Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Notices 37265 

1 15 U.S.C. 78k-1(a). 

2 17 CFR 242.608. 

3See letter from Peter G. Armstrong, NYSE Arca, 

to Elizabeth Murphy, Secretary, Commission, dated 

June 24, 2009; letter from Michael Babel, NYSE 

Amex, to Elizabeth Murphy, Secretary, 

Commission, dated June 24, 2009; letter from 

Michael J. Simon, ISE, to Elizabeth Murphy, 

Secretary, Commission, dated July 1, 2009; letter 

from Edward J. Joyce, CBOE, to Elizabeth Murphy, 

Secretary, Commission, dated July 1, 2009; letter 

from Maura A. Looney, Associate Vice President, 

BX, to Elizabeth Murphy, Secretary, Commission, 

dated July 6, 2009; letter from letter from Richard 

S. Rudolph, Assistant General Counsel, Phlx, to 

Elizabeth Murphy, Secretary, Commission, dated 

July 16, 2009; and letter from Jeffrey S. Davis, Vice 

President and Deputy General Counsel, Nasdaq, to 

Elizabeth Murphy, Secretary, Commission, dated 

July 17, 2009. 

4On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket options 

market linkage proposed by the American Stock 

Exchange LLC (n/k/a Amex), CBOE, and ISE. See 

Securities Exchange Act Release No. 43086 (July 28, 

2000), 65 FR 48023 (August 4, 2000). Subsequently, 

Philadelphia Stock Exchange, Inc. (n/k/a Phlx), 

Pacific Exchange, Inc. (n/k/a NYSE Arca), Boston 

Stock Exchange, Inc. (n/k/a BX), and Nasdaq joined 

the Linkage Plan. See Securities Exchange Act 

Release Nos. 43573 (November 16, 2000), 65 FR 

70851 (November 28, 2000); 43574 (November 16, 

2000), 65 FR 70850 (November 28, 2000); 49198 

(February 5, 2004), 69 FR 7029 (February 12, 2004); 

and 57545 (March 21, 2008), 73 FR 16394 (March 

27, 2008). 

5See Securities Exchange Act Release No. 59647 

(March 30, 2009), 74 FR 15010 (April 2, 2009). 

6Section 5(a)(i) of the New Plan. 

7Section 5(a)(ii) of the New Plan. 

8Section 6 of the New Plan. 

directors or trustees, will find that the 

advisory fees charged under such 

contract are based on services provided 

that will be in addition to, rather than 

duplicative of, the services provided 

under the advisory contract(s) of any 

Fund in which the Purchasing 

Management Company may invest. 

These findings and their basis will be 

recorded fully in the minute books of 

the appropriate Purchasing Management 

Company. 

18. No Fund will acquire securities of 

any investment company or companies 

relying on sections 3(c)(1) or 3(c)(7) of 

the Act in excess of the limits contained 

in section 12(d)(1)(A) of the Act, except 

to the extent permitted by exemptive 

relief from the Commission permitting 

the Fund to purchase shares of a money 

market fund for short-term cash 

management purposes. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17884 Filed 7–27–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60360; File No. 4–429] 

Joint Industry Plan; Chicago Board 

Options Exchange, Incorporated, 

International Securities Exchange, 

LLC, The NASDAQ Stock Market LLC, 

NASDAQ OMX BX, Inc., NASDAQ OMX 

PHLX, Inc., NYSE Amex LLC, and 

NYSE Arca, Inc.; Notice of Filing of 

Amendments to the Intermarket 

Options Linkage Plan To Withdraw 

From the Plan 

July 21, 2009. 

I. Introduction 

Pursuant to Section 11A of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 608 of Regulation 

NMS thereunder (‘‘Rule 608’’),2 notice is 

hereby given that on June 25, 2009, June 

25, 3009, July 2, 2009, July 2, 2009, July 

7, 2009, July 17, 2009, July 20, 2009, 

NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE 

Amex, LLC (‘‘NYSE Amex’’), 

International Securities Exchange, LLC 

(‘‘ISE’’), Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’), 

NASDAQ OMX BX, Inc. (‘‘BX’’), 

NASDAQ OMX PHLX, Inc. (‘‘Phlx’’), 

and The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) (collectively, 

‘‘Participants’’) 3 respectively submitted 

to the Securities and Exchange 

Commission (‘‘Commission’’) 

amendments to the Plan for the Purpose 

of Creating and Operating an 

Intermarket Option Linkage (‘‘Linkage 

Plan’’) (‘‘Amendments’’).4 Each 

Amendment proposes to modify Section 

4(a) of the Linkage Plan to delete the 

name of the submitting Participant. The 

Commission is publishing this notice to 

solicit comments from interested 

persons on the proposed Amendments 

to the Linkage Plan. 

II. Description of the Proposed 

Amendments 

The purpose of each Amendment is 

for the Participant submitting such 

Amendment to withdraw from the 

Linkage Plan. Pursuant to Section 4(d) 

of the Linkage Plan, a Participant may 

withdraw by: (i) Providing not less than 

30 days’ prior written notice to each of 

the other Participants and to The 

Options Clearing Corporation (‘‘OCC,’’ 

the facilities manager) of such intent to 

withdraw; and (ii) effecting an 

amendment to the Linkage Plan as 

specified in Section 5(c)(iii) of the 

Linkage Plan. In turn, Section 5(c)(iii) of 

the Linkage Plan states that a Participant 

can withdraw from the Linkage Plan by 

filing an amendment deleting its name 

in Section 4(a) of the Linkage Plan and 

submitting such amendment to the 

Commission for approval. The 

submitting Participant must state how it 

plans to accomplish, by alternate means, 

the goals of the Linkage Plan regarding 

limiting Trade-Throughs. The 

amendment is effective upon 

Commission approval. 

The Participants plan to accomplish 

the Linkage Plan’s goals through 

membership in the Options Order 

Protection and Locked/Crossed Market 

Plan (‘‘New Plan’’). The Commission 

has published the New Plan for 

comment.5 The participants to the New 

Plan currently plan to begin 

implementing that plan on August 31st, 

subject to Commission approval. The 

New Plan contains a requirement that 

each participant establish, maintain and 

enforce written procedures and policies 

that are reasonably designed to prevent 

Trade-Throughs.6 The New Plan will 

accomplish this in a more efficient 

manner than the Linkage Plan. 

Specifically, the New Plan eliminates a 

central hub and addresses TradeThrough compliance through the use of 

intermarket sweep orders. This is based 

on the concepts of Regulation NMS, 

which, among other things, addresses 

trade-throughs in the equity market. The 

New Plan also requires its participants 

to conduct surveillance of their markets 

to ascertain the effectiveness of these 

policies and procedures.7 Finally, the 

New Plan contains provisions requiring 

its participants to establish, maintain 

and enforce written rules addressing 

locked and crossed markets.8 The 

Participants believe that the New Plan 

will fully accomplish the same goals of 

the Plan, including imposing limits on 

Trade-Throughs. 

III. Implementation of the Plan 

Amendment 

The proposed Amendments to the 

Linkage Plan will be effective upon 

approval by the Commission pursuant 

to Rule 608. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the Amendments to 

the Linkage Plan are 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 4–429 on the subject line. 

mstockstill on DSKH9S0YB1PROD with NOTICES

37266 Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Notices 

9 17 CFR 200.30–3(a)(29). 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3On July 6, 2001, the Commission approved the 

OLPP, which was originally proposed by the 

American Stock Exchange LLC (k/n/a NYSE Amex), 

CBOE, ISE, OCC, Philadelphia Stock Exchange, Inc. 

(k/n/a Phlx), and Pacific Exchange, Inc. (k/n/a 

NYSE Arca). See Securities Exchange Act Release 

No. 44521, 66 FR 36809 (July 13, 2001). On 

February 5, 2004, the Boston Stock Exchange, Inc. 

(k/n/a BX) was added as a sponsor to the OLPP. See 

Securities Exchange Act Release No. 49199, 69 FR 

7030 (February 12, 2004). On March 21, 2008, 

NASDAQ was added as a sponsor to the OLPP. See 

Securities Exchange Act Release No. 57546 (March 

21, 2008), 73 FR 16393 (March 27, 2008). 4CBOE, ISE, NASDAQ, BX, Phlx, NYSE Amex, 

and OCC have represented that the Penny Pilot 

Program has resulted in an explosion of quote 

traffic. 

5This restriction would not prohibit the listing of 

at least three options series per expiration month 

in an option class. 

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 4–429. 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 

Amendments that are filed with the 

Commission, and all written 

communications relating to the 

Amendments 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 Amendments also will be 

available for inspection and copying at 

the respective principal office of BX, 

CBOE, ISE, Nasdaq, Phlx, NYSE Amex, 

and 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 4–429 and 

should be submitted on or before 

August 18, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17880 Filed 7–27–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60365; File No. 4–443] 

Joint Industry Plan; Notice of Filing of 

Amendment No. 3 to the Plan for the 

Purpose of Developing and 

Implementing Procedures Designed To 

Facilitate the Listing and Trading of 

Standardized Options 

July 22, 2009. 

I. Introduction 

On June 30, 2009, June 16, 2009, June 

12, 2009, June 22, 2009, June 12, 2009, 

June 18, 2009, June 23, 2009, July 8, 

2009, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’), 

International Securities Exchange, LLC 

(‘‘ISE’’), NASDAQ Stock Market LLC 

(‘‘NASDAQ’’), NASDAQ OMX BX, Inc. 

(‘‘BX’’), NASDAQ OMX PHLX (‘‘Phlx’’), 

NYSE Amex LLC (‘‘NYSE Amex’’), 

NYSE Arca Inc. (‘‘NYSE Arca’’), and 

The Options Clearing Corporation 

(‘‘OCC’’), respectively, filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

11A of the Securities Exchange Act of 

1934 (‘‘Act’’) 1 and Rule 608 

thereunder,2 Amendment No. 3 to the 

Plan for the Purpose of Developing and 

Implementing Procedures Designed to 

Facilitate the Listing and Trading of 

Standardized Options (‘‘Plan’’ or 

‘‘OLPP’’).3 The amendment would apply 

uniform objective standards to the range 

of options series exercise (or strike) 

prices available for trading on the Plan 

Sponsor exchanges. This notice solicits 

comment on Amendment No. 3 from 

interested persons. 

II. Description of the Proposed 

Amendment 

Amendment No. 3 proposes to apply 

uniform objective standards to the range 

of options series exercise (or strike) 

prices available for trading on the Plan 

Sponsor exchanges as a quote mitigation 

strategy.4 According to the Plan 

Sponsors, by agreeing to uniform 

standards, the Plan Sponsor exchanges 

intend to reduce the overall number of 

option series available for trading, 

which will in turn lessen the rate of 

increase in quote traffic. 

Specifically, the proposal applies 

certain ‘‘range limitations’’ to the 

addition of new series strike prices for 

options classes overlying equity 

securities, Exchange Traded Fund 

Shares, or Trust Issued Receipts. As 

proposed, if the price of the underlying 

security is less than or equal to $20, the 

Series Selecting Exchange would not list 

new option series with an exercise price 

more than 100 percent above or below 

the price of the underlying security.5 If 

the price of the underlying security is 

greater than $20, the Series Selecting 

Exchange would not list new option 

series with an exercise price more than 

50 percent above or below the price of 

the underlying security. 

The proposal provides for an objective 

basis upon which the underlying prices 

for the price range limitations described 

above shall be determined, specifically, 

in regards to intra-day add-on series and 

next-day series additions, new 

expiration months and for option series 

to be added as a result of pre-market 

trading. Furthermore, 8 a.m. Chicago 

time is proposed as the earliest 

permissible time at which a Series 

Selecting Exchange may notify the OCC, 

and each other exchange also trading 

the same options class, that it has 

commenced trading new series as a 

result of pre-market trading. This 

earliest permissible time is established 

to ensure that outlier prices for the 

underlying security which occur at 6 

a.m. Chicago time, for example (i.e., 

well in advance of the opening of the 

standard trading session), are not relied 

upon for purposes of the exercise price 

range limitations. 

Example: XYZ closes on Tuesday at $20, 

but trades in the evening aftermarket trading 

session from a range of $35–$40 on 

speculation of a merger. At 8:15 a.m. Chicago 

time the next day (Wednesday), the 

exchanges wish to list additional series, for 

trading that day, with strike prices that 

reflect the anticipated price increase in XYZ 

relative to the previous trading day. There is 

no official high/low price since the market 

has not yet opened for trading for 

Wednesday, so the exchanges use the most 

recent pre-open trade price of $40. The 

exchanges could therefore add series with 

strike prices from $20–$60 based upon the 

proposed exercise price range limitations. 

As of 2 p.m. Chicago time during the 

Wednesday standard trading session XYZ has 

traded from a range of a low price of $40 to 

mstockstill on DSKH9S0YB1PROD with NOTICES