Document ID: SEC-2009-0535-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; One Chicago, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Eliminating the $3 Market Price Maintenance Standard
Posted Date: 2009-04-16T04:00Z

[Federal Register: April 16, 2009 (Volume 74, Number 72)]
[Notices]               
[Page 17706-17708]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ap09-87]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59744; File No. SR-OC-2009-01]

 
Self-Regulatory Organizations; One Chicago, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change Eliminating the 
$3 Market Price Maintenance Standard

April 9, 2009.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-7 under the Act \2\ notice is hereby given 
that on April 3, 2009, One Chicago, LLC (``OneChicago'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons. 
OneChicago also has filed the proposed rule change with the Commodity 
Futures Trading Commission (``CFTC'') under Section 5c(c) of the 
Commodity Exchange Act \3\ on February 27, 2009.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).

---------------------------------------------------------------------------

[[Page 17707]]

I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    OneChicago is proposing to amend Rule 906(b)(1)(E) to eliminate the 
$3 market price per share requirement from the Exchange's requirements 
for continued approval for an underlying security. All other provisions 
and standards of the Rule will remain unchanged. A copy of this filing 
is available on the Exchange's Web site at http://www.onechicago.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
    The purpose of this proposed rule change is to eliminate the $3 
market price per share requirement from the Exchange's requirements for 
maintenance standards for a security futures product (SFP) that is 
physically settled by removing Rule 906(b)(1)(E). OC's rules require 
that the market price per share of the underlying security has not 
closed below $3 on the previous trading day to the Expiration Day of 
the nearest expiring Contract on the underlying security. If the price 
of an underlying security falls below $3, the Exchange can continue to 
trade then-listed delivery months on that underlying security, but is 
unable to list new delivery months.
    The Exchange believes that the $3 market price per share 
requirement is no longer necessary or appropriate, and that only those 
underlying securities meeting the remaining continued listing criteria 
set forth in Rule 906 will be eligible for continued listing and the 
listing of additional delivery months. The Exchange further believes 
that the current $3 market price per share requirement could have a 
negative effect on investors. For example, in the current volatile 
market environment in which the market price for a large number of 
securities has fallen below $3, the Exchange is unable to list new 
delivery months on underlying securities trading below $3. If there is 
market demand for such SFP the Exchange would be unable to accommodate 
such requests and investors would be unable to hedge their positions 
with new delivery months.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(5) of the 
Act \4\ in that it is designed to prevent fraudulent and manipulative 
acts and practices, to promote just and equitable principles of trade, 
to protect investors and the public interest, and to remove impediments 
to and perfect the mechanism for a free and open market and a national 
market system. In particular, the proposed rule change will permit the 
Exchange to list additional delivery months on underlying securities 
even if the price of the underlying security is less than $3 thus 
providing investors additional opportunities to hedge their positions. 
Further, this proposed rule change is nearly identical to one recently 
approved by the Commission.\5\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f (b)(5).
    \5\ See Securities Exchange Act Release No. 59336 (February 2, 
2009) (Order Approving Proposal To Eliminate $3 Underlying Price 
Requirement for Continued Listing and Listing of Additional Series).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    OneChicago does not believe that the proposed rule change will have 
an impact on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Comments on the OneChicago proposed rule change have not been 
solicited and none have been received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change has become effective on April 3, 2009. At 
any time within 60 days of the date of effectiveness of the proposed 
rule change, the Commission, after consultation with the CFTC, may 
summarily abrogate the proposed rule change and require that the 
proposed rule change be refilled in accordance with the provisions of 
Section 19(b)(1) of the Act.\6\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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 rule-comments@sec.gov. Please include 
File Number SR-OC-2009-01 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-OC-2009-01. 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 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-OC-2009-01 and should be 
submitted on or before May 7, 2009.

[[Page 17708]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-8658 Filed 4-15-09; 8:45 am]

BILLING CODE 8010-01-P