37758 Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 60106 

(June 12, 2009), 74 FR 29525 (June 22, 2009) 

(‘‘Notice’’). 

4 17 CFR 240.19h–1. 

5Exchange Act Rule 19h–1(a)(2), 17 CFR 

240.19h–1(a)(2), provides that a notice need not be 

filed with the Commission, pursuant to Exchange 

Act Rule 19h–1, regarding an associated person 

subject to a statutory disqualification if the person’s 

activities with respect to the member are solely 

clerical or ministerial in nature and such person 

does not have access to funds, securities, or books 

and records. 

6Exchange Act Rule 19h–1(a)(3), 17 CFR 

240.19h–1(a)(3), provides that a notice need not be 

filed with the Commission, pursuant to Exchange 

Act Rule 19h–1, regarding a person or member 

subject to a statutory disqualification if the person 

or member proposed for continued association or 

membership, respectively, satisfies the 

requirements of Exchange Act Rule 19h–1(a)(3)(i)– 

(vi). 

7 15 U.S.C. 78a et seq. 

8See Securities Exchange Act Release No. 56614 

(October 4, 2007), 72 FR 58132 (October 12, 2007) 

(SR–CBOE–2007–14). 

purchased only by, and sold only to 

eligible contract participants (as defined 

in Section 1a(12) of the Commodity 

Exchange Act as in effect on the date of 

this Order (other than a person that is 

an eligible contract participant under 

paragraph (C) of that section)), and in 

which: 

(i) The reference entity, the issuer of 

the reference security, or the reference 

security is one of the following: 

(A) An entity reporting under the 

Exchange Act, providing Securities Act 

Rule 144A(d)(4) information, or about 

which financial information is 

otherwise publicly available; 

(B) A foreign private issuer whose 

securities are listed outside the United 

States and that has its principal trading 

market outside the United States; 

(C) A foreign sovereign debt security; 

(D) An asset-backed security, as 

defined in Regulation AB, issued in a 

registered transaction with publicly 

available distribution reports; or 

(E) An asset-backed security issued or 

guaranteed by Fannie Mae, Freddie Mac 

or Ginnie Mae; or 

(ii) The reference index is an index in 

which 80 percent or more of the index’s 

weighting is comprised of the entities or 

securities described in subparagraph (i). 

(2) ‘‘ICE Clear Europe Clearing 

Member’’ shall mean any clearing 

member of ICE Clear Europe that 

submits Cleared CDS to ICE Clear 

Europe for clearance and settlement 

exclusively (i) for its own account or (ii) 

for the account of an affiliate that 

controls, is controlled by, or is under 

common control with the clearing 

member of ICE Clear Europe. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–17990 Filed 7–28–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60370; File No. SR–CBOE– 

2009–033] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Approving 

Proposed Rule Change Regarding 

Statutory Disqualification Procedures 

July 23, 2009. 

I. Introduction 

On May 26, 2009, the Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘SEC’’ or 

‘‘Commission’’) a proposed rule change 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’), and Rule 19b–4 

thereunder.2 The proposed rule change 

was published for comment in the 

Federal Register on June 22, 2009.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

Exchange Act Rule 19h–1 4 prescribes 

the form and content of, and establishes 

the mechanism by which the 

Commission reviews, proposals 

submitted by self-regulatory 

organizations (‘‘SROs’’), such as CBOE, 

to allow a member or associated person 

subject to a statutory disqualification to 

become or remain a member or 

associated with a member. Among other 

things, Rule 19h–1 provides for 

Commission review of notices filed by 

SROs proposing to admit any person to, 

or continue any person in, membership 

or association with a member, 

notwithstanding a statutory 

disqualification. However, Exchange 

Act Rule 19h–1(a)(2)5 and Exchange Act 

Rule 19h–1(a)(3)6 provide that for 

certain persons, and in limited 

circumstances, a notice does not need to 

be filed. 

CBOE Rule 3.18(a) provides that 

CBOE may determine not to permit a 

member or an associated person of a 

member who is or becomes subject to a 

statutory disqualification under the 

Exchange Act,7 to continue in 

membership or in association with a 

member. Under Rule 3.18(b), a member 

or an associated person who is or 

becomes subject to a statutory 

disqualification and wishes to continue 

in membership or in association with a 

member must submit an application to 

the Exchange to do so. When the 

Exchange receives such an application, 

or otherwise becomes aware that a 

member or an associated person is 

subject to a statutory disqualification, 

the Exchange is required to appoint a 

panel to conduct a hearing under the 

procedures set forth in Rule 3.18 to 

determine whether to allow the member 

or associated person to continue in 

membership or in association with a 

member. 

Interpretation and Policy .03 to Rule 

3.18 currently permits the Exchange to 

waive the hearing provisions of Rule 

3.18 when the Exchange intends to grant 

an associated person’s application for 

continued association and the Exchange 

is not required to make a notice filing 

with the Commission under Exchange 

Act Rule 19h–1(a)(2).8 The Exchange 

proposed to expand its ability to waive 

the hearing provisions of Rule 3.18 

when the Exchange intends to grant a 

member’s or associated person’s 

application for continued membership 

or association and the Exchange is not 

required to make a notice filing with the 

Commission under Exchange Act Rule 

19h–1(a)(3). 

CBOE also proposed to waive the 

hearing provisions of Rule 3.18 when it 

determines to allow a member to 

continue in membership, or an 

associated person to continue in 

association with a member, and CBOE 

determines that it is otherwise 

appropriate to waive the hearing 

provisions of Rule 3.18 under the 

circumstances. For example, a 

settlement agreement for a disciplinary 

matter involving CBOE and multiple 

regulators or SROs could fully address 

statutory disqualification issues, 

obviating the need for a CBOE hearing 

on those same issues. The Exchange 

might also choose to exercise this 

waiver authority when no regulatory 

purpose would be served by conducting 

a hearing under Rule 3.18, such as when 

the Commission initiated the 

proceeding regarding the underlying 

conduct that resulted in the statutory 

disqualification and the sanction 

imposed in the matter does not inhibit 

the applicable party’s ability to continue 

as an Exchange member or associated 

person. 

Interpretation and Policy .01 to Rule 

3.18 (‘‘Rule 3.18.01’’) provides that the 

Exchange may waive the provisions of 

Rule 3.18 when a proceeding is pending 

before another SRO to determine 

whether to permit a member or an 

associated person to continue in 

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Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Notices 37759 

9 15 U.S.C. 78f. 

10 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

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

12 15 U.S.C. 78s(b)(2). 

13 17 CFR 200.30–3(a)(12). 

membership or association with the 

member notwithstanding a statutory 

disqualification. When the Exchange 

exercises this waiver authority, Rule 

3.18.01 currently provides that the 

Exchange Department of Financial and 

Sales Practice Compliance shall 

determine whether the Exchange will 

concur in any the Exchange Act Rule 

19h–1 filing made by another SRO. The 

Exchange proposed to make two 

clarifying changes to this provision. 

First, the Exchange proposed to replace 

the reference to the ‘‘Department of 

Financial and Sales Practice 

Compliance’’ with the ‘‘Exchange’’ 

because the Exchange no longer has a 

department by that name. Second, the 

Exchange proposed to include the 

words ‘‘member or’’ in the last sentence 

of Rule 3.18.01 to clarify that the 

Exchange may concur in any Exchange 

Act Rule 19h–1 filing made by another 

SRO with respect to a member or an 

associated person. This change is 

consistent with the rest of Rule 3.18.01. 

III. Discussion 

The Commission has carefully 

reviewed the proposed rule change and 

finds that it is generally consistent with 

Section 6(b)9 of the Exchange Act and 

the rules and regulations thereunder 

applicable to a national securities 

exchange.10 In particular, the 

Commission finds that the proposal is 

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

Exchange Act,11 which requires the 

rules of a national securities exchange 

to, among other things, be designed to 

remove impediments to and perfect the 

mechanism of a free and open market 

and, in general, to protect investor and 

the public interest. The Commission 

believes that the proposed rule change 

will enable CBOE to more efficiently 

administer its statutory disqualification 

program while at the same time 

protecting investors and the public 

interest by allowing CBOE to reallocate 

resources that would otherwise be spent 

on unnecessary statutory 

disqualification hearings. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,12

that the proposed rule change (SR– 

CBOE–2009–033) be, and hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17992 Filed 7–28–09; 8:45 am] 

BILLING CODE 8010–01–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

Request for Comments Concerning 

Free Trade Agreement With the 

Republic of Colombia 

AGENCY: Office of the United States 

Trade Representative. 

ACTION: Notice and request for 

comments. 

SUMMARY: The United States Trade 

Representative (USTR) is conducting a 

review of labor-related issues in the 

context of the free trade agreement 

(FTA) between the United States and 

the Republic of Colombia (Colombia) 

signed on November 22, 2006, and 

amended on June 28, 2007. The FTA has 

not yet entered into effect. As part of 

that review, the interagency Trade 

Policy Staff Committee (TPSC) seeks 

comment from the public to assist the 

USTR in working with the Colombian 

government to secure continued 

progress in ensuring that Colombia’s 

workers can fully exercise their 

fundamental labor rights. 

DATES: Written comments are due by 

noon, September 15, 2009. 

ADDRESSES: Comments should be 

submitted electronically via the Internet 

at http://www.regulations.gov. For 

alternatives to on-line submissions 

please contact Gloria Blue, Executive 

Secretary, Trade Policy Staff Committee, 

at (202) 395–3475. 

FOR FURTHER INFORMATION CONTACT: For 

procedural questions concerning written 

comments, contact Gloria Blue, 

Executive Secretary, Trade Policy Staff 

Committee, at (202) 395–3475. All other 

questions should be directed to Bennett 

Harman, Deputy Assistant U.S. Trade 

Representative for Latin America, at 

(202) 395–9446. 

SUPPLEMENTARY INFORMATION: On 

November 18, 2003, in accordance with 

section 2104(a)(1) of the Trade Act of 

2002, the USTR notified Congress of the 

President’s intent to enter into 

negotiations on an FTA with Colombia, 

identified specific objectives for the 

negotiations, and solicited comment 

from interested persons on matters 

relevant to the FTA. 69 FR 7532. On 

June 23, 2004, the U.S. Department of 

Labor with the USTR and U.S. 

Department of State, issued a request for 

comments from the public regarding 

labor rights in Andean countries, 

including Colombia. 69 FR No. 120. On 

August 24, 2006, the President notified 

Congress of his intent to enter into an 

FTA with Colombia, and representatives 

of the two governments signed the FTA 

on November 22, 2006. On June 28, 

2007, the Parties amended the FTA to 

reflect the provisions of the May 10, 

2007 Congressional-Executive 

Agreement on Trade Policy. The full 

text of the FTA is available at http:// 

www.ustr.gov/trade-agreements/freetrade-agreements/colombia-fta/finaltext. 

Issues have been raised about the 

extent to which Colombians are able to 

exercise their fundamental labor rights, 

as referenced in the FTA. In that light, 

the President has asked the USTR to 

assess what steps can be taken, along 

with the government of Colombia, to 

secure continued progress in ensuring 

that Colombia’s workers can exercise 

their fundamental labor rights. To assist 

the USTR in fulfilling this task, the 

Chairman of the TPSC invites interested 

persons to provide written comments on 

these questions and requests. Specific 

questions for comment are: 

(1) Are there gaps in Colombia’s labor 

law regime, including its enforcement 

mechanisms, with respect to providing 

for the fundamental labor rights of its 

citizens? If there are gaps, please 

identify them and provide specific 

suggestions for improvement. 

(2) Is the Colombian government 

taking adequate steps to protect 

Colombia’s workers from acts of 

intimidation or violence that impede the 

exercise of their fundamental labor 

rights? If there are gaps, please identify 

them and provide specific suggestions 

for improvement. 

(3) Has the government of Colombia 

made sufficient progress in its efforts to 

prosecute the perpetrators of violence 

and intimidation against unionists 

exercising their fundamental labor 

rights? If there are gaps, please identify 

them and provide specific suggestions 

for improvement. 

The public is also invited to comment 

on other issues they believe relevant to 

the FTA, including the potential 

benefits of the agreement. 

Interested persons may submit written 

comments by noon, September 15, 2009 

(see requirements for submission 

below). Written comments should be 

submitted in English and must state 

clearly the position taken and describe 

with particularity the supporting 

rationale. 

Public Comment: Requirements for 

Submissions: To ensure the most timely 

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