[Federal Register Volume 82, Number 179 (Monday, September 18, 2017)]
[Notices]
[Pages 43629-43633]
[FR Doc No: 2017-19712]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81586; File No. SR-CBOE-2017-059]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to the On-Floor Lead Market-Maker Program

September 12, 2017.
    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 August 31, 2017, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') 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
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the On-Floor Lead Market-Maker
(``LMM'') program. The text of the proposed rule change is provided
below.

(additions are italicized; deletions are [bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated

Rules

* * * * *

Rule 8.15. Lead Market-Makers

    (a) No change.
    (b) LMM Obligations: Each LMM must fulfill all the obligations of a
Market-Maker under the Rules and satisfy each of the following
requirements:
    (i) Provide continuous electronic quotes (as defined in Rule 1.1
(ccc)) in at least the lesser of 99% of the non-adjusted option series
or 100% of the non-adjusted option series minus one call-put pair, with
the term ``call-put pair'' referring to one call and one put that cover
the same underlying instrument and have the same expiration date and
exercise price. This obligation does not apply to intra-day add-on
series on the day during which such series are added for trading.
Compliance with this quoting obligation applies to all of an LMM's
appointed classes on each platform collectively. The Exchange will
determine compliance by an LMM with this quoting obligation on a
monthly basis. However, determining compliance with this obligation on
a monthly basis does not relieve an LMM from meeting this obligation on
a daily basis, nor does it prohibit the Exchange from taking
disciplinary action against an LMM for failing to meet this obligation
each trading day. In option classes in which both an On-Floor LMM and
an Off-Floor DPM or Off-Floor LMM have been appointed, the On-Floor LMM
will not be obligated to comply with this paragraph (b)(i) and instead
will be obligated to comply with the obligations of Market-Makers in
Rule 8.7(d). In an option class in which the Exchange appointed an On-
Floor LMM that has open-outcry obligations only, that On-Floor LMM will
not be obligated to comply with this paragraph (b)(i) and instead will
be obligated to comply with the obligations of Market-Makers in Rule
8.7(d) and have a designee in the class's crowd on the trading floor
for the entire trading day (except for a de minimis amount of time);
    (ii)-(iv) No change.
    (v) enter opening quotes within one minute of the initiation of an
opening rotation in any series that is not open due to the lack of a
quote (see Rule 6.2B(d)(i)(A) or (ii)(A)) and participate in other
rotations described in Rule 6.2B (including the modified opening
rotation set forth in Interpretation and Policy .01) or 24.13, as
applicable. In option classes in which both an On-Floor LMM and an Off-
Floor DPM or

Off-Floor LMM have been appointed, the obligation set forth in this
paragraph (b)(v) will be that of the Off-Floor DPM or Off-Floor LMM and
not the On-Floor LMM. In an option class in which the Exchange
appointed an On-Floor LMM that has open-outcry obligations only, that
On-Floor LMM will not be obligated to comply with this paragraph
(b)(v);
    (vi)-(viii) No change.
    (c)-(d) No change.

. . . Interpretations and Policies:

    .01 An LMM generally will operate on CBOE's trading floor (``On-
Floor LMM''). However, as provided below, an LMM can request that the
Exchange authorize the LMM to function remotely away from CBOE's
trading floor (``Off-Floor LMM'') on a class-by-class basis.
    (a)-(b) No change.
    (c) Notwithstanding Rule 8.15(a)[,]: (i) in an option class in
which an Off-Floor LMM or Off-Floor DPM has been appointed in
accordance with this Rule 8.15 or Rule 8.83, as applicable, the
Exchange in its discretion may also appoint an On-Floor LMM, which will
be eligible to receive a participation entitlement under this Rule 8.15
with respect to orders represented in open outcry; and (ii) in a class
in which the Exchange does not grant an electronic participation
entitlement pursuant to Rule 6.45(a)(ii) and in which the Exchange did
not appoint an Off-Floor LMM or Off-Floor DPM, the Exchange may appoint
an On-Floor LMM that has open-outcry obligations only. If the Exchange
in its discretion determines to reallocate a class in which an Off-
Floor LMM or Off-Floor DPM has been appointed, the On-Floor LMM
appointment will automatically terminate.
    .02-.04 No change.
* * * * *
    The text of the proposed rule change is also available on the
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, 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 Exchange 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 Exchange 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the On-Floor LMM program. Currently,
Rule 8.15, Interpretation and Policy .01 permits an LMM that is
approved to operate as an Off-Floor LMM in one or more classes can
request the Exchange authorize it to operate as an On-Floor LMM in
those classes. Additionally, in an option class in which an Off-Floor
LMM or Off-Floor Designated Primary Market-Maker (``DPM'') has been
appointed in accordance with Rule 8.15 or Rule 8.83, respectively, the
Exchange in its discretion may appoint an On-Floor LMM (which may be
the same firm or different firm serving as the Off-Floor LMM or Off-
Floor DPM), which will be eligible to receive a participation
entitlement under Rule 8.15 with respect to orders represented in open
outcry. Pursuant to Rule 8.15(b), in an option class in which both an
On-Floor LMM and an Off-Floor DPM or Off-Floor LMM have been appointed,
the On-Floor LMM will not be obligated to comply with the continuous
electronic quoting obligation in subparagraph (i) or opening quoting
obligation in subparagraph (v) (the Off-Floor LMM or Off-Floor DPM
would be required to comply with those quoting obligations).
    Pursuant to Rule 6.45(a)(ii), which permits the exchange to
determine, on a class-by-class basis, certain priority overlays,
including participation entitlements to LMMs (as well as DPMs and
Preferred Market-Makers). The Exchange may grant an LMM a participation
entitlement only if it has applied the priority customer overlay. LMMs
operating on the trading floor may also receive a participation
entitlement.\3\ In exchange for eligibility to receive a participation
entitlement, LMMs must, among other things, satisfy a heightened
quoting obligation.\4\ If the Exchange does not grant an electronic
participation entitlement to a class, currently an LMM that operates
off the floor is required to continue to satisfy the heightened
electronic quoting obligation under the rules, even though it does not
receive the benefit of an electronic participation entitlement
(although it would continue to receive an open outcry participation
entitlement if it also operates on the floor).
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    \3\ See Rule 8.15(d).
    \4\ Generally, LMMs and DPMs must provide continuous electronic
quotes (for 90% of the time) in at least the lesser of 99% of the
non-adjusted series or 100% of the non-adjusted series minus one
call-put pair, while Market-Makers must provide continuous
electronic quotes (for 90% of the time) in at least 60% of the
series in their appointed classes.
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    Therefore, under current Rules, the Exchange may appoint an On-
Floor LMM in a class if there is also an Off-Floor LMM or Off-Floor DPM
in that class (which, as noted above, the same firm or different firms
may be operating as the On-Floor LMM and Off-Floor LMM or Off-Floor
DPM). Additionally, the Rules provide an On-Floor LMM does not have to
satisfy heightened electronic quoting standards if there is also an
Off-Floor LMM or Off-Floor DPM in that class, who must satisfy those
standards. However, the Rules do not expressly contemplate the Exchange
appointing an On-Floor LMM in a class if it has not appointed an Off-
Floor DPM or Off-Floor LMM in that class. Additionally, current Rules
do not explicitly permit the Exchange to not impose a heightened
electronic quoting obligation on an On-Floor LMM if there is no Off-
Floor LMM or Off-Floor DPM (in other words, if the Exchange were to
appoint an On-Floor LMM who operates only on the floor, and no Off-
Floor LMM or Off-Floor DPM, the On-Floor LMM would still be required to
satisfy heightened quoting standards). The proposed rule change
explicitly states the Exchange may appoint an On-Floor LMM in a class,
under specific circumstances (as further discussed below), even if
there is no Off-Floor LMM or Off-Floor DPM in that class, which On-
Floor LMM must satisfy certain floor-based obligations and is eligible
for an open outcry participation entitlement, but will not have to
satisfy heightened electronic quoting obligations and will not be
eligible for an electronic participation entitlement. The proposed rule
change merely expands the Exchange's flexibility with respect to
appointing On-Floor LMMs in a circumstance not currently contemplated
in the Rules--in classes in which it has not appointed an Off-Floor DPM
or Off-Floor LMM--and specifies the obligations and entitlement in such
a circumstance.
    Specifically, the Exchange proposes to amend Rule 8.15,
Interpretation and Policy .01 to permit the Exchange to appoint an On-
Floor LMM to operate only on the trading floor with open-outcry
obligations only in a class in which the Exchange appointed no Off-
Floor LMM or Off-Floor DPM and does not grant an electronic
participation entitlement pursuant to Rule 6.45(a)(ii) (in addition to
classes in which the Exchange has appointed an Off-Floor

DPM or LMM).\5\ The proposed rule change also amends Rule 8.15(b)(i)
and (v) to provide an On-Floor LMM with open-outcry obligations only
will not be obligated to comply with the continuous electronic quoting
obligation in subparagraph (i) or opening quoting obligation in
subparagraph (v), but must comply with the obligations of Market-Makers
in Rule 8.7(d) and have a designee in the class's crowd on the trading
floor for the entire trading day (except for a de minimis amount of
time).\6\
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    \5\ The Exchange may remove an On-Floor LMM in accordance with
Rule 8.15 in the same manner as it may remove any other LMM
appointed pursuant to Rule 8.15, including current On-Floor LMMs.
    \6\ For example, a de minimis time period may be the brief time
during which a designee leaves the trading floor to purchase a
beverage.
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    The Exchange believes it is reasonable for an On-Floor LMM with
open-outcry obligations only to be eligible for an open outcry
entitlement, because priority customer orders in the book always
receive priority over in-crowd market participants, including LMMs who
may be eligible for an open outcry entitlement. Additionally, as
proposed, the On-Floor LMM must satisfy the proposed heightened
standard to be in the crowd for the entire trading day to be eligible
for the open outcry entitlement.\7\ The Exchange believes this standard
is reasonable, as it understands On-Floor LMMs currently have designees
present on the floor during the entire trading, because a designee must
be present to participate in open outcry trades and receive open outcry
participation entitlements on trades.\8\
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    \7\ See Rule 6.45(b)(i).
    \8\ If an On-Floor LMM has no designee on the trading floor at
any time during the trading day, it could not receive an
entitlement, as there is no one present to participate on any trade
during that time. On-Floor LMMs may have multiple designees in the
trading crowd.
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    If the Exchange eliminates an electronic participation entitlement
from a class, the Exchange believes there is no incentive for a Market-
Maker to satisfy a heightened electronic quoting standard in that class
due to the allocation algorithm determined by the Exchange. The
Exchange does not believe the open outcry participation entitlement is
a sufficient benefit to balance the requirement to satisfy the
heightened electronic quoting obligation (due to the significant
electronic trading volume) if an LMM or DPM is not also receiving an
electronic participation entitlement. However, the Exchange believes it
will benefit price discovery in the trading crowd for an LMM to be
present in that class if it is eligible to receive a participation
entitlement, even though there may be no LMM streaming quotes remotely.
The proposed rule change will permit the Exchange to appoint an LMM to
a trading crowd in this circumstance with an appropriate balance of
floor-based benefits and obligations, consistent with the LMM's on-
floor role.
    The proposed rule change permits the Exchange to appoint an On-
Floor LMM as it already can do pursuant to current Rules, which is
appoint an On-Floor LMM that must satisfy regular market-maker quoting
obligations rather than heightened LMM quoting obligations and only
receive an open outcry participation entitlement (with the expectation
a designee of the LMM will have a presence on the trading floor for the
entire trading day). The proposed rule change merely provides the
Exchange with discretion to make such an appointment in a different
circumstance not currently contemplated in the Rules--in a class with
no Off-Floor DPM or Off-Floor LMM. The Exchange may make such an
appointment in the limited circumstance of classes in which it does not
grant an electronic participation entitlement, and it will consider,
among other factors, electronic liquidity in the class prior to making
such an appointment. An On-Floor LMM in such a class will be subject to
the same obligations and receive the same benefits as current On-Floor
LMMs in other classes, subject to a different heightened quoting
standard of maintaining a floor presence all day (subject to a de
minimis exception) (which is expected of current On-Floor LMMs). Any
violation of the proposed heightened quoting standard will be subject
to potential discipline under Chapter XVII.\9\
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    \9\ Exchange regulatory staff are present on the trading floor
and may detect violations of this obligation. Additionally, pursuant
to Rule 17.2(a), Trading Permit Holders (including those in a
trading crowd) may submit complaints to the Regulatory Division
alleging violations of this obligation.
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    The Exchange notes current On-Floor LMMs in classes in which there
is a different Off-Floor DPM or Off-Floor LMM, as well as On-Floor LMMs
in classes with no Off-Floor DPM or Off-Floor LMM pursuant to the
proposed rule change, are not subject to the heightened electronic
quoting obligation or opening quoting obligation in Rule 8.15(b), but
receive the participation entitlement in Rule 8.15(d). While there is
no current obligation in the rules requiring an On-Floor LMM to have a
designee on the floor during the entire trading day, the Exchange
expects current On-Floor LMMs to do so and may consider trading floor
presence when determining whether to renew an On-Floor LMM's term.\10\
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    \10\ See Rule 8.15(a)(i) (a factor to be considered by the
Exchange when selecting LMMs includes presence in the trading
crowd).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\11\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \12\ requirements that the rules of an exchange be
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 regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \13\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ Id.
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    In particular, the proposed rule change promotes just and equitable
principles of trade by creating a balance between the obligations
imposed on and benefits provided to On-Floor LMMs that only operate on
the trading floor and only have open-outcry obligations. The Exchange
believes if an On-Floor LMM was obligated to satisfy a heightened
continuous electronic quoting standard in a class in which there was no
electronic participation entitlement, the obligations would outweigh
the benefit of an open outcry entitlement. The proposed rule change
imposes a more reasonable heightened open outcry obligation that
balances the eligibility of the open outcry benefit, as the proposed
rule change imposes an on-floor requirement to be eligible for the on-
floor entitlement rather than an electronic quoting obligation
unrelated to the corresponding potential entitlement.
    The proposed rule change permits the Exchange to appoint an On-
Floor LMM as it does pursuant to current Rules; it merely provides the
Exchange with discretion to appoint an On-Floor LMM

in a different circumstance--in a class with no Off-Floor DPM or Off-
Floor LMM. Current rules do not contemplate an On-Floor LMM in a class
with no Off-Floor DPM or Off-Floor LMM. An On-Floor LMM in such a class
will be subject to the same obligations and receive the same benefits
as current On-Floor LMMs in other classes, subject to a different
heightened quoting standard of maintaining a floor presence for the
entire trading day (subject to a de minimis exception), although
current On-Floor LMMs are similarly expected have a designee present on
the trading floor for the entire trading day. The proposed rule change
removes impediments to and perfects the mechanism of a free and open
market by providing flexibility to have an LMM in the trading crowd,
which enhances price discovery and provides potential price
improvement, in a class in which there is no incentive for a Market-
Maker to satisfy a heightened electronic quoting standard due to the
allocation algorithm determined by the Exchange in that class.

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 that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes it is
appropriate to limit its ability to appoint an On-Floor LMM with open-
outcry obligations only in classes in which it determines to have no
electronic participation entitlement, as it wants to incentivize firms
to remain LMMs (and provide liquidity) in the trading crowd when there
is no incentive for firms to satisfy heightened electronic quoting
standards. The Exchange will, among other factors, consider electronic
liquidity in the class prior to making such an appointment. The
Exchange believes the continued presence of an LMM in the trading crowd
enhances price discovery and provides potential price improvement, and
such requirement creates a balance with eligibility for an open outcry
participation entitlement. The Exchange believes requiring an On-Floor
LMM that operates only on the trading floor to satisfy heightened
electronic quoting standards would outweigh the benefit of an open
outcry only entitlement. The proposed rule change has no impact on
intermarket competition, as it relates solely to the presence of an LMM
on CBOE's trading floor.

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
proposed rule change.

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

    Because the foregoing proposed rule change 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, it has become
effective pursuant to Section 19(b)(3)(A) \14\ of the Act and Rule 19b-
4(f)(6) thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and the text of 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. The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \16\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \17\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
states that waiver of the 30-day operative delay would permit the
Exchange to appoint an On-Floor LMM as of September 1, 2017, which in
turn would permit the market to benefit sooner from enhanced price
discovery and the potential for price improvement. Based on the
foregoing, the Commission believes the waiver of the operative delay is
consistent with the protection of investors and the public interest.
Therefore, the Commission hereby waives the operative delay and
designates the proposal operative upon filing.\18\
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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

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 email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2017-059 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2017-059. This file
number should be included on the subject line if email 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 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-CBOE-

2017-059, and should be submitted on or before October 10, 2017.
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    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19712 Filed 9-15-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 118 (Thursday, June 19, 2014)]
[Notices]
[Pages 35208-35209]
[FR Doc No: 2014-14438]

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SECURITIES AND EXCHANGE COMMISSION

[File No. 500-1]

 In the Matter of Applied NeuroSolutions, Inc., Cowlitz
Bancorporation, First Place Financial Corp., and Kedem Pharmaceuticals,
Inc.; Order of Suspension of Trading

June 17, 2014.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Applied NeuroSolutions, Inc. because it has not filed any periodic
reports since the period ended March 31, 2010.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Cowlitz Bancorporation because it has not filed any periodic reports
since the period ended March 31, 2010.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information

concerning the securities of First Place Financial Corp. because it has
not filed any periodic reports since the period ended June 30, 2010.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Kedem Pharmaceuticals, Inc. because it failed to include the required
audited financial statements for the fiscal year ended May 31, 2012 in
its Form 10-K for the period ended May 31, 2012, and it failed to file
any periodic reports since it filed a Form 10-Q for the period ended
November 30, 2012.
    The Commission is of the opinion that the public interest and the
protection of investors require a suspension of trading in the
securities of the above-listed companies.
    Therefore, it is ordered, pursuant to Section 12(k) of the
Securities Exchange Act of 1934, that trading in the securities of the
above-listed companies is suspended for the period from 9:30 a.m. EDT
on June 17, 2014, through 11:59 p.m. EDT on June 30, 2014.

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014-14438 Filed 6-17-14; 4:15 pm]
BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 184 (Thursday, September 22, 2011)]
[Notices]
[Pages 58806-58807]
[FR Doc No: 2011-24377]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OW-2010-0852; FRL-9470-5]

Agency Information Collection Activities; Submission to OMB for
Review and Approval; Comment Request; National Pollutant Discharge
Elimination System (NPDES) Permits for Point Source Discharges From the
Application of Pesticides to Waters of the United States (New)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act (PRA)(44 U.S.C.
3501 et seq.), this document announces that an Information Collection
Request (ICR) has been forwarded to the Office of Management and Budget
(OMB) for review and approval. This is a request for a new collection.
The ICR, which is abstracted below, describes the nature of the
information collection and its estimated burden and cost.

DATES: Additional comments may be submitted on or before October 24,
2011.

ADDRESSES: Submit your comments, referencing Docket ID No. EPA-HQ-OW-
2010-0852, to (1) EPA online using http://www.regulations.gov (our
preferred method), by email to<EMAIL_ADDRESS>or by mail to: EPA
Docket Center, Environmental Protection Agency, Water Docket, Mailcode:
28221T, 1200 Pennsylvania Ave., NW., Washington, DC 20460, and (2) OMB
by mail to: Office of Information and Regulatory Affairs, Office of
Management and Budget (OMB), Attention: Desk Officer for EPA, 725 17th
Street, NW., Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Jack Faulk, EPA Headquarters, Office
of Water, Office of Wastewater Management, Mailcode 4203M,
Environmental Protection Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax number: 202-
564-6384; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: EPA has submitted the following ICR to OMB
for review and approval according to the procedures prescribed in 5 CFR
1320.12. On November 3, 2010 (75 FR 67713), EPA sought comments on this
ICR pursuant to 5 CFR 1320.8(d). EPA received 13 comments during the
comment period, which are addressed in the ICR. Any additional comments
on

this ICR should be submitted to EPA and OMB within 30 days of this
notice.
    EPA has established a public docket for this ICR under Docket ID
No. EPA-HQ-OW-2010-0852, which is available for online viewing at
http://www.regulations.gov, or in person viewing at the Water Docket in
the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution
Ave., NW., Washington, DC. The EPA/DC Public Reading Room is open from
8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal
holidays. The telephone number for the Reading Room is<PHONE_NUMBER>,
and the telephone number for the Water Docket is<PHONE_NUMBER>.
    Use EPA's electronic docket and comment system at http://www.regulations.gov, to submit or view public comments, access the
index listing of the contents of the docket, and to access those
documents in the docket that are available electronically. Once in the
system, select ``docket search,'' then key in the docket ID number
identified above. Please note that EPA's policy is that public
comments, whether submitted electronically or in paper, will be made
available for public viewing at http://www.regulations.gov as EPA
receives them and without change, unless the comment contains
copyrighted material, confidential business information (CBI), or other
information whose public disclosure is restricted by statute. For
further information about the electronic docket, go to http://www.regulations.gov.
    Title: National Pollutant Discharge Elimination System (NPDES)
Permits for Point Source Discharges from the Application of Pesticides
to Waters of the United States.
    ICR numbers: EPA ICR No. 2397.01, OMB Control No. 2040-New.
    ICR Status: This ICR is for a new information collection activity.
An Agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information, unless it displays a currently
valid OMB control number. The OMB control numbers for EPA's regulations
in title 40 of the CFR, after appearing in the Federal Register when
approved, are listed in 40 CFR part 9, are displayed either by
publication in the Federal Register or by other appropriate means, such
as on the related collection instrument or form, if applicable. The
display of OMB control numbers in certain EPA regulations is
consolidated in 40 CFR part 9.
    Abstract: This Information Collection Request (ICR) calculates the
burden and costs associated with information collection and reporting
activities from EPA and State NPDES general permits for point source
discharges from the application of pesticides to waters of the United
States. On November 27, 2006, EPA issued a final rule (hereinafter
called the ``2006 NPDES Pesticides Rule'') clarifying circumstances in
which an NPDES permit was not required to apply pesticide to, or over,
including near, waters of the U.S. On January 9, 2009, the Sixth
Circuit Court vacated EPA's 2006 NPDES Pesticides Rule. As a result of
the Court's decision, beginning October 31, 2011 NPDES permits will be
required for discharges to waters of the U.S. from the application of
biological pesticides and chemical pesticides that leave a residue.
Regulations governing permit requirements for NPDES discharges are
codified at 40 CFR parts 122. This ICR includes information submitted
or recorded by permittees as well as information used primarily by
permitting authorities. The permitting authority will use the
information to assess permittee compliance and modify/add new permit
requirements as appropriate. The estimated burden in this ICR is based
on EPA's NPDES Pesticide General Permit (PGP). EPA posted the final
draft PGP on the Agency's Web site on April 1, 2011.
    Burden Statement: The annual public reporting and recordkeeping
burden for this collection of information is estimated to average 0.7
hours per response. Burden means the total time, effort, or financial
resources expended by persons to generate, maintain, retain, or
disclose or provide information to or for a Federal agency. This
includes the time needed to review instructions; develop, acquire,
install, and utilize technology and systems for the purposes of
collecting, validating, and verifying information, processing and
maintaining information, and disclosing and providing information;
adjust the existing ways to comply with any previously applicable
instructions and requirements which have subsequently changed; train
personnel to be able to respond to a collection of information; search
data sources; complete and review the collection of information; and
transmit or otherwise disclose the information.
    Respondents/Affected Entities: Industries potentially covered by
the general permits include but are not limited to the following NAICS
(North American Industry Classification System) codes: 111 Crop
Production; 113110 Timber Tract Operations; 113210 Forest Nurseries
Gathering of Forest Products; 221310 Water Supply for Irrigation;
923120 Administration of Public Health Programs; 924110 Administration
of Air and Water Resource and Solid Waste Management Programs; 924120
Administration of Conservation Programs; and 221 Utilities.
    Estimated Number of Respondents: 365,000 permittees, 45 permitting
authorities (44 states and Virgin Islands).
    Frequency of Response: varies from once every 5 years to
occasionally as needed.
    Estimated Total Annual Hour Burden: 847,652 hours (841,037 hrs for
permittees and 6,615 hrs for permitting authorities).
    Estimated Total Annual Cost: $48,034,676 ($47,783,297 for
permittees and $251,379 for permitting authorities), includes $0
annualized capital or O&M costs.
    Changes in the Estimates: There is an increase of 847,652 hours in
the total estimated burden currently identified in the OMB Inventory of
Approved ICR Burdens. This increase is due to a change in NPDES program
requirements as result of the Sixth Circuit Court's decision.

    Dated: September 19, 2011.
John Moses,
Director, Collection Strategies Division.
[FR Doc. 2011-24377 Filed 9-21-11; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 88, Number 144 (Friday, July 28, 2023)]
[Notices]
[Page 48925]
[FR Doc No: 2023-15989]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 34964; 812-15430]

RM Opportunity Trust and Rocky Mountain Private Wealth Management
L.L.C.

AGENCY: Securities and Exchange Commission (``Commission'' or ``SEC'').

ACTION: Notice.

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    Notice of an application under section 6(c) of the Investment
Company Act of 1940 (``Act'') for an exemption from section 15(a) of
the Act, as well as from certain disclosure requirements in rule 20a-1
under the Act, Item 19(a)(3) of Form N-1A, Items 22(c)(1)(ii),
22(c)(1)(iii), 22(c)(8) and 22(c)(9) of Schedule 14A under the
Securities Exchange Act of 1934, and sections 6-07(2)(a), (b), and (c)
of Regulation S-X (``Disclosure Requirements'').

Summary of Application: The requested exemption would permit Applicants
to enter into and materially amend subadvisory agreements with
subadvisers without shareholder approval and would grant relief from
the Disclosure Requirements as they relate to fees paid to the
subadvisers.

Applicants: RM Opportunity Trust and Rocky Mountain Private Wealth
Management L.L.C.

Filing Dates: The application was filed on January 30, 2023, and
amended on March 20, 2023 and June 23, 2023.

Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing on any application by emailing
the SEC's Secretary at [email protected] and serving the
Applicants with a copy of the request by email, if an email address is
listed for the relevant Applicant below, or personally or by mail, if a
physical address is listed for the relevant Applicant below. Hearing
requests should be received by the Commission by 5:30 p.m. on August
18, 2023, and should be accompanied by proof of service on the
Applicants, in the form of an affidavit, or, for lawyers, a certificate
of service. Pursuant to rule 0-5 under the Act, hearing requests should
state the nature of the writer's interest, any facts bearing upon the
desirability of a hearing on the matter, the reason for the request,
and the issues contested. Persons who wish to be notified of a hearing
may request notification by emailing the Commission's Secretary.

ADDRESSES: The Commission: [email protected]. Applicants:
Andrew Davalla, Esq., Thompson Hine LLP, 41 South High Street, Suite
1700, Columbus, Ohio 43215-6101; Gabriel Gallegos, RM Opportunity
Trust, 2245 Texas Dr., Suite 300, Sugar Land, TX 77479.

FOR FURTHER INFORMATION CONTACT: Deepak T. Pai, Senior Counsel, or Lisa
Reid Ragen, Branch Chief, at<PHONE_NUMBER> (Division of Investment
Management, Chief Counsel's Office).

SUPPLEMENTARY INFORMATION: For Applicants' representations, legal
analysis, and conditions, please refer to Applicants' second amended
application, dated June 23, 2023, which may be obtained via the
Commission's website by searching for the file number at the top of
this document, or for an Applicant using the Company name search field
on the SEC's EDGAR system. The SEC's EDGAR system may be searched at
https://www.sec.gov/edgar/searchedgar/legacy/companysearch.html. You
may also call the SEC's Public Reference Room at<PHONE_NUMBER>.

    For the Commission, by the Division of Investment Management,
under delegated authority.
    Dated: July 24, 2023.

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-15989 Filed 7-27-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 99 (Thursday, May 22, 2014)]
[Notices]
[Page 29479]
[FR Doc No: 2014-11827]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. PE-2014-31]

Petition for Exemption; Summary of Petition Received

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of petition for exemption received.

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SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Title 14, Code of Federal Regulations
(14 CFR). The purpose of this notice is to improve the public's
awareness of, and participation in, this aspect of the FAA's regulatory
activities. Neither publication of this notice nor the inclusion or
omission of information in the summary is intended to affect the legal
status of the petition or its final disposition.

DATES: Comments on this petition must identify the petition docket
number involved and must be received on or before June 11, 2014.

ADDRESSES: You may send comments identified by docket number FAA-2013-
1033 using any of the following methods:
     Government-wide rulemaking Web site: Go to http://www.regulations.gov and follow the instructions for sending your
comments digitally.
     Mail: Send comments to the Docket Management Facility;
U.S. Department of Transportation, 1200 New Jersey Avenue SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590.
     Fax: Fax comments to the Docket Management Facility at
202-493-2251.
     Hand Delivery: Bring comments to the Docket Management
Facility in Room W12-140 of the West Building Ground Floor at 1200 New
Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    Privacy: We will post all comments we receive, without change, to
http://www.regulations.gov, including any personal information you
provide. Using the search function of our docket Web site, anyone can
find and read the comments received into any of our dockets, including
the name of the individual sending the comment (or signing the comment
for an association, business, labor union, etc.). You may review the
DOT's complete Privacy Act Statement in the Federal Register published
on April 11, 2000 (65 FR 19477-78).
    Docket: To read background documents or comments received, go to
http://www.regulations.gov at any time or to the Docket Management
Facility in Room W12-140 of the West Building Ground Floor at 1200 New
Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mark Forseth, ANM-113, Federal
Aviation Administration, 1601 Lind Avenue SW., Renton, WA 98057-3356,
email<EMAIL_ADDRESS>phone<PHONE_NUMBER>; or Sandra Long, ARM-
201, Office of Rulemaking, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591, email
<EMAIL_ADDRESS>phone<PHONE_NUMBER>5.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on May 16, 2014.
Lirio Liu,
Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2013-1033.
    Petitioner: The Boeing Company.
    Section of 14 CFR Affected: Sec.  26.21(b)(2)(ii).
    Description of Relief Sought: The petitioner requests relief to
enable it to revise Service Bulletin 737-52A1038. The relief requested
is based on the fact that a widespread fatigue damage re-analysis has
shown that the Inspection Start Point for the service actions for the
aircraft listed in the service bulletin would occur after the aircraft
had reached the limit of validity at which point they would be required
to be withdrawn from service.

[FR Doc. 2014-11827 Filed 5-21-14; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 47 (Monday, March 11, 2013)]
[Rules and Regulations]
[Page 15293]
[FR Doc No: 2013-05545]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2013-0122]

Drawbridge Operation Regulations; Columbia River, Vancouver, WA

AGENCY: Coast Guard, DHS.

ACTION: Notice of deviation from drawbridge regulation.

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SUMMARY: The Coast Guard has issued a temporary deviation from the
operating schedule that governs the Burlington Northern Santa Fe (BNSF)
Railway Bridge across the Columbia River, mile 105.6, at Vancouver, WA.
This deviation is necessary to accommodate maintenance to replace
movable bridge joints. This deviation allows the bridge to remain in
the closed position during maintenance activities.

DATES: This deviation is effective from 8 a.m. on March 13, 2013, until
6 p.m. on March 14, 2013.

ADDRESSES: The docket for this deviation, [USCG-2013-0122] is available
at http://www.regulations.gov. Type the docket number in the ``SEARCH''
box and click ``SEARCH.'' Click on Open Docket Folder on the line
associated with this deviation. You may also visit the Docket
Management Facility in Room W12-140 on the ground floor of the
Department of Transportation West Building, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary deviation, call or email Randall Overton, Bridge
Administrator, Coast Guard Thirteenth District; telephone<PHONE_NUMBER>,
email<EMAIL_ADDRESS>If you have questions on viewing the
docket, call Barbara Hairston, Program Manager, Docket Operations,
telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: BNSF has requested that the BNSF Swing
Bridge across the Columbia River, mile 105.6, remain closed to vessel
traffic to facilitate replacement of movable bridge joints. During
these maintenance periods the swing span of the BNSF Railway Bridge
across the Columbia River at Vancouver, WA will be disabled and the
bridge will not be able to be opened. The BNSF Bridge crosses the
Columbia River, mile 105.6, and in accordance to NOAA Chart 18526
provides 39 feet of vertical clearance above Columbia River Datum 0.0
while in the closed position. Vessels which do not require a bridge
opening may continue to transit beneath the bridge during this closure
period. Under normal operation the bridge opens on signal as required
by 33 CFR 117.5. This deviation allows the swing span of the BNSF
Railway Bridge across the Columbia River, mile 105.6, to remain in the
closed position and not open for maritime traffic from 8 a.m. until 6
p.m. on March 13, 2013, and 8 a.m. until 6 p.m. on March 14, 2013. The
bridge shall operate in accordance to 33 CFR 117.5 at all other times.
Waterway usage on this stretch of the Columbia River includes vessels
ranging from commercial tug and tow vessels to recreational pleasure
craft including cabin cruisers and sailing vessels. Mariners will be
notified and kept informed of the bridge's operational status via the
Coast Guard Notice to Mariners publication and Broadcast Notice to
Mariners as appropriate.
    In accordance with 33 CFR 117.35(e), the drawbridge must return to
its regular operating schedule immediately at the end of the effective
period of this temporary deviation. This deviation from the operating
regulations is authorized under 33 CFR 117.35.

    Dated: February 27, 2013.
Randall D. Overton,
Bridge Administrator.
[FR Doc. 2013-05545 Filed 3-8-13; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register: March 7, 2007 (Volume 72, Number 44)]
[Notices]
[Page 10280-10283]
[DOCID:fr07mr07-176]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55380; File No. SR-NASDAQ-2007-014]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change Relating to the Trading of the iShares COMEX Gold Trust
Pursuant to Unlisted Trading Privileges

March 1, 2007.

    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 February 28, 2007, The NASDAQ Stock Market LLC (``Nasdaq'' or
``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 substantially prepared by Nasdaq. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons and is approving the
proposed rule change on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Nasdaq is proposing to trade shares (``Shares'') of the iShares
COMEX Gold Trust (``Trust'') pursuant to unlisted trading privileges
(``UTP''). The text of the proposed rule change is available from
Nasdaq's Web site at nasdaq.complinet.com, at Nasdaq'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, Nasdaq 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 III below. The Exchange 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
    Nasdaq is proposing to trade the Shares on a UTP basis. Nasdaq is
submitting this filing because its current listing standards do not
extend to the Shares. However, systems operated by Nasdaq and its
affiliates currently trade the Shares on an over-the-counter basis as
facilities of NASD. This filing will allow Nasdaq to trade the Shares
as an exchange.
    The Shares represent units of fractional undivided beneficial
interest in and ownership of the Trust. The purpose of the Trust is to
hold gold bullion, and the investment objective of the Trust is for the
Shares to reflect the performance of the price of gold, less the
Trust's expenses. The Trust is not an investment company under the
Investment Company Act of 1940.
    The Commission previously approved the listing and trading of the
Shares on the American Stock Exchange LLC (``Amex'').\3\ Nasdaq deems
the Shares to be equity securities, thus rendering trading in the
Shares subject to Nasdaq's existing rules governing the trading of
equity securities, including Nasdaq Rule 4630.\4\ The trading hours for
the Shares

on Nasdaq would be 9:30 a.m. to 4 p.m. Eastern Time (``ET'').
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 51058 (January 19,
2005), 70 FR 3749 (January 26, 2005) (SR-Amex-2004-38).
    \4\ On November 16, 2006, the Commission approved a rule filing
by Nasdaq to adopt Rule 4630, which governs the trading of and
surveillance procedures applicable to Commodity-Based Trust Shares.
See Securities Exchange Act Release No. 54765 (November 16, 2006),
71 FR 67668 (November 22, 2006) (SR-NASDAQ-2006-009). Because gold
is included within the rule's definition of a commodity, Rule 4630
is applicable to the Shares.
---------------------------------------------------------------------------

    Shares are issued only in baskets of 50,000 shares or multiples
thereof (such aggregation referred to as the ``Basket Aggregation'' or
``Basket''). The Trust issues and redeems the Shares on a continuous
basis, by or through participants that have entered into participant
agreements (each, an ``Authorized Participant'') \5\ at the net asset
value (``NAV'') \6\ per Share next determined after an order to
purchase or redeem Shares in a Basket Aggregation is received in proper
form. Authorized Participants are the only persons that may place
orders to create and redeem Baskets. Authorized Participants purchasing
Baskets are able to separate a Basket into individual Shares for
resale.
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    \5\ An ``Authorized Participant'' is a person, who at the time
of submitting to the trustee an order to create or redeem one or
more Baskets: (a) Is a registered broker-dealer, (b) is a Depository
Trust Company (``DTC'') Participant or Indirect Participant, and (c)
has in effect a valid Authorized Participant Agreement.
    \6\ The Bank of New York, as trustee of the Trust (the
``Trustee'') calculates the NAV by multiplying the fine ounces of
gold held by the Trust (after gold has been sold for that day to pay
that day's fees and expenses of the Trust) by the daily settlement
value of the COMEX spot month gold futures contract.
---------------------------------------------------------------------------

    Basket Aggregations are issued in exchange for a corresponding
amount of gold, measured in fine ounces (the ``Basket Gold Amount'').
The Basket Gold Amount is determined at or about 4 p.m. ET each
business day by the Trustee.\7\ On each day that Amex is open for
regular trading, the Trustee adjusts the quantity of gold constituting
the Basket Gold Amount as appropriate to reflect sales of gold, any
loss of gold that may occur, and accrued expenses. The Trustee
determines the Basket Gold Amount for a given business day by
multiplying the NAV for each Share by the number of Shares in each
Basket (50,000) and dividing the resulting product by that day's COMEX
settlement price for the spot month gold futures contract. Authorized
Participants that submitted an order prior to 4 p.m. ET to purchase a
Basket must transfer the Basket Gold Amount to the Trust in exchange
for a Basket.
---------------------------------------------------------------------------

    \7\ At the same time, the Trustee determines an ``Indicative
Basket Gold Amount'' that Authorized Participants can use as an
indicative amount of gold to be deposited for issuance of the Shares
on the next business day. The Trustee disseminates daily the
Indicative Basket Gold Amount on the Trust's Web site (http://www.ishares.com
). Because the creation/redemption process is based

entirely on the physical delivery of gold (and does not contemplate
a cash component), the actual number of fine ounces required for the
Indicative Basket Gold Amount does not change intraday, even though
the value may change based on the market price of gold.
---------------------------------------------------------------------------

    Quotations for and last sale information regarding the Shares are
disseminated through the Consolidated Tape System. The Web site for the
Trust at http://www.ishares.com, which is publicly accessible at no

charge, contains the following information about the Shares: (a) The
prior business day's NAV, Basket Gold Amount, the reported closing
price, and the present day's Indicative Basket Gold Amount; (b) the
mid-point of the bid-ask price in relation to the NAV as of the time
the NAV is calculated (the ``Bid-Ask Price''); (c) calculation of the
premium or discount of such price against such NAV; (d) data in chart
form displaying the frequency distribution of discounts and premiums of
the Bid-Ask Price against the NAV, within appropriate ranges for each
of the four previous calendar quarters; (e) the Prospectus; and (f)
other applicable quantitative information, such as expense ratios,
trading volumes, and the total return of the Shares. Nasdaq will
provide a hyperlink from its Web site (http://www.nasdaq.com) to the

Trust's Web site.
    Nasdaq will also provide a hyperlink on its Web site to the Amex
Web site at http://www.amex.com, on which Amex will make available

daily trading volume, closing prices, and the NAV from the previous day
for the Shares. Amex also disseminates during regular Amex trading
hours from 9:30 a.m. to 4:15 p.m. ET through the facilities of the
Consolidated Tape Association (``CTA'') the last sale price for the
Shares on a real-time basis. In addition, Amex disseminates each day
the prior day's NAV and shares outstanding through the facilities of
the CTA. Amex also disseminates the Indicative Trust Value on a per-
Share basis every 15 seconds through the facilities of the CTA during
regular Amex trading hours of 9:30 a.m. to 4:15 p.m. ET.\8\ Shortly
after 4 p.m. ET each business day, the Trustee, Amex, and the sponsor
of the Trust will disseminate the NAV for the Shares, the Basket Gold
Amount (for orders placed during the day), and the Indicative Basket
Gold Amount (for use by Authorized Participants contemplating placing
orders the following business day). The Basket Gold Amount, the
Indicative Basket Gold Amount, and the NAV are communicated by the
Trustee to all Authorized Participants via facsimile or electronic mail
and will be available on the Trust's Web site at http://www.ishares.com
.

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

    \8\ The Indicative Trust Value is calculated based on the
estimated amount of gold required for creations and redemptions on
that day (e.g., Indicative Basket Gold Amount) and a price of gold
derived from the most recently reported trade price in the active
gold futures contract. The prices reported for the active contract
month will be adjusted based on the prior day's spread differential
between settlement values for that contract and the spot month
contract. In the event that the spot month contract is also the
active contract, the last sale price for the active contract will
not be adjusted. The Indicative Trust Value will not reflect changes
to the price of gold between the close of trading at the COMEX,
typically 1:30 p.m. ET, and the open of trading on the NYMEX ACCESS
market at 2 p.m. ET. While the market for the gold futures is open
for trading, the Indicative Trust Value can be expected to closely
approximate the value per share of the Indicative Basket Gold
Amount. The Indicative Trust Value on a per-Share basis disseminated
during Amex trading hours should not be viewed as a real-time update
of the NAV, which is calculated only once a day.
---------------------------------------------------------------------------

    The Trust's Web site also provides at no charge continuously
updated bids and offers indicative of the spot price of gold.\9\
Complete real-time data for gold futures and options prices traded on
the COMEX is available by subscription from Reuters and Bloomberg. The
closing price and settlement prices of the COMEX gold futures contracts
are publicly available from the NYMEX at http://www.nymex.com,

automated quotation systems, published or other public sources, or on-
line information services such as Bloomberg or Reuters. NYMEX also
provides delayed futures and options information on current and past
trading sessions and market news free of charge on its Web site.
---------------------------------------------------------------------------

    \9\ The Trust's Web site's gold spot price is provided by The
Bullion Desk (http://thebulliondesk.com), which is not affiliated

with Amex, the Trust, the Trustee, or the sponsor of the Trust.
---------------------------------------------------------------------------

    Nasdaq will halt trading in the Shares under the conditions
specified in Nasdaq Rules 4120 and 4121. The conditions for a halt
include a regulatory halt by the listing market. UTP trading in the
Shares will also be governed by provisions of Nasdaq Rule 4120(b)
relating to temporary interruptions in the calculation or wide
dissemination of the Indicative Trust Value (which is comparable to the
intraday indicative value or the intraday optimized portfolio value of
an ETF) or the value of the underlying COMEX gold futures contract.
Additionally, Nasdaq may cease trading the Shares if other unusual
conditions or circumstances exist which, in the opinion of Nasdaq, make
further dealings on Nasdaq detrimental to the maintenance of a fair and
orderly market. Nasdaq will also follow any procedures with respect to
trading halts as set forth in Nasdaq Rule 4120(c).

Finally, Nasdaq will stop trading the Shares if the listing market
delists them.
    Nasdaq believes that its surveillance procedures are adequate to
address any concerns about the trading of the Shares on Nasdaq. Trading
of the Shares through NASD facilities operated by Nasdaq is currently
subject to NASD's surveillance procedures for equity securities in
general and ETFs in particular. After Nasdaq begins to trade the Shares
as an exchange, the NASD, on behalf of Nasdaq, will continue to surveil
Nasdaq trading, including Nasdaq trading of the Shares. Nasdaq's
transition to exchange status will not result in any change in the
surveillance process with respect to the Shares.\10\
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    \10\ Surveillance of all trading on NASD facilities operated by
Nasdaq, including the trading of the Shares, is currently being
conducted by NASD. After Nasdaq begins to trade the Shares as an
exchange, NASD will continue to surveil trading pursuant to a
regulatory services agreement. Nasdaq is responsible for NASD's
performance under this regulatory services agreement.
---------------------------------------------------------------------------

    Nasdaq is able to obtain information regarding trading in the
Shares and the underlying COMEX gold futures contract through its
members in connection with the proprietary or customer trades that such
members effect on any relevant market. In addition, Nasdaq has entered
into an Information Sharing Agreement with NYMEX for the purpose of
providing information in connection with trading in or related to COMEX
gold futures contracts.
    Nasdaq will distribute an Information Circular to its members in
connection with the trading of the Shares. The Information Circular
will discuss the special characteristics and risks of trading this type
of security. Specifically, the Information Circular, among other
things, will discuss what the Shares are, how a basket is created and
redeemed, the requirement that members deliver a prospectus to
investors purchasing the Shares prior to or concurrently with the
confirmation of a transaction, applicable Nasdaq rules, dissemination
information regarding the per-share Indicative Trust Value, and trading
information. The Information Circular will also explain that the Gold
Trust is subject to various fees and expenses described in the
Registration Statement and that the number of ounces of gold required
to create a basket or to be delivered upon redemption of a basket will
gradually decrease over time because the Shares comprising a basket
will represent a decreasing amount of gold due to the sale of the
Trust's gold to pay Trust expenses. The Information Circular will also
reference the fact that there is no regulated source of last-sale
information regarding physical gold and that the Commission has no
jurisdiction over the trading of gold as a physical commodity.
    The Information Circular will also notify members about the
procedures for purchases and redemptions of Shares in baskets and that
Shares are not individually redeemable but are redeemable only in
basket-size aggregations or multiples thereof. The Information Circular
will advise members of their suitability obligations under Nasdaq Rule
2310 with respect to recommended transactions to customers in Shares.
The Information Circular will also discuss any relief granted by the
Commission or the staff from any rules under the Act. Finally, the
Information Circular will disclose that the NAV for Shares will be
disseminated shortly after 4 p.m. ET each trading day based on the
COMEX daily settlement value, which is disseminated shortly after 1:30
p.m. ET each trading day.
2. Statutory Basis
    Nasdaq believes that the proposal is consistent with Section 6(b)
of the Act \11\ in general and Section 6(b)(5) of the Act \12\ in
particular, in that in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, remove impediments to a free and open market and a
national market system, and, in general, to protect investors and the
public interest. In addition, Nasdaq believes that the proposal is
consistent with Rule 12f-5 under the Act \13\ because it deems the
Shares to be an equity securities, thus rendering trading in the Shares
subject to Nasdaq's existing rules governing the trading of equity
securities.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ 17 CFR 240.12f-5.
---------------------------------------------------------------------------

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

    Nasdaq does not believe that the proposed rule change will 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

    Written comments on the proposed rule change were neither solicited
nor received.

III. 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<EMAIL_ADDRESS>Please include

File Number SR-NASDAQ-2007-014 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2007-014. 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. Copies of such
filing also will be available for inspection and copying at the
principal offices of Nasdaq. 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-NASDAQ-2007-014 and should be submitted on or before
March 28, 2007.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national

securities exchange.\14\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\15\
which requires that an exchange have rules designed, among other
things, to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and in general to protect investors and the
public interest. The Commission believes that this proposal should
benefit investors by increasing competition among markets that trade
the Shares.
---------------------------------------------------------------------------

    \14\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \15\ 15 U.S.C. 78f(b)(5).
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    In addition, the Commission finds that the proposal is consistent
with Section 12(f) of the Act,\16\ which permits an exchange to trade,
pursuant to UTP, a security that is listed and registered on another
exchange.\17\ The Commission notes that it previously approved the
listing and trading of the Shares on Amex and NYSE Arca, Inc.\18\ The
Commission also finds that the proposal is consistent with Rule 12f-5
under the Act,\19\ which provides that an exchange shall not extend UTP
to a security unless the exchange has in effect a rule or rules
providing for transactions in the class or type of security to which
the exchange extends UTP. The Exchange has represented that it meets
this requirement because it deems the Shares to be equity securities,
thus rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78l(f).
    \17\ Section 12(a) of the Act, 15 U.S.C. 78l(a), generally
prohibits a broker-dealer from trading a security on a national
securities exchange unless the security is registered on that
exchange pursuant to Section 12 of the Act. Section 12(f) of the Act
excludes from this restriction trading in any security to which an
exchange ``extends UTP.'' When an exchange extends UTP to a
security, it allows its members to trade the security as if it were
listed and registered on the exchange even though it is not so
listed and registered.
    \18\ See supra note 3 and Securities Exchange Act Release No.
51067 (January 21, 2005), 70 FR 3952 (January 27, 2005) (SR-PCX-
2004-132).
    \19\ 17 CFR 240.12f-5.
---------------------------------------------------------------------------

    The Commission further believes that the proposal is consistent
with Section 11A(a)(1)(C)(iii) of the Act,\20\ which sets forth
Congress' finding that it is in the public interest and appropriate for
the protection of investors and the maintenance of fair and orderly
markets to assure the availability to brokers, dealers, and investors
of information with respect to quotations for and transactions in
securities. Quotations for and last sale information regarding the
Shares is disseminated through the Consolidated Tape System. The
Commission notes that there is a considerable amount of gold price and
gold market information available 24 hours per day on public Web sites
and through professional and subscription services, and the Exchange
will link to the Amex and Trust Web sites, which provide trading
information about the Shares. Furthermore, Amex disseminates the
Indicative Trust Value on a per-Share basis every 15 seconds through
the facilities of the CTA during regular Amex trading hours of 9:30
a.m. to 4:15 p.m. ET (except between 1:30 p.m. and 2 p.m., the time
from the close of regular trading of the COMEX gold futures contract
and the start of trading of COMEX gold futures contracts on NYMEX
ACCESS). The Commission also notes that the Trust's Web site is
publicly accessible at no charge and will contain the NAV of the Shares
and the Basket Gold Amount as of the prior business day, the Bid-Ask
Price, and a calculation of the premium or discount of the Bid-Ask
Price in relation to the closing NAV. Additionally, the Trust's Web
site will also provide data in chart form displaying the frequency
distribution of discounts and premiums of the Bid-Ask Price against the
NAV, within appropriate ranges for each of the four previous calendar
quarters; the Prospectus; and other applicable quantitative
information. If Amex halts trading in the Shares, or the Indicative
Trust Value or the value of the underlying COMEX gold futures contract
is not being calculated or disseminated, the Exchange would halt
trading in the Shares.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------

    The Commission notes that, if the Shares should be delisted by the
listing exchange, the Exchange would no longer have authority to trade
the Shares pursuant to this order.
    In support of this proposal, the Exchange has made the following
representations:
    (1) The Exchange's surveillance procedures are adequate to address
any concerns associated with the trading of the Shares on a UTP basis.
    (2) The Exchange would inform its members in an Information
Circular of the special characteristics and risks associated with
trading the Shares, including suitability recommendation requirements.
    (3) The Exchange would require its members to deliver a prospectus
or product description to investors purchasing Shares prior to or
concurrently with a transaction in such Shares and will note this
prospectus delivery requirement in the Information Circular.
    This approval order is conditioned on the Exchange's adherence to
these representations.
    The Commission finds good cause for approving this proposal before
the thirtieth day after the publication of notice thereof in the
Federal Register. As noted above, the Commission previously found that
the listing and trading of the Shares on Amex and NYSE Arca is
consistent with the Act. The Commission presently is not aware of any
regulatory issue that should cause it to revisit those findings or
would preclude the trading of the Shares on the Exchange pursuant to
UTP. Furthermore, accelerated approval of this proposal will facilitate
Nasdaq's ability to continue trading these securities as Nasdaq becomes
an exchange with respect to non-Nasdaq-listed securities, where there
appears to be no regulatory concerns about such trading. Therefore,
accelerating approval of this proposal should benefit investors by
creating, without undue delay, additional competition in the market for
such Shares.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\21\ that the proposed rule change (SR-NASDAQ-2007-014), be, and it
hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\22\
---------------------------------------------------------------------------

    \22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4038 Filed 3-6-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: July 13, 2009 (Volume 74, Number 132)]
[Notices]
[Page 33504-33506]
[DOCID:fr13jy09-142]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60248; File No. SR-NASDAQ-2009-063]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change by The NASDAQ Stock Market LLC
Relating to Permanent Approval of the Exchange's Quarterly Option
Series Pilot Program

July 6, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given
that on June 26, 2009, The NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been prepared by Nasdaq. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Nasdaq proposes for NOM to modify Chapter IV, Section 6 (Series of
Options Contracts Open for Trading) and Chapter XIV Sec. 11 (Terms of
Index Options Contracts), to make permanent the Exchange's Quarterly
Option Series Pilot Program (``QOS Program''), and expand and conform
the QOS Program to similar programs of other exchange.
    The text of the proposed rule change is available from Nasdaq's Web
site at http://nasdaq.cchwallstreet.com, at Nasdaq'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, Nasdaq 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. Nasdaq 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 make the QOS Program
permanent, and expand and conform the QOS Program to make it similar to
programs of other exchanges.
    On July 22, 2008, NASDAQ filed SR-NASDAQ-2009-064 with the
Commission to establish the QOS Program.\3\ The QOS Program allows the
Exchange to list and trade options that expire at the close of business
on the last business day or a calendar quarter (``Quarterly Option
Series'' or ``QOS''). Under the QOS Program, the Exchange may select up
to five (5) currently listed options classes that are exchange traded
fund (``ETF'') options on which Quarterly Option Series may be opened.
In addition, the Exchange may also list Quarterly Option Series on any
options classes that are selected by other securities exchanges that
employ a similar program under their respective rules.\4\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 58209 (July 22,
2008), 73 FR 43966 (July 29, 2008) (SR-NASDAQ-2008-064) (notice of
filing and immediate effectiveness establishing QOS Program as pilot
through July 10, 2009).
    \4\ Proposed Chapter XIV, Section 11(g), which is similar to
NASDAQ OMX PHLX, Inc. (``Phlx'') Rule 1101A(a)(v), extends the
Exchange's QOS Program to Index Options (the ``Index QOS Program'').
The Exchange is also proposing changes in its Chapter IV, Section 6,
Supplementary Material .04 regarding P.M. settlement and eligibility
of Index Options for the QOS Program, to conform the Exchange's QOS
Program rules to those of other exchanges, such as, for example,
Commentary .08 to Phlx Rule 1012 and CBOE Rules 5.5(e) and 24.9(a).
---------------------------------------------------------------------------

    The Exchange may list series that expire at the end of the next
consecutive four (4) calendar quarters, as well as the fourth quarter
of the next calendar year. All Quarterly Option Series are P.M.
settled.
    If an option is selected for participation in the QOS Program, the
strike price of each Quarterly Option Series is fixed at a price per
share, with at least two strike prices above and two strike prices
below the approximate value of the underlying security at about the
time the Quarterly Options Series is opened for trading on the
Exchange. The Exchange will list strikes prices for a Quarterly Option
series that are within $5 from the closing price of the underlying on
the preceding day.
    The Exchange may open for trading additional Quarterly Options
Series of the same class when the Exchange deems it necessary to
maintain an orderly market, to meet customer demand or when the market
price of the underlying security moves substantially from the initial
exercise price or prices. To the extent that any additional strike
prices are listed by the Exchange, such additional strike prices shall
be within thirty percent (30%) above or below the closing price of the
underlying ETF on the preceding day. The Exchange may also open
additional strike prices of Quarterly Option Series in ETF options that
are more than 30% above or below the current price of the underlying
ETF provided that demonstrated customer interest exists for such
series, as expressed by institutional, corporate or individual
customers or their brokers. Market-Makers trading for their own account
shall not be considered when determining customer interest under this
provision. The opening of the new Quarterly Options Series shall not
affect the series of options of the same class previously opened. In
addition to the initial listed series, the Exchange may list up to
sixty (60) additional series per expiration month for each Quarterly
Options Series in ETF options.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 58209 (July 22,
2008), 73 FR 43966 (July 29, 2008) (SR-NASDAQ-2008-064).
---------------------------------------------------------------------------

    The interval between strike prices on Quarterly Options Series
shall be the same as the interval for strike prices for series in that
same options class that expire in accordance with the normal monthly
expiration cycle. By definition, Quarterly Option Series on an option
class can never expire in the same week in which monthly option series
on the same class expires. And, the Exchange will not list a Short Term
Option Series on an options class the expiration of which coincides
with that of a Quarterly Options Series on the same options class.
    The Exchange has adopted a delisting policy with respect to QOS in
ETF options.\6\ On a monthly basis, the Exchange reviews series that
are outside a range of five (5) strikes above and five (5) strikes
below the current price of the underlying ETF, and delists series with
no open interest in both the put and the call series having a: (i)
Strike higher than the highest strike price with open interest in the
put and/or call series for a given expiration month; and (ii) strike
lower than the lowest strike price with open interest in the put and/or
call series for a given expiration month.
---------------------------------------------------------------------------

    \6\ Id.

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

    Notwithstanding the delisting policy, customer requests to add
strikes and/or maintain strikes in QOS in ETF options in series
eligible for delisting shall be granted.
    Further, in connection with the delisting policy, if the Exchange
identifies series for delisting, the Exchange shall notify other
options exchanges with similar delisting policies regarding eligible
series for listing, and shall work with such other exchanges to develop
a uniform list of series to be delisted, so as to ensure uniform series
delisting of multiply listed options classes.
    The Exchange has selected the following five ETF option classes to
participate in the QOS Program: DIAMONDS Trust (DIA) options, Standard
and Poor's Depositary Receipts/SPDRs (SPY) options, iShares Russell
2000 Index Fund (IWM) options, PowerShares QQQ Trust (QQQQ) options and
Energy Select SPDR (XLE) options. The Exchange believes the QOS Program
has been successful and well received by its members and the investing
public for the approximately twelve months that it has been in
operation as a pilot.\7\
---------------------------------------------------------------------------

    \7\ The Index QOS Program found in Chapter XIV, Section 11(g) is
similar to the QOS Program in Chapter IV, Section 6, Supplementary
Material .04, but has several differences. Principal among them are,
first, that the strike price of each QOS will be fixed with at least
two, but not more than five, strike prices above and two, but not
more than five, strike prices below the value of the underlying
security at about the time that a QOS is opened for trading on the
Exchange. Second, that the exercise price of each QOS opened for
trading on the Exchange shall be reasonably related to the current
index value of the underlying index to which such series relates at
or about the time such series of options is first opened for trading
on the Exchange (the term ``reasonably related to the current index
value of the underlying index'' means that the exercise price is
within thirty percent (30%) of the current index value). Third, that
the Exchange may open additional strike prices of QOS that are below
the value of the underlying index provided that the total number of
strike prices below the value of the underlying index is no more
than five. And fourth, there is no delisting policy in the Index QOS
Program.
---------------------------------------------------------------------------

    In support of approving the QOS Program on a permanent basis, the
Exchange has submitted to the Commission a Quarterly Option Program
Report (``Report'') detailing the Exchange's experience with the QOS
Program.\8\ Specifically, the Report contains data and written analysis
regarding the five (5) ETF option classes included in the QOS Program.
The Report was submitted under separate cover and seeks confidential
treatment under the Freedom of Information Act.
---------------------------------------------------------------------------

    \8\ The requirements for the Report were recently set forth in
Securities Exchange Act Release No. 58209 (July 22, 2008), 73 FR
43966 (July 29, 2008) (SR-NASDAQ-2008-064).
---------------------------------------------------------------------------

    The Exchange believes there is sufficient investor interest and
demand in the QOS Program to warrant its permanent approval. The
Exchange believes that, for the approximately twelve months that the
QOS Program has been in operation, it has provided investors with
additional means of managing their risk exposures and carrying out
their investment objectives. Furthermore, the Exchange has not
experienced any capacity-related problems with respect to Quarterly
Option Series. The Exchange also represents that it has the necessary
system capacity to continue to support the option series listed under
the QOS Program.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \9\ in general, and furthers the objectives of Section
6(b)(5) of the Act \10\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest by making permanent the Exchange's Quarterly Option Series
Pilot Program.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    Nasdaq does not believe that the proposed rule change will result
in 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

    Written comments were neither solicited nor received.

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

    Because the foregoing proposed rule change 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 after the date of the filing, or such
shorter time as the Commission may designate, if consistent with the
protection of investors and the public interest, it has become
effective pursuant to 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6)
thereunder.\12\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give 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.
Nasdaq has satisfied this requirement.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the operative delay
to permit the proposed rule change to become operative prior to the
30th day after filing so that the Exchange may immediately implement
and permanently establish a Quarterly Options Series Program that is
consistent with those of other options exchanges.\13\ The Commission
has determined that waiving the 30-day operative delay of the
Exchange's proposal is consistent with the protection of investors and
the public interest because such waiver will enable the Exchange to
expand and conform the QOS Program to make it similar to programs of
other exchanges and continue the current QOS program without
disruption.\14\ Therefore, the Commission designates the proposal
operative upon filing.
---------------------------------------------------------------------------

    \13\ See Securities Exchange Act Release No. 60164 (June 23,
2009), 74 FR 31333 (June 30, 2009) (SR-CBOE-2009-029) (approving the
quarterly options series program on a permanent basis).
    \14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the 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<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2009-063 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-NASDAQ-2009-063. 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-NASDAQ-2009-063 and should
be submitted on or before August 3, 2009.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16451 Filed 7-10-09; 8:45 am]

BILLING CODE 8010-01-P