Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify the Definition of “Narrow-Based Index”, 30658-30660 [E9-15153]
Download as PDF
30658
Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices
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 rulecomments@sec.gov. Please include File
Number SR–NYSE–2009–49 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60150; File No. SR–Phlx–
2009–35]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Clarify the
Definition of ‘‘Narrow-Based Index’’
June 19, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 2 thereunder,
Paper Comments
notice is hereby given that on June 16,
• Send paper comments in triplicate
2009, NASDAQ OMX PHLX, Inc.
to Elizabeth M. Murphy, Secretary,
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission,
Securities and Exchange Commission
100 F Street, NE., Washington, DC
(‘‘Commission’’) the proposed rule
20549–1090.
change as described in Items I and II
below, which Items have been prepared
All submissions should refer to File
by the Exchange. Phlx has designated
Number SR–NYSE–2009–49. This file
the proposed rule change as constituting
number should be included on the
a non-controversial rule change under
subject line if e-mail is used. To help the
Rule 19b–4(f)(6) under the Act,3 which
Commission process and review your
renders the proposal effective upon
comments more efficiently, please use
filing with the Commission. The
only one method. The Commission will
Commission is publishing this notice to
post all comments on the Commission’s
solicit comments on the proposed rule
Internet Web site (https://www.sec.gov/
change from interested persons.
rules/sro.shtml). Copies of the
submission, all subsequent
I. Self-Regulatory Organization’s
amendments, all written statements
Statement of the Terms of Substance of
with respect to the proposed rule
the Proposed Rule Change
change that are filed with the
The Exchange proposes to file a
Commission, and all written
proposed rule change to add a
communications relating to the
commentary to Rule 1000A(b)(12) to
proposed rule change between the
clarify that this rule, which defines the
Commission and any person, other than term ‘‘narrow-based index’’ to mean ‘‘to
those that may be withheld from the
be representative of a particular
public in accordance with the
industry or a group of related
provisions of 5 U.S.C. 552, will be
industries’’ to also accommodate an
available for inspection and copying in
index the constituents of which are all
the Commission’s Public Reference
headquartered within a single country
Room on official business days between to be listed as a narrow-based index
the hours of 10 a.m. and 3 p.m. Copies
pursuant to Exchange rules.
of such filing also will be available for
The text of the proposed rule change
inspection and copying at the principal
is available on the Exchange’s Web site
office of the Exchange. All comments
at https://
received will be posted without change; nasdaqomxphlx.cchwallstreet.com/
the Commission does not edit personal
NASDAQOMXPHLX/Filings/, at the
identifying information from
principal office of the Exchange, and at
submissions. You should submit only
the Commission’s Public Reference
information that you wish to make
Room.
available publicly. All submissions
II. Self-Regulatory Organization’s
should refer to File Number SR–NYSE–
2009–49 and should be submitted on or Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
before July 17, 2009.
Change
For the Commission, by the Division of
In its filing with the Commission, the
Trading and Markets, pursuant to delegated
Exchange included statements
authority.12
concerning the purpose of and basis for
Florence E. Harmon,
the proposed rule change and discussed
Deputy Secretary.
any comments it received on the
[FR Doc. E9–15155 Filed 6–25–09; 8:45 am]
BILLING CODE 8010–01–P
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
16:39 Jun 25, 2009
Jkt 217001
PO 00000
Frm 00159
Fmt 4703
Sfmt 4703
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Phlx is filing the proposed rule
change to add a commentary to clarify
that Phlx Rule 1000A(b)(12), which
defines the term ‘‘narrow-based index’’
(or ‘‘industry index’’) to mean ‘‘to be
representative of a particular industry or
a group of related industries’’ to also
accommodate an index the constituents
of which are all headquartered within a
single country to be listed as a narrowbased index pursuant to Exchange rules.
This would enable options based on an
index, including companies all
headquartered within a single country,
to be rightfully considered as a generic
narrow-based index for purposes of
listing on the Exchange and trading.
The listing and trading of index
options on the Exchange is generally
conditioned on the ability to meet the
rule requirements for narrow-based and
broad based indexes.4 More particularly
regarding narrow-based indexes, Phlx
Rule 1009A(b) states that the Exchange
may trade options on an underlying
index pursuant to Rule 19b–4(e) of the
Act 5 where all of the noted conditions
noted are satisfied.6 Indeed, the
Exchange has, and continues to, list and
trade options on narrow-based indexes
based on industries or a group of related
industries that are located within
various countries. These options are
4 Broad-based indexes (or market indexes), which
are not at issue in this filing, are defined in Phlx
Rule 1000A(b)(11).
5 The Chicago Board Options Exchange and
International Securities Exchange have the same
ability pursuant to their own rules.
6 These include the index is capitalizationweighted, price-weighted, modified capitalizationweighted or equal dollar-weighted, and consists of
ten or more component securities; each component
security has a market capitalization of at least $75
million, except that for each of the lowest weighted
component securities in the index that in the
aggregate account for no more than 10% of the
weight of the index; the market capitalization is at
least $50 million; and trading volume of each
component security has been at least one million
shares for each of the last six months, except that
for each of the lowest weighted component
securities in the index that in the aggregate account
for no more than 10% of the weight of the index,
trading volume has been at least 500,000 shares for
each of the last six months. See Phlx Rule
1009A(b)(1)–(12) for all of the conditions.
E:\FR\FM\26JNN1.SGM
26JNN1
Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices
traded pursuant to the Exchange’s index
option trading rules.7
With the Exchange’s interpretation of
Phlx Rule 1000A(b)(12) as discussed
herein, the Exchange intends to list and
trade options, pursuant to Phlx Rule
1009A(b), on an index(es) that includes
industries all headquartered within a
single country. The Exchange represents
that, in all other material aspects, these
options will meet the requirements for
generic listing and trading pursuant to
Rule 1009A(b). The proposed rule
change simply seeks to clarify that the
generic listing and trading standards
would cover an index that otherwise
qualifies as a ‘‘narrow-based index,’’
with the exception that the constituents
of the index are all headquartered
within a single country.
For example, the proposed rule
change would allow the Exchange to list
and trade options on the NASDAQ
China Index (the ‘‘Index’’) pursuant to
generic listing standards. Options on the
Index would not otherwise qualify for
listing on the Exchange because the
Index does not currently fit within the
definition of a narrow-based index
under Phlx Rule 1000A(b)(12). In all
other respects the Index meets the
applicable generic listing standards
under Rule 1009A(b). The Exchange
intends to list and trade options on the
Index pursuant to Rule 1009A(b) almost
immediately upon operation of the
changes in the proposed commentary to
Phlx Rule 1000A(b)(12).
Moreover, like the presently traded
narrow-based index options, these
narrow-based options will be traded
pursuant to the Exchange’s trading
rules.8 The Exchange represents that its
existing surveillance procedures
applicable to trading in options will be
adequate to properly monitor the
trading in options on these narrowbased indexes.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 9 in general, and furthers the
objectives of Section 6(b)(5) of the Act 10
in particular, in that it is designed to
promote just and equitable principles of
7 See Phlx Rules 1000A et seq. (index options
trading rules). See also Phlx Rules 1000 et seq.
(general options trading rules).
8 Id. The trading rules include, among other
things, position limits, exercise limits, and terms of
options contracts (Phlx Rules 1001A, 1002A, and
1101A, respectively). See also Securities and
Exchange Release No. 42132 (November 12, 1999),
64 FR 63837 (November 22, 1999) (SR–Phlx–98–99)
(order approving narrow-based options position
limit increase to 18,000, 24,000, and 31,500
contracts).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
VerDate Nov<24>2008
16:39 Jun 25, 2009
Jkt 217001
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest, by
clarifying the term ‘‘narrow-based
index’’ also accommodates an index the
constituents of which are all
headquartered within a single country.
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 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 either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 13 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6) 14
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange requests
that its proposal become operative
immediately so that Phlx may list and
trade options on the NASDAQ China
Index immediately pursuant to its
generic listing standards for narrowbased indexes. The Commission
believes that waiving the 30-day
operative delay to make the product
available without delay is consistent
with the protection of investors and the
public interest. Therefore, the
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. Phlx has satisfied this requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6).
12 17
PO 00000
Frm 00160
Fmt 4703
Sfmt 4703
30659
Commission designates the proposal
operative upon filing.15
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2009–35 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–Phlx–2009–35. 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
15 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).
E:\FR\FM\26JNN1.SGM
26JNN1
30660
Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices
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 publicly available. All
submissions should refer to File
Number SR–Phlx–2009–35 and should
be submitted on or before July 17, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–15153 Filed 6–25–09; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice 6683]
60-Day Notice of Proposed Information
Collection: DS–2029, Application for
Consular Report of Birth Abroad of a
Citizen of the United States of America,
OMB Control No. 1405–0011
ACTION: Notice of request for public
comments.
SUMMARY: The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
The purpose of this notice is to allow 60
days for public comment in the Federal
Register preceding submission to OMB.
We are conducting this process in
accordance with the Paperwork
Reduction Act of 1995.
• Title of Information Collection:
Application for Consular Report of Birth
Abroad of a Citizen of the United States
of America.
• OMB Control Number: 1405–0011
• Type of Request: Revision
• Originating Office: Bureau of
Consular Affairs, Overseas Citizens
Services (CA/OCS)
• Form Number: DS–2029
• Respondents: Parents or legal
guardians of United States citizen
children born overseas.
• Estimated Number of Respondents:
64,374
• Estimated Number of Responses:
64,374
• Average Hours per Response: 20
minutes
• Total Estimated Burden: 21,458
hours
• Frequency: On Occasion
• Obligation to Respond: Voluntary
DATES: The Department will accept
comments from the public up to 60 days
from August 25, 2009.
16 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
16:39 Jun 25, 2009
Jkt 217001
You may submit comments
by any of the following methods:
• E-mail: ASKPRI@state.gov.
• Mail (paper, disk, or CD–ROM
submissions): U.S. Department of State,
CA/OCS/PRI, SA–29, 4th Floor,
Washington, DC 20520
• Fax: 202–736–9111
• Hand Delivery or Courier: U.S.
Department of State, CA/OCS/PRI, 2100
Pennsylvania Avenue, 4th Floor,
Washington, DC 20037.
You must include the DS form
number (if applicable), information
collection title, and OMB control
number in any correspondence.
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed information
collection and supporting documents, to
Derek A. Rivers, Bureau of Consular
Affairs, Overseas Citizens Services (CA/
OCS/PRI), U.S. Department of State,
SA–29, 4th Floor, Washington, DC
20520, who may be reached on (202)
736–9082 or ASKPRI@state.gov.
SUPPLEMENTARY INFORMATION: We are
soliciting public comments to permit
the Department to:
• Evaluate whether the proposed
information collection is necessary for
the proper performance of our
functions.
• Evaluate the accuracy of our
estimate of the burden of the proposed
collection, including the validity of the
methodology and assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond, including the
use of automated collection techniques
or other forms of technology.
ADDRESSES:
Abstract of Proposed Collection
The DS–2029, Application for
Consular Report of Birth Abroad of a
Citizen of the United States of America,
is used by citizens of the United States
to report the birth of a child while
overseas. The information collected on
this form will be used to certify the
acquisition of U.S. citizenship at birth of
a person born abroad and can be used
by that child throughout life.
Methodology
The DS–2029 is available to download
from the Internet. An application for a
Consular Report of Birth is normally
made in the consular district in which
the birth occurred. The parent
respondents will complete the form and
present it to a United States Consulate
or Embassy, who will examine the
PO 00000
Frm 00161
Fmt 4703
Sfmt 4703
documentation and enter the
information provided into the
Department of State American Citizen
Services (ACS) electronic database.
Dated: May 29, 2009.
Mary Ellen Hickey,
Managing Director, Bureau of Consular
Affairs, Department of State.
[FR Doc. E9–15168 Filed 6–25–09; 8:45 am]
BILLING CODE 4710–06–P
DEPARTMENT OF STATE
[Public Notice 6682]
Notice of Public Meeting on FY 2010
Refugee Admissions Program
There will be a meeting on the
President’s FY 2010 Refugee
Admissions Program on Thursday, July
9, 2009 from 3 p.m. to 5 p.m. The
meeting will be held at the Refugee
Processing Center, 1401 Wilson
Boulevard, Suite 700, Arlington,
Virginia. The meeting’s purpose is to
hear the views of attendees on the
appropriate size and scope of the FY
2010 Refugee Admissions Program.
Seating is limited. Persons wishing to
attend this meeting must notify the
Bureau of Population, Refugees, and
Migration at telephone (202) 663–1006
by 5 p.m. on Friday, June 26, 2009, to
reserve a seat. Persons wishing to
present comments should submit them
by 5 on Thursday, July 2, 2009. All
written comments should either be
e-mailed to spruellda@state.gov or faxed
to (202) 663–1364.
If you have questions about the public
meeting, please contact Delicia Spruell,
PRM/Admissions Program Officer at
(202) 663–1006. Information about the
Refugee Admissions Program may be
found at https://www.state.gov/g/prm/.
Dated: June 18, 2009.
Samuel M. Witten,
Acting Assistant Secretary, Bureau of
Population, Refugees and Migration,
Department of State.
[FR Doc. E9–15171 Filed 6–25–09; 8:45 am]
BILLING CODE 4710–33–P
DEPARTMENT OF STATE
[Public Notice 6637]
U.S. Department of State Advisory
Committee on Private International
Law: Study Group on the Hague
Convention on Choice of Court
Agreements
A Study Group on the 2005 Hague
Convention on Choice of Court
Agreements is being established under
the Department of State Advisory
E:\FR\FM\26JNN1.SGM
26JNN1
Agencies
[Federal Register Volume 74, Number 122 (Friday, June 26, 2009)]
[Notices]
[Pages 30658-30660]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-15153]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60150; File No. SR-Phlx-2009-35]
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify
the Definition of ``Narrow-Based Index''
June 19, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on June 16, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. Phlx has designated the proposed
rule change as constituting a non-controversial rule change under 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to file a proposed rule change to add a
commentary to Rule 1000A(b)(12) to clarify that this rule, which
defines the term ``narrow-based index'' to mean ``to be representative
of a particular industry or a group of related industries'' to also
accommodate an index the constituents of which are all headquartered
within a single country to be listed as a narrow-based index pursuant
to Exchange rules.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Phlx is filing the proposed rule change to add a commentary to
clarify that Phlx Rule 1000A(b)(12), which defines the term ``narrow-
based index'' (or ``industry index'') to mean ``to be representative of
a particular industry or a group of related industries'' to also
accommodate an index the constituents of which are all headquartered
within a single country to be listed as a narrow-based index pursuant
to Exchange rules. This would enable options based on an index,
including companies all headquartered within a single country, to be
rightfully considered as a generic narrow-based index for purposes of
listing on the Exchange and trading.
The listing and trading of index options on the Exchange is
generally conditioned on the ability to meet the rule requirements for
narrow-based and broad based indexes.\4\ More particularly regarding
narrow-based indexes, Phlx Rule 1009A(b) states that the Exchange may
trade options on an underlying index pursuant to Rule 19b-4(e) of the
Act \5\ where all of the noted conditions noted are satisfied.\6\
Indeed, the Exchange has, and continues to, list and trade options on
narrow-based indexes based on industries or a group of related
industries that are located within various countries. These options are
[[Page 30659]]
traded pursuant to the Exchange's index option trading rules.\7\
---------------------------------------------------------------------------
\4\ Broad-based indexes (or market indexes), which are not at
issue in this filing, are defined in Phlx Rule 1000A(b)(11).
\5\ The Chicago Board Options Exchange and International
Securities Exchange have the same ability pursuant to their own
rules.
\6\ These include the index is capitalization-weighted, price-
weighted, modified capitalization-weighted or equal dollar-weighted,
and consists of ten or more component securities; each component
security has a market capitalization of at least $75 million, except
that for each of the lowest weighted component securities in the
index that in the aggregate account for no more than 10% of the
weight of the index; the market capitalization is at least $50
million; and trading volume of each component security has been at
least one million shares for each of the last six months, except
that for each of the lowest weighted component securities in the
index that in the aggregate account for no more than 10% of the
weight of the index, trading volume has been at least 500,000 shares
for each of the last six months. See Phlx Rule 1009A(b)(1)-(12) for
all of the conditions.
\7\ See Phlx Rules 1000A et seq. (index options trading rules).
See also Phlx Rules 1000 et seq. (general options trading rules).
---------------------------------------------------------------------------
With the Exchange's interpretation of Phlx Rule 1000A(b)(12) as
discussed herein, the Exchange intends to list and trade options,
pursuant to Phlx Rule 1009A(b), on an index(es) that includes
industries all headquartered within a single country. The Exchange
represents that, in all other material aspects, these options will meet
the requirements for generic listing and trading pursuant to Rule
1009A(b). The proposed rule change simply seeks to clarify that the
generic listing and trading standards would cover an index that
otherwise qualifies as a ``narrow-based index,'' with the exception
that the constituents of the index are all headquartered within a
single country.
For example, the proposed rule change would allow the Exchange to
list and trade options on the NASDAQ China Index (the ``Index'')
pursuant to generic listing standards. Options on the Index would not
otherwise qualify for listing on the Exchange because the Index does
not currently fit within the definition of a narrow-based index under
Phlx Rule 1000A(b)(12). In all other respects the Index meets the
applicable generic listing standards under Rule 1009A(b). The Exchange
intends to list and trade options on the Index pursuant to Rule
1009A(b) almost immediately upon operation of the changes in the
proposed commentary to Phlx Rule 1000A(b)(12).
Moreover, like the presently traded narrow-based index options,
these narrow-based options will be traded pursuant to the Exchange's
trading rules.\8\ The Exchange represents that its existing
surveillance procedures applicable to trading in options will be
adequate to properly monitor the trading in options on these narrow-
based indexes.
---------------------------------------------------------------------------
\8\ Id. The trading rules include, among other things, position
limits, exercise limits, and terms of options contracts (Phlx Rules
1001A, 1002A, and 1101A, respectively). See also Securities and
Exchange Release No. 42132 (November 12, 1999), 64 FR 63837
(November 22, 1999) (SR-Phlx-98-99) (order approving narrow-based
options position limit increase to 18,000, 24,000, and 31,500
contracts).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \9\ in general, and furthers the objectives of Section
6(b)(5) of the Act \10\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by clarifying the term ``narrow-based index'' also
accommodates an index the constituents of which are all headquartered
within a single country.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition 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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
Phlx has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \13\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6) \14\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that its proposal become operative immediately so that Phlx may list
and trade options on the NASDAQ China Index immediately pursuant to its
generic listing standards for narrow-based indexes. The Commission
believes that waiving the 30-day operative delay to make the product
available without delay is consistent with the protection of investors
and the public interest. Therefore, the Commission designates the
proposal operative upon filing.\15\
---------------------------------------------------------------------------
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6).
\15\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2009-35 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-Phlx-2009-35. 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
[[Page 30660]]
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 publicly available. All submissions
should refer to File Number SR-Phlx-2009-35 and should be submitted on
or before July 17, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-15153 Filed 6-25-09; 8:45 am]
BILLING CODE 8010-01-P