Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposal To Extend the Options Penny Pilot for The NASDAQ Options Market, 14829-14831 [E9-7291]
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Federal Register / Vol. 74, No. 61 / Wednesday, April 1, 2009 / Notices
[FR Doc. E9–7317 Filed 3–31–09; 8:45 am]
BILLING CODE 3110–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, April 2, 2009 at 2 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matters at the Closed
Meeting.
Commissioner Casey, as duty officer,
voted to consider the items listed for the
Closed Meeting in closed session.
The subject matter of the Closed
Meeting scheduled for Thursday, April
2, 2009 will be:
Institution of an injunctive action;
institution and settlement of
administrative proceedings of an
enforcement nature; adjudicatory
matters; and other matters relating to
enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: March 26, 2009.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–7228 Filed 3–31–09; 8:45 am]
BILLING CODE
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Order of Suspension of
Trading Global Matrechs, Inc.
It appears to the Securities and
Exchange Commission that there is a
17:46 Mar 31, 2009
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E9–7397 Filed 3–30–09; 4:15 pm]
BILLING CODE
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59632; File No. SR–
NASDAQ–2009–030]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposal To Extend the Options
Penny Pilot for The NASDAQ Options
Market
March 26, 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 March 25,
2009, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) 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 Nasdaq. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 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 the Substance
of the Proposed Rule Change
Nasdaq is proposing to extend a pilot
(the ‘‘pilot’’) that permits certain options
series to be quoted and traded in
1 15
March 30, 2009.
VerDate Nov<24>2008
lack of current and accurate information
concerning the securities of Global
Matrechs, Inc. (‘‘Global’’) because it is
nearly two years delinquent in its
required periodic reports. Global is
quoted on the Pink Sheets OTC Markets,
Inc. under the ticker symbol GBMR.
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
company.
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 company is
suspended for the period from 9:30 a.m.
EDT on March 30, 2009, through 11:59
p.m. EDT on April 13, 2009.
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
PO 00000
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14829
increments of $0.01. The Exchange
proposes to extend the pilot through
July 3, 2009. There is no new text
contained in this proposed rule change.
The text of the filing is available at
https://www.cchwallstreet.com/nasdaq,
at NASDAQ’s principal office, and at
the Commission’s Public Reference
Room.
Nasdaq has designated this proposal
as non-controversial and provided the
Commission with the notice required by
Exchange Act Rule 19b–4(f)(6)(iii).
Nasdaq requests that the Commission
waive the 30-day pre-operative waiting
period contained in that rule. If such
waiver is granted by the Commission,
this rule proposal, which is effective
upon filing with the Commission, shall
become immediately operative pursuant
to SEC Rule 19b–4(f)(6).
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 continue to permit
specified options series to be quoted
and traded in increments of $0.01 by
extending the pilot through July 3, 2009.
Prior to the Penny Pilot Program,
options were quoted options in nickel
and dime increments. The minimum
price variation for quotations in options
series that are quoted at less than $3 per
contract is $0.05 and the minimum
price variation for quotations in options
series that are quoted at $3 per contract
or greater is $0.10.
Under the Penny Pilot Program,
beginning on January 26, 2007, market
participants were able to begin quoting
in penny increments in certain series of
option classes. The Penny Pilot Program
originally included the following
thirteen options: Ishares Russell 2000
(IWM); NASDAQ–100 Index Tracking
Stock (QQQQ); SemiConductor Holders
Trust (SMH); General Electric Company
(GE); Advanced Micro Devices, Inc.
E:\FR\FM\01APN1.SGM
01APN1
14830
Federal Register / Vol. 74, No. 61 / Wednesday, April 1, 2009 / Notices
(AMD), Microsoft Corporation (MSFT);
Intel Corporation (INTC); Caterpillar,
Inc. (CAT); Whole Foods Market, Inc.
(WFMI); Texas Instruments, Inc. (TXN);
Flextronics International Ltd. (FLEX);
Sun Microsystems, Inc. (SUNW); and
Agilent Technologies, Inc. (A).
On September 28, 2007, the following
twenty-two options classes were added:
SPDRs (SPY); Apple, Inc. (AAPL); Altria
Group Inc. (MO); Dendreon Corp.
(DNDN); Amgen Inc. (AMGN); Yahoo!
Inc. (YHOO); QUALCOMM Inc.
(QCOM); General Motors Corporation
(GM); Energy Select Sector (XLE);
DIAMONDS Trust, Series 1 (DIA); Oil
Services HOLDRs (OIH); NYSE
Euronext, Inc. (NYX); Cisco Systems,
Inc. (CSCO); Financial Select Sector
SPDR (XLF); AT&T Inc. (T); Citigroup
Inc. (C); Amazon.com Inc. (AMZN);
Motorola Inc. (MOT); Research in
Motion Ltd. (RIMM); FreeportMcMoRan Copper & Gold Inc. (FCX);
ConocoPhillips (COP); and BristolMyers Squibb Co. (BMY). These thirtyfive options classes are among the most
actively-traded, multiply-listed options
classes.
On March 28, 2008, the following 28
options classes were added:
Goldman Sachs Group, Inc. (GS)
Countrywide Financial Corporation
(CFC)
Bank of America Corporation (BAC)
iShares MSCI Emerging Mkts. Index
Fund (EEM)
Merrill Lynch & Co., Inc. (MER)
Vale (RIO)
EMC Corporation (EMC)
Exxon Mobil Corporation (XOM)
Wal-Mart Stores, Inc. (WMT)
The Home Depot, Inc. (HD)
Valero Energy Corporation (VLO)
Alcoa Inc. (AA)
Dell Inc. (DELL)
SanDisk Corporation (SNDK)
The Bear Stearns Companies, Inc. (BSC)
Pfizer Inc. (PFE)
eBay Inc. (EBAY)
Halliburton Company (HAL)
Lehman Brothers Holdings Inc. (LEH)
JPMorgan Chase & Co. (JPM)
Washington Mutual, Inc. (WM)
Ford Motor Company (F)
Target Corporation (TGT)
American International Group, Inc.
(AIG)
Newmont Mining Corporation (NEM)
Verizon Communications Inc. (VZ)
Mini-NDX Index Options (MNX)
Starbucks Corporation (SBUX)
The minimum price variation for all
classes included in the Penny Pilot
Program, except for the QQQQs, is $0.01
for all quotations in option series that
are quoted at less than $3 per contract
and $0.05 for all quotations in option
VerDate Nov<24>2008
17:46 Mar 31, 2009
Jkt 217001
series that are quoted at $3 per contract
or greater. The QQQQs are quoted in
$0.01 increments for all options series.
During the extended Pilot Program,
Nasdaq will submit a report addressing
the impact of the pilot on the quality of
the Exchange’s markets and option
quote traffic and capacity not later than
the last business day of May 2009,
covering the period from February 1,
2009 through April 30, 2009, and will
submit further reports as requested by
the Commission as the pilot continues.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,5 in
general and with Section 6(b)(5) of the
Act,6 in particular, in that it is designed
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; and are not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers,
or to regulate by virtue of any authority
conferred by this title matters not
related to the purposes of this title or
the administration of the exchange.
Analysis of the current Pilot has
shown that the reduction in the
minimum quoting increment has
resulted in narrowing the average
quoted spreads in all classes in the
Pilot. A reduction in quoted spreads
means that customers and other market
participants may be able to trade
options at better prices. Extending the
Pilot Program as proposed will allow
further analysis of the impact of penny
quoting in the Pilot classes over a longer
period of time on, among other things:
(1) Spreads; (2) peak quote rates; (3)
quote message traffic; (4) displayed size;
(5) ‘‘depth of book’’ liquidity; and (6)
market structure. Nasdaq’s unique
options market structure will add to the
analysis delivered by the existing
options markets to date.
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.
5 15
6 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(5).
Frm 00064
Fmt 4703
Sfmt 4703
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 rule 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 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 7 and Rule
19b–4(f)(6) thereunder.8
The Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposed rule change
may become operative upon filing with
the Commission pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) 10 thereunder. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because such waiver will allow
the Penny Pilot Program to continue
without interruption through July 3,
2009.11 Accordingly, the Commission
designated the proposed rule change
operative upon filing with the
Commission.
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,
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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. The Exchange
has satisfied the pre-filing requirement.
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4.
11 For the 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. 78(c)(f).
8 17
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Federal Register / Vol. 74, No. 61 / Wednesday, April 1, 2009 / Notices
including whether the proposed rule
change, as amended, 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 rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2009–030 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–2009–030. 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
Section, 100 F Street, NE., Washington,
DC 20549–1090 on official business
days between the hours of 10 a.m. and
3 p.m. Copies of the filing will also be
available for inspection and copying at
Nasdaq’s principal office and on its
Internet Web site at www.nyse.com. 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–2009–030 and
should be submitted on or before
April 22, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–7291 Filed 3–31–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59626; File No. SR–NYSE–
2009–33]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Modifying the
Wireless Data Communications
Initiatives and Codifying the Wireless
Policy
March 25, 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 March 20,
2009, the New York Stock Exchange,
LLC (‘‘NYSE’’ or the ‘‘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 prepared by NYSE. NYSE has
submitted the proposed rule change
pursuant to Rule 19b-4(f)(6) under the
Act,3 which renders the proposal
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: (1) Modify
its Wireless Data Communications
Initiatives (referred to herein as the
‘‘Wireless Policy’’) to eliminate the
requirement that all orders or messages
transmitted electronically from off the
Floor must first be recorded in a Floor
broker’s booth location on the Floor
(‘‘Floor booth’’) before being transmitted
to the Floor broker’s wireless hand-held
device for representation and execution;
(2) modify the Wireless Policy to
eliminate the requirement that Floor
booth locations print paper records of
all orders; (3) modify the interpretation
of NYSE Rule 117 as it applies to what
constitutes a ‘‘written order’’; and (4)
codify the Wireless Policy as amended
herein.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
12 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
17:46 Mar 31, 2009
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14831
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 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 Exchange proposes to: (1) Modify
its Wireless Data Communications
Initiatives (referred to herein as the
‘‘Wireless Policy’’) 4 to eliminate the
requirement that all orders or messages
transmitted electronically from off the
Floor must first be recorded in a Floor
broker’s booth location on the Floor
(‘‘Floor booth’’) before being transmitted
to the Floor broker’s wireless hand-held
device for representation and execution;
(2) modify the Wireless Policy to
eliminate the requirement that Floor
booth locations print paper records of
all orders; (3) modify the interpretation
of NYSE Rule 117 as it applies to what
constitutes a ‘‘written order’’; and (4)
codify the Wireless Policy as amended
herein.
The Exchange notes that parallel
changes are proposed to be made to the
rules of the NYSE Amex Exchange
(formerly the American Stock
Exchange).5
Background
On August 25, 1995, the Commission
approved the Exchange’s introduction of
wireless data communications
technology to the Floor. One feature of
the wireless technology was the use of
wireless hand-held data
communications devices on the Floor. A
wireless hand-held device (‘‘hand4 See Securities Exchange Act Release No. 36156
(August 25, 1995), 60 FR 45756 (September 1, 1995)
(SR–NYSE–95–22). The approval order of the initial
filing and subsequent amendment by the
Commission to changes to the Wireless Data
Communications Initiatives has historically been
referred to by the NYSE as the ‘‘Wireless Policy.’’
See also Securities Exchange Act Release No. 39379
(December 1, 1997), 62 FR 64615 (December 8,
1997) (SR–NYSE–97–17).
5 See SR–NYSEAmex–2009–02 (to be filed on
March 23, 2009).
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]]>Agencies
[Federal Register Volume 74, Number 61 (Wednesday, April 1, 2009)]
[Notices]
[Pages 14829-14831]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7291]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59632; File No. SR-NASDAQ-2009-030]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposal To Extend
the Options Penny Pilot for The NASDAQ Options Market
March 26, 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 March 25, 2009, The NASDAQ Stock Market LLC (``Nasdaq'') 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 Nasdaq. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) 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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
Nasdaq is proposing to extend a pilot (the ``pilot'') that permits
certain options series to be quoted and traded in increments of $0.01.
The Exchange proposes to extend the pilot through July 3, 2009. There
is no new text contained in this proposed rule change. The text of the
filing is available at https://www.cchwallstreet.com/nasdaq, at NASDAQ's
principal office, and at the Commission's Public Reference Room.
Nasdaq has designated this proposal as non-controversial and
provided the Commission with the notice required by Exchange Act Rule
19b-4(f)(6)(iii). Nasdaq requests that the Commission waive the 30-day
pre-operative waiting period contained in that rule. If such waiver is
granted by the Commission, this rule proposal, which is effective upon
filing with the Commission, shall become immediately operative pursuant
to SEC Rule 19b-4(f)(6).
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 continue to permit
specified options series to be quoted and traded in increments of $0.01
by extending the pilot through July 3, 2009. Prior to the Penny Pilot
Program, options were quoted options in nickel and dime increments. The
minimum price variation for quotations in options series that are
quoted at less than $3 per contract is $0.05 and the minimum price
variation for quotations in options series that are quoted at $3 per
contract or greater is $0.10.
Under the Penny Pilot Program, beginning on January 26, 2007,
market participants were able to begin quoting in penny increments in
certain series of option classes. The Penny Pilot Program originally
included the following thirteen options: Ishares Russell 2000 (IWM);
NASDAQ-100 Index Tracking Stock (QQQQ); SemiConductor Holders Trust
(SMH); General Electric Company (GE); Advanced Micro Devices, Inc.
[[Page 14830]]
(AMD), Microsoft Corporation (MSFT); Intel Corporation (INTC);
Caterpillar, Inc. (CAT); Whole Foods Market, Inc. (WFMI); Texas
Instruments, Inc. (TXN); Flextronics International Ltd. (FLEX); Sun
Microsystems, Inc. (SUNW); and Agilent Technologies, Inc. (A).
On September 28, 2007, the following twenty-two options classes
were added: SPDRs (SPY); Apple, Inc. (AAPL); Altria Group Inc. (MO);
Dendreon Corp. (DNDN); Amgen Inc. (AMGN); Yahoo! Inc. (YHOO); QUALCOMM
Inc. (QCOM); General Motors Corporation (GM); Energy Select Sector
(XLE); DIAMONDS Trust, Series 1 (DIA); Oil Services HOLDRs (OIH); NYSE
Euronext, Inc. (NYX); Cisco Systems, Inc. (CSCO); Financial Select
Sector SPDR (XLF); AT&T Inc. (T); Citigroup Inc. (C); Amazon.com Inc.
(AMZN); Motorola Inc. (MOT); Research in Motion Ltd. (RIMM); Freeport-
McMoRan Copper & Gold Inc. (FCX); ConocoPhillips (COP); and Bristol-
Myers Squibb Co. (BMY). These thirty-five options classes are among the
most actively-traded, multiply-listed options classes.
On March 28, 2008, the following 28 options classes were added:
Goldman Sachs Group, Inc. (GS)
Countrywide Financial Corporation (CFC)
Bank of America Corporation (BAC)
iShares MSCI Emerging Mkts. Index Fund (EEM)
Merrill Lynch & Co., Inc. (MER)
Vale (RIO)
EMC Corporation (EMC)
Exxon Mobil Corporation (XOM)
Wal-Mart Stores, Inc. (WMT)
The Home Depot, Inc. (HD)
Valero Energy Corporation (VLO)
Alcoa Inc. (AA)
Dell Inc. (DELL)
SanDisk Corporation (SNDK)
The Bear Stearns Companies, Inc. (BSC)
Pfizer Inc. (PFE)
eBay Inc. (EBAY)
Halliburton Company (HAL)
Lehman Brothers Holdings Inc. (LEH)
JPMorgan Chase & Co. (JPM)
Washington Mutual, Inc. (WM)
Ford Motor Company (F)
Target Corporation (TGT)
American International Group, Inc. (AIG)
Newmont Mining Corporation (NEM)
Verizon Communications Inc. (VZ)
Mini-NDX Index Options (MNX)
Starbucks Corporation (SBUX)
The minimum price variation for all classes included in the Penny
Pilot Program, except for the QQQQs, is $0.01 for all quotations in
option series that are quoted at less than $3 per contract and $0.05
for all quotations in option series that are quoted at $3 per contract
or greater. The QQQQs are quoted in $0.01 increments for all options
series.
During the extended Pilot Program, Nasdaq will submit a report
addressing the impact of the pilot on the quality of the Exchange's
markets and option quote traffic and capacity not later than the last
business day of May 2009, covering the period from February 1, 2009
through April 30, 2009, and will submit further reports as requested by
the Commission as the pilot continues.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\5\ in general and with Section
6(b)(5) of the Act,\6\ in particular, in that it is designed 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; and are not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers, or to regulate by virtue of any authority conferred by this
title matters not related to the purposes of this title or the
administration of the exchange.
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
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Analysis of the current Pilot has shown that the reduction in the
minimum quoting increment has resulted in narrowing the average quoted
spreads in all classes in the Pilot. A reduction in quoted spreads
means that customers and other market participants may be able to trade
options at better prices. Extending the Pilot Program as proposed will
allow further analysis of the impact of penny quoting in the Pilot
classes over a longer period of time on, among other things: (1)
Spreads; (2) peak quote rates; (3) quote message traffic; (4) displayed
size; (5) ``depth of book'' liquidity; and (6) market structure.
Nasdaq's unique options market structure will add to the analysis
delivered by the existing options markets to date.
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 rule 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 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 \7\ and Rule 19b-4(f)(6)
thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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. The
Exchange has satisfied the pre-filing requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay so that the proposed rule change may become operative
upon filing with the Commission pursuant to Section 19(b)(3)(A) of the
Act \9\ and Rule 19b-4(f)(6) \10\ thereunder. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because such waiver
will allow the Penny Pilot Program to continue without interruption
through July 3, 2009.\11\ Accordingly, the Commission designated the
proposed rule change operative upon filing with the Commission.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4.
\11\ For the 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.
78(c)(f).
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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,
[[Page 14831]]
including whether the proposed rule change, as amended, 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-NASDAQ-2009-030 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-2009-030. 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 Section, 100 F Street,
NE., Washington, DC 20549-1090 on official business days between the
hours of 10 a.m. and 3 p.m. Copies of the filing will also be available
for inspection and copying at Nasdaq's principal office and on its
Internet Web site at www.nyse.com. 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-2009-030 and should be submitted on or before
April 22, 2009.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-7291 Filed 3-31-09; 8:45 am]
BILLING CODE 8010-01-P
