Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Arca, Inc. To Temporarily Increase the Number of Additional Quarterly Option Series, 73371-73373 [E8-28498]
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Federal Register / Vol. 73, No. 232 / Tuesday, December 2, 2008 / Notices
discretion to halt or suspend trading in
the Shares.28 Specifically, however, if
the Exchange becomes aware that the
NAV is not being disseminated to all
market participants at the same time, it
will halt trading in the Shares until such
time as the NAV is available to all
market participants pursuant to NYSE
Arca Equities Rule 7.34(a)(5). Further,
Commentary .02(e) to NYSE Arca
Equities Rule 8.200 sets forth certain
restrictions (described above) on ETP
Holders acting as registered Market
Makers in TIRs that invest in Investment
Shares to facilitate surveillance.
In support of this proposal, the
Exchange has made the following
representations:
1. The Shares satisfy the requirements
of NYSE Arca Equities Rule 8.200,
Commentary .02, which includes the
initial and continued listing criteria for
TIRs that invest in Investment Shares.
2. The Exchange’s surveillance
procedures are adequate to properly
monitor trading of the Shares in all
trading sessions and to deter and detect
violations of Exchange rules and
applicable federal securities laws.
3. The Exchange will distribute an
Information Bulletin, the contents of
which are more fully described above,
to ETP Holders in connection with the
trading of the Shares.
This approval order is based on the
Exchange’s representations.
jlentini on PROD1PC65 with NOTICES
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,29 for approving the proposed rule
change prior to the 30th day after the
date of publication of notice in the
Federal Register. The Commission notes
that it has previously approved the
listing and trading of the Shares on
Amex 30 and believes that the
Exchange’s proposal to list and trade
such Shares does not appear to present
any novel or significant regulatory
issues. As such, the Commission
believes that accelerating approval of
this proposal should benefit investors
by creating, without undue delay,
additional competition in the market for
such products.
28 Trading may be halted because of market
conditions or for reasons that make trading in the
Shares inadvisable, including: (1) The extent to
which trading is not occurring in the underlying
securities; or (2) whether other unusual conditions
or circumstances detrimental to the maintenance of
a fair and orderly market are present.
29 15 U.S.C. 78s(b)(2).
30 See Amex Filing, supra, note 4. The Shares
have also been approved for trading on the
Exchange pursuant to UTP. See UTP Filing, supra,
note 5.
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20:52 Dec 01, 2008
Jkt 217001
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,31 that the
proposed rule change (SR–NYSEArca–
2008–126) be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.32
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8–28496 Filed 12–1–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59012; File No. SR–
NYSEArca–2008–131]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. To Temporarily Increase the
Number of Additional Quarterly Option
Series
November 24, 2008.
Pursuant to section 19(b)(1)1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’)2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 21, 2008, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or the ‘‘Exchange’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules to temporarily increase the
number of additional Quarterly Options
Series (‘‘QOS’’). The text of the
proposed rule change is available on the
Exchange’s Web site at https://
www.nyse.com, at the Exchange’s
principal office and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
31 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
32 17
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Fmt 4703
Sfmt 4703
73371
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to temporarily increase the
number of additional QOS in ETF
options from sixty (60) to one hundred
(100) that may be added by the
Exchange. To effect this change, the
Exchange is proposing to add new
subparagraph (iv) to Rule 6.4
Commentary .08.
Because of the current, unprecedented
market conditions, the Exchange has
received requests from market
participants to add lower priced strikes
for QOS in the Energy Select Sector
SPDR (‘‘XLE’’), the DIAMONDS Trust,
Series 1 (‘‘DIA’’) and the Standard and
Poor’s Depositary Receipts/SPDRs
(‘‘SPY’’). For example, for December
2008 expiration, there is demand for
strikes (a) ranging from $20 up through
and including $40 for XLE, (b) ranging
from $60 up through and including $75
for DIA, and (c) ranging from $74 up
through and including $85 for SPY.
These strikes are much lower than those
currently listed for which there is open
interest.
However, under current Rule 6.4 and
commentary thereto, the Exchange
cannot honor these requests because the
maximum number of additional series,
sixty (60), has already been listed. The
Exchange is therefore seeking to
temporarily increase the number of
additional QOS that may be added to
one hundred (100). The increase of
additional series would be permitted
immediately for expiration months
currently listed and for expiration
months added throughout the last
quarter of 2008, including the new
expiration month added after December
2008 expiration.
The Exchange believes that this
proposal is reasonable and will allow
for more efficient risk management. The
Exchange believes this proposal will
facilitate the functioning of the
Exchange’s market and will not harm
investors or the public interest. The
Exchange believes that user demand and
the recent downward price movements
E:\FR\FM\02DEN1.SGM
02DEN1
73372
Federal Register / Vol. 73, No. 232 / Tuesday, December 2, 2008 / Notices
in the underlying ETFs warrants a
temporary increase in the number of
strikes for all QOS in ETF options.
Currently, the Exchange list QOS in five
ETF
ETF options: (1) Nasdaq-100 Index
Tracking Stock (‘‘QQQQ’’); (2) iShares
Russell 2000Index Fund (‘‘IWM’’); (3)
DIA; (4) SPY; and (5) XLE. The below
11/19/08
QQQQ ......................................................
IWM ..........................................................
DIA ...........................................................
SPY ..........................................................
XLE ..........................................................
26.86
41.36
80.36
81.50
45.60
The additional series will enable the
Exchange to list in-demand, lower
priced strikes.
The Exchange represents that it has
the necessary systems capacity to
support the new options series that will
result from this proposal. Further, as
proposed, the Exchange notes that these
series would temporarily become part of
the pilot program and will be
considered by the Commission when
the Exchange seeks to renew or make
permanent the pilot program in the
future. In addition, the Exchange states
that in the event that current market
volatility continues, it may seek to
continue (through a rule filing) the time
period during which the additional
series proposed by this filing may be
added.
2. Statutory Basis
Because the current rule proposal is
responsive to the current,
unprecedented market conditions, is
limited in scope as to QOS in ETF
options and as to time, and because the
additional new series can be added
without presenting capacity problems,
the Exchange believes that its proposal
is consistent with section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) in general, and furthers the
objectives of section 6(b)(5) of the Act,4
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, 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.
jlentini on PROD1PC65 with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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.
4 15
U.S.C. 78f(b)(5).
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20:52 Dec 01, 2008
Jkt 217001
10/13/08
10/6/08
35.13
56.98
95.03
101.35
50.55
34.86
59.72
99.90
104.72
54.89
chart provides the historical closing
prices of these ETFs over the past
couple of months:
9/30/08
8/29/08
38.91
68.00
108.36
115.99
63.30
46.12
73.87
115.45
128.79
74.65
7/31/08
45.46
71.32
113.70
126.83
74.40
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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:
Because the foregoing rule does not:
(i) Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; or (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
section 19(b)(3)(A) of the Act 5 and Rule
19b–4(f)(6) thereunder.6
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. 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 better meet customer
demand in light of recent increased
volatility in the marketplace.7
Therefore, the Commission designates
the proposal operative upon filing.
At any time within 60 days of the
filing of such proposed rule change, the
Commission may summarily abrogate
5 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and 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.
NYSE Arca has met this requirement.
7 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).
6 17
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Frm 00133
Fmt 4703
Sfmt 4703
IV. Solicitation of Comments
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–NYSEArca–2008–131 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–NYSEArca–2008–131. 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 (https://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
E:\FR\FM\02DEN1.SGM
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Federal Register / Vol. 73, No. 232 / Tuesday, December 2, 2008 / Notices
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–NYSEArca–2008–131 and should be
submitted on or before December 23,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8–28498 Filed 12–1–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change To Expand the
Exception to NYSE Arca Equities Rule
3.10 To Allow Archipelago Securities
to Route Orders to NYSE Arca
November 24, 2008.
jlentini on PROD1PC65 with NOTICES
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 November
19, 2008, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’), through its
wholly-owned subsidiary, NYSE Arca
Equities, Inc., filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons, and is
approving the proposal on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to expand the
exception to NYSE Arca Equities Rule
3.10 to allow Archipelago Securities
LLC (‘‘Arca Securities’’), an NYSE Arca
affiliated member, to route orders to
NYSE Arca, in its capacity as an order
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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20:52 Dec 01, 2008
Jkt 217001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item III below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–59010; File No. SR–
NYSEArca–2008–130]
8 17
routing facility of NYSE Alternext U.S.,
L.L.C. (‘‘NYSE Alternext’’). A copy of
this filing is available on the Exchange’s
Web site at www.nyse.com, at the
Exchange’s principal office and at the
Commission’s Public Reference Room.
1. Purpose
On September 29, 2008, the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) approved the routing of
orders by Arca Securities to NYSE Arca
and certain revisions to Exchange Rule
14.3.3 In that filing, the Exchange
discussed Arca Securities’ status as an
order routing facility of the New York
Stock Exchange, LLC (‘‘NYSE’’).4 In its
capacity as an order routing facility,
Arca Securities receives routing
instructions from the NYSE and routes
orders to various away market centers,
including NYSE Arca, for execution.
The Exchange notes that Arca Securities
is subject to independent oversight and
enforcement by the Financial Industry
Regulatory Authority (‘‘FINRA’’), an
unaffiliated self-regulatory organization
(‘‘SRO’’) that is Arca Securities’
designated examining authority. In this
capacity, FINRA is responsible for
examining Arca Securities with respect
to its books and records and capital
obligations, and shares with NYSE
Regulation, Inc. (‘‘NYSE Regulation’’)
the responsibility for reviewing Arca
Securities’ compliance with intermarket
3 See Securities Exchange Act Release No. 58681
(September 29, 2008), 73 FR 58285 (October 6,
2008) (order approving NYSEArca–2008–90).
4 See Securities Exchange Act Release No. 55590
(April 5, 2007), 72 FR 18707 (April 13, 2007) (notice
of immediate effectiveness of SR–NYSE–2007–29).
Arca Securities also currently acts as the outbound
order routing facility of NYSE Arca. See, Securities
Exchange Act Release No. 52497 (September 22,
2005), 70 FR 56949 (September 29, 2005) (SR–PCX–
2005–90); see also, Securities Exchange Act Release
No. 44983 (October 25, 2001), 66 FR 55225
(November 1, 2001) (SR–PCX–00–25).
PO 00000
Frm 00134
Fmt 4703
Sfmt 4703
73373
trading rules such as SEC Regulation
NMS. In addition, through an agreement
between FINRA and NYSE Arca
pursuant to the provisions of SEC Rule
17d–2 under the Securities Exchange
Act of 1934, FINRA’s staff reviews for
Arca Securities’ compliance with
certain other NYSE Arca rules through
FINRA’s examination program. NYSE
Regulation monitors Arca Securities for
compliance with NYSE Arca trading
rules, subject, of course, to SEC
oversight of NYSE Regulation’s
regulatory program.
In addition, the Exchange has
established certain mechanisms
designed to address the Commission’s
concerns regarding affiliated members.
Pursuant to NYSE Arca Equities Rule
14.3, the Exchange has established and
implemented procedures and internal
controls reasonably designed to ensure
that Arca Securities does not develop or
implement changes to its system on the
basis of non-public information
regarding planned changes to Exchange
systems, obtained as a result of its
affiliation with the Exchange, until such
information is available generally to
similarly situated members of the
Exchange in connection with the
provision of inbound order routing to
the Exchange. In addition, NYSE
Regulation has agreed to collect and
maintain certain surveillance related
information concerning Arca Securities.
NYSE Regulation has further agreed to
provide a report to the Exchange’s Chief
Regulatory Officer, on at least a
quarterly basis, utilizing a quantitative
approach in assessing Arca Securities’
compliance with applicable NYSE Arca
or SEC rules. By this filing, the
Exchange proposes to expand the
exception to NYSE Arca Equities Rules
3.10 to allow Arca Securities to route
orders to NYSE Arca, in its capacity as
an order routing facility of NYSE
Alternext.
Recently, NYSE Alternext filed with
the Commission a proposal to use Arca
Securities as its approved outbound
order routing facility.5 Pursuant to that
proposal and NYSE Alternext rules
governing its Routing Broker,6 Arca
5 See SR–NYSEALTR–2008–07 (filing seeking
approval for Arca Securities to operate as the
outbound order routing facility of NYSE Alternext).
Arca Securities will perform only the functions
described in SR–NYSEALTR–2008–07 and the
functionality approved in SR–AMEX–2008–62. See
Securities Exchange Act Release No. 34–58673
(September 29, 2008), 73 FR 57707 (October 3,
2008) (order approving SR–AMEX–2008–62).
6 NYSE Alternext recently received approval to
implement Rules 13 and 17, which define the term
Routing Broker and establish the conditions under
which its Routing Broker shall operate. See,
Securities Exchange Act Release No. 34–58705
E:\FR\FM\02DEN1.SGM
Continued
02DEN1
]]>Agencies
[Federal Register Volume 73, Number 232 (Tuesday, December 2, 2008)]
[Notices]
[Pages 73371-73373]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28498]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59012; File No. SR-NYSEArca-2008-131]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. To Temporarily
Increase the Number of Additional Quarterly Option Series
November 24, 2008.
Pursuant to section 19(b)(1)\1\ of the Securities Exchange Act of
1934 (the ``Act'')\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on November 21, 2008, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') 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 self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules to temporarily increase
the number of additional Quarterly Options Series (``QOS''). The text
of the proposed rule change is available on the Exchange's Web site at
https://www.nyse.com, at the Exchange's principal office and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to temporarily increase
the number of additional QOS in ETF options from sixty (60) to one
hundred (100) that may be added by the Exchange. To effect this change,
the Exchange is proposing to add new subparagraph (iv) to Rule 6.4
Commentary .08.
Because of the current, unprecedented market conditions, the
Exchange has received requests from market participants to add lower
priced strikes for QOS in the Energy Select Sector SPDR (``XLE''), the
DIAMONDS Trust, Series 1 (``DIA'') and the Standard and Poor's
Depositary Receipts/SPDRs (``SPY''). For example, for December 2008
expiration, there is demand for strikes (a) ranging from $20 up through
and including $40 for XLE, (b) ranging from $60 up through and
including $75 for DIA, and (c) ranging from $74 up through and
including $85 for SPY. These strikes are much lower than those
currently listed for which there is open interest.
However, under current Rule 6.4 and commentary thereto, the
Exchange cannot honor these requests because the maximum number of
additional series, sixty (60), has already been listed. The Exchange is
therefore seeking to temporarily increase the number of additional QOS
that may be added to one hundred (100). The increase of additional
series would be permitted immediately for expiration months currently
listed and for expiration months added throughout the last quarter of
2008, including the new expiration month added after December 2008
expiration.
The Exchange believes that this proposal is reasonable and will
allow for more efficient risk management. The Exchange believes this
proposal will facilitate the functioning of the Exchange's market and
will not harm investors or the public interest. The Exchange believes
that user demand and the recent downward price movements
[[Page 73372]]
in the underlying ETFs warrants a temporary increase in the number of
strikes for all QOS in ETF options. Currently, the Exchange list QOS in
five ETF options: (1) Nasdaq-100 Index Tracking Stock (``QQQQ''); (2)
iShares Russell 2000Index Fund (``IWM''); (3) DIA; (4) SPY; and (5)
XLE. The below chart provides the historical closing prices of these
ETFs over the past couple of months:
--------------------------------------------------------------------------------------------------------------------------------------------------------
ETF 11/19/08 10/13/08 10/6/08 9/30/08 8/29/08 7/31/08
--------------------------------------------------------------------------------------------------------------------------------------------------------
QQQQ................................................... 26.86 35.13 34.86 38.91 46.12 45.46
IWM..................................................... 41.36 56.98 59.72 68.00 73.87 71.32
DIA..................................................... 80.36 95.03 99.90 108.36 115.45 113.70
SPY..................................................... 81.50 101.35 104.72 115.99 128.79 126.83
XLE..................................................... 45.60 50.55 54.89 63.30 74.65 74.40
--------------------------------------------------------------------------------------------------------------------------------------------------------
The additional series will enable the Exchange to list in-demand, lower
priced strikes.
The Exchange represents that it has the necessary systems capacity
to support the new options series that will result from this proposal.
Further, as proposed, the Exchange notes that these series would
temporarily become part of the pilot program and will be considered by
the Commission when the Exchange seeks to renew or make permanent the
pilot program in the future. In addition, the Exchange states that in
the event that current market volatility continues, it may seek to
continue (through a rule filing) the time period during which the
additional series proposed by this filing may be added.
2. Statutory Basis
Because the current rule proposal is responsive to the current,
unprecedented market conditions, is limited in scope as to QOS in ETF
options and as to time, and because the additional new series can be
added without presenting capacity problems, the Exchange believes that
its proposal is consistent with section 6(b) of the Securities Exchange
Act of 1934 (the ``Act'') in general, and furthers the objectives of
section 6(b)(5) of the Act,\4\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; or (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to section 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6)
thereunder.\6\
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and 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. NYSE Arca has met this requirement.
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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. 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 better meet customer demand in light of
recent increased volatility in the marketplace.\7\ Therefore, the
Commission designates the proposal operative upon filing.
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\7\ 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).
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At any time within 60 days of the filing of such proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-NYSEArca-2008-131 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-NYSEArca-2008-131.
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 (https://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
[[Page 73373]]
between the hours of 10 a.m. and 3 p.m. Copies of such filing also will
be available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File No. SR-
NYSEArca-2008-131 and should be submitted on or before December 23,
2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8-28498 Filed 12-1-08; 8:45 am]
BILLING CODE 8011-01-P
