit the 

automatic execution of certain orders if 

the execution would take place outside 

an acceptable price range (e.g., Rule 

6.13(b)(v)). 

Second, at this time the Exchange is 

proposing to retain the parity rule 

(which was also adopted in 1987) 6 as a 

guideline but to modify it to provide 

that an amount larger than $0.25 may be 

appropriate considering the particular 

market conditions (not just unusual 

market conditions as the rule currently 

states). The text is also being revised to 

provide that the $0.25 guideline may be 

increased, or the parity rule waived, by 

the Exchange on a series-by-series basis. 

The Exchange believes that revising the 

$0.25 parity rule in this manner 

modernizes the guideline to reflect 

market changes (including those 

discussed above) and will provide more 

flexibility to take into consideration the 

particular trading in a security, 

including but not limited to the 

underlying market price, market 

conditions, and applicable minimum 

bid/ask width requirements for a given 

options series. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 7

and the rules and regulations 

thereunder and, in particular, the 

requirements of Section 6(b) of the Act.8

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 9 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest, because it will eliminate 

the outdated one point rule and update 

the parity rule to incorporate more 

flexibility and recognize changing 

market conditions. 

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 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 neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule 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 from the date on which it 

was filed, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, provided that the selfregulatory organization has given the 

Commission written notice of its intent 

to file 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,10 the proposed rule 

change has become effective pursuant to 

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

Rule 19b–4(f)(6) thereunder.12 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–CBOE–2009–049 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. 


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Federal Register / Vol. 74, No. 137 / Monday, July 20, 2009 / Notices 35217 

13 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

6A Cabinet Trade is also known as an 

Accommodation Transaction. 

7See Securities Exchange Act Release No. 59472 

(February 27, 2009), 74 FR 9843 (March 6, 2009) 

(order approving NYSEALTR–2008–14, as 

amended). 

8See Securities Exchange Act Release No. 59454 

(February 25, 2009), 74 FR 9461 (March 4, 2009) 

(notice of filing and immediate effectiveness of 

NYSEALTR–2009–17). 

9NYSE Amex proposes to adopt new rules related 

to the transfer of options positions as part of a 

separate rule filing. 

10Certain option issues on NYSE Amex are traded 

pursuant to a Penny Pilot Program scheduled to run 

through July 3, 2009. 

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

12 15 U.S.C. 78f(b)(5). 

All submissions should refer to File 

Number SR–CBOE–2009–049. 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 CBOE. 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–CBOE–2009–049 and 

should be submitted on or before 

August 10, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17134 Filed 7–17–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60296; File No. SR– 

NYSEAmex–2009–37] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Adopting Rule 968NY– 

Cabinet Trades 

July 13, 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 30, 

2009, NYSE Amex (‘‘NYSE Amex’’ 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 

Exchange filed the proposed rule change 

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

Act 4 and Rule 19b–4(f)(6) thereunder,5

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 proposes to adopt Rule 

968NY–Cabinet Trades. 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 

NYSE Amex proposes to adopt new 

Rule 968NY which will govern cabinet 

trading.6 The proposed rule is 

substantially similar to NYSE Arca Rule 

6.80. 

On March 2, 2009 NYSE Amex 

(f/k/a NYSE Alternext US LLC, f/k/a 

The American Stock Exchange LLC 

(collectively ‘‘Amex’’)) adopted a new 

rule set governing the trading of 

options.7 Much of the new rule set was 

based on the rules of NYSE Arca Inc. 

(‘‘NYSE Arca’’). In conjunction with the 

filing of the new rule set, the Exchange 

filed a separate proposal deleting many 

out-of-date and/or obsolete rules.8

Included as part of this filing was the 

deletion of former Amex Rule 959– 

Accommodation [sic] Transactions, 

which contained provisions governing 

both cabinet trading and position 

transfers. However, when filing the new 

rule set the Exchange inadvertently 

failed to include new rules governing 

cabinet trading. 

The Exchange now proposes to add a 

new rule governing the trading of 

cabinet orders.9 A brief description of 

the rules change is shown below. 

Cabinet Trading 

A cabinet order is a limit order in a 

non-Penny Pilot issue, which has been 

priced at $1.00.10 Cabinet orders serve 

as a way for market participants to 

liquidate a worthless, or near worthless 

position, at a minimal cost. 

Prior to the adoption of the present 

NYSE Amex trading system, all cabinet 

trading on the Amex was done on a 

manual basis. Therefore, previous Rule 

Amex 959(a) dealt only with cabinet 

trading in open outcry. The Exchange 

now proposes to adopt new Rule 968NY 

which will govern both manual and 

electronic cabinet trading. This 

proposed rule is similar in all material 

respects to NYSE Arca Rule 6.80, which 

also governs both manual and electronic 

cabinet trading. 

2. Statutory Basis 

The Exchange believes that for these 

reasons the proposed rule change is 

consistent with Section 6(b) of the Act 11

in general, and furthers the objectives of 

Section 6(b)(5) of the Act 12 in 

particular, because it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system. This 

proposal adds a new rule governing the 


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