Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Amending Section 107(H) of the NYSE Amex Company Guide, 43182-43184 [E9-20539]
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43182
Federal Register / Vol. 74, No. 164 / Wednesday, August 26, 2009 / Notices
Act 39 which requires, among other
things, that the rules of a national
securities exchange be 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.
The Commission also finds that
proposed NYSE Arca Temporary Rule
6.96, which facilitates the participation
of certain Participating Options
Exchanges who may require the use of
P/A Orders and Principal Orders after
implementation of the Plan, is
consistent with the Act. Although the
Commission has already approved the
Plan,40 the Commission also recognizes
that there may be one or more
Participating Options Exchanges that
may require a temporary transition
period during which they may want to
continue to utilize these order types that
exist currently under the Old Plan.41
The Exchange and each of the other
Participating Options Exchanges have
proposed substantially identical
temporary provisions to accommodate
this possibility.42 Thus, the Commission
finds that the proposed rule relating to
the Exchange’s receipt and handling of
P/A Orders and Principal Orders, and
imposing certain obligations on the
Exchange with respect to such orders
that are similar to those that exist under
the Old Plan, is appropriate and
consistent with Section 6(b)(5) of the
Act 43 which requires, among other
things, that the rules of a national
securities exchange be 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.
Finally, the Commission finds that
NYSE Arca’s other proposed changes,
including the proposed modifications to
NYSE Arca Rule 6.33, Commentary .02–
.04 to NYSE Arca Rule 6.35, NYSE Arca
Rule 6.76.A, and NYSE Arca Rule 10.12
are appropriate and consistent with the
Act.
39 15
U.S.C. 78f(b)(5).
Plan Approval, supra, note 5.
41 The Commission notes that any Participating
Options Exchange that wishes to utilize such order
types in a manner that would result in a TradeThrough would need to separately request an
exemption from the Plan for such use.
42 The Commission notes that the rules contained
in NYSE Arca Temporary Rule 6.96 are not required
by the Plan, but rather are rules proposed by the
Exchange in order to facilitate the participation in
the Plan of certain exchanges during an initial
transition period.
43 15 U.S.C. 78f(b)(5).
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40 See
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17:05 Aug 25, 2009
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IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,44 that the
proposed rule change (SR–NYSEArca–
2009–45), as modified by Amendment
No. 1, be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.45
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20537 Filed 8–25–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60535; File No. SR–
NYSEAmex–2009–55]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change Amending
Section 107(H) of the NYSE Amex
Company Guide
August 19, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
10, 2009, NYSE Amex LLC (‘‘NYSE
Amex’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons and is
approving the proposed rule change on
an accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Section 107(H) of the NYSE Amex
Company Guide in order to add the
CBOE Volatility Index® (VIX®) Futures
(‘‘VIX Futures’’) to the definition of
Futures Reference Asset. The text of the
proposed rule change is attached as
Exhibit 5 to the 19b–4 form. A copy of
this filing is available on the Exchange’s
Web site at https://www.nyse.com, at the
Exchange’s principal office and at the
Commission’s Public Reference Room.
44 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
45 17
PO 00000
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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 III 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
Rule 19b–4(e) 3 under the Securities
Exchange Act of 1934 (‘‘Act’’) 4 provides
that the listing and trading of a new
derivative securities product by a selfregulatory organization (‘‘SRO’’) shall
not be deemed a proposed rule change,
pursuant to section (c)(1) of Rule 19b–
4,5 if the Commission has approved,
pursuant to Section 19(b) of the Act,6
the SRO’s trading rules, procedures, and
listing standards for the product class
that would include the new derivative
securities product,7 and the SRO has a
surveillance program for the product
class.8 This proposal is substantially
similar to the previously approved
NYSE Arca Equities Rule 5.2(j)(6)(v).9
The Commission has approved the
listing pursuant to Section 107(H) of the
Amex Company Guide, including listing
pursuant to Rule 19b–4(e), of FuturesLinked Securities.10
The Exchange is proposing to amend
its generic listing standards under
Section 107(H) of the NYSE Amex
Company Guide 11 for Futures-Linked
Securities pursuant to which it will be
able to trade securities linked to VIX
Futures without Commission approval
of each individual product pursuant to
3 17
CFR 240.19b–4(e).
U.S.C. 78a.
5 17 CFR 240.19b–4(c)(1).
6 15 U.S.C. 78s(b).
7 E-mail from Timothy Malinowski, Director,
NYSE Euronext, to Edward Cho, Special Counsel,
Division of Trading and Markets, Commission,
dated August 11, 2009 (‘‘Exchange Confirmation’’).
8 See Securities Exchange Act Release No. 40761
(December 8, 1998), 63 FR 70952 (December 22,
1998) [sic].
9 See Securities Exchange Act Release No. 34–
58968 (November 17, 2008), 73 FR 64647 [sic] (SR–
NYSEArca–2008–111).
10 See Securities Exchange Act Release No. 34–
57739 (April 30, 2008), 73 FR 25061 [sic] (SR–
Amex–2008–17).
11 See Exchange Confirmation, supra note 7.
4 17
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Federal Register / Vol. 74, No. 164 / Wednesday, August 26, 2009 / Notices
Section 19(b)(2) of the Act.12
Specifically, the Exchange proposes to
amend Section 107(H) of the NYSE
Amex Company Guide to add the VIX
Futures as an underlying financial
instrument of Futures-Linked Securities
and include VIX Futures within the
definition of a Futures Reference
Asset.13 The Exchange represents that
any securities it lists and/or trades
pursuant to Section 107(H) of the NYSE
Amex Company Guide will satisfy the
standards set forth therein, and all
applicable Exchange and federal
securities rules. The Exchange states
that within five business days after
commencement of trading of a FuturesLinked Security in reliance on Section
107(H) of the NYSE Amex Company
Guide, the Exchange will file a Form
19b–4(e).14
The Commission has previously
approved the listing and trading of
options on the VIX.15
a. The VIX
The information in this filing relating
to the VIX was taken from the Web site
of the Chicago Board Options Exchange
(the ‘‘CBOE’’).
The VIX was originally developed by
the CBOE in 1993 and was calculated
using S&P 100® Index options. The
current methodology for the VIX was
introduced by the CBOE in September
2003 and it is now an index that uses
the quotes of certain S&P 500® Index
(‘‘SPX’’) option series to derive a
measure of the volatility of the U.S.
equity market. The VIX measures
market expectations of near term
volatility conveyed by the prices of
options on the SPX. It provides
investors with up-to-the-minute market
estimates of expected stock market
volatility over the next 30 calendar days
by extracting implied volatilities from
real-time index option bid/ask quotes.
jlentini on DSKJ8SOYB1PROD with NOTICES
Information regarding VIX Futures
can be found on the Web site of the
CBOE Futures Exchange (the ‘‘CFE’’).
The CFE began listing and trading VIX
Futures since March 26, 2004 under the
ticker symbol VX. VIX Futures trade
between the hours of 8:30 a.m.–3:15
p.m. Central Time (Chicago Time). The
CFE is a member of the Intermarket
Surveillance Group (‘‘ISG’’).16
12 15
U.S.C. 78s(b)(2).
Exchange Confirmation, supra note 7.
14 17 CFR 240.19b–4(e)(2)(ii); 17 CFR 249.820.
15 See Securities Exchange Release No. 48807
(November 19, 2003), 68 FR 66516 (November 26,
2003) (SR–CBOE–2003–40).
16 For a list of the current members and affiliate
members of ISG, see https://www.isgportal.org.
13 See
17:05 Aug 25, 2009
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 17 of the Act in general, and
furthers the objectives of Section
6(b)(5) 18 in particular in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to 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. The
Exchange believes that the proposed
rule change will facilitate the listing and
trading of additional Futures-Linked
Security that will enhance competition
among market participants, to the
benefit of investors and the marketplace.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Solicitation of Comments
b. VIX Futures
VerDate Nov<24>2008
The Exchange believes that the
proposed criteria to add VIX Futures as
an underlying Futures Reference asset
will facilitate the listing and trading of
additional Futures-Linked Security that
will enhance competition among market
participants, to the benefit of investors
and the marketplace.
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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–NYSEAmex–2009–55 on
the subject line.
17 15
18 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00090
Fmt 4703
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43183
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEAmex–2009–55. 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 publicly available. All
submissions should refer to File
Number SR–NYSEAmex–2009–55 and
should be submitted on or before
September 16, 2009.
IV. Commission’s Findings and Order
Granting Accelerated Approval of the
Proposed Rule Change
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.19 In
particular, the Commission believes that
the proposal is consistent with Section
6(b)(5) of the Act 20 in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
19 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
20 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 74, No. 164 / Wednesday, August 26, 2009 / Notices
settling, processing information with
respect to, and facilitating transaction in
securities, and, in general to protect
investors and the public interest. The
Commission notes that it has previously
approved a proposal submitted by
another exchange to similarly include
VIX Futures as a Futures Reference
Asset underlying Futures-Linked
Securities.21
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,22 for approving the proposed rule
change prior to the 30th day after the
date of publication of notice in the
Federal Register. The Commission
believes that the Exchange’s proposal to
add VIX Futures in the definition of
Futures Reference Asset under Section
107(H) of the NYSE Amex Company
Guide does not present any novel or
significant regulatory issues. The
Commission believes that accelerating
approval of this proposal should benefit
investors by creating, without undue
delay, additional competition in the
market for Futures-Linked Securities
based on VIX Futures.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,23 that the
proposed rule change (SR–NYSEAmex–
2009–55) be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20539 Filed 8–25–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60546; File No. SR–
NASDAQ–2009–058]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Approving Proposed Rule Change To
Modify Port Fees
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August 20, 2009.
On June 24, 2009, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
21 See supra note 9. See also NYSE Arca Equities
Rule 5.2(j)(6)(v).
22 15 U.S.C. 78s(b)(2).
23 15 U.S.C. 78s(b)(2).
24 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
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17:05 Aug 25, 2009
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19b–4 thereunder,2 a proposed rule
change to modify fees charged to
members and non-members for ports
used to enter orders into NASDAQ
systems. The proposed rule change was
published for comment in the Federal
Register on July 16, 2009.3 The
Commission received no comments
regarding the proposal.
NASDAQ proposes to increase the
monthly fee that it charges for ports
used to enter orders in NASDAQ trading
systems such as the NASDAQ Market
Center and the NASDAQ Options
Market. The change, which would
increase the charge from $400 to $500
per month, would apply to ports using
FIX, RASH, and OUCH and would not
affect ports used to receive market data,
to enter quotes, or to enter trade reports
into the FINRA/NASDAQ Trade
Reporting Facility. The change would
apply to both members that obtain ports
for direct access and non-member
service bureaus that act as a conduit for
orders entered by NASDAQ members
that are their customers.
NASDAQ also proposes to modify the
language of Rule 7015 to make it clear
that access service fees apply to access
provided to all NASDAQ-operated
systems, to replace references to NASD
with references to FINRA, and remove
obsolete language regarding a trial
discount that ended in 2007. In
addition, NASDAQ proposes to remove
language regarding the applicability of
the rule to members and non-members.
NASDAQ believes that such language is
unnecessary and potentially confusing
to the reader.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange 4 and, in particular, the
requirements of Section 6(b) of the Act 5
and the rules and regulations
thereunder. Specifically, the
Commission finds that the proposal to
increase the fee that it charges for ports
used to enter orders in NASDAQ trading
systems is consistent with Section
6(b)(4) of the Act,6 which requires the
equitable allocation of reasonable dues,
fees, and other charges among NASDAQ
members and other persons using
CFR 240.19b–4.
Exchange Act Release No. 60265 (July
8, 2009), 74 FR 34613 (‘‘Notice’’).
4 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
NASDAQ’s facilities.7 The Commission
believes that the proposed increase in
port fees is equitably allocated among
members and non-members, as it is
based on the number of access ports that
they use to submit orders to the market.
The Commission also believes that, if
NASDAQ’s proposed port fees are set
too high, given the competitive nature of
the market for execution and routing
services, market participants could
simply opt to connect with market
centers other than NASDAQ to access
liquidity available on NASDAQ by
directing order flow to the other market
centers that are required to route to
NASDAQ if it has posted the best
available price. As such, the
Commission believes that NASDAQ’s
proposed increase in port fees is both
equitably allocated and reasonable.
In addition, the Commission believes
that the clarifying changes to Rule 7015
are consistent with the requirements of
Section 6(b)(5) of the Act,8 which
requires, among other things, that
NASDAQ’s rules be 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. The
Commission believes that updating and
removing certain outdated or
unnecessary references in Rule 7015
would provide additional clarity to the
rule text, for the benefit of market
participants accessing NASDAQ’s
facilities and the marketplace as a
whole.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (SR–NASDAQ–
2009–058) be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20594 Filed 8–25–09; 8:45 am]
BILLING CODE 8010–01–P
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3 Securities
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7 The Commission notes that NASDAQ will
implement the increased port fees September 1,
2009. See Notice, supra note 3.
8 17 U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 74, Number 164 (Wednesday, August 26, 2009)]
[Notices]
[Pages 43182-43184]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-20539]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60535; File No. SR-NYSEAmex-2009-55]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Order Granting Accelerated Approval of Proposed Rule Change
Amending Section 107(H) of the NYSE Amex Company Guide
August 19, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 10, 2009, NYSE Amex LLC (``NYSE Amex'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons and is approving the proposed rule change on an accelerated
basis.
---------------------------------------------------------------------------
\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 Exchange proposes to amend Section 107(H) of the NYSE Amex
Company Guide in order to add the CBOE Volatility Index[supreg]
(VIX[supreg]) Futures (``VIX Futures'') to the definition of Futures
Reference Asset. The text of the proposed rule change is attached as
Exhibit 5 to the 19b-4 form. A copy of this filing is available on the
Exchange's Web site at https://www.nyse.com, at the Exchange's principal
office and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item III 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
Rule 19b-4(e) \3\ under the Securities Exchange Act of 1934
(``Act'') \4\ provides that the listing and trading of a new derivative
securities product by a self-regulatory organization (``SRO'') shall
not be deemed a proposed rule change, pursuant to section (c)(1) of
Rule 19b-4,\5\ if the Commission has approved, pursuant to Section
19(b) of the Act,\6\ the SRO's trading rules, procedures, and listing
standards for the product class that would include the new derivative
securities product,\7\ and the SRO has a surveillance program for the
product class.\8\ This proposal is substantially similar to the
previously approved NYSE Arca Equities Rule 5.2(j)(6)(v).\9\
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\3\ 17 CFR 240.19b-4(e).
\4\ 17 U.S.C. 78a.
\5\ 17 CFR 240.19b-4(c)(1).
\6\ 15 U.S.C. 78s(b).
\7\ E-mail from Timothy Malinowski, Director, NYSE Euronext, to
Edward Cho, Special Counsel, Division of Trading and Markets,
Commission, dated August 11, 2009 (``Exchange Confirmation'').
\8\ See Securities Exchange Act Release No. 40761 (December 8,
1998), 63 FR 70952 (December 22, 1998) [sic].
\9\ See Securities Exchange Act Release No. 34-58968 (November
17, 2008), 73 FR 64647 [sic] (SR-NYSEArca-2008-111).
---------------------------------------------------------------------------
The Commission has approved the listing pursuant to Section 107(H)
of the Amex Company Guide, including listing pursuant to Rule 19b-4(e),
of Futures-Linked Securities.\10\
---------------------------------------------------------------------------
\10\ See Securities Exchange Act Release No. 34-57739 (April 30,
2008), 73 FR 25061 [sic] (SR-Amex-2008-17).
---------------------------------------------------------------------------
The Exchange is proposing to amend its generic listing standards
under Section 107(H) of the NYSE Amex Company Guide \11\ for Futures-
Linked Securities pursuant to which it will be able to trade securities
linked to VIX Futures without Commission approval of each individual
product pursuant to
[[Page 43183]]
Section 19(b)(2) of the Act.\12\ Specifically, the Exchange proposes to
amend Section 107(H) of the NYSE Amex Company Guide to add the VIX
Futures as an underlying financial instrument of Futures-Linked
Securities and include VIX Futures within the definition of a Futures
Reference Asset.\13\ The Exchange represents that any securities it
lists and/or trades pursuant to Section 107(H) of the NYSE Amex Company
Guide will satisfy the standards set forth therein, and all applicable
Exchange and federal securities rules. The Exchange states that within
five business days after commencement of trading of a Futures-Linked
Security in reliance on Section 107(H) of the NYSE Amex Company Guide,
the Exchange will file a Form 19b-4(e).\14\
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\11\ See Exchange Confirmation, supra note 7.
\12\ 15 U.S.C. 78s(b)(2).
\13\ See Exchange Confirmation, supra note 7.
\14\ 17 CFR 240.19b-4(e)(2)(ii); 17 CFR 249.820.
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The Commission has previously approved the listing and trading of
options on the VIX.\15\
---------------------------------------------------------------------------
\15\ See Securities Exchange Release No. 48807 (November 19,
2003), 68 FR 66516 (November 26, 2003) (SR-CBOE-2003-40).
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a. The VIX
The information in this filing relating to the VIX was taken from
the Web site of the Chicago Board Options Exchange (the ``CBOE'').
The VIX was originally developed by the CBOE in 1993 and was
calculated using S&P 100[supreg] Index options. The current methodology
for the VIX was introduced by the CBOE in September 2003 and it is now
an index that uses the quotes of certain S&P 500[supreg] Index
(``SPX'') option series to derive a measure of the volatility of the
U.S. equity market. The VIX measures market expectations of near term
volatility conveyed by the prices of options on the SPX. It provides
investors with up-to-the-minute market estimates of expected stock
market volatility over the next 30 calendar days by extracting implied
volatilities from real-time index option bid/ask quotes.
b. VIX Futures
Information regarding VIX Futures can be found on the Web site of
the CBOE Futures Exchange (the ``CFE'').
The CFE began listing and trading VIX Futures since March 26, 2004
under the ticker symbol VX. VIX Futures trade between the hours of 8:30
a.m.-3:15 p.m. Central Time (Chicago Time). The CFE is a member of the
Intermarket Surveillance Group (``ISG'').\16\
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\16\ For a list of the current members and affiliate members of
ISG, see https://www.isgportal.org.
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The Exchange believes that the proposed criteria to add VIX Futures
as an underlying Futures Reference asset will facilitate the listing
and trading of additional Futures-Linked Security that will enhance
competition among market participants, to the benefit of investors and
the marketplace.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \17\ of the Act in general, and furthers the
objectives of Section 6(b)(5) \18\ in particular in that it is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, and to 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. The Exchange believes
that the proposed rule change will facilitate the listing and trading
of additional Futures-Linked Security that will enhance competition
among market participants, to the benefit of investors and the
marketplace.
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\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. 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-NYSEAmex-2009-55 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEAmex-2009-55. 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 publicly available. All
submissions should refer to File Number SR-NYSEAmex-2009-55 and should
be submitted on or before September 16, 2009.
IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\19\ In particular, the Commission believes that the proposal
is consistent with Section 6(b)(5) of the Act \20\ in that it is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
[[Page 43184]]
settling, processing information with respect to, and facilitating
transaction in securities, and, in general to protect investors and the
public interest. The Commission notes that it has previously approved a
proposal submitted by another exchange to similarly include VIX Futures
as a Futures Reference Asset underlying Futures-Linked Securities.\21\
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\19\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\20\ 15 U.S.C. 78f(b)(5).
\21\ See supra note 9. See also NYSE Arca Equities Rule
5.2(j)(6)(v).
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The Commission finds good cause, pursuant to Section 19(b)(2) of
the Act,\22\ for approving the proposed rule change prior to the 30th
day after the date of publication of notice in the Federal Register.
The Commission believes that the Exchange's proposal to add VIX Futures
in the definition of Futures Reference Asset under Section 107(H) of
the NYSE Amex Company Guide does not present any novel or significant
regulatory issues. The Commission believes that accelerating approval
of this proposal should benefit investors by creating, without undue
delay, additional competition in the market for Futures-Linked
Securities based on VIX Futures.
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\22\ 15 U.S.C. 78s(b)(2).
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V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\23\ that the proposed rule change (SR-NYSEAmex-2009-55) be, and it
hereby is, approved on an accelerated basis.
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\23\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20539 Filed 8-25-09; 8:45 am]
BILLING CODE 8010-01-P
