Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to $1 Strikes for Reduced Value Nasdaq 100 Options (MNX), 31077-31079 [E9-15224]
Download as PDF
<![CDATA[
Federal Register / Vol. 74, No. 123 / Monday, June 29, 2009 / Notices
II. Rule 601(a)
A. Equity Securities for Which
Transaction Reports Shall be Required
by the Plan.
Not applicable.
B. Reporting Requirements
Not applicable.
C. Manner of Collecting, Processing,
Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
D. Manner of Consolidation
Not applicable.
E. Standards and Methods Ensuring
Promptness, Accuracy and
Completeness of Transaction Reports
Not applicable.
F. Rules and Procedures Addressed to
Fraudulent or Manipulative
Dissemination
Not applicable.
G. Terms of Access to Transaction
Reports
Not applicable.
H. Identification of Marketplace
Execution
Not applicable.
III. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed
Eleventh Charges Amendment is
consistent with the Act. Comments may
be submitted by any of the following
methods:
sroberts on PROD1PC70 with NOTICES
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–CTA–2008–01 on the
subject line.
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the Plan amendment that
are filed with the Commission, and all
written communications relating to the
Plan amendment between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the CTA Plan amendment also
will be available for inspection and
copying at the principal office of the
CTA. 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–CTA–2008–01 and should
be submitted on or before July 20, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–15223 Filed 6–26–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60156; File No. SR–Phlx–
2009–46]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NASDAQ
OMX PHLX, Inc. Relating to $1 Strikes
for Reduced Value Nasdaq 100 Options
(MNX)
June 22, 2009.
Pursuant to Section 19(b)(1)1 of the
Securities Exchange Act of 1934 (the
Paper Comments
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
• Send paper comments in triplicate
notice is hereby given that, on June 12,
to Elizabeth M. Murphy, Secretary,
2009, NASDAQ OMX PHLX, Inc.
Securities and Exchange Commission,
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
100 F Street, NE., Washington, DC
Securities and Exchange Commission
20549–1090.
(‘‘SEC’’ or ‘‘Commission’’) the proposed
All submissions should refer to File
rule change as described in Items I and
Number SR–CTA–2008–01. This file
II below, which Items have been
number should be included on the
prepared by the Exchange. The
subject line if e-mail is used. To help the Commission is publishing this notice to
Commission process and review your
comments more efficiently, please use
6 17 CFR 200.30–3(a)(27).
only one method. The Commission will
1 15 U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
post all comments on the Commission’s
3 17 CFR 240.19b–4.
Internet Web site (https://www.sec.gov/
VerDate Nov<24>2008
19:07 Jun 26, 2009
Jkt 217001
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
31077
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
Phlx Rules 1012 (Series of Options
Open for Trading) and 1101A (Terms of
Options Contracts) to allow the
Exchange to list options that are based
on 1/10th the value of the Nasdaq-100
Index and are known as Reduced Value
Nasdaq 100 Options, at $1 strike price
intervals.
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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend Phlx Rules 1012
(Series of Options Open for Trading)
and 1101A (Terms of Options Contracts)
by adding a new interpretation that
would allow the Exchange to list
options that are based on 1/10th the
value of the Nasdaq-100 Index (‘‘NDX’’)
and are known as Reduced Value
Nasdaq 100 Options (‘‘MNX’’ or ‘‘MiniNDX’’), at $1 or greater strike price
intervals.4
Specifically, the Exchange proposes
that the minimum strike price interval
Mini-NDX options will be $1 or greater.
The Exchange believes that $1 strike
price intervals in Mini-NDX option
series will provide investors with
greater flexibility by allowing them to
4 Currently, under subsection (a)(xxxiv) to Rule
1001A, the Exchange has authority to list Mini-NDX
options at $2.50 strike price intervals.
E:\FR\FM\29JNN1.SGM
29JNN1
31078
Federal Register / Vol. 74, No. 123 / Monday, June 29, 2009 / Notices
sroberts on PROD1PC70 with NOTICES
establish positions that are better
tailored to meet their investment
objectives. The rule changes proposed
herein are consistent with existing rules
and practices that allow other options
exchanges to list and trade Mini-NDX
options at $1 or greater strike price
intervals.5
For initial series, the Exchange would
list at least two strike prices above and
two strike prices below the current
value of the MNX at or about the time
a series is opened for trading on the
Exchange. As part of this initial listing,
the Exchange would list strike prices
that are within five (5) points from the
closing value of the MNX on the
preceding day.
As for additional series, the Exchange
would be permitted to add additional
series when the Exchange deems it
necessary to maintain an orderly
market, to meet customer demand or
when the underlying MNX moves
substantially from the initial exercise
price or prices. To the extent that any
additional strike prices are listed by the
Exchange, such additional strike prices
shall be within thirty percent (30%)
above or below the closing value of the
MNX. The Exchange would also be
permitted to open additional strike
prices that are more than 30% above or
below the current MNX value provided
that demonstrated customer interest
exists for such series, as expressed by
institutional, corporate or individual
customers or their brokers. MarketMakers trading for their own account
would not be considered when
determining customer interest. In
addition to the initial listed series, the
Exchange may list up to sixty (60)
additional series per expiration month
for each series in Mini-NDX options. In
addition, the Exchange confirms that it
shall not list LEAPS on Reduced Value
Nasdaq 100 Options at intervals less
than $2.50.6
The Exchange is also proposing to set
forth a delisting policy with respect to
Mini-NDX options. Specifically, the
Exchange would, on a monthly basis,
review series that are outside a range of
five (5) strikes above and five (5) strikes
below the current value of the MNX and
delist series with no open interest in
both the put and the call series having
a: (i) Strike higher than the highest
5 See Securities Exchange Act Release Nos. 58924
(November 10, 2008), 73 FR 68464 (November 18,
2008) (SR–CBOE–2008–96) (approval order); 58997
(November 21, 2008), 73 FR 72887 (December 1,
2008) (SR–ISE–2008–88) (notice of filing and
immediate effectiveness); and 59129 (December 22,
2008), 73 FR 79945 (December 30, 2008) (SR–BSE–
2008–57) (notice of filing and immediate
effectiveness).
6 This is consistent with Rule 1101A(a)(xxxv).
VerDate Nov<24>2008
19:07 Jun 26, 2009
Jkt 217001
strike price with open interest in the put
and/or call series for a given expiration
month; and (ii) strike lower than the
lowest strike price with open interest in
the put and/or call series for a given
expiration month.
Notwithstanding the proposed
delisting policy, customer requests to
add strikes and/or maintain strikes in
Mini-NDX options in series eligible for
delisting shall be granted.
Further, in connection with the
proposed delisting policy, if the
Exchange identifies series for delisting,
the Exchange shall notify other options
exchanges with similar delisting
policies regarding eligible series for
listing, and shall work with such other
exchanges to develop a uniform list of
series to be delisted, so as to ensure
uniform series delisting of multiply
listed Mini-NDX options.
It is expected that the proposed
delisting policy for Mini-NDX options
will be adopted by other options
exchanges that list and trade Mini-NDX
options.
The Exchange also proposes to add
new Commentary .09 to Rule 1012,
which would be an internal cross
reference stating that the intervals
between strike prices for Mini-NDX
option series would be determined in
accordance with proposed new
Commentary .02 to Rule 1101A.
Phlx has analyzed its capacity and
represents that it believes the Exchange
and the Options Price Reporting
Authority have the necessary systems
capacity to handle the additional traffic
associated with the listing and trading
of $1 strikes or greater for Mini-NDX
options.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act7 in general, and furthers the
objectives of Section 6(b)(5) of the Act8
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
allowing the Exchange to list Reduced
Value Nasdaq 100 Options at $1 strike
price intervals.
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
7 15
8 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00079
Fmt 4703
Sfmt 4703
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (i) Does not significantly affect
the protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not 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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act9 and Rule 19b–
4(f)(6) thereunder.10
The Exchange has requested that the
Commission waive the 30-day operative
delay and designate the proposed rule
change immediately operative, so that
the Exchange may, for competitive
reasons, list Reduced Value Nasdaq 100
Options at the same $1 strike price
intervals currently listed by other option
exchanges. The Commission believes
such waiver is consistent with the
protection of investors and the public
interest.11 Accordingly, the Commission
designates 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,
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b4(f)(6)(iii) requires the self-regulatory organization
to submit to the Commission written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
11 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
10 17
E:\FR\FM\29JNN1.SGM
29JNN1
31079
Federal Register / Vol. 74, No. 123 / Monday, June 29, 2009 / Notices
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
available publicly. All submissions
should refer to File Number SR–Phlx–
2009–46 and should be submitted on or
before July 20, 2009.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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–2009–46 on the
subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–15224 Filed 6–26–09; 8:45 am]
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–2009–46. 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 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
SECURITIES AND EXCHANGE
COMMISSION
In its filing with the Commission,
OCC 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. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of such statements.4
BILLING CODE 8010–01–P
[Release No. 34–60144; File No. SR–OCC–
2009–11]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Ancillary Fee Changes
June 19, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
May 28, 2009, The Options Clearing
Corporation (‘‘OCC’’) 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 primarily by OCC. OCC filed
the proposed rule change pursuant to
Section 19(b)(3)(A)(ii) of the Act 2 and
Rule 19b–4(f)(2) 3 thereunder so that the
proposal was 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 proposed rule change would (i)
reduce ancillary service fees charged to
Tier I, II, III, and IV clearing members
and (ii) reduce leased line charges for
subscribing clearing members.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The principal purpose of this rule
change is to effect certain fee changes
with respect to OCC’s ancillary services
program.
In addition to clearing and settlement
services, OCC provides its clearing
members with a number of ancillary
services, which range from on-line
access to OCC systems to report and
data distribution offerings. Hardware
and communication lines support these
ancillary service offerings. In August
2002, OCC implemented a four-tiered
fee structure for its ancillary services
with a different bundle of services
offered at a fixed cost for each tier and
revised its leased line charges for
subscribing clearing members.5 OCC
periodically reviews these fees based on
changes in costs, infrastructure, and
operational changes.6
Pursuant to such a review, effective
June 1, 2009, OCC will reduce the fixed
monthly ancillary fees charged to Tier I,
II, III, and IV clearing members and the
leased line charges for subscribing
clearing members. The following chart
summarizes the ancillary services
associated with each tier and the related
fee changes:
Cost
Tier
Ancillary services
Previous
sroberts on PROD1PC70 with NOTICES
I ..............................................
ENCORE Access ...................................................................
MyOCC Access
Data Service—proprietary position and trade data (includes
transmission to service bureau)
Report Bundle
Series File
Open Interest File
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s–1(b)(3)(A)(ii).
3 17 CFR 240.19b–4(f)(2).
4 The Commission has modified parts of these
statements.
5 Securities Exchange Act Release No. 46339
(August 12, 2002), 67 FR 53828 (August 19, 2002)
(File No. SR–OCC–2002–17).
1 15
VerDate Nov<24>2008
19:07 Jun 26, 2009
Jkt 217001
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
$2,100/month ...............
June 2009
$1,500/month.
6 For example, in 2006 OCC reduced the tiered fee
structure to reflect changes in infrastructure and
disaster recovery protocols. Securities Exchange Act
Release No. 53812 (May 16, 2006), 71 FR 29699
(May 23, 2006) (SR–OCC–2006–03).
E:\FR\FM\29JNN1.SGM
29JNN1
]]>Agencies
[Federal Register Volume 74, Number 123 (Monday, June 29, 2009)]
[Notices]
[Pages 31077-31079]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-15224]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60156; File No. SR-Phlx-2009-46]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating
to $1 Strikes for Reduced Value Nasdaq 100 Options (MNX)
June 22, 2009.
Pursuant to Section 19(b)(1)\1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on June 12, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Phlx Rules 1012 (Series of Options
Open for Trading) and 1101A (Terms of Options Contracts) to allow the
Exchange to list options that are based on 1/10th the value of the
Nasdaq-100 Index and are known as Reduced Value Nasdaq 100 Options, at
$1 strike price intervals.
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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend Phlx Rules 1012
(Series of Options Open for Trading) and 1101A (Terms of Options
Contracts) by adding a new interpretation that would allow the Exchange
to list options that are based on 1/10th the value of the Nasdaq-100
Index (``NDX'') and are known as Reduced Value Nasdaq 100 Options
(``MNX'' or ``Mini-NDX''), at $1 or greater strike price intervals.\4\
---------------------------------------------------------------------------
\4\ Currently, under subsection (a)(xxxiv) to Rule 1001A, the
Exchange has authority to list Mini-NDX options at $2.50 strike
price intervals.
---------------------------------------------------------------------------
Specifically, the Exchange proposes that the minimum strike price
interval Mini-NDX options will be $1 or greater. The Exchange believes
that $1 strike price intervals in Mini-NDX option series will provide
investors with greater flexibility by allowing them to
[[Page 31078]]
establish positions that are better tailored to meet their investment
objectives. The rule changes proposed herein are consistent with
existing rules and practices that allow other options exchanges to list
and trade Mini-NDX options at $1 or greater strike price intervals.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 58924 (November 10,
2008), 73 FR 68464 (November 18, 2008) (SR-CBOE-2008-96) (approval
order); 58997 (November 21, 2008), 73 FR 72887 (December 1, 2008)
(SR-ISE-2008-88) (notice of filing and immediate effectiveness); and
59129 (December 22, 2008), 73 FR 79945 (December 30, 2008) (SR-BSE-
2008-57) (notice of filing and immediate effectiveness).
---------------------------------------------------------------------------
For initial series, the Exchange would list at least two strike
prices above and two strike prices below the current value of the MNX
at or about the time a series is opened for trading on the Exchange. As
part of this initial listing, the Exchange would list strike prices
that are within five (5) points from the closing value of the MNX on
the preceding day.
As for additional series, the Exchange would be permitted to add
additional series when the Exchange deems it necessary to maintain an
orderly market, to meet customer demand or when the underlying MNX
moves substantially from the initial exercise price or prices. To the
extent that any additional strike prices are listed by the Exchange,
such additional strike prices shall be within thirty percent (30%)
above or below the closing value of the MNX. The Exchange would also be
permitted to open additional strike prices that are more than 30% above
or below the current MNX value provided that demonstrated customer
interest exists for such series, as expressed by institutional,
corporate or individual customers or their brokers. Market-Makers
trading for their own account would not be considered when determining
customer interest. In addition to the initial listed series, the
Exchange may list up to sixty (60) additional series per expiration
month for each series in Mini-NDX options. In addition, the Exchange
confirms that it shall not list LEAPS on Reduced Value Nasdaq 100
Options at intervals less than $2.50.\6\
---------------------------------------------------------------------------
\6\ This is consistent with Rule 1101A(a)(xxxv).
---------------------------------------------------------------------------
The Exchange is also proposing to set forth a delisting policy with
respect to Mini-NDX options. Specifically, the Exchange would, on a
monthly basis, review series that are outside a range of five (5)
strikes above and five (5) strikes below the current value of the MNX
and delist series with no open interest in both the put and the call
series having a: (i) Strike higher than the highest strike price with
open interest in the put and/or call series for a given expiration
month; and (ii) strike lower than the lowest strike price with open
interest in the put and/or call series for a given expiration month.
Notwithstanding the proposed delisting policy, customer requests to
add strikes and/or maintain strikes in Mini-NDX options in series
eligible for delisting shall be granted.
Further, in connection with the proposed delisting policy, if the
Exchange identifies series for delisting, the Exchange shall notify
other options exchanges with similar delisting policies regarding
eligible series for listing, and shall work with such other exchanges
to develop a uniform list of series to be delisted, so as to ensure
uniform series delisting of multiply listed Mini-NDX options.
It is expected that the proposed delisting policy for Mini-NDX
options will be adopted by other options exchanges that list and trade
Mini-NDX options.
The Exchange also proposes to add new Commentary .09 to Rule 1012,
which would be an internal cross reference stating that the intervals
between strike prices for Mini-NDX option series would be determined in
accordance with proposed new Commentary .02 to Rule 1101A.
Phlx has analyzed its capacity and represents that it believes the
Exchange and the Options Price Reporting Authority have the necessary
systems capacity to handle the additional traffic associated with the
listing and trading of $1 strikes or greater for Mini-NDX options.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act\8\ 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 allowing the Exchange to list Reduced Value Nasdaq 100 Options at $1
strike price intervals.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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 solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (i) Does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) by its terms, does not 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, it has become effective pursuant to Section
19(b)(3)(A) of the Act\9\ and Rule 19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to submit to the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay and designate the proposed rule change immediately
operative, so that the Exchange may, for competitive reasons, list
Reduced Value Nasdaq 100 Options at the same $1 strike price intervals
currently listed by other option exchanges. The Commission believes
such waiver is consistent with the protection of investors and the
public interest.\11\ Accordingly, the Commission designates the
proposed rule change operative upon filing with the Commission.
---------------------------------------------------------------------------
\11\ For purposes only of waiving the 30-day operative delay of
this proposal, 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,
[[Page 31079]]
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-2009-46 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-2009-46. 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 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-
Phlx-2009-46 and should be submitted on or before July 20, 2009.
---------------------------------------------------------------------------
\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. E9-15224 Filed 6-26-09; 8:45 am]
BILLING CODE 8010-01-P
