Self-Regulatory Organizations; Order Approving Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Strike Price Intervals of $0.50 for Options on Stocks Trading at or Below $3.00, 49048-49049 [E9-23098]
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49048
Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Notices
accommodation to access the public
meetings listed above should contact Dr.
Stine at least five business days prior to
the meeting so that appropriate
arrangements can be made.
Deborah D. Stine,
Executive Director, President’s Council of
Advisors on Science and Technology Policy.
[FR Doc. E9–23253 Filed 9–24–09; 8:45 am]
BILLING CODE 3170–W9–P
SECURITIES AND EXCHANGE
COMMISSION
jlentini on DSKJ8SOYB1PROD with NOTICES
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, October 1, 2009 at 2 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matters at the Closed
Meeting.
Commissioner Walter, as duty officer,
voted to consider the items listed for the
Closed Meeting in a closed session.
The subject matter of the Closed
Meeting scheduled for Thursday,
October 1, 2009 will be:
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings;
A litigation matter; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: September 23, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23373 Filed 9–23–09; 4:15 pm]
BILLING CODE 8010–01–P
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18:52 Sep 24, 2009
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SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
Genova Biotherapeutics Inc.; Order of
Suspension of Trading
September 23, 2009.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Genova
Biotherapeutics Inc. (‘‘Genova’’).
Genova is incorporated under the
laws of Nevada and has its primary
headquarters in New York, New York.
Questions have arisen regarding stock
promotional activity for Genova and the
adequacy and accuracy of press releases,
financial statements, and statements on
the company’s Web site concerning the
company’s current financial condition,
business and operations, and stock
promoting activity.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in Genova’s securities.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed company is
suspended for the period from 9:30 a.m.
EST, on September 23, 2009 through
11:59 p.m. EST, on October 6, 2009.
By the Commission.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23297 Filed 9–23–09; 4:15 pm]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60694; File No. SR–Phlx–
2009–65]
Self-Regulatory Organizations; Order
Approving Proposed Rule Change by
NASDAQ OMX PHLX, Inc. Relating to
Strike Price Intervals of $0.50 for
Options on Stocks Trading at or Below
$3.00
September 18, 2009.
On July 31, 2009, NASDAQ OMX
PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) 1 of the Securities
Exchange Act of 1934 (the ‘‘Act’’) 2 and
Rule 19b–4 thereunder,3 a proposed rule
change to permit the Exchange to list
options on selected stocks trading at or
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Frm 00148
Fmt 4703
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below $3.00 at $0.50 intervals (‘‘$0.50
Strike Program’’). The proposed rule
change was published for comment in
the Federal Register on August 17,
2009.4 There were no comments on the
proposed rule change. This order
approves the proposed rule change.
The Exchange proposes to amend
Rule 1012, Series of Options Open for
Trading, Commentary .05, in order to
establish strike price intervals of $0.50,
beginning at $1, for certain options
classes whose underlying security
closed at or below $3 in its primary
market on the previous trading day.
Currently, Commentary .05(a)(ii) to Phlx
Rule 1012 provides that the interval of
strike prices of series of options on
individual stocks may be $2.50 or
greater where the strike price is $25 or
less. Additionally, Commentary .05(a)(i)
to Phlx Rule 1012 allows the Exchange
to establish $1 strike price intervals (the
‘‘$1 Strike Program’’) on options classes
overlying no more than fifty-five
individual stocks designated by the
Exchange. To be eligible for the $1
Strike Program, an underlying stock
must close below $50 in its primary
market on the previous trading day.5
The Exchange now proposes to
establish strike prices of $1, $1.50, $ 2,
$2.50, $3 and $3.50 for certain stocks
that trade at or under $3.00.6 The listing
of these strike prices will be limited to
options classes whose underlying
security closed at or below $3 in its
primary market on the previous trading
day, and which have national average
daily volume that equals or exceeds
1000 contracts per day as determined by
The Options Clearing Corporation
4 See Securities Exchange Act Release No. 60466
(August 10, 2009), 74 FR 4147 (‘‘Notice’’).
5 In addition, the $1 Strike Program permits the
Exchange to list strike prices at $1 intervals from
$1 to $50, provided that no $1 strike price may be
listed that is greater than $5 from the underlying
stock’s closing price in its primary market on the
previous day. Further, the Exchange is restricted
from listing any series that would result in strike
prices being within $0.50 of a strike price set
pursuant to Commentary .05(a)(ii) to Phlx Rule
1012 addressing $2.50 strike intervals. The
Exchange may also list $1 strikes on any other
option class designated by another securities
exchange that employs a similar $1 Strike Program.
Further, the Exchange may not list long-term option
series (LEAPS) at $1 strike price intervals for any
class selected for the $1 Strike Program.
6 The Exchange recently amended Exchange Rule
1010, Withdrawal of Approval of Underlying
Securities or Options, to eliminate the $3 market
price per share requirement for continued approval
for an underlying security. The amendment
eliminated the prohibition against listing additional
series or options on an underlying security at any
time when the price per share of such underlying
security is less than $3. The Exchange explained in
that proposed rule change that the market price for
a large number of securities has fallen below $3 in
the current volatile market environment. See
Securities Exchange Act Release No. 59346
(February 3, 2009), 74 FR 6681 (February 10, 2009).
E:\FR\FM\25SEN1.SGM
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Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Notices
jlentini on DSKJ8SOYB1PROD with NOTICES
during the preceding three calendar
months. The listing of $0.50 strike
prices will be limited to options classes
overlying no more than five individual
stocks as specifically designated by the
Exchange. The Exchange also will be
able to list $0.50 strike prices on any
other option classes if those classes
were specifically designated by other
securities exchanges that employ a
similar $0.50 Strike Program under their
respective rules.
Currently, the Exchange may list
options on stocks trading at $3 at strike
prices of $1, $2, $3, $4, $5, $6, $7 and
$8 if they are designated to participate
in the $1 Strike Program. If these stocks
have not been selected for the
Exchange’s $1 Strike Program, the
Exchange may list strike prices of $2.50,
$5, $7.50 and so forth as provided in
Commentary .05(a), but not strike prices
of $1, $2, $3, $4, $6, $7 and $8. The
proposed amendments to Commentary
.05 to Phlx Rule 1012 will permit the
Exchange to list strike prices on options
on qualifying stocks that trade at or
under $3.00, which may include stocks
also participating in the $1 Strike
Program, in finer intervals of $0.50,
beginning at $1 up to $3.50.7 Thus, a
stock trading at $3 that is selected for
the $0.50 Strike Program would have
option strike prices established not just
at $2.50, $5.00, $7.50 and so forth (for
stocks not in the Exchange’s $1 Strike
Program) or just at $1, $2, $3, $4, $5, $6,
$7 and $8 (for stocks designated to
participate in the $1 Strike Program),
but rather at strike prices established at
$1, $1.50, $2, $2.50, $3 and $3.50.8
In its filing with the Commission, the
Exchange stated that the number of
securities trading below $3.00 has
increased dramatically recently and that
the Exchange therefore believes that
new strike prices for securities trading
at or below $3.00 are appropriate.
According to the Exchange, as the price
of a stock declines below $3 or even $2,
the availability of options with strike
prices at intervals of $0.50 could
provide investors with opportunities
and strategies to minimize losses
associated with owning a stock
declining in price. In addition, the
Exchange represented that it and the
Options Price Reporting Authority
(‘‘OPRA’’) have the necessary systems
capacity to handle the additional traffic
associated with the expanded number of
7 Current sections (ii), (iii) and (iv) will be
renumbered as sections (iii), (iv) and (v)
respectively.
8 The option on the qualifying stock could also
have strike prices set at $5, $7.50 and so forth at
$2.50 intervals (pursuant to Commentary .05(a)(ii)
to Phlx Rule 1012) or, if it has been selected for the
$1 Strike Program, at $4, $5, $6, $7 and $8.
VerDate Nov<24>2008
18:52 Sep 24, 2009
Jkt 217001
options series proposed to be listed and
traded.
After careful review, the Commission
finds that the proposed rule change is
consistent with the Act and the rules
and regulations thereunder applicable to
a national securities exchange.9 In
particular, the Commission believes that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,10 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.
Specifically, the Commission believes
that the proposal to permit the Exchange
to select a total of 5 individual
underlying stocks trading at or under $3
on which option series may be listed at
$0.50 strike intervals should provide
investors with added flexibility in the
trading of equity options and further the
public interest by allowing investors to
establish equity options positions that
are better tailored to meet their
investment objectives. The Commission
also believes that the proposal strikes a
reasonable balance between the
Exchange’s desire to accommodate
market participants by offering a wider
array of investment opportunities and
the need to avoid unnecessary
proliferation of options series and the
corresponding increase in quotes. The
Commission expects that the Exchange
will monitor the trading volume
associated with the additional options
series listed as a result of this proposal
and the effect of these additional series
on market fragmentation and on the
capacity of the Exchange’s, OPRA’s and
vendors’ automated systems.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–Phlx–2009–
65) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23098 Filed 9–24–09; 8:45 am]
BILLING CODE 8010–01–P
9 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78s(b)(2).
12 17 CFR 200.30–3(a)(12).
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49049
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60690; File No. SR–MSRB–
2009–14]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Consisting of an Interpretive
Notice Regarding MSRB Rule G–15(a),
on Customer Confirmations
September 18, 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
September 15, 2009, the Municipal
Securities Rulemaking Board (‘‘Board’’
or ‘‘MSRB’’), filed with the Securities
and Exchange Commission
(‘‘Commission’’ or ‘‘SEC’’) the proposed
rule change as described in Items I, II
and III below, which Items have been
prepared by the Board. The MSRB has
designated the proposed rule change as
constituting a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule of the
self-regulatory organization pursuant to
Section 19(b)(3)(A)(i) of the Act,3 and
Rule 19b–4(f)(1) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The MSRB has filed with the
Commission a proposed rule change
consisting of an interpretive notice
regarding MSRB Rule G–15(a), on
customer confirmations, concerning use
of electronic confirmations produced by
a clearing agency or qualified vendor to
satisfy the requirements of Rule G–15(a).
The text of the proposed rule change is
available on the MSRB’s Web site
(https://www.msrb.org/msrb1/sec.asp), at
the MSRB’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
MSRB included statements concerning
the purpose of and basis for the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
2 17
E:\FR\FM\25SEN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 185 (Friday, September 25, 2009)]
[Notices]
[Pages 49048-49049]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-23098]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60694; File No. SR-Phlx-2009-65]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change by NASDAQ OMX PHLX, Inc. Relating to Strike Price Intervals of
$0.50 for Options on Stocks Trading at or Below $3.00
September 18, 2009.
On July 31, 2009, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934
(the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ a proposed rule change
to permit the Exchange to list options on selected stocks trading at or
below $3.00 at $0.50 intervals (``$0.50 Strike Program''). The proposed
rule change was published for comment in the Federal Register on August
17, 2009.\4\ There were no comments on the proposed rule change. This
order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ See Securities Exchange Act Release No. 60466 (August 10,
2009), 74 FR 4147 (``Notice'').
---------------------------------------------------------------------------
The Exchange proposes to amend Rule 1012, Series of Options Open
for Trading, Commentary .05, in order to establish strike price
intervals of $0.50, beginning at $1, for certain options classes whose
underlying security closed at or below $3 in its primary market on the
previous trading day. Currently, Commentary .05(a)(ii) to Phlx Rule
1012 provides that the interval of strike prices of series of options
on individual stocks may be $2.50 or greater where the strike price is
$25 or less. Additionally, Commentary .05(a)(i) to Phlx Rule 1012
allows the Exchange to establish $1 strike price intervals (the ``$1
Strike Program'') on options classes overlying no more than fifty-five
individual stocks designated by the Exchange. To be eligible for the $1
Strike Program, an underlying stock must close below $50 in its primary
market on the previous trading day.\5\
---------------------------------------------------------------------------
\5\ In addition, the $1 Strike Program permits the Exchange to
list strike prices at $1 intervals from $1 to $50, provided that no
$1 strike price may be listed that is greater than $5 from the
underlying stock's closing price in its primary market on the
previous day. Further, the Exchange is restricted from listing any
series that would result in strike prices being within $0.50 of a
strike price set pursuant to Commentary .05(a)(ii) to Phlx Rule 1012
addressing $2.50 strike intervals. The Exchange may also list $1
strikes on any other option class designated by another securities
exchange that employs a similar $1 Strike Program. Further, the
Exchange may not list long-term option series (LEAPS) at $1 strike
price intervals for any class selected for the $1 Strike Program.
---------------------------------------------------------------------------
The Exchange now proposes to establish strike prices of $1, $1.50,
$ 2, $2.50, $3 and $3.50 for certain stocks that trade at or under
$3.00.\6\ The listing of these strike prices will be limited to options
classes whose underlying security closed at or below $3 in its primary
market on the previous trading day, and which have national average
daily volume that equals or exceeds 1000 contracts per day as
determined by The Options Clearing Corporation
[[Page 49049]]
during the preceding three calendar months. The listing of $0.50 strike
prices will be limited to options classes overlying no more than five
individual stocks as specifically designated by the Exchange. The
Exchange also will be able to list $0.50 strike prices on any other
option classes if those classes were specifically designated by other
securities exchanges that employ a similar $0.50 Strike Program under
their respective rules.
---------------------------------------------------------------------------
\6\ The Exchange recently amended Exchange Rule 1010, Withdrawal
of Approval of Underlying Securities or Options, to eliminate the $3
market price per share requirement for continued approval for an
underlying security. The amendment eliminated the prohibition
against listing additional series or options on an underlying
security at any time when the price per share of such underlying
security is less than $3. The Exchange explained in that proposed
rule change that the market price for a large number of securities
has fallen below $3 in the current volatile market environment. See
Securities Exchange Act Release No. 59346 (February 3, 2009), 74 FR
6681 (February 10, 2009).
---------------------------------------------------------------------------
Currently, the Exchange may list options on stocks trading at $3 at
strike prices of $1, $2, $3, $4, $5, $6, $7 and $8 if they are
designated to participate in the $1 Strike Program. If these stocks
have not been selected for the Exchange's $1 Strike Program, the
Exchange may list strike prices of $2.50, $5, $7.50 and so forth as
provided in Commentary .05(a), but not strike prices of $1, $2, $3, $4,
$6, $7 and $8. The proposed amendments to Commentary .05 to Phlx Rule
1012 will permit the Exchange to list strike prices on options on
qualifying stocks that trade at or under $3.00, which may include
stocks also participating in the $1 Strike Program, in finer intervals
of $0.50, beginning at $1 up to $3.50.\7\ Thus, a stock trading at $3
that is selected for the $0.50 Strike Program would have option strike
prices established not just at $2.50, $5.00, $7.50 and so forth (for
stocks not in the Exchange's $1 Strike Program) or just at $1, $2, $3,
$4, $5, $6, $7 and $8 (for stocks designated to participate in the $1
Strike Program), but rather at strike prices established at $1, $1.50,
$2, $2.50, $3 and $3.50.\8\
---------------------------------------------------------------------------
\7\ Current sections (ii), (iii) and (iv) will be renumbered as
sections (iii), (iv) and (v) respectively.
\8\ The option on the qualifying stock could also have strike
prices set at $5, $7.50 and so forth at $2.50 intervals (pursuant to
Commentary .05(a)(ii) to Phlx Rule 1012) or, if it has been selected
for the $1 Strike Program, at $4, $5, $6, $7 and $8.
---------------------------------------------------------------------------
In its filing with the Commission, the Exchange stated that the
number of securities trading below $3.00 has increased dramatically
recently and that the Exchange therefore believes that new strike
prices for securities trading at or below $3.00 are appropriate.
According to the Exchange, as the price of a stock declines below $3 or
even $2, the availability of options with strike prices at intervals of
$0.50 could provide investors with opportunities and strategies to
minimize losses associated with owning a stock declining in price. In
addition, the Exchange represented that it and the Options Price
Reporting Authority (``OPRA'') have the necessary systems capacity to
handle the additional traffic associated with the expanded number of
options series proposed to be listed and traded.
After careful review, the Commission finds that the proposed rule
change is consistent with the Act and the rules and regulations
thereunder applicable to a national securities exchange.\9\ In
particular, the Commission believes that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\10\ 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.
---------------------------------------------------------------------------
\9\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------
Specifically, the Commission believes that the proposal to permit
the Exchange to select a total of 5 individual underlying stocks
trading at or under $3 on which option series may be listed at $0.50
strike intervals should provide investors with added flexibility in the
trading of equity options and further the public interest by allowing
investors to establish equity options positions that are better
tailored to meet their investment objectives. The Commission also
believes that the proposal strikes a reasonable balance between the
Exchange's desire to accommodate market participants by offering a
wider array of investment opportunities and the need to avoid
unnecessary proliferation of options series and the corresponding
increase in quotes. The Commission expects that the Exchange will
monitor the trading volume associated with the additional options
series listed as a result of this proposal and the effect of these
additional series on market fragmentation and on the capacity of the
Exchange's, OPRA's and vendors' automated systems.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\11\ that the proposed rule change (SR-Phlx-2009-65) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E9-23098 Filed 9-24-09; 8:45 am]
BILLING CODE 8010-01-P
