Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Extension of the Penny Pilot Program, 32994-32996 [E9-16184]
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32994
Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, 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) 6 of the Act and
subparagraph (f)(6) of Rule 19b–4
thereunder.7
A proposed rule change filed under
Rule 19b–4(f)(6) 8 normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) 9 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 the Commission
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The Exchange
states that extending the Penny Pilot
Program until October 31, 2009, will
allow further analysis of the Penny Pilot
Program, and that waiving the 30 days
will allow the Penny Pilot Program to
continue uninterrupted.
The Commission believes 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
October 31, 2009.10 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,
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
8 17 CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii).
10 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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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–CBOE–2009–043 on the
subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16185 Filed 7–8–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60222; File No. SR–ISE–
2009–37]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to an Extension of the
Penny Pilot Program
July 1, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1, and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on June 30,
to Elizabeth M. Murphy, Secretary,
2009, the International Securities
Securities and Exchange Commission,
Exchange, LLC (the ‘‘Exchange’’ or the
100 F Street, NE., Washington, DC
‘‘ISE’’) filed with the Securities and
20549–1090.
Exchange Commission the proposed
All submissions should refer to File
rule change as described in Items I and
Number SR–CBOE–2009–043. This file
II below, which Items have been
number should be included on the
substantially prepared by the selfsubject line if e-mail is used. To help the regulatory organization. The
Commission process and review your
Commission is publishing this notice to
solicit comments on the proposed rule
comments more efficiently, please use
only one method. The Commission will change from interested persons.
post all comments on the Commission’s I. Self-Regulatory Organization’s
Internet Web site (https://www.sec.gov/
Statement of the Terms of Substance of
rules/sro.shtml). Copies of the
the Proposed Rule Change
submission, all subsequent
The ISE is proposing to extend, until
amendments, all written statements
October 31, 2009, a pilot program to
with respect to the proposed rule
quote and to trade certain options in
change that are filed with the
pennies. The text of the proposed rule
Commission, and all written
amendment is available at the Exchange
communications relating to the
and at the Commission’s Public
proposed rule change between the
3
Commission and any person, other than Reference Room.
those that may be withheld from the
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
public in accordance with the
Statutory Basis for, the Proposed Rule
provisions of 5 U.S.C. 552, will be
Change
available for inspection and copying in
the Commission’s Public Reference
In its filing with the Commission, the
Room, 100 F Street, NE., Washington,
self-regulatory organization included
DC 20549, on official business days
statements concerning the purpose of,
between the hours of 10 a.m. and 3 p.m. and basis for, the proposed rule change
Copies of such filing also will be
and discussed any comments it received
available for inspection and copying at
on the proposed rule change. The text
the principal office of the Exchange. All of these statements may be examined at
comments received will be posted
the places specified in Item IV below.
without change; the Commission does
The self-regulatory organization has
not edit personal identifying
prepared summaries, set forth in
information from submissions. You
11 17 CFR 200.30–3(a)(12).
should submit only information that
1 15 U.S.C. 78s(b)(1).
you wish to make available publicly. All
2 17 CFR 240.19b–4.
submissions should refer to File No.
3 The Commission notes that as of July 1, 2009,
SR–CBOE–2009–043 and should be
the proposed rule change is also available on the
submitted on or before July 30, 2009.
Exchange’s Web site at https://www.ise.com.
Paper Comments
PO 00000
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Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices
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
On January 24, 2007, the SEC
approved ISE’s rule filing, SR–ISE–
2006–62, which initiated a pilot
program to quote and to trade certain
options in penny increments (the
‘‘Penny Pilot Program’’).4 Under the
Penny Pilot Program, the minimum
price variation for all participating
options classes, except for the Nasdaq100 Index Tracking Stock (‘‘QQQQ’’), is
$0.01 for all quotations in options series
that are quoted at less than $3 per
contract and $0.05 for all quotations in
options series that are quoted at $3 per
contract or greater. The QQQQs are
quoted in $0.01 increments for all
options series. Through subsequent
expansions, the Penny Pilot now
consists of 63 underlying securities.5
The Penny Pilot Program is scheduled
to expire on July 3, 2009.
The Exchange recently submitted a
proposal to extend and expand the
Penny Pilot Program, which the
Commission recently published for
comment.6 The Commission also
recently published for comment two
alternative proposals.7 In order to give
the Commission and market participants
time to evaluate the varying proposals,
ISE proposes to extend the Penny Pilot
Program in its current pilot until
October 31, 2009.
As proposed in the Initial Filing, ISE
represents that options trading in penny
increments will not be eligible for split
pricing, as permitted under ISE Rule
716. In the Initial Filing, the Exchange
also made references to quote mitigation
strategies that are currently in place and
proposed to apply them to the Penny
Pilot Program. The Exchange proposes
to continue applying those quote
rmajette on DSK29S0YB1 with NOTICES
4 See
Securities Exchange Act Release No. 55161
(January 24, 2007), 72 FR 4754 (February 1, 2007)
(the ‘‘Initial Filing’’). The Penny Pilot Program was
subsequently extended for an additional two month
period, until September 27, 2007. See Securities
Exchange Act Release No. 56151 (July 26, 2007), 72
FR 42452 (August 2, 2007).
5 See Securities Exchange Act Release Nos. 56564
(September 27, 2007), 72 FR 56412 (October 3,
2007) and 57508 (March 17, 2008), 73 FR 15243
(March 21, 2008).
6 See Securities Exchange Act Release No. 60146
(June 19, 2009) (SR–ISE–2009–32).
7 See Securities Exchange Act Release Nos. 60018
(June 1, 2009), 74 FR 27211 (June 18, 2009) (Notice
of Filing of Proposed Rule Change by the Chicago
Board Options Exchange To Expand the Penny Pilot
Program); 59944 (May 20, 2009), 74 FR 25294 (May
27, 2009) (Notice of Filing of Proposed Rule Change
by NYSE Arca To Expand the Penny Pilot Program).
VerDate Nov<24>2008
15:49 Jul 08, 2009
Jkt 217001
mitigation strategies during the
extension of the Penny Pilot Program, as
contemplated by this rule filing.
Specifically, as proposed in Rule 804,
ISE will continue to utilize a holdback
timer that delays quotation updates for
up to, but not longer than, one second.
The Exchange’s monitoring and
delisting policies, as proposed in the
Initial Filing, shall also continue to
apply.
Finally, ISE intends to submit an
additional report to the Commission
analyzing the Penny Pilot Program for
the following time period: May 1, 2009–
July 31, 2009.
The Exchange anticipates its report
will analyze the impact of penny pricing
on market quality and options system
capacity. The Exchange will submit the
report no later than August 31, 2009.
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Exchange
Act’’) for this proposed rule change is
found in Section 6(b)(5), in that the
proposed rule change is designed to
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system and, in general, to protect
investors and the public interest. In
particular, the proposed rule change
will allow the Exchange to continue the
Penny Pilot Program uninterrupted.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
PO 00000
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32995
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) 8 of the Act and
subparagraph (f)(6) of Rule 19b–4
thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) 11 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 the Commission
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The Exchange
states that waiver of the 30-day
operative delay will allow the Penny
Pilot Program to continue
uninterrupted.
The Commission believes 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
October 31, 2009.12 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,
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
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 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).
9 17
E:\FR\FM\09JYN1.SGM
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32996
Federal Register / Vol. 74, No. 130 / Thursday, July 9, 2009 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–ISE–2009–37 on the subject
line.
Paper Comments
[Release No. 34–60221; File No. SR–BX–
2009–033]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Liquidity Make or Take Pricing
Structure on BOX, as described in
Section 7 of the BOX Fee Schedule,
currently applies to all classes
participating in the Penny Pilot, as
referenced in Chapter V, Section 33 of
the BOX Rules. The Exchange proposes
All submissions should refer to File
to remove the following three (3) classes
Number SR–ISE–2009–37. This file
from the Liquidity Make or Take Pricing
July 1, 2009.
number should be included on the
Structure: (1) Standard & Poor’s
subject line if e-mail is used. To help the
Pursuant to Section 19(b)(1) of the
Depositary Receipts® (SPY); (2)
Commission process and review your
Securities Exchange Act of 1934
Powershares® QQQ Trust Series 1
comments more efficiently, please use
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
(QQQQ); and (3) iShares Russell 2000®
only one method. The Commission will notice is hereby given that on June 26,
Index Fund (IWM).
post all comments on the Commission’s 2009, NASDAQ OMX BX, Inc. (the
The Exchange also proposes to
Internet Web site (https://www.sec.gov/
‘‘Exchange’’) filed with the Securities
remove references and pricing from the
rules/sro.shtml). Copies of the
and Exchange Commission
Fee Schedule pertaining to ‘Tier 2’
submission, all subsequent
(‘‘Commission’’) the proposed rule
Penny Pilot Classes, as these three (3)
amendments, all written statements
change as described in Items I and II and classes currently make up the entirety of
with respect to the proposed rule
III below, which Items have been
Tier 2. However, the Exchange is
change that are filed with the
prepared by the Exchange. The
leaving references to ‘Tier 1’ Penny Pilot
Commission, and all written
Commission is publishing this notice to classes in the BOX Fee Schedule should
communications relating to the
solicit comments on the proposed rule
it choose to designate classes as other
proposed rule change between the
than Tier 1 in the future.
from interested persons.
Commission and any person, other than
The Exchange believes that this
I. Self-Regulatory Organization’s
those that may be withheld from the
proposed fee change will align its
Statement of the Terms of Substance of
public in accordance with the
pricing so as to better compete with
the Proposed Rule Change
provisions of 5 U.S.C. 552, will be
other exchanges in these classes. If
available for inspection and copying in
approved,3 the Liquidity Make or Take
NASDAQ OMX BX, Inc. (the
the Commission’s Public Reference
‘‘Exchange’’) proposes to amend the Fee Pricing Structure will no longer apply to
Room, 100 F Street, NE., Washington,
the three (3) classes listed above and
Schedule of the Boston Options
DC 20549, on official business days
Exchange Group, LLC (‘‘BOX’’). The text instead standard execution fees will be
between the hours of 10 a.m. and 3 p.m.
of the proposed rule change is available applied.
Copies of such filing also will be
The Exchange is proposing that these
from the principal office of the
available for inspection and copying at
changes become effective on July 1,
Exchange, at the Commission’s Public
the principal office of the Exchange. All
2009. In conjunction with this proposal,
Reference Room and also on the
comments received will be posted
the Exchange proposes to issue a
Exchange’s Internet Web site at https://
Regulatory Circular explicitly listing the
without change; the Commission does
nasdaqomxbx.cchwallstreet.com/
classes being removed from the
not edit personal identifying
NASDAQOMXBX/Filings/.
Liquidity Make or Take Pricing
information from submissions. You
Structure and the resulting changes to
should submit only information that
II. Self-Regulatory Organization’s
the fees for transactions in these classes.
you wish to make available publicly. All Statement of the Purpose of, and
submissions should refer to File No.
Statutory Basis for, the Proposed Rule
2. Basis
SR–ISE–2009–37 and should be
Change
The Exchange believes that the
submitted on or before July 30, 2009.
proposal is consistent with the
In its filing with the Commission, the
For the Commission, by the Division of
requirements of Section 6(b) of the Act,4
Exchange included statements
Trading and Markets, pursuant to delegated
in general, and Section 6(b)(4) of the
concerning the purpose of, and basis for,
authority.13
the proposed rule change and discussed Act,5 in particular, in that it provides for
Elizabeth M. Murphy,
the equitable allocation of reasonable
any comments it received on the
Secretary.
dues, fees, and other charges among its
proposed rule change. The text of these
members and issuers and other persons
[FR Doc. E9–16184 Filed 7–8–09; 8:45 am]
statements may be examined at the
using its facilities. In particular, the
BILLING CODE 8010–01–P
places specified in Item IV below. The
proposed rule change will apply fees
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
3 The Commission notes that this proposed rule
the most significant aspects of such
change was submitted pursuant to Section
statements.
19(b)(3)(A)(ii) of the Act and was, therefore,
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington DC
20549–1090.
rmajette on DSK29S0YB1 with NOTICES
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend the
BOX Fee Schedule To Remove Three
Classes From the Liquidity Make or
Take Pricing Structure
1 15
13 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
15:49 Jul 08, 2009
2 17
Jkt 217001
PO 00000
effective upon filing. The Commission does not
approve proposed rule changes submitted pursuant
to this section of the Act.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(4).
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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]]>Agencies
[Federal Register Volume 74, Number 130 (Thursday, July 9, 2009)]
[Notices]
[Pages 32994-32996]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16184]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60222; File No. SR-ISE-2009-37]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to an Extension of the Penny Pilot Program
July 1, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\, and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 30, 2009, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
Commission the proposed rule change as described in Items I and II
below, which Items have been substantially prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to extend, until October 31, 2009, a pilot
program to quote and to trade certain options in pennies. The text of
the proposed rule amendment is available at the Exchange and at the
Commission's Public Reference Room.\3\
---------------------------------------------------------------------------
\3\ The Commission notes that as of July 1, 2009, the proposed
rule change is also available on the Exchange's Web site at https://www.ise.com.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change 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
[[Page 32995]]
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
On January 24, 2007, the SEC approved ISE's rule filing, SR-ISE-
2006-62, which initiated a pilot program to quote and to trade certain
options in penny increments (the ``Penny Pilot Program'').\4\ Under the
Penny Pilot Program, the minimum price variation for all participating
options classes, except for the Nasdaq-100 Index Tracking Stock
(``QQQQ''), is $0.01 for all quotations in options series that are
quoted at less than $3 per contract and $0.05 for all quotations in
options series that are quoted at $3 per contract or greater. The QQQQs
are quoted in $0.01 increments for all options series. Through
subsequent expansions, the Penny Pilot now consists of 63 underlying
securities.\5\ The Penny Pilot Program is scheduled to expire on July
3, 2009.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 55161 (January 24,
2007), 72 FR 4754 (February 1, 2007) (the ``Initial Filing''). The
Penny Pilot Program was subsequently extended for an additional two
month period, until September 27, 2007. See Securities Exchange Act
Release No. 56151 (July 26, 2007), 72 FR 42452 (August 2, 2007).
\5\ See Securities Exchange Act Release Nos. 56564 (September
27, 2007), 72 FR 56412 (October 3, 2007) and 57508 (March 17, 2008),
73 FR 15243 (March 21, 2008).
---------------------------------------------------------------------------
The Exchange recently submitted a proposal to extend and expand the
Penny Pilot Program, which the Commission recently published for
comment.\6\ The Commission also recently published for comment two
alternative proposals.\7\ In order to give the Commission and market
participants time to evaluate the varying proposals, ISE proposes to
extend the Penny Pilot Program in its current pilot until October 31,
2009.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 60146 (June 19,
2009) (SR-ISE-2009-32).
\7\ See Securities Exchange Act Release Nos. 60018 (June 1,
2009), 74 FR 27211 (June 18, 2009) (Notice of Filing of Proposed
Rule Change by the Chicago Board Options Exchange To Expand the
Penny Pilot Program); 59944 (May 20, 2009), 74 FR 25294 (May 27,
2009) (Notice of Filing of Proposed Rule Change by NYSE Arca To
Expand the Penny Pilot Program).
---------------------------------------------------------------------------
As proposed in the Initial Filing, ISE represents that options
trading in penny increments will not be eligible for split pricing, as
permitted under ISE Rule 716. In the Initial Filing, the Exchange also
made references to quote mitigation strategies that are currently in
place and proposed to apply them to the Penny Pilot Program. The
Exchange proposes to continue applying those quote mitigation
strategies during the extension of the Penny Pilot Program, as
contemplated by this rule filing. Specifically, as proposed in Rule
804, ISE will continue to utilize a holdback timer that delays
quotation updates for up to, but not longer than, one second. The
Exchange's monitoring and delisting policies, as proposed in the
Initial Filing, shall also continue to apply.
Finally, ISE intends to submit an additional report to the
Commission analyzing the Penny Pilot Program for the following time
period: May 1, 2009-July 31, 2009.
The Exchange anticipates its report will analyze the impact of
penny pricing on market quality and options system capacity. The
Exchange will submit the report no later than August 31, 2009.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Exchange
Act'') for this proposed rule change is found in Section 6(b)(5), in
that the proposed rule change is designed to promote just and equitable
principles of trade, remove impediments to and perfect the mechanisms
of a free and open market and a national market system and, in general,
to protect investors and the public interest. In particular, the
proposed rule change will allow the Exchange to continue the Penny
Pilot Program uninterrupted.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, 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) \8\ of the Act and subparagraph (f)(6) of Rule 19b-
4 thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative for 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \11\ 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 the
Commission waive the 30-day operative delay so that the proposal may
become operative immediately upon filing. The Exchange states that
waiver of the 30-day operative delay will allow the Penny Pilot Program
to continue uninterrupted.
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes 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 October 31, 2009.\12\ Accordingly, the
Commission designates the proposed rule change operative upon filing
with the Commission.
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\12\ 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, 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
[[Page 32996]]
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-ISE-2009-37 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-ISE-2009-37. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-ISE-2009-37 and should be
submitted on or before July 30, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16184 Filed 7-8-09; 8:45 am]
BILLING CODE 8010-01-P
