Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 36803 

3 Voluntary Professional orders are orders for a 

customer that has elected to be treated in the same 

manner as a broker-dealer in securities for purposes 

of specified execution priority rules and with 

respect to the ISE fee schedule. ISE Rule 

100(a)(37A). 

4Earlier this year the SEC approved an ISE rule 

change to distinguish between priority customers 

and professional customers for purposes of 

specified execution priority rules and with respect 

to the ISE fee schedule. Securities Exchange Act 

Release No. 59287 (Jan. 23, 2009), 74 FR 5694 (Jan. 

30, 2009) (‘‘Professional Order Filing’’). Professional 

Orders are orders for the account of a non-brokerdealer that enters more than 390 orders per day on 

average during a month during a calendar quarter. 

To assure member firms are given sufficient time to 

implement any necessary systems changes, this rule 

change is being implemented in two stages: (1) 

Members are required to start measuring the 

number of orders their customers enter on average 

per day during the third quarter 2009; and (2) 

members are required to start identifying 

professional customer orders entered on the ISE at 

the beginning of the fourth quarter 2009. 

5The Exchange adopted definitional changes to 

its fee schedule that resulted in Professional Orders 

being charged the same fees as broker-dealer orders. 

However, because the rule change is being phasedin, and to avoid confusion in the interim, the ISE 

fee schedule posted on the Exchange’s Web site 

does not yet reflect these definitional changes. 

6The imposition of broker-dealer fees is 

imbedded in the definition of a Voluntary 

Professional rather than being separately identified 

on the ISE fee schedule. Therefore, the Exchange 

proposes to modify the definition of Voluntary 

Professional in order to accomplish the fee change. 

7The Exchange notes that Voluntary Professional 

orders and Professional Orders currently are not 

subject to the Exchange’s cancellation fee. The 

Exchange is not proposing to change this aspect of 

the fee schedule. Such orders will not be subject to 

the cancellation fee. 

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

9 17 CFR 19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

categories of customer orders for which 

the Exchange charges broker-dealer 

execution fees: Voluntary Professional 

orders; 3 and Professional Orders.4 Each 

of these order categories is also treated 

the same as broker-dealer orders for the 

purposes of specified Exchange 

execution priority rules. The ISE 

currently is the only market center that 

has these order categories for nonbroker-dealer orders, and charging 

broker-dealer execution fees makes it 

more costly to execute these orders on 

the ISE as compared to the other options 

exchanges. Therefore, in order to remain 

competitive, the Exchange proposes to 

amend its fee schedule 5 and rules 6 so 

that all non-broker-dealer orders are 

subject to the same execution fee. This 

fee change will effectively result in a fee 

decrease for the execution of these 

orders.7

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(4) that an exchange 

have an equitable allocation of 

reasonable dues, fees and other charges 

among its members and other persons 

using its facilities. In particular, this 

proposed rule change would lower fees 

for the execution of Voluntary 

Professional orders and Professional 

Orders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

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 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3) of 

the Act 8 and Rule 19b–4(f)(2) 9

thereunder. 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–ISE–2009–47 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–2009–47. 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 the ISE. 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–2009–47 and should be 

submitted on or before August 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17635 Filed 7–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60338; File No. SR–CBOE– 

2009–051] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend Two Pilot 

Programs Related to the Exchange’s 

Automated Improvement Mechanism 

July 17, 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 16, 

2009, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 


srobinson on DSKHWCL6B1PROD with NOTICES
36804 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 53222 

(February 3, 2006), 71 FR 7089 (February 10, 2006) 

approving SR–CBOE–2005–60. 

6That rule relates to situations where a MarketMaker’s quote interacts with the quote of another 

CBOE Market-Maker (i.e. when internal quotes 

lock). 

7See Securities Exchange Act Release No. 54147 

(July 14, 2006), 71 FR 41487 (July 21, 2006) 

approving SR–CBOE–2006–64. 

8See Securities Exchange Act Release No. 56094 

(July 18, 2007), 72 FR 40910 (July 25, 2007) 

approving SR–CBOE–2007–80. 

9See Securities Exchange Act Release No. 58196 

(July 18, 2008), 73 FR 43803 (July 28, 2008) 

approving SR–CBOE–2008–76. In this filing, the 

Exchange agreed to provide additional information 

relating to the AIM auctions each month in order 

to aid the Commission in its evaluation of the pilot 

program. The Exchange will continue to provide 

this information. 

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

11 15 U.S.C. 78(f)(b)(5). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to provide the 

Commission with written notice of its intention to 

file the proposed rule change along with a brief 

description of the text of the proposed rule change, 

at least five business days prior to filing the 

proposal with the Commission, or such shorter time 

as designated by the Commission. The Exchange 

has fulfilled this requirement. 

14For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by the Exchange. 

The Exchange filed the proposal as a 

‘‘non-controversial’’ proposed rule 

change pursuant to Section 

19(b)(3)(A)(iii) of the Act 3 and Rule 

19b–4(f)(6) thereunder,4 which renders 

the proposed rule change 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 extend two 

pilot programs related to the Exchange’s 

Automated Improvement Mechanism. 

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 

In February, 2006, CBOE obtained 

approval of a filing adopting the AIM 

auction process.5 AIM exposes certain 

orders electronically to an auction 

process to provide such orders with the 

opportunity to receive an execution at 

an improved price. The AIM auction is 

available only for orders that an 

Exchange member represents as agent 

and for which a second order of the 

same size as the ‘‘Agency Order’’ (and 

on the opposite side of the market) is 

also submitted (effectively stopping the 

Agency Order at a given price). 

Two components of AIM were 

approved on a pilot basis: (1) that there 

is no minimum size requirement for 

orders to be eligible for the auction, and 

(2) that the auction will conclude 

prematurely anytime there is a quote 

lock on the Exchange pursuant to Rule 

6.45A(d).6 In connection with the pilot 

programs, the Exchange has submitted 

to the Commission reports providing 

detailed AIM auction and order 

execution data. In July 2006, the 

Exchange extended the pilot program 

until July 18, 2007.7 In July 2007, the 

Exchange extended the pilot program 

until July 18, 2008.8 In July 2008, the 

Exchange extended the pilot program 

until July 18, 2009.9 The proposed rule 

change merely extends the duration of 

the pilot programs until July 17, 2010. 

Extending the pilots for an additional 

year will allow the Commission more 

time to consider the impact of the pilot 

programs on AIM order executions. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act in general 10 and furthers 

the objectives of Section 6(b)(5) 11 in 

particular in that by allowing the 

Commission additional time to evaluate 

the AIM pilot programs, it should serve 

to remove impediments to and perfect 

the mechanism of a free and open 

market and a national market system, 

and protect investors and the public 

interest. 

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 proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this 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) 12 of the Act and 

Rule 19b–4(f)(6) thereunder.13

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay, which 

would make the rule change operative 

upon filing. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest 

because such waiver would allow the 

AIM pilot programs to continue without 

interruption.14 Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

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. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices 36805 

15 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). 

5The Pilot Program is currently set to expire on 

July 18, 2009. See Securities Exchange Act Release 

No. 58942 (November 13, 2008), 73 FR 70394 

(November 20, 2008) (SR–BSE–2008–49); See also 

Securities and Exchange Act Release No. 58195 

(July 18, 2008), 73 FR 43801 (July 28, 2008) (SR– 

BSE–2008–39); See also Securities Exchange Act 

Release No. 55999 (July 2, 2007), 72 FR 37549 (July 

10, 2007) (SR–BSE–2007–27); See also Securities 

Exchange Act Release No. 54066 (June 29, 2006), 71 

FR 38434 (July 6, 2006) (SR–BSE–2006–24); See 

also Securities Exchange Act Release No. 52149 

(July 28, 2005), 70 FR 44704 (August 3, 2005) (SR– 

BSE–2005–22); See also Securities Exchange Act 

Release No. 49068 (January 13, 2004), 69 FR 2775 

(January 20, 2004) (SR–BSE–2002–15) (‘‘Original 

PIP Pilot Program Approval Order’’). See also 

Securities Exchange Act Release No. 51821 (June 

10, 2005), 70 FR 35143 (June 16, 2005) (SR–BSE– 

2004–51) (Order approving, among other things, 

under certain circumstances, the premature 

termination of a PIP process). 

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–2009–051 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–2009–051. 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 

Number SR–CBOE–2009–051 and 

should be submitted on or before 

August 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17638 Filed 7–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60337; File No. SR–BX– 

2009–038] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Extend a 

Pilot Program That Allows for No 

Minimum Size Order Requirement for 

the Price Improvement Period Process 

on the Boston Options Exchange 

Facility 

July 17, 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 13, 

2009 NASDAQ OMX BX, Inc. (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 self-regulatory organization. The 

Exchange filed the proposed rule change 

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

Act,3 and Rule 19b–4(f)(6) thereunder,4

which renders the proposal effective 

upon filing with the Commission. 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 

The Exchange proposes to amend the 

Supplementary Material to Section 18 

(the Price Improvement Period ‘‘PIP’’) of 

Chapter V of the Rules of the Boston 

Options Exchange Group, LLC (‘‘BOX’’) 

to extend a pilot program that permits 

BOX to have no minimum size 

requirement for orders entered into the 

PIP and under certain circumstances 

permits the premature termination of 

the PIP process (‘‘PIP Pilot Program’’). 

The text of the proposed rule change is 

available from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 

The purpose of the proposed rule 

change is to extend the PIP Pilot 

Program under the BOX Rules for 

twelve (12) additional months. The PIP 

Pilot Program allows BOX to have no 

minimum size requirement for orders 

entered into the PIP process and under 

certain circumstances permits the 

premature termination of the PIP 

process.5 The proposed rule change 

reflects change to the text of 

Supplementary Material .01 to Section 

18 of Chapter V of the BOX Rules and 

seeks to extend the operation of the PIP 

Pilot Program until July 17, 2010. 

The Exchange notes that the PIP Pilot 

Program provides small customer orders 

with benefits not available under the 

rules of some other exchanges. One of 

the important factors of the PIP Pilot 

Program is that it guarantees 

Participants the right to trade with their 

customer orders that are less than 50 

contracts. In particular, any order 


srobinson on DSKHWCL6B1PROD with NOTICES