Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the $1.00 Strike Program to Allow Low-Strike LEAPS, 62370-62372 [E9-28351]
Download as PDF
62370
Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Notices
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 proposed rule
change: (i) Does not significantly affect
the protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),17 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Commission notes that because the pilot
program will expire on November 30,
2009, waiver of the operative delay is
necessary so that no interruption of the
pilot program will occur. In addition,
the Commission notes that the Exchange
has requested extensions of the pilot to
allow the Exchange time to formally
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the self-regulatory organization
to 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.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
sroberts on DSKD5P82C1PROD with NOTICES
15 17
VerDate Nov<24>2008
18:08 Nov 25, 2009
Jkt 220001
request permanent approval for the
pilot. Therefore, the Commission
designates the proposal operative upon
filing.18
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2009–113 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–NYSE–2009–113. 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 on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for
18 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
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–
2009–113 and should be submitted on
or before December 18, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–28350 Filed 11–25–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61036; File No. SR–
NYSEAmex–2009–84]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Amend the $1.00 Strike
Program to Allow Low-Strike LEAPS
November 19, 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 November
18, 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 Exchange. 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 Exchange proposes to amend
Commentary .06 to Rule 903, Series of
Options Open for Trading to permit the
expansion of the $1.00 Strike Program.
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.
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\27NON1.SGM
27NON1
Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Notices
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
sroberts on DSKD5P82C1PROD with NOTICES
1. Purpose
The proposed rule change is based on
a filing submitted by Chicago Board
Options Exchange Incorporated
(‘‘CBOE’’) that was recently approved by
the Commission.4
The purpose of the proposed rule
change is to expand the $1.00 Strike
Program (‘‘Program’’) in a limited
fashion to allow NYSE Amex to list new
series in $1.00 intervals up to $5.00 in
long-term option series (‘‘LEAPS’’) in up
to 200 option classes on individual
stocks. Currently, under the Program,
NYSE Amex may not list LEAPS at
$1.00 strike price intervals for any class
selected for the Program. NYSE Amex
also is restricted from listing any series
that would result in strike prices being
$0.50 apart, unless the series are part of
the $0.50 Strike Program.5
NYSE Amex believes that this
proposal is appropriate and will allow
investors to establish option positions
that are better tailored to meet their
`
investment objectives, vis-a-vis credit
risk, using deep out-of-the-money put
options. Deep out-of-the-money put
options are viewed as a viable, liquid
alternative to OTC-traded credit default
swaps (‘‘CDS’’). These options do not
possess the negative characteristics
associated with CDS, namely, lack of
transparency, insufficient collateral
requirements, and inefficient trade
processing. Moreover, deep out-of-themoney put options and CDS are
functionally similar, as there is a high
4 See Exchange Act Release No. 60978 (November
10, 2009), 74 FR 59296 (November 17, 2009)
(approving SR–CBOE–2009–68).
5 See Exchange Act Release 60720 (September 25,
2009), 74 FR 51205 (October 5, 2009).
VerDate Nov<24>2008
18:08 Nov 25, 2009
Jkt 220001
correlation between low-strike put
prices and CDS spreads.6
NYSE Amex notes that its proposal is
limited in scope, as $1.00 strikes in
LEAPS may only be listed up to $5.00
and in only 200 option classes. As is
currently the case, NYSE Amex would
not list series with $1.00 intervals
within $0.50 of an existing $2.50 strike
price in the same series. As a result,
NYSE Amex does not believe this
proposal will cause a significant
increase in quote traffic.
Moreover, as the SEC is aware, NYSE
Amex has a vigorous quote mitigation
strategy in place in an effort to lessen
the growth rate of quotations. When it
expanded the Program several months
ago, NYSE Amex included a delisting
policy that would be applicable with
regard to this proposed expansion.7
NYSE Amex and the other options
exchanges amended the Options Listing
Procedures Plan (‘‘OLPP’’) in 2008 to
impose a minimum volume threshold of
1,000 contracts national average daily
volume per underlying class to qualify
for an additional year of LEAP series.8
Most recently, NYSE Amex, along with
the other options exchanges, amended
the OLPP to adopt objective exercise
price range limitations applicable to
equity option classes, options on ETFs
and options on trust issued receipts.9
NYSE Amex believes that these price
range limitations will have a meaningful
quote mitigation impact.
The margin requirements of NYSE
Amex Rule Section 9 and the position
and exercise requirements set forth in
Rule 904 and Rule 905 will continue to
apply to these new series, and no
changes are being proposed to those
requirements by this rule change.
With regard to the impact on system
capacity, NYSE Amex has analyzed its
capacity and represents that it and the
Options Price Reporting Authority have
the necessary systems capacity to
handle the additional traffic associated
with the listing and trading of an
expanded number of series as proposed
by this filing.
6 More information on this trading strategy may
be found at the Web site of the CBOE at https://
www.cboe.com/institutional/DOOM.aspx.
7 The delisting policy includes a provision that
states NYSE Amex may grant ATP Holder requests
to add strikes and/or maintain strikes in series of
options classes traded pursuant to the Program that
are eligible for delisting.
8 See Exchange Act Release No. 58630 (September
24, 2008), 73 FR 57166 (October 1, 2008).
9 See Exchange Act Release No. 60531 (August 19,
2009), 74 FR 43173 (August 26, 2009) (approving
Amendment No. 3 to the OLPP). NYSE Amex’s
proposal to list $1.00 strikes in LEAPS to $5.00
would not be subject to the exercise price range
limitations contained in new paragraph (3)(g)(ii) of
the OLPP.
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
62371
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) 10 of the Securities Exchange Act of
1934 (the ‘‘Act’’), in general, and
furthers the objectives of Section
6(b)(5) 11 in particular in that it is
designed to promote just and equitable
principles of 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 giving investors
more flexibility to closely tailor their
investment decisions.
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 proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission hereby grants
that request.14 The Commission believes
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
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 Commission
has waived this requirement in this case.
14 For 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).
11 15
E:\FR\FM\27NON1.SGM
27NON1
62372
Federal Register / Vol. 74, No. 227 / Friday, November 27, 2009 / Notices
that waiver of the operative delay is
consistent with the protection of
investors and the public interest
because it recently approved a proposal
from CBOE which is identical to the
current proposal in all material respects
and on which no comments were
received.15 Therefore, the proposal is
operative upon filing.
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:
sroberts on DSKD5P82C1PROD 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–NYSEAmex–2009–84 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–2009–84. 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
15 See Securities Exchange Act Release No. 60978,
supra note 4.
VerDate Nov<24>2008
18:08 Nov 25, 2009
Jkt 220001
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
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEAmex–2009–84 and
should be submitted on or before
December 18, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–28351 Filed 11–25–09; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 6819]
Bureau of Educational and Cultural
Affairs (ECA) Request for Grant
Proposals: Study of the United States
Institutes on U.S. Foreign Policy for
East Asian Student Leaders
Announcement Type: New
Cooperative Agreement.
Funding Opportunity Number: ECA/
A/E/USS–10–26.
Catalog of Federal Domestic
Assistance Number: 19.009.
Key Dates: July—August 2010.
Application Deadline: Thursday,
January 14, 2010.
Executive Summary: The Branch for
the Study of the United States, Office of
Academic Exchange Programs, Bureau
of Educational and Cultural Affairs,
invites proposal submissions for the
design and implementation of ‘‘The
Study of the U.S. Institute on U.S.
Foreign Policy for East Asian Student
Leaders’’ to take place over the course
of five weeks beginning in July, 2010,
pending availability of funds. The
Institute will take place at an accredited
post-secondary education institution,
and will provide a group of up to 20
East Asian undergraduates with an
academic program examining U.S.
Foreign Policy. The program should also
give the students a deeper
understanding of U.S. society and
culture, while enhancing their
leadership skills.
16 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00091
Fmt 4703
Sfmt 4703
I. Funding Opportunity Description
Authority
Overall grant making authority for
this program is contained in the Mutual
Educational and Cultural Exchange Act
of 1961, Public Law 87–256, as
amended, also known as the FulbrightHays Act. The purpose of the Act is ‘‘to
enable the Government of the United
States to increase mutual understanding
between the people of the United States
and the people of other countries * * *;
to strengthen the ties which unite us
with other nations by demonstrating the
educational and cultural interests,
developments, and achievements of the
people of the United States and other
nations * * * and thus to assist in the
development of friendly, sympathetic
and peaceful relations between the
United States and the other countries of
the world.’’ The funding authority for
the program above is provided through
legislation.
Purpose
The Study of the U.S. Institute for
East Asian Student Leaders aims to
foster mutual understanding between
the people of the United States and the
people of East Asia. The Study of the
U.S. Institutes for undergraduates are
intensive academic programs whose
purpose is to provide a group of foreign
students an introduction to a specific
field of study, while also heightening
the participants’ general knowledge of
U.S. society, culture, and values.
In addition to promoting a better
understanding of the United States, an
important objective of the Institutes is to
develop the participants’ leadership
skills. In this context, the leadership
component should be experiential in
nature and include group discussions,
training, and exercises that focus on
leadership theories, teambuilding,
collective problem-solving skills,
effective communication, and
management skills for diverse
organizational settings. Additionally,
there should be a community service
component, in which the students
experience firsthand how not-for-profit
organizations and volunteerism play a
role in U.S. civil society.
The program should also include
cultural activities, local site visits, and
an educational travel component within
the United States to illustrate the
various topics explored in class and to
gain an understanding of the regional
differences within the country. Finally,
the program should include
opportunities for participants to meet
U.S. citizens from a variety of
backgrounds, to interact with U.S. peers,
and to speak to appropriate student and
E:\FR\FM\27NON1.SGM
27NON1
Agencies
[Federal Register Volume 74, Number 227 (Friday, November 27, 2009)]
[Notices]
[Pages 62370-62372]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-28351]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61036; File No. SR-NYSEAmex-2009-84]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change to Amend the $1.00
Strike Program to Allow Low-Strike LEAPS
November 19, 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 November 18, 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 Exchange. 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 Commentary .06 to Rule 903, Series
of Options Open for Trading to permit the expansion of the $1.00 Strike
Program. 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.
[[Page 62371]]
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 proposed rule change is based on a filing submitted by Chicago
Board Options Exchange Incorporated (``CBOE'') that was recently
approved by the Commission.\4\
---------------------------------------------------------------------------
\4\ See Exchange Act Release No. 60978 (November 10, 2009), 74
FR 59296 (November 17, 2009) (approving SR-CBOE-2009-68).
---------------------------------------------------------------------------
The purpose of the proposed rule change is to expand the $1.00
Strike Program (``Program'') in a limited fashion to allow NYSE Amex to
list new series in $1.00 intervals up to $5.00 in long-term option
series (``LEAPS'') in up to 200 option classes on individual stocks.
Currently, under the Program, NYSE Amex may not list LEAPS at $1.00
strike price intervals for any class selected for the Program. NYSE
Amex also is restricted from listing any series that would result in
strike prices being $0.50 apart, unless the series are part of the
$0.50 Strike Program.\5\
---------------------------------------------------------------------------
\5\ See Exchange Act Release 60720 (September 25, 2009), 74 FR
51205 (October 5, 2009).
---------------------------------------------------------------------------
NYSE Amex believes that this proposal is appropriate and will allow
investors to establish option positions that are better tailored to
meet their investment objectives, vis-[agrave]-vis credit risk, using
deep out-of-the-money put options. Deep out-of-the-money put options
are viewed as a viable, liquid alternative to OTC-traded credit default
swaps (``CDS''). These options do not possess the negative
characteristics associated with CDS, namely, lack of transparency,
insufficient collateral requirements, and inefficient trade processing.
Moreover, deep out-of-the-money put options and CDS are functionally
similar, as there is a high correlation between low-strike put prices
and CDS spreads.\6\
---------------------------------------------------------------------------
\6\ More information on this trading strategy may be found at
the Web site of the CBOE at https://www.cboe.com/institutional/DOOM.aspx.
---------------------------------------------------------------------------
NYSE Amex notes that its proposal is limited in scope, as $1.00
strikes in LEAPS may only be listed up to $5.00 and in only 200 option
classes. As is currently the case, NYSE Amex would not list series with
$1.00 intervals within $0.50 of an existing $2.50 strike price in the
same series. As a result, NYSE Amex does not believe this proposal will
cause a significant increase in quote traffic.
Moreover, as the SEC is aware, NYSE Amex has a vigorous quote
mitigation strategy in place in an effort to lessen the growth rate of
quotations. When it expanded the Program several months ago, NYSE Amex
included a delisting policy that would be applicable with regard to
this proposed expansion.\7\ NYSE Amex and the other options exchanges
amended the Options Listing Procedures Plan (``OLPP'') in 2008 to
impose a minimum volume threshold of 1,000 contracts national average
daily volume per underlying class to qualify for an additional year of
LEAP series.\8\ Most recently, NYSE Amex, along with the other options
exchanges, amended the OLPP to adopt objective exercise price range
limitations applicable to equity option classes, options on ETFs and
options on trust issued receipts.\9\ NYSE Amex believes that these
price range limitations will have a meaningful quote mitigation impact.
---------------------------------------------------------------------------
\7\ The delisting policy includes a provision that states NYSE
Amex may grant ATP Holder requests to add strikes and/or maintain
strikes in series of options classes traded pursuant to the Program
that are eligible for delisting.
\8\ See Exchange Act Release No. 58630 (September 24, 2008), 73
FR 57166 (October 1, 2008).
\9\ See Exchange Act Release No. 60531 (August 19, 2009), 74 FR
43173 (August 26, 2009) (approving Amendment No. 3 to the OLPP).
NYSE Amex's proposal to list $1.00 strikes in LEAPS to $5.00 would
not be subject to the exercise price range limitations contained in
new paragraph (3)(g)(ii) of the OLPP.
---------------------------------------------------------------------------
The margin requirements of NYSE Amex Rule Section 9 and the
position and exercise requirements set forth in Rule 904 and Rule 905
will continue to apply to these new series, and no changes are being
proposed to those requirements by this rule change.
With regard to the impact on system capacity, NYSE Amex has
analyzed its capacity and represents that it and the Options Price
Reporting Authority have the necessary systems capacity to handle the
additional traffic associated with the listing and trading of an
expanded number of series as proposed by this filing.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \10\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5) \11\ in
particular in that it is designed to promote just and equitable
principles of 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 giving investors more flexibility
to closely tailor their investment decisions.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 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 proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, if consistent with the
protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give 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 Commission has waived this requirement in this case.
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission hereby grants that request.\14\ The
Commission believes
[[Page 62372]]
that waiver of the operative delay is consistent with the protection of
investors and the public interest because it recently approved a
proposal from CBOE which is identical to the current proposal in all
material respects and on which no comments were received.\15\
Therefore, the proposal is operative upon filing.
---------------------------------------------------------------------------
\14\ For 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).
\15\ See Securities Exchange Act Release No. 60978, supra note
4.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2009-84 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-2009-84. 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 you wish to make available publicly. All
submissions should refer to File Number SR-NYSEAmex-2009-84 and should
be submitted on or before December 18, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-28351 Filed 11-25-09; 8:45 am]
BILLING CODE 8011-01-P