Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Schedule of Fees and Charges Applicable to the Option Strategy Executions Pilot Program, 10980-10981 [E9-5388]
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10980
Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Notices
(A) by order approve such proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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:
should be submitted on or before April
3, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5389 Filed 3–12–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–59525; File No. SR–
NYSEArca–2009–16]
• 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
Number SR–FINRA–2008–024 on the
subject line.
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Schedule of
Fees and Charges Applicable to the
Option Strategy Executions Pilot
Program
Paper Comments
March 6, 2009.
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
27, 2009, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) filed with the
All submissions should refer to File
Securities and Exchange Commission
Number SR–FINRA–2008–024. This file
(‘‘Commission’’) the proposed rule
number should be included on the
change as described in Items I, II, and
subject line if e-mail is used. To help the
III below, which Items have been
Commission process and review your
prepared by the self-regulatory
comments more efficiently, please use
organization. The Exchange filed the
only one method. The Commission will
proposal pursuant to Section 19(b)(3)(A)
post all comments on the Commission’s
of the Act 3 and Rule 19b–4(f)(2)
Internet Web site (https://www.sec.gov/
thereunder.4 The Commission is
rules/sro.shtml). Copies of the
publishing this notice to solicit
submission, all subsequent
comments on the proposed rule change
amendments, all written statements
from interested persons.
with respect to the proposed rule
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
NYSE Arca is proposing to amend its
Commission and any person, other than Schedule of Fees and Charges in order
those that may be withheld from the
to extend the pilot program that applies
public in accordance with the
to Option Strategy Executions (‘‘Pilot
provisions of 5 U.S.C. 552, will be
Program’’) until March 1, 2010. The text
available for inspection and copying in
of the proposed rule change is attached
the Commission’s Public Reference
as Exhibit 5.5 A copy of this filing is
Room, 100 F Street, NE., Washington,
available on the Exchange’s Web site at
DC 20549, on official business days
https://www.nyse.com, at the Exchange’s
between the hours of 10 a.m. and 3 p.m. principal office and at the Commission’s
Copies of such filing also will be
Public Reference Room.
available for inspection and copying at
the principal office of FINRA. All
10 17 CFR 200.30–3(a)(12).
comments received will be posted
1 15 U.S.C. 78s(b)(1).
without change; the Commission does
2 17 CFR 240.19b–4.
not edit personal identifying
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
information from submissions. You
5 The Commission notes that while provided in
should submit only information that
you wish to make available publicly. All Exhibit 5 to the filing, the text of the proposed rule
change is not attached to this notice but is available
submissions should refer to File
at NYSE Arca, the Commission’s Public Reference
Number SR–FINRA–2008–024 and
Room, and at https://www.nyse.com.
sroberts on PROD1PC70 with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Securities and
Exchange Commission, 100 F Street,
NE., Washington, DC 20549–1090.
VerDate Nov<24>2008
17:55 Mar 12, 2009
Jkt 217001
PO 00000
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Fmt 4703
Sfmt 4703
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.
The text of these statements may be
examined at the places specified in Item
IV below. The self-regulatory
organization 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 this proposed rule
change is to extend the Pilot Program
that applies to Option Strategy
Executions until March 1, 2010. The
transactions included as part of the Pilot
Program include reversals and
conversions,6 dividend spreads,7 box
spreads,8 short stock interest spreads,9
and merger spreads.10 Because the
referenced Options Strategy
Transactions are generally executed by
professionals whose profit margins are
generally narrow, the Pilot Program caps
the transaction fees associated with
such executions at $750 per strategy
execution that are executed on the same
trading day in the same option class. In
addition, there is also a monthly cap of
$25,000 per initiating firm for all
strategy executions. The Exchange
believes that by keeping fees low, the
Exchange is able to attract liquidity by
6 Reversals and conversions are transactions that
employ calls, puts and the underlying stock to lock
in a nearly risk free profit. Reversals are established
by combining a short stock position with a short put
and a long call position that shares the same strike
and expiration. Conversions employ long positions
in the underlying stock that accompany long puts
and short calls sharing the same strike and
expiration.
7 Dividend spreads are trades involving deep in
the money options that exploit pricing differences
arising around the time a stock goes ex-dividend.
8 Box Spreads is a strategy that synthesizes long
and short stock positions to create a profit.
Specifically, a long call and short put at one strike
is combined with a short call and long put at a
different strike to create synthetic long and
synthetic short stock positions, respectively.
9 A short stock interest spread is a spread that
uses two deep in the money put options of the same
class followed by the exercise of the resulting long
position in order to establish a short stock interest
arbitrage position.
10 A merger spread is a transaction executed
pursuant to a strategy involving the simultaneous
purchase and sale of options of the same class and
expiration date, but with different strike prices
followed by the exercise of the resulting long option
position.
E:\FR\FM\13MRN1.SGM
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Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Notices
accommodating these transactions.
Extending the Pilot Program until March
1, 2010 will allow the Exchange to keep
these fees low and thus continue to
attract liquidity.
OTP Holders and OTP Firms who
wish to benefit from the fee cap will be
required to submit to the Exchange
forms with supporting documentation
(e.g., clearing firm transaction data) to
qualify for the cap.
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:
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
The proposal is consistent with
11 of the Act, in general, and
• Send an e-mail to ruleSection 6(b)
Section 6(b)(4),12 in particular, in that it comments@sec.gov. Please include File
Number SR–NYSEArca–2009–16 on the
provides for the equitable allocation of
subject line.
dues, fees and other charges among its
members. The Exchange believes that,
Paper Comments
as proposed, the cap on transaction fees
for Strategy Executions applies equally
• Send paper comments in triplicate
to each member (ETP holder) of the
to Elizabeth M. Murphy, Secretary,
Exchange. The Exchange further
Securities and Exchange Commission,
believes that by keeping fees low with
100 F Street, NE., Washington, DC
the proposed cap, the Exchange is able
20549–1090.
to attract liquidity by accommodating
All submissions should refer to File
these transactions.
Number SR–NYSEArca–2009–16. This
B. Self-Regulatory Organization’s
file number should be included on the
Statement on Burden on Competition
subject line if e-mail is used. To help the
Commission process and review your
The Exchange does not believe that
comments more efficiently, please use
the proposed rule change will impose
only one method. The Commission will
any burden on competition that is not
post all comments on the Commission’s
necessary or appropriate in furtherance
Internet Web site (https://www.sec.gov/
of the purposes of the Act.
rules/sro.shtml). Copies of the
C. Self-Regulatory Organization’s
submission, all subsequent
Statement on Comments on the
amendments, all written statements
Proposed Rule Change Received From
with respect to the proposed rule
Members, Participants, or Others
change that are filed with the
Commission, and all written
The Exchange has neither solicited
communications relating to the
nor received written comments on the
proposed rule change between the
proposed rule change.
Commission and any person, other than
III. Date of Effectiveness of the
those that may be withheld from the
Proposed Rule Change and Timing for
public in accordance with the
Commission Action
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
The foregoing proposed rule change
the Commission’s Public Reference
has become effective upon filing
Room, 100 F Street, NE., Washington,
pursuant to Section 19(b)(3)(A) of the
DC 20549, on official business days
13 and Rule 19b–4(f)(2) 14 thereunder
Act
between the hours of 10 a.m. and 3 p.m.
because it establishes or changes a due,
Copies of such filing also will be
fee, or other charge imposed by the
available for inspection and copying at
Exchange. At any time within 60 days
of the filing of the proposed rule change, the principal office of the Exchange. All
comments received will be posted
the Commission may summarily
without change; the Commission does
abrogate such rule change if it appears
not edit personal identifying
to the Commission that such action is
information from submissions. You
necessary or appropriate in the public
should submit only information that
interest, for the protection of investors,
you wish to make available publicly. All
or otherwise in furtherance of the
submissions should refer to File
purposes of the Act.
Number SR–NYSEArca–2009–16 and
should be submitted on or before April
11 15 U.S.C. 78f(b).
3, 2009.
12 15 U.S.C. 78f(b)(4).
sroberts on PROD1PC70 with NOTICES
14 17
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
VerDate Nov<24>2008
17:55 Mar 12, 2009
15 17
Jkt 217001
PO 00000
CFR 200.30–3(a)(12).
Frm 00105
Fmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5388 Filed 3–12–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
2. Statutory Basis
13 15
10981
Sfmt 4703
[Release No. 34–59517; File No. SR–
NYSEALTR–2009–23]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Alternext U.S. LLC To Permit Two
Trading Officials To Modify the
Required Bid/Ask Differentials
March 5, 2009.
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 March 3,
2009, NYSE Alternext U.S. LLC (‘‘NYSE
Amex’’ 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 Exchange. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it effective upon filing
with the Commission. 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
Exchange Rule 925NY—Obligations of
Market Makers. The text of the proposed
rule change is attached as Exhibit 5. A
copy of this filing 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
E:\FR\FM\13MRN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 48 (Friday, March 13, 2009)]
[Notices]
[Pages 10980-10981]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-5388]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59525; File No. SR-NYSEArca-2009-16]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Its
Schedule of Fees and Charges Applicable to the Option Strategy
Executions Pilot Program
March 6, 2009.
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 27, 2009, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Exchange filed the proposal pursuant to Section
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca is proposing to amend its Schedule of Fees and Charges in
order to extend the pilot program that applies to Option Strategy
Executions (``Pilot Program'') until March 1, 2010. The text of the
proposed rule change is attached as Exhibit 5.\5\ A copy of this filing
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.
---------------------------------------------------------------------------
\5\ The Commission notes that while provided in Exhibit 5 to the
filing, the text of the proposed rule change is not attached to this
notice but is available at NYSE Arca, the Commission's Public
Reference Room, and at https://www.nyse.com.
---------------------------------------------------------------------------
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. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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 this proposed rule change is to extend the Pilot
Program that applies to Option Strategy Executions until March 1, 2010.
The transactions included as part of the Pilot Program include
reversals and conversions,\6\ dividend spreads,\7\ box spreads,\8\
short stock interest spreads,\9\ and merger spreads.\10\ Because the
referenced Options Strategy Transactions are generally executed by
professionals whose profit margins are generally narrow, the Pilot
Program caps the transaction fees associated with such executions at
$750 per strategy execution that are executed on the same trading day
in the same option class. In addition, there is also a monthly cap of
$25,000 per initiating firm for all strategy executions. The Exchange
believes that by keeping fees low, the Exchange is able to attract
liquidity by
[[Page 10981]]
accommodating these transactions. Extending the Pilot Program until
March 1, 2010 will allow the Exchange to keep these fees low and thus
continue to attract liquidity.
---------------------------------------------------------------------------
\6\ Reversals and conversions are transactions that employ
calls, puts and the underlying stock to lock in a nearly risk free
profit. Reversals are established by combining a short stock
position with a short put and a long call position that shares the
same strike and expiration. Conversions employ long positions in the
underlying stock that accompany long puts and short calls sharing
the same strike and expiration.
\7\ Dividend spreads are trades involving deep in the money
options that exploit pricing differences arising around the time a
stock goes ex-dividend.
\8\ Box Spreads is a strategy that synthesizes long and short
stock positions to create a profit. Specifically, a long call and
short put at one strike is combined with a short call and long put
at a different strike to create synthetic long and synthetic short
stock positions, respectively.
\9\ A short stock interest spread is a spread that uses two deep
in the money put options of the same class followed by the exercise
of the resulting long position in order to establish a short stock
interest arbitrage position.
\10\ A merger spread is a transaction executed pursuant to a
strategy involving the simultaneous purchase and sale of options of
the same class and expiration date, but with different strike prices
followed by the exercise of the resulting long option position.
---------------------------------------------------------------------------
OTP Holders and OTP Firms who wish to benefit from the fee cap will
be required to submit to the Exchange forms with supporting
documentation (e.g., clearing firm transaction data) to qualify for the
cap.
2. Statutory Basis
The proposal is consistent with Section 6(b) \11\ of the Act, in
general, and Section 6(b)(4),\12\ in particular, in that it provides
for the equitable allocation of dues, fees and other charges among its
members. The Exchange believes that, as proposed, the cap on
transaction fees for Strategy Executions applies equally to each member
(ETP holder) of the Exchange. The Exchange further believes that by
keeping fees low with the proposed cap, the Exchange is able to attract
liquidity by accommodating these transactions.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(2)
\14\ thereunder because it establishes or changes a due, fee, or other
charge imposed by the Exchange. 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.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------
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 Number SR-NYSEArca-2009-16 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-NYSEArca-2009-16. 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 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 Number SR-NYSEArca-2009-16 and should
be submitted on or before April 3, 2009.
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-5388 Filed 3-12-09; 8:45 am]
BILLING CODE 8011-01-P
