Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Amending NYSE Arca Options Rule 5.3(j), 46818-46820 [E9-21886]
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46818
Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 9 of the Act and Rule 19b–
4(f)(2) 10 thereunder.
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:
cprice-sewell on DSKGBLS3C1PROD 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–NYSE–2009–90 on the
subject line.
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–NYSE–
2009–90 and should be submitted on or
before October 2, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–21884 Filed 9–10–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60621; File No. SR–
NYSEArca–2009–77]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Amending NYSE Arca
Options Rule 5.3(j)
September 3, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Paper Comments
notice is hereby given that on August
• Send paper comments in triplicate
19, 2009, NYSE Arca, Inc. (‘‘NYSE
to Elizabeth M. Murphy, Secretary,
Arca’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission,
Securities and Exchange Commission
100 F Street, NE., Washington, DC
(the ‘‘Commission’’) the proposed rule
20549–1090.
change as described in Items I, II, and
All submissions should refer to File
III below, which Items have been
Number SR–NYSE–2009–90. This file
prepared by the self-regulatory
number should be included on the
organization. The Commission is
subject line if e-mail is used. To help the publishing this notice to solicit
Commission process and review your
comments on the proposed rule change
comments more efficiently, please use
from interested persons.
only one method. The Commission will
post all comments on the Commission’s I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
submission, all subsequent
The Exchange proposes to amend the
amendments, all written statements
definition of Futures-Linked Securities
with respect to the proposed rule
for the trading of options on Indexchange that are filed with the
Linked Securities. The text of the
Commission, and all written
proposed rule change is attached as
communications relating to the
Exhibit 5 to the 19b–4 form. A copy of
proposed rule change between the
11 17 CFR 200.30–3(a)(12).
Commission and any person, other than
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
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15:23 Sep 10, 2009
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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 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
NYSE Arca Rules [sic] 5.3(j)
designates the listing and trading of
options on equity index-linked
securities (‘‘Equity Index-Linked
Securities’’), commodity-linked
securities (‘‘Commodity-Linked
Securities’’), currency-linked securities
(‘‘Currency-Linked Securities’’), fixed
income index-linked securities (‘‘Fixed
Income Index-Linked Securities’’),
futures-linked securities (‘‘FuturesLinked Securities’’) and multifactor
index-linked securities (‘‘Multifactor
Index-Linked Securities’’), collectively
known as ‘‘Index-Linked Securities’’ (as
defined in NYSE Arca Equities Rule
5.2(j)(6)) that are principally traded on
a national securities exchange and an
‘‘NMS Stock’’ (as defined in Rule 600 of
Regulation NMS under the Securities
and Exchange Act of 1934). The
Exchange proposes to amend the
definition of Futures-Linked Securities
for the trading of options on IndexLinked Securities to include products
linked to CBOE Volatility Index (VIX)
Futures. This proposal is substantially
similar to the previously approved
NYSE Arca Equities Rule 5.2(j)(6)(v).4
Specifically, the Exchange proposes to
add the CBOE Volatility Index (VIX)
Futures to the definition of a Futures
Reference Asset in NYSE Arca Rule
5.3(j)(1)(E).
Index-Linked Securities are designed
for investors who desire to participate in
a specific market segment by providing
exposure to one or more identifiable
4 See Securities Exchange Act Release No. 34–
58968 (November 17, 2008), 73 FR 64647 (SR–
NYSEArca–2008–111).
2 15
Jkt 217001
this filing is available on the Exchange’s
Web site at www.nyse.com, at the
Exchange’s principal office and at the
Commission’s Public Reference Room.
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Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices
cprice-sewell on DSKGBLS3C1PROD with NOTICES
underlying securities, commodities,
currencies, derivative instruments or
market indexes of the foregoing
(‘‘Underlying Index’’ or ‘‘Underlying
Indexes’’). Index-Linked Securities are
the non-convertible debt of an issuer
that have a term of at least one (1) year
but not greater than thirty (30) years.
Despite the fact that Index-Linked
Securities are linked to an underlying
index, each trade as a single, exchangelisted security. Accordingly, rules
pertaining to the listing and trading of
standard equity options apply to IndexLinked Securities.
Currently, the Exchange will consider
listing and trading options on IndexLinked Securities provided the IndexLinked Securities meet the criteria for
underlying securities set forth in Rule
5.3(a)–(b).
Index-Linked Securities must meet
the criteria and guidelines for
underlying securities set forth in Rule
5.3(a); or the Index-Linked Securities
must be redeemable at the option of the
holder at least on a weekly basis
through the issuer at a price related to
the applicable underlying Reference
Asset.5 In addition, the issuing company
is obligated to issue or repurchase the
securities in aggregation units for cash
or cash equivalents satisfactory to the
issuer of Index-Linked Securities which
underlie the option as described in the
Index-Linked Securities prospectus.
Options on Index-Linked Securities
will continue to be subject to all
Exchange rules governing the trading of
equity options. The current continuing
or maintenance listing standards for
options traded on NYSE Arca will
continue to apply.
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
5 For
the purposes of Rule 5.3(j), Equity Reference
Assets, Commodity Reference Assets, Currency
Reference Assets, Fixed Income Reference Assets,
Futures Reference Assets and Multifactor Reference
Assets, will be collectively referred to as ‘‘Reference
Assets,’’ as defined in NYSE Arca Equities Rule
5.2(j)(6).
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15:23 Sep 10, 2009
Jkt 217001
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.
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).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 6 of the Securities Exchange
Act of 1934 (‘‘Act’’) in general, and
furthers the objectives of Section
6(b)(5) 7 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
rules applicable to trading pursuant to
generic listing and trading criteria,
together with the Exchange’s
surveillance procedures applicable to
trading in the securities covered by the
proposed rules, serve to foster investor
protection.
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. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
6 15
7 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00087
Fmt 4703
Sfmt 4703
46819
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
A. By order approve such proposed
rule change, or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–NYSEArca–2009–77 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–NYSEArca–2009–77. 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 the 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
E:\FR\FM\11SEN1.SGM
11SEN1
46820
Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2009–77 and
should be submitted on or before
October 2, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–21886 Filed 9–10–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60619; File No. SR–
NYSEArca–2009–79]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Relating to Listing of Five
Fixed Income Funds of the PIMCO ETF
Trust
September 3, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that,
on August 27, 2009, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’) 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 by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
cprice-sewell on DSKGBLS3C1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Pursuant to the provisions of Section
19(b)(1) of the Exchange Act, NYSE
Arca, through its wholly-owned
subsidiary NYSE Arca Equities, Inc.
(‘‘NYSE Arca Equities’’ or the
‘‘Corporation’’), proposes to list and
trade the shares of the following funds
of the PIMCO ETF Trust (the ‘‘Trust’’)
under NYSE Arca Equities Rule 8.600
(Managed Fund Shares): PIMCO
Enhanced Short Maturity Strategy Fund,
PIMCO Government Limited Maturity
Strategy Fund, PIMCO Intermediate
Municipal Bond Strategy Fund, PIMCO
Prime Limited Maturity Strategy Fund,
and PIMCO Short Term Municipal Bond
Strategy Fund, (each a ‘‘Fund’’ and,
collectively, the ‘‘Funds’’). The shares of
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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15:23 Sep 10, 2009
Jkt 217001
the Funds are collectively referred to
herein as the ‘‘Shares.’’
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nyx.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 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to list and
trade the Shares of the Funds under
NYSE Arca Equities Rule 8.600, which
governs the listing and trading of
Managed Fund Shares on the
Exchange.3 Each of the Funds will be an
actively managed exchange traded fund.
The Shares will be offered by the Trust,
which is a Delaware statutory trust. The
Trust is registered with the Commission
as an investment company.4
3 The Commission approved NYSE Arca Equities
Rule 8.600 and the listing and trading of certain
funds of the PowerShares Actively Managed Funds
Trust on the Exchange pursuant to Rule 8.600 in
Securities Exchange Act Release No. 57619 (April
4, 2008) 73 FR 19544 (April 10, 2008) (SR–
NYSEArca–2008–25). The Commission also
previously approved listing and trading on the
Exchange, or trading on the Exchange pursuant to
unlisted trading privileges (‘‘UTP’’) of the following
actively managed funds under Rule 8.600:
Securities Exchange Act Release No. 57626 (April
4, 2008), 73 FR 19923 (April 11, 2008) (SR–
NYSEArca–2008–28) (order approving trading on
the Exchange pursuant to UTP of Bear Stearns
Active ETF); Securities Exchange Act Release No.
57801 (May 8, 2008), 73 FR 27878 (May 14, 2008)
(SR–NYSEArca–2008–31) (order approving
Exchange listing and trading of twelve activelymanaged funds of the WisdomTree Trust);
Securities Exchange Act Release No. 59826 (April
28, 2009), 74 FR 20512 (May 4, 2009) (SR–
NYSEArca–2009–22) (order approving Exchange
listing and trading of Grail American Beacon Large
Cap Value ETF); Securities Exchange Act Release
No. 60460 (August 7, 2009), 74 FR 41468 (August
17, 2009) (SR–NYSEArca–2009–55) (order
approving Exchange listing and trading of Dent
Tactical ETF).
4 See Registration Statement on Form N–1A for
the Trust filed with the Securities and Exchange
Commission on July 22, 2009 (File Nos. 333–155395
and 811–22250) (the ‘‘Registration Statement’’). The
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Frm 00088
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Description of the Shares and the Funds
Pacific Investment Management
Company LLC (‘‘PIMCO’’) is the
investment adviser (‘‘Adviser’’) to each
Fund.5 State Street Bank & Trust Co. is
the custodian and transfer agent for the
Funds. The Trust’s Distributor is Allianz
Global Investors Distributors LLC (the
‘‘Distributor’’), an indirect subsidiary of
Allianz Global Investors of America L.P.
(‘‘AGI’’), PIMCO’s parent company. The
Distributor is a registered brokerdealer.6
Commentary .07 to Rule 8.600
provides that, if the investment adviser
to the Investment Company issuing
Managed Fund Shares is affiliated with
a broker-dealer, such investment adviser
shall erect a ‘‘fire wall’’ between the
investment adviser and the brokerdealer with respect to access to
descriptions of the Funds and the Shares contained
herein are based on information in the Registration
Statement.
5 The Exchange represents that the Adviser, as the
investment adviser of the Funds, and its related
personnel, are subject to Investment Advisers Act
Rule 204A–1. This Rule specifically requires the
adoption of a code of ethics by an investment
advisor to include, at a minimum: (i) Standards of
business conduct that reflect the firm’s/personnel
fiduciary obligations; (ii) provisions requiring
supervised persons to comply with applicable
Federal securities laws; (iii) provisions that require
all access persons to report, and the firm to review,
their personal securities transactions and holdings
periodically as specifically set forth in Rule 204A–
1; (iv) provisions requiring supervised persons to
report any violations of the code of ethics promptly
to the chief compliance officer (‘‘CCO’’) or,
provided the CCO also receives reports of all
violations, to other persons designated in the code
of ethics; and (v) provisions requiring the
investment advisor to provide each of the
supervised persons with a copy of the code of ethics
with an acknowledgement by said supervised
persons. In addition, Rule 206(4)–7 under the
Advisers Act makes it unlawful for an investment
advisor to provide investment advice to clients
unless such investment advisor has (i) adopted and
implemented written policies and procedures
reasonably designed to prevent violation, by the
investment advisor and its supervised persons, of
the Advisers Act and the Commission rules adopted
thereunder; (ii) implemented, at a minimum, an
annual review regarding the adequacy of the
policies and procedures established pursuant to
subparagraph (i) above and the effectiveness of their
implementation; and (iii) designated an individual
(who is a supervised person) responsible for
administering the policies and procedures adopted
under subparagraph (i) above.
6 The Funds have made application for an order
granting certain exemptive relief to the Trust under
the Investment Company Act of 1940 (15 U.S.C.
80a–1) (‘‘1940 Act’’). In compliance with
Commentary .05 to NYSE Arca Equities Rule 8.600,
which applies to Managed Fund Shares based on
an international or global portfolio, the Trust’s
application for exemptive relief under the 1940 Act
states that the Funds will comply with the Federal
securities laws in accepting securities for deposits
and satisfying redemptions with redemption
securities, including that the securities accepted for
deposits and the securities used to satisfy
redemption requests are sold in transactions that
would be exempt from registration under the
Securities Act of 1933 (15 U.S.C. 77a).
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]]>Agencies
[Federal Register Volume 74, Number 175 (Friday, September 11, 2009)]
[Notices]
[Pages 46818-46820]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21886]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60621; File No. SR-NYSEArca-2009-77]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Amending NYSE Arca Options Rule 5.3(j)
September 3, 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 August 19, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been 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\ 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 the definition of Futures-Linked
Securities for the trading of options on Index-Linked Securities. 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
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 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
NYSE Arca Rules [sic] 5.3(j) designates the listing and trading of
options on equity index-linked securities (``Equity Index-Linked
Securities''), commodity-linked securities (``Commodity-Linked
Securities''), currency-linked securities (``Currency-Linked
Securities''), fixed income index-linked securities (``Fixed Income
Index-Linked Securities''), futures-linked securities (``Futures-Linked
Securities'') and multifactor index-linked securities (``Multifactor
Index-Linked Securities''), collectively known as ``Index-Linked
Securities'' (as defined in NYSE Arca Equities Rule 5.2(j)(6)) that are
principally traded on a national securities exchange and an ``NMS
Stock'' (as defined in Rule 600 of Regulation NMS under the Securities
and Exchange Act of 1934). The Exchange proposes to amend the
definition of Futures-Linked Securities for the trading of options on
Index-Linked Securities to include products linked to CBOE Volatility
Index (VIX) Futures. This proposal is substantially similar to the
previously approved NYSE Arca Equities Rule 5.2(j)(6)(v).\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 34-58968 (November
17, 2008), 73 FR 64647 (SR-NYSEArca-2008-111).
---------------------------------------------------------------------------
Specifically, the Exchange proposes to add the CBOE Volatility
Index (VIX) Futures to the definition of a Futures Reference Asset in
NYSE Arca Rule 5.3(j)(1)(E).
Index-Linked Securities are designed for investors who desire to
participate in a specific market segment by providing exposure to one
or more identifiable
[[Page 46819]]
underlying securities, commodities, currencies, derivative instruments
or market indexes of the foregoing (``Underlying Index'' or
``Underlying Indexes''). Index-Linked Securities are the non-
convertible debt of an issuer that have a term of at least one (1) year
but not greater than thirty (30) years. Despite the fact that Index-
Linked Securities are linked to an underlying index, each trade as a
single, exchange-listed security. Accordingly, rules pertaining to the
listing and trading of standard equity options apply to Index-Linked
Securities.
Currently, the Exchange will consider listing and trading options
on Index-Linked Securities provided the Index-Linked Securities meet
the criteria for underlying securities set forth in Rule 5.3(a)-(b).
Index-Linked Securities must meet the criteria and guidelines for
underlying securities set forth in Rule 5.3(a); or the Index-Linked
Securities must be redeemable at the option of the holder at least on a
weekly basis through the issuer at a price related to the applicable
underlying Reference Asset.\5\ In addition, the issuing company is
obligated to issue or repurchase the securities in aggregation units
for cash or cash equivalents satisfactory to the issuer of Index-Linked
Securities which underlie the option as described in the Index-Linked
Securities prospectus.
---------------------------------------------------------------------------
\5\ For the purposes of Rule 5.3(j), Equity Reference Assets,
Commodity Reference Assets, Currency Reference Assets, Fixed Income
Reference Assets, Futures Reference Assets and Multifactor Reference
Assets, will be collectively referred to as ``Reference Assets,'' as
defined in NYSE Arca Equities Rule 5.2(j)(6).
---------------------------------------------------------------------------
Options on Index-Linked Securities will continue to be subject to
all Exchange rules governing the trading of equity options. The current
continuing or maintenance listing standards for options traded on NYSE
Arca will continue to apply.
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[reg] 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[reg] 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.
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).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) \6\ of the Securities Exchange Act of 1934 (``Act'')
in general, and furthers the objectives of Section 6(b)(5) \7\ 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 rules applicable to trading pursuant to generic listing and
trading criteria, together with the Exchange's surveillance procedures
applicable to trading in the securities covered by the proposed rules,
serve to foster investor protection.
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\6\ 15 U.S.C. 78f(b).
\7\ 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. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
A. By order approve such proposed rule change, or
B. Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2009-77 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-NYSEArca-2009-77. 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 the 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
[[Page 46820]]
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEArca-2009-77 and should be submitted on or before
October 2, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-21886 Filed 9-10-09; 8:45 am]
BILLING CODE 8010-01-P
