Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add Commentary .04 to Rule 904C, 57542-57544 [E9-26749]
Download as PDF
<![CDATA[
57542
Federal Register / Vol. 74, No. 214 / Friday, November 6, 2009 / Notices
Options will be charged the same
reasonable dues, fees, and other charges.
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
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 7 of the Act and
subparagraph (f)(2) of Rule 19b–48
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE Amex.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
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 onlyinformation that you
wish to make publicly available. All
submissions should refer to File
Number SR–NYSEAmex–2009–77 and
should be submitted on or before
November 27, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–26750 Filed 11–5–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
mstockstill on DSKH9S0YB1PROD with NOTICES6
[Release No. 34–60907; File No. SR–
NYSEAmex–2009–73]
• 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–NYSEAmex–2009–77. This
file number should be included on the
October 30, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) and Rule 19b–4 thereunder,2
notice is hereby given that, on October
19, 2009, NYSE Amex LLC (‘‘NYSE
Amex’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Add Commentary .04
to Rule 904C
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(2).
VerDate Nov<24>2008
18:23 Nov 05, 2009
1 15
Jkt 220001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to add
Commentary .04 to Rule 904C to clarify
position limits on reduced-value index
options. 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 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
• 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–2009–77 on
the subject line.
7 15
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II, 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.
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
The Exchange proposes to define and
clarify the treatment of positions in
reduced-value index options. NYSE
Amex Rule 904C describes Position
Limits for both Broad Stock Index
Groups and Stock Index Industry
Groups. Rule 904C does not describe
aggregation requirements for reducedvalue index options, nor does it describe
the relationship of a position in a
reduced-value index option to a
position in a full-value index option.
Occasionally, when an index level is
high it becomes less desirable for
trading options because of the large
amount of capital involved in
maintaining margin. Additionally,
because of the linear nature of options
premiums, the premium for an at-themoney call on an index level of 500 will
be ten times the premium for an at-themoney call at an index level of 50, and
thus more expensive to trade. To
E:\FR\FM\06NON1.SGM
06NON1
Federal Register / Vol. 74, No. 214 / Friday, November 6, 2009 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES6
address this situation, the Exchange
may list options on a reduced-value
index, in which the full index value is
divided by a set amount, and the new,
reduced-value index becomes the
underlyer for a class of options.
NYSE Amex is proposing to add
Commentary .04 to Rule 904C to require
positions in reduced-value index
options to be aggregated with any
positions in options on the full-value of
the same index. Additionally,
Commentary .04 will explicitly state
that the positions in reduced-value
index options will be treated in the
same ratio to a full-value index option
position as the ratio between the
reduced value index and the full value
index. The Commentary is based on
similar rule provisions of the Chicago
Board Options Exchange, Inc. (‘‘CBOE’’),
NASDAQ OMX PHLX (‘‘PHLX’’), and
NYSE Arca, Inc.3
As an example, suppose that the
Exchange listed options on the XXX
narrow based index, and that the index
had a position limit determined by Rule
904C of 31,500 contracts. If the
Exchange then listed options on a onefifth reduced-value of XXX, and
designated it as XXR, then the position
of one contract in XXR would be treated
as the equivalent to one-fifth of a
contract in XXX. The resultant position
limit for XXR would be 157,500
contracts (5 × 31,500).
Positions in XXX and XXR would be
aggregated such that the combination of
XXX contracts and one-fifth of XXR
contracts could not exceed 31,500.
The Exchange believes that definition
and clarification of the requirements for
the treatment of positions in reduced
value index options will reduce
confusion regarding the application of
the Rules and ensure compliance with
position limit requirements.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) 4 of the Securities Exchange Act of
1934 (the ‘‘Act’’), in general, and
furthers the objectives of Section
6(b)(5) 5 in particular in that it is
designed to promote just and equitable
principles if trade, to prevent fraudulent
and manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system and, in
general, to protect investors and the
public interest, by requiring positions in
reduced–value index options to be
3 See CBOE Rule 24.4(d) and 24.4A(c); PHLX Rule
1001A (e); and NYSE Arca Rule 5.15(c).
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
VerDate Nov<24>2008
18:23 Nov 05, 2009
Jkt 220001
aggregated with any positions in fullvalue index options, and to clarify how
contracts in reduced-value index
options are counted.
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
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 6 and Rule 19b–
4(f)(6) thereunder.7
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.8 However, Rule 19b–
4(f)(6)(iii) 9 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Exchange notes that the
proposal is substantially similar to the
rules of other options exchanges 10 and
serves to treat NYSE Amex users with
positions in reduced-value index
options in the same manner as they
would be treated on the other options
exchanges. In addition, the Exchange
notes that waiving the 30-day operative
delay will allow it to immediately offer
market participants options in reduced
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written
notice of its intent to file the proposed rule change,
along with a brief description and text of the
proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
9 Id.
10 See supra note 3.
7 17
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
57543
value index products on the same basis
as they are offered on other exchanges.
Based on the foregoing, the Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest and hereby designates the
proposal as operative upon filing with
the Commission.11
At any time within 60 days of the
filing of such proposed rule change the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEAmex–2009–73 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–NYSEAmex-2009–73. 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
11 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
E:\FR\FM\06NON1.SGM
06NON1
57544
Federal Register / Vol. 74, No. 214 / Friday, November 6, 2009 / Notices
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–
NYSEAmex–2009–73 and should be
submitted on or before November 27,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–26749 Filed 11–5–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60905; File No. SR–
NASDAQ–2009–093]
Self-Regulatory Organizations; the
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Modify the
Opening of Trading on the NASDAQ
Options Market
October 30, 2009.
mstockstill on DSKH9S0YB1PROD with NOTICES6
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 October
26, 2009, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
prepared by Nasdaq. 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
Nasdaq is filing a proposal for the
NASDAQ Options Market (‘‘NOM’’ or
‘‘Exchange’’) to modify Chapter VI,
Section 8 of the Exchange’s rules,
dealing with the Nasdaq Opening Cross.
The Exchange proposes to implement
this change on or about November 23,
2009.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Nov<24>2008
18:23 Nov 05, 2009
Jkt 220001
The text of the proposed rule change
is available from Nasdaq’s Web site at
https://nasdaq.cchwallstreet.com, at
Nasdaq’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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq proposes to modify Chapter
VI, Section 8 of the rules governing
NOM, and in particular governing the
opening of trading in that market. Since
NOM was launched on March 31, 2008,
Nasdaq has monitored the operation of
the market to identify instances where
market efficiency can be enhanced.3
Nasdaq believes that the opening of the
market, while currently quite effective,
can be further enhanced.
Currently, pursuant to Chapter VI,
Section 8(b) of NOM’s rules, the Nasdaq
Opening Cross occurs at 9:30 a.m.,
unless the Opening Cross is delayed
pursuant to Section 8(b)(5) of Chapter VI
in order to avoid opening at a price that
is away from the prevailing market.
Pursuant to that provision, the opening
is delayed if the Nasdaq BBO after
execution of the opening print would be
wider than pre-determined authorized
3 For
instance, in May 2008 Nasdaq filed a
proposed rule change to enhance its opening
process by (1) delaying the Opening Cross in the
event that after the execution of the Opening Cross
the NOM best bid and offer would be outside
certain pre-determined threshold amounts, and (2)
delaying the opening of trading if after the opening
print the NOM best bid and offer would be outside
the same pre-determined threshold amounts in
instances where there is insufficient interest
available to initiate the Opening Cross. See
Securities Exchange Act Release No. 57822 (May
15, 2008), 73 FR 29800 (May 22, 2008) (SR–
NASDAQ–2008–045). In June 2008 Nasdaq filed a
proposed rule change to allow the opening of
trading in those instances where trading interest at
the National Best Bid and Offer (‘‘NBBO’’), which
includes the non-firm Nasdaq Best Bid and Offer
(Nasdaq BBO), is within the currently authorized
trading thresholds. See Securities Exchange Act
Release No. 57977 (June 17, 2008), 73 FR 35429
(June 23, 2008) (SR–NASDAQ–2008–052).
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
trading thresholds. In the event that no
Opening Cross occurs due to
insufficient interest, Nasdaq
systematically delays the opening of
trading if the NBBO (which includes the
non-firm Nasdaq BBO) is wider than
certain spread requirements set from
time to time by Nasdaq management.
Thus, both the NBBO and the Nasdaq
BBO are currently analyzed by NOM
when determining to open trading, in
order to ensure opening the market in
an orderly fashion. If a delay occurs
pursuant to Section 8(b)(5) of Chapter
VI, the Opening Cross (and thus regular
market trading) does not commence
until such time as it is determined that
the width requirements can be met.4
The Exchange is proposing to alter its
methodology for opening trading by
deleting the delay provisions of Section
8(b)(5) of Chapter VI, and instead
requiring certain other preconditions to
be met. Additionally, Section 8(b)(2)(A)
of Chapter VI would be amended to
require the Nasdaq Opening Cross to
occur at the price that maximizes the
number of contracts of Eligible Interest 5
in NOM to be executed at or within the
NBBO.
In order to improve the opening
process on NOM by streamlining the
opening timeline and providing further
price protection to orders received prior
to market open, Nasdaq is proposing to
revise Section 8(b) of Chapter VI to
permit the Opening Cross to occur at or
after 9:30 if there is no Imbalance,6 if the
dissemination of a quote or trade by the
Market for the Underlying Security 7 has
occurred (or, in the case of index
options, the Exchange has received the
opening price of the underlying index)
and if a certain number (as the Exchange
may determine from time to time) of
other options exchanges have
disseminated a firm quote on the
Options Price Reporting Authority
(‘‘OPRA’’). If all the conditions specified
4 Except for executions arising from the Opening
Cross, executions are only permitted if they will not
result in a trade-through violation of the NBBO as
described in Chapter VI, Sec. 7(b)(3)(C) of the NOM
rules.
5 ‘‘Eligible Interest’’ is defined in Section 8(a)(1)
[sic] of Chapter VI as any quotation or any order
that may be entered into the system and designated
with a time-in-force of IOC, DAY, GTC, or EXPR.
6 ‘‘Imbalance’’ is defined in Section 8(a)(1) of
Chapter VI as the number of contracts of Eligible
Interest that may not be matched with other order
contracts at a particular price at any given time.
7 New Section 8(a)(5) of Chapter VI would define
‘‘Market for the Underlying Security’’ as meaning
either the primary listing market, the primary
volume market (defined as the market with the most
liquidity in that underlying security for the
previous two calendar months), or the first market
to open the underlying security, as determined by
the Exchange on an issue-by-issue basis and
announced to the membership on the Exchange’s
Web site.
E:\FR\FM\06NON1.SGM
06NON1
]]>Agencies
[Federal Register Volume 74, Number 214 (Friday, November 6, 2009)]
[Notices]
[Pages 57542-57544]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-26749]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60907; File No. SR-NYSEAmex-2009-73]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Add Commentary
.04 to Rule 904C
October 30, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on October 19, 2009, NYSE Amex LLC (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and
II, 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\ 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 add Commentary .04 to Rule 904C to clarify
position limits on reduced-value index options. 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 IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to define and clarify the treatment of
positions in reduced-value index options. NYSE Amex Rule 904C describes
Position Limits for both Broad Stock Index Groups and Stock Index
Industry Groups. Rule 904C does not describe aggregation requirements
for reduced-value index options, nor does it describe the relationship
of a position in a reduced-value index option to a position in a full-
value index option.
Occasionally, when an index level is high it becomes less desirable
for trading options because of the large amount of capital involved in
maintaining margin. Additionally, because of the linear nature of
options premiums, the premium for an at-the-money call on an index
level of 500 will be ten times the premium for an at-the-money call at
an index level of 50, and thus more expensive to trade. To
[[Page 57543]]
address this situation, the Exchange may list options on a reduced-
value index, in which the full index value is divided by a set amount,
and the new, reduced-value index becomes the underlyer for a class of
options.
NYSE Amex is proposing to add Commentary .04 to Rule 904C to
require positions in reduced-value index options to be aggregated with
any positions in options on the full-value of the same index.
Additionally, Commentary .04 will explicitly state that the positions
in reduced-value index options will be treated in the same ratio to a
full-value index option position as the ratio between the reduced value
index and the full value index. The Commentary is based on similar rule
provisions of the Chicago Board Options Exchange, Inc. (``CBOE''),
NASDAQ OMX PHLX (``PHLX''), and NYSE Arca, Inc.\3\
---------------------------------------------------------------------------
\3\ See CBOE Rule 24.4(d) and 24.4A(c); PHLX Rule 1001A (e); and
NYSE Arca Rule 5.15(c).
---------------------------------------------------------------------------
As an example, suppose that the Exchange listed options on the XXX
narrow based index, and that the index had a position limit determined
by Rule 904C of 31,500 contracts. If the Exchange then listed options
on a one-fifth reduced-value of XXX, and designated it as XXR, then the
position of one contract in XXR would be treated as the equivalent to
one-fifth of a contract in XXX. The resultant position limit for XXR
would be 157,500 contracts (5 x 31,500).
Positions in XXX and XXR would be aggregated such that the
combination of XXX contracts and one-fifth of XXR contracts could not
exceed 31,500.
The Exchange believes that definition and clarification of the
requirements for the treatment of positions in reduced value index
options will reduce confusion regarding the application of the Rules
and ensure compliance with position limit requirements.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \4\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5) \5\ in
particular in that it is designed to promote just and equitable
principles if trade, to prevent fraudulent and manipulative acts, to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system and, in general, to protect
investors and the public interest, by requiring positions in reduced-
value index options to be aggregated with any positions in full-value
index options, and to clarify how contracts in reduced-value index
options are counted.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition 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
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\8\ However,
Rule 19b-4(f)(6)(iii) \9\ permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange has requested that the Commission
waive the 30-day operative delay. The Exchange notes that the proposal
is substantially similar to the rules of other options exchanges \10\
and serves to treat NYSE Amex users with positions in reduced-value
index options in the same manner as they would be treated on the other
options exchanges. In addition, the Exchange notes that waiving the 30-
day operative delay will allow it to immediately offer market
participants options in reduced value index products on the same basis
as they are offered on other exchanges. Based on the foregoing, the
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest and
hereby designates the proposal as operative upon filing with the
Commission.\11\
---------------------------------------------------------------------------
\8\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change, at least five business days prior to the date of filing
of the proposed rule change, or such shorter time as designated by
the Commission. The Exchange has satisfied this requirement.
\9\ Id.
\10\ See supra note 3.
\11\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors or otherwise in
furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2009-73 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-NYSEAmex-2009-73.
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
[[Page 57544]]
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-NYSEAmex-2009-73 and should
be submitted on or before November 27, 2009.
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. E9-26749 Filed 11-5-09; 8:45 am]
BILLING CODE 8011-01-P
