Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Permit Concurrent Listing of $3.50 and $4 Strikes for Classes in the $0.50 Strike and $1 Strike Programs, 14225-14227 [2010-6517]
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Federal Register / Vol. 75, No. 56 / Wednesday, March 24, 2010 / Notices
and (iii) completion of the 19b–4
approval process.
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 16 and Rule
19b–4(f)(6) thereunder.17 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; or (iii) become operative
prior to 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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.18
A proposed rule change filed under
Rule 19b–4(f)(6) 19 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),20 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
16 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
18 17 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.
19 17 CFR 240.19b–4(f)(6).
20 17 CFR 240.19b–4(f)(6)(iii).
srobinson on DSKHWCL6B1PROD with NOTICES
17 17
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Commission notes that because the pilot
program will expire on March 30, 2010,
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 extension of the pilot to
allow the Exchange time to formally
request permanent approval. Therefore,
the Commission designates the proposal
operative upon filing.21
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–NYSEAmex–2010–28 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–2010–28. 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
21 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 00103
Fmt 4703
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14225
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Section 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–2010–28 and
should be submitted on or before April
14, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–6376 Filed 3–23–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61737; File No. SR–ISE–
2010–22]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Permit Concurrent Listing
of $3.50 and $4 Strikes for Classes in
the $0.50 Strike and $1 Strike
Programs
March 18, 2010.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 10,
2010, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which items
have been prepared by the Exchange.
The Exchange has filed the proposal as
a ‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
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14226
Federal Register / Vol. 75, No. 56 / Wednesday, March 24, 2010 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to permit the
concurrent listing of $3.50 and $4
strikes for classes that participate in
both the $0.50 Strike and $1 Strike
Programs. The text of the proposed rule
change is available on the Exchange’s
Web site https://www.ise.com, at the
principal office of the Exchange, 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.
srobinson on DSKHWCL6B1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to permit the concurrent
listing of $3.50 and $4 strikes for classes
that participate in both the $0.50 Strike
and $1 Strike Programs.
The Exchange recently implemented a
rule change that permits strike price
intervals of $0.50 for options on stocks
trading at or below $3.00 (‘‘$0.50 Strike
Program’’).5 As part of the filing to
establish the $0.50 Strike Program, the
Exchange contemplated that a class may
be selected to participate in both the
$0.50 Strike Program and the $1 Strike
Program. Under the $1 Strike Program,
new series with $1 intervals are not
permitted to be listed within $0.50 of an
existing $2.50 strike price in the same
series, except that strike prices of $2 and
$3 are permitted to be listed within
$0.50 of a $2.50 strike price for classes
also selected to participate in the $0.50
Strike Program.6 Under ISE’s existing
rule, for classes selected to participate
in both the $0.50 Strike Program and the
$1 Strike Program, the Exchange may
either: (a) List a $3.50 strike but not list
5 See
Exchange Act Release No. 60696 (September
18, 2009), 74 FR 49053 (September 24, 2009) (SR–
ISE–2009–65).
6 See Supplementary Material .01(b) to ISE Rule
504.
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16:24 Mar 23, 2010
Jkt 220001
a $4 strike; or (b) list a $4 strike but not
list a $3.50 strike. For example, if a
$3.50 strike for an options class in both
the $0.50 and $1 Strike Programs was
listed, the next highest permissible
strike price would be $5.00.
Alternatively, if a $4 strike was listed,
the next lowest permissible strike price
would be $3.00. The intent of the $.50
Strike Program was to expand the ability
of investors to hedge risks associated
with stocks trading at or under $3 and
to provide finer intervals of $0.50,
beginning at $1 up to $3.50. As a result,
the Exchange believes that the current
filing is consistent with the purpose of
the $0.50 Strike Program and will
permit the Exchange to fill in any
existing gaps resulting from having to
choose whether to list a $3.50 or $4
strike for options classes in both the
$0.50 and $1 Strike Programs.
Therefore, the Exchange is submitting
the current filing to permit the listing of
concurrent $3.50 and $4 strikes for
classes that are selected to participate in
both the $0.50 Strike Program and the
$1 Strike Program. To effect this change,
the Exchange is proposing to amend
Supplementary Material .01(b) to ISE
Rule 504 by adding $4 to the strike
prices of $2 and $3 currently permitted
if a class participates in both the $0.50
Strike Program and the $1 Strike
Program.
The Exchange is also proposing to
amend the current rule text to delete
references to ‘‘$2.50 strike prices’’ (and
the example utilizing $2.50 strike
prices) and to replace those references
with broader language, e.g., ‘‘existing
strike prices.’’
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’)
for this proposed rule change is the
requirement under section 6(b)(5) of the
Exchange Act 7 that an exchange have
rules that are designed to promote just
and equitable principles of trade, and to
remove impediments to and perfect the
mechanism for a free and open market
and a national market system, and in
general, to protect investors and the
public interest. In particular, the
proposed rule change will allow the
Exchange to list more granular strikes
on options overlying lower priced
securities, which the Exchange believes
will provide investors with greater
flexibility by allowing them to establish
positions that ate better tailored to meet
their investment objectives.
7 15
PO 00000
U.S.C. 78f(b)(5).
Frm 00104
Fmt 4703
Sfmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest, does not impose any significant
burden on competition, and, 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, it has
become effective pursuant to section
19(b)(3)(A) 8 of the Act and Rule 19b–
4(f)(6) 9 thereunder. The Exchange
provided the Commission with 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 the proposed
rule change.
The Exchange has requested that the
Commission waive the 30-day operative
delay to permit the Exchange to
compete with other exchanges whose
rules permit concurrent listing of $3.50
and $4 strikes for classes similarly
participating in both a $0.50 strike
program and a $1 strike program. The
Commission finds that waiver of the
operative delay is consistent with the
protection of investors and the public
interest because such waiver will
encourage fair competition among the
exchanges. Therefore, the Commission
designates the proposal operative upon
filing.10
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
8 15
U.S.C. 78s(b)(3)(A).
C.F.R. 240.19b–4(f)(6).
10 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).
9 17
E:\FR\FM\24MRN1.SGM
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Federal Register / Vol. 75, No. 56 / Wednesday, March 24, 2010 / Notices
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
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–6517 Filed 3–23–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61735; File No. SR–
NASDAQ–2010–007]
• 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–ISE–2010–22 on the subject
line.
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Approving Proposed Rule Change, as
Modified by Amendment No. 1,
Relating to the Elimination of a Market
Maker Requirement for Each Option
Series
Paper Comments
March 18, 2010.
I. Introduction
On January 14, 2010, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
All submissions should refer to File
19(b)(1) of the Securities Exchange Act
Number SR–ISE–2010–22. This file
of 1934 (‘‘Act’’) 1 and Rule 19b–4
number should be included on the
thereunder,2 a proposed rule change to
subject line if e-mail is used. To help the eliminate the requirement that at least
Commission process and review your
one Options Market Maker 3 must be
comments more efficiently, please use
registered for trading a particular series
only one method. The Commission will before it may be opened for trading on
post all comments on the Commission’s the Nasdaq Options Market (‘‘NOM’’).
Internet Web site (https://www.sec.gov/
On January 26, 2009, the Exchange filed
rules/sro.shtml). Copies of the
Amendment No. 1 to the proposal. The
submission, all subsequent
proposed rule change, as modified by
amendments, all written statements
Amendment No. 1, was published for
with respect to the proposed rule
comment in the Federal Register on
change that are filed with the
February 4, 2009.4 The Commission
Commission, and all written
received one comment letter on the
communications relating to the
proposal.5 This order approves the
proposed rule change between the
proposed rule change, as modified by
Commission and any person, other than Amendment No. 1.
those that may be withheld from the
II. Description of the Proposal
public in accordance with the
Currently, Chapter IV, Section 5 of the
provisions of 5 U.S.C. 552, will be
NOM rulebook provides, in relevant
available for Web site viewing and
printing in the Commission’s Public
11 17 CFR 200.30–3(a)(12).
Reference Room, 100 F Street, NE.,
1 15 U.S.C. 78s(b)(1).
Washington, DC 20549, on official
2 17 CFR 240.19b–4.
business days between the hours of 10
3 An ‘‘Options Market Maker’’ is a Participant
a.m. and 3 p.m. Copies of the filing also registered with NASDAQ as a Market Maker. See
NOM Rules, Chapter I, Section 1(a)(26) and Chapter
will be available for inspection and
VII, Section 2. An ‘‘Options Participant’’ or
copying at the principal office of the
‘‘Participant’’ is a firm or organization that is
Exchange. All comments received will
registered with the Exchange pursuant to Chapter
be posted without change; the
II of the NOM Rules for purposes of participating
in options trading on NOM as a ‘‘NASDAQ Options
Commission does not edit personal
Order Entry Firm’’ or ‘‘NASDAQ Options Market
identifying information from
Maker.’’ See NOM Rules, Chapter I, Section 1(a)(40).
submissions. You should submit only
4 See Securities Exchange Act Release No. 61443
information that you wish to make
(January 29, 2010), 74 FR 46267 (‘‘Notice’’).
5 See letter from Janet M. Kissane, Senior Vice
available publicly. All submissions
President—Legal and Corporate Secretary, NYSE
should refer to File Number SR–ISE–
2010–22 and should be submitted on or Euronext, to Elizabeth M. Murphy, Secretary,
Commission, dated February 26, 2010 (‘‘NYSE
before April 14, 2010.
Euronext Comment Letter’’).
srobinson on DSKHWCL6B1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
VerDate Nov<24>2008
16:24 Mar 23, 2010
Jkt 220001
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Frm 00105
Fmt 4703
Sfmt 4703
14227
part, that after a particular class of
options has been approved for listing on
NOM by NASDAQ Regulation,
NASDAQ will open trading in series of
options in that class only if there is at
least one Market Maker registered for
trading that particular series. The
Exchange is now proposing to eliminate
this requirement to have a Market Maker
in every series. The Exchange argues
that removing this requirement will
expand the number of series available to
investors for trading and for hedging
risks associated with securities
underlying those options. Further, the
Exchange asserts that market makers
currently may choose to register as
Market Makers in a particular series
solely to permit an option to trade on
NOM. The Exchange believes that the
proposed rule change will permit
Market Makers to focus their expertise
on the products that are more consistent
with their business objectives or more
likely to attract customer order flow.
The Exchange also notes that the
Options Order Protection and Locked/
Crossed Market Plan requires plan
participants (such as Nasdaq) to
establish, maintain and enforce written
policies and procedures that are
reasonably designed to prevent tradethroughs in that participant’s market in
Eligible Options Classes.6 Further, the
Exchange notes that NOM has put in
place rules to implement this provision
of the Plan, and that its systems are
designed to systematically avoid trading
through protected quotations on other
options exchanges.7 Thus, the Exchange
believes that the lack of a two-sided or
tight market on NOM would not cause
customer orders to be executed at prices
inferior to the best prices available
across all exchanges.
In addition, the Exchange is
proposing to delete paragraph (b) of
Section 5, Chapter IV, which states that
a class of options will be put into a nonregulatory halt if at least one series for
that class is not open for trading. The
Exchange explains that this provision
was put in place so that the Exchange
could approve underlying securities for
the listing of options but delay the
listing if the Market Makers on the
Exchange were not yet ready to register
in any series of options for that class.
With the elimination of the other
6 See Securities Exchange Act Release No. 60405
(July 30, 2009), 74 FR 39362 (August 6, 2009) (File
No. 4–546) (approval order for the Protection and
Locked/Crossed Plan).
7 See NOM Rules, Chapter XII, Section 2; and
Securities Exchange Act Release No. 60525 (August
18, 2009), 74 FR 43188 (August 26, 2009) (approval
order for NOM’s proposed rule change to
implement the Protection and Locked/Crossed
Plan).
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]]>Agencies
[Federal Register Volume 75, Number 56 (Wednesday, March 24, 2010)]
[Notices]
[Pages 14225-14227]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-6517]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61737; File No. SR-ISE-2010-22]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Permit Concurrent Listing of $3.50 and $4 Strikes for Classes
in the $0.50 Strike and $1 Strike Programs
March 18, 2010.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 10, 2010, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which items have been prepared by the
Exchange. The Exchange has filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
[[Page 14226]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to permit the concurrent listing of $3.50 and
$4 strikes for classes that participate in both the $0.50 Strike and $1
Strike Programs. The text of the proposed rule change is available on
the Exchange's Web site https://www.ise.com, at the principal office of
the Exchange, 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 purpose of this proposed rule change is to permit the
concurrent listing of $3.50 and $4 strikes for classes that participate
in both the $0.50 Strike and $1 Strike Programs.
The Exchange recently implemented a rule change that permits strike
price intervals of $0.50 for options on stocks trading at or below
$3.00 (``$0.50 Strike Program'').\5\ As part of the filing to establish
the $0.50 Strike Program, the Exchange contemplated that a class may be
selected to participate in both the $0.50 Strike Program and the $1
Strike Program. Under the $1 Strike Program, new series with $1
intervals are not permitted to be listed within $0.50 of an existing
$2.50 strike price in the same series, except that strike prices of $2
and $3 are permitted to be listed within $0.50 of a $2.50 strike price
for classes also selected to participate in the $0.50 Strike
Program.\6\ Under ISE's existing rule, for classes selected to
participate in both the $0.50 Strike Program and the $1 Strike Program,
the Exchange may either: (a) List a $3.50 strike but not list a $4
strike; or (b) list a $4 strike but not list a $3.50 strike. For
example, if a $3.50 strike for an options class in both the $0.50 and
$1 Strike Programs was listed, the next highest permissible strike
price would be $5.00. Alternatively, if a $4 strike was listed, the
next lowest permissible strike price would be $3.00. The intent of the
$.50 Strike Program was to expand the ability of investors to hedge
risks associated with stocks trading at or under $3 and to provide
finer intervals of $0.50, beginning at $1 up to $3.50. As a result, the
Exchange believes that the current filing is consistent with the
purpose of the $0.50 Strike Program and will permit the Exchange to
fill in any existing gaps resulting from having to choose whether to
list a $3.50 or $4 strike for options classes in both the $0.50 and $1
Strike Programs.
---------------------------------------------------------------------------
\5\ See Exchange Act Release No. 60696 (September 18, 2009), 74
FR 49053 (September 24, 2009) (SR-ISE-2009-65).
\6\ See Supplementary Material .01(b) to ISE Rule 504.
---------------------------------------------------------------------------
Therefore, the Exchange is submitting the current filing to permit
the listing of concurrent $3.50 and $4 strikes for classes that are
selected to participate in both the $0.50 Strike Program and the $1
Strike Program. To effect this change, the Exchange is proposing to
amend Supplementary Material .01(b) to ISE Rule 504 by adding $4 to the
strike prices of $2 and $3 currently permitted if a class participates
in both the $0.50 Strike Program and the $1 Strike Program.
The Exchange is also proposing to amend the current rule text to
delete references to ``$2.50 strike prices'' (and the example utilizing
$2.50 strike prices) and to replace those references with broader
language, e.g., ``existing strike prices.''
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (``Exchange
Act'') for this proposed rule change is the requirement under section
6(b)(5) of the Exchange Act \7\ that an exchange have rules that are
designed to promote just and equitable principles of trade, and to
remove impediments to and perfect the mechanism for a free and open
market and a national market system, and in general, to protect
investors and the public interest. In particular, the proposed rule
change will allow the Exchange to list more granular strikes on options
overlying lower priced securities, which the Exchange believes will
provide investors with greater flexibility by allowing them to
establish positions that ate better tailored to meet their investment
objectives.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not 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
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, 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, it has become
effective pursuant to section 19(b)(3)(A) \8\ of the Act and Rule 19b-
4(f)(6) \9\ thereunder. The Exchange provided the Commission with
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 the proposed rule
change.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 C.F.R. 240.19b-4(f)(6).
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The Exchange has requested that the Commission waive the 30-day
operative delay to permit the Exchange to compete with other exchanges
whose rules permit concurrent listing of $3.50 and $4 strikes for
classes similarly participating in both a $0.50 strike program and a $1
strike program. The Commission finds that waiver of the operative delay
is consistent with the protection of investors and the public interest
because such waiver will encourage fair competition among the
exchanges. Therefore, the Commission designates the proposal operative
upon filing.\10\
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\10\ 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).
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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
[[Page 14227]]
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-ISE-2010-22 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-ISE-2010-22. 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 Web site viewing and
printing 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-ISE-2010-22 and should be
submitted on or before April 14, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-6517 Filed 3-23-10; 8:45 am]
BILLING CODE 8011-01-P
