Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by NASDAQ OMX PHLX, Inc. To Establish $2.50 Strike Price Intervals for Options on the NASDAQ Internet Index SM, 17820-17822 [2010-7781]
Download as PDF
<![CDATA[
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
17820
Federal Register / Vol. 75, No. 66 / Wednesday, April 7, 2010 / Notices
each case, be determined in accordance
with the Fund’s valuation policies.
The Commission further believes that
the proposal is reasonably designed to
promote fair disclosure of information
that may be necessary to price the
Shares appropriately and to prevent
trading when a reasonable degree of
transparency cannot be assured. The
Commission notes that the Exchange
will obtain a representation from the
issuer that the NAV per Share will be
calculated daily and made available to
all market participants at the same
time.15 The Manager has represented to
the Exchange that the NAV will be
disseminated to all market participants
at the same time.16 Additionally, if the
Exchange becomes aware that the
portfolio holdings and net asset value
per share are not being disseminated as
required, the Exchange may halt trading
during the day in which the
interruption to the dissemination of the
portfolio holdings or net asset value per
share occurs. If the interruption to the
dissemination of the portfolio holdings
or net asset value per share persists past
the trading day in which it occurred, the
Exchange will halt trading no later than
the beginning of the trading day
following the interruption.17
In addition, each of the Manager, the
Commodity Broker, and the Commodity
Sub-Advisor have represented to the
Exchange that they have erected and
maintain firewalls within their
respective institutions to prevent the
flow of non-public information
regarding the portfolio of underlying
securities from the personnel involved
in the development and implementation
of the investment strategy to others such
as sales and trading personnel.
The Exchange has represented that
the Shares are equity securities subject
to the Exchange’s rules governing the
trading of equity securities. In support
of this proposal, the Exchange has made
representations, including:
(1) The Shares will conform to the
initial and continued listing criteria
under NYSE Amex Rule 1602.
(2) The Exchange’s surveillance
procedures are adequate to properly
monitor Exchange trading of the Shares
and to deter and detect violations of
Exchange rules and applicable Federal
securities laws.
(3) The Exchange will distribute an
Information Circular to its members in
connection with the trading of the
Shares. The Circular will discuss the
special characteristics and risks of
trading this type of security.
NYSE Amex Rule 1602 (a)(ii).
Notice, supra, note 3.
17 See NYSE Amex Rule 1602(b)(ii).
Specifically, the Circular, among other
things, will discuss what the Shares are,
the requirement that members and
member firms deliver a prospectus to
investors purchasing the Shares prior to
or concurrently with the confirmation of
a transaction during the initial public
offering, applicable NYSE Amex rules,
and trading information and applicable
suitability rules. The Circular will also
explain that the Fund is subject to
various fees and expenses described in
the Registration Statement. The Circular
will also reference the fact that there is
no regulated source of last sale
information regarding physical
commodities and note the respective
jurisdictions of the Commission and
CFTC. The Circular will advise
members of their suitability obligations
with respect to recommended
transactions to customers in the Shares.
(4) The Fund will be in compliance
with Rule 10A–3 under the Act. This
approval order is based on the
Exchange’s representations.
In addition, the Commission finds
that the proposed changes to NYSE
Amex Rule 1600 et seq. to amend the
definition of Trust Units to remove the
master/feeder structure requirement and
to modify and update the rules to make
them consistent with the Exchange’s
recent rule book changes are consistent
with the Act.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to a national
securities exchange.
III. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,18 that the
proposed rule change (SR–NYSEAmex–
2010–09), be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–7836 Filed 4–6–10; 8:45 am]
BILLING CODE 8011–01–P
15 See
16 See
VerDate Nov<24>2008
15:18 Apr 06, 2010
Jkt 220001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61812; File No. SR–Phlx–
2010–49]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change by
NASDAQ OMX PHLX, Inc. To Establish
$2.50 Strike Price Intervals for Options
on the NASDAQ Internet Index SM
March 31, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on March 29,
2010, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) 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 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 is filing with the
Commission a proposal to amend: Phlx
Rule 1101A (Terms of Options
Contracts) regarding listing options on
the NASDAQ Internet Index SM trading
under the symbol QNET at $2.50 strikeprice intervals below $200; and Phlx
Rule 1107A (NASDAQ OMX Group, Inc.
Indexes) regarding disclaimer of express
or implied warranties in respect of
NASDAQ OMX Group, Inc.
(‘‘NASDAQ’’) indexes.
The Exchange requests that the
Commission waive the 30-day operative
delay period contained in Exchange Act
Rule 19b–4(f)(6)(iii).3
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/
NASDAQOMXPHLX/Filings/, 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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
1 15
18 15
U.S.C. 78s(b)(2).
19 17 CFR 200.30–3(a)(12).
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6)(iii).
2 17
E:\FR\FM\07APN1.SGM
07APN1
Federal Register / Vol. 75, No. 66 / Wednesday, April 7, 2010 / Notices
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
The purpose of the proposal is to
amend Rule 1101A regarding listing
options on the NASDAQ Internet
Index SM trading under the symbol
QNET (the ‘‘Index’’) at $2.50 strike-price
intervals below $200; and to amend
Rule 1107A regarding disclaimer of
express or implied warranties in respect
of NASDAQ Indexes.
The NASDAQ Internet Index SM has
been listed and maintained by NASDAQ
OMX continuously since November 27,
2007.4 The Index is designed to track
the performance of the largest and most
liquid U.S.-listed companies engaged in
internet-related businesses that are
listed on a U.S. stock exchange. The
Index includes companies engaged in a
broad range of internet-related services
including, but not limited to internet
software, internet access providers,
internet search engines, web hosting,
Web site design, and internet retail
commerce. The Exchange intends to list
options on the Index per subsection (b)
of Rule 1009A (Designation of the
Index).5
Phlx Rule 1101A currently indicates
in subsection (a) that the Exchange shall
determine fixed point strike price
intervals for index options at no less
than $5.00, provided that for indexes
that are listed in Rule 1101A, the
Exchange may determine to list strike
prices at no less than $2.50 intervals if
the strike price is less than $200. The
rule provides also that such options may
be listed at no less than $2.50 strike
price intervals on indexes delineated in
this rule, and in response to
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
4 For
a description of the Index, Index
Methodology, and Index pricing, see https://
indexes.nasdaqomx.com/. An Exchange-Traded
Fund denominated The PowerShares Nasdaq
Internet Portfolio (PNQI), which is based on the
Index, was initiated last year.
5 No options are currently traded on the Index.
Rule 1009A establishes generic listing standards for
options on narrow-based and broad-based indexes
pursuant to Rule 19b–4(e) of the Act. See Securities
Exchange Act Release No. 40761 (December 8,
1998), 63 FR 70952 (December 22, 1998). The listing
standards in Rule 1009A are similar to those of
other options exchanges such as, for example,
Chicago Board Options Exchange, Incorporated
(‘‘CBOE’’); International Stock Exchange LLC (‘‘ISE’’);
and The NASDAQ Stock Market LLC (‘‘NASDAQ
Market’’).
VerDate Nov<24>2008
15:18 Apr 06, 2010
Jkt 220001
demonstrated customer interest or
specialist request. Demonstrated
customer interest includes institutional
(firm) corporate or customer interest
expressed directly to the Exchange or
through the customer’s floor brokerage
unit, but not interest expressed by a
Registered Options Trader (‘‘ROT’’) with
respect to trading for the ROT’s own
account.6
The proposed rule change adds the
NASDAQ Internet IndexSM to the list of
indexes in Rule 1101A upon which the
Exchange may list options at $2.50
strike price intervals.7
Phlx Rule 1107A currently provides
that NASDAQ does not guarantee the
accuracy and/or uninterrupted
calculation of the NASDAQ–100 Index®
(the ‘‘index’’) or any data included
therein; makes no warranty, express or
implied, as to results to be obtained by
the Exchange, owners of the options on
the index, or any other person or entity
from the use of the index or any data
included therein; and makes no express
or implied warranties, and expressly
disclaims all warranties of
merchantability or fitness for a
particular purpose or use with respect to
the index or any data included therein.
The rule also provides, without limiting
any of the foregoing, that in no event
shall NASDAQ have any liability for
any lost profits or special, incidental,
punitive, indirect, or consequential
damages, even if notified of the
possibility of such damages. In
proposing adoption of Rule 1007A, the
Exchange stated that Rule 1107A, being
similar in concept to current Rules
1104A, 1105A, and 1106A, as well as
rules of other options exchanges, should
put NASDAQ on similar footing with
other licensors of options on indexes to
the Exchange.8
The proposed rule change expands
the coverage of Rule 1107A to include
the NASDAQ Internet Index SM.
6 Subsection (b) of Rule 1014 states that an ROT
is a regular member or a foreign currency options
participant of the Exchange located on the trading
floor who has received permission from the
Exchange to trade in options for his own account,
and includes a Streaming Quote Trader and a
Remote Streaming Quote Trader as defined in Rule
1014.
7 For recent rule change proposals wherein the
Exchange similarly added other indexes to Rule
1101A, see Securities Exchange Act Release Nos.
57899 (June 2, 2008), 73 FR 32379 (June 6, 2008)
(SR–Phlx–2008–40) (notice of filing and immediate
effectiveness); and 57515 (March 18, 2008), 73 FR
15554 (March 24, 2008) (SR–Phlx–2008–21) (notice
of filing and immediate effectiveness).
8 See Securities Exchange Act Release No. 58194
(July 18, 2008), 73 FR 43275 (July 24, 2008) (SR–
Phlx–2003–21) (notice of filing and immediate
effectiveness regarding adoption of Rule 1107A).
See also disclaimers and limitation of liability at
NYSE Amex (formerly ‘‘AMEX’’) Rule 902C and at
CBOE Rule 24.14.
PO 00000
Frm 00141
Fmt 4703
Sfmt 4703
17821
The Exchange believes that its
proposal to modify Rules 1101A and
1107A should encourage listing and
trading options on the NASDAQ
Internet Index SM at appropriate strike
price intervals and should encourage
maintenance of the index so that
overlying options may be available for
listing and trading, thereby expanding
investment and hedging opportunities
for investors and other market
participants.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 9 in general, and furthers the
objectives of Section 6(b)(5) of the Act 10
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system, by
encouraging listing options on the
NASDAQ Internet Index SM at
appropriate strike price intervals and
encouraging maintenance of the index
so that options overlying the index may
be available for trading and hedging.
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 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 either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange believes that the
foregoing proposed rule change may
take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A) 11 of the Act and Rule 19b–
4(f)(6)(iii) thereunder 12 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
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6)(iii).
10 15
E:\FR\FM\07APN1.SGM
07APN1
17822
Federal Register / Vol. 75, No. 66 / Wednesday, April 7, 2010 / Notices
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate.
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:
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2010–49 on the
subject line.
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2010–49 and should be submitted on or
before April 28, 2010.
Dated: March 30, 2010.
Eric J. Boswell,
Director, Office of Foreign Missions.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
DEPARTMENT OF STATE
[FR Doc. 2010–7781 Filed 4–6–10; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 6943]
Designation and Determination
Pursuant to the Foreign Missions Act
Concerning the Designation of entities
in the United States that are
substantially owned or effectively
controlled by the Government of
Vietnam as Foreign Missions and the
Paper Comments
Determination that property
• Send paper comments in triplicate
transactions on the part of such entities
to Elizabeth M. Murphy, Secretary,
are subject to Foreign Mission Act
Securities and Exchange Commission,
regulation:
100 F Street, NE., Washington, DC
In order to adjust for costs and
20549–1090.
procedures of obtaining benefits for the
All submissions should refer to File
mission of the United States in Vietnam
Number SR–Phlx–2010–49. This file
and to protect the interests of the United
number should be included on the
States in that context, pursuant to the
subject line if e-mail is used. To help the
authority vested in me by the Foreign
Commission process and review your
Missions Act, 22 U.S.C. 4301 et seq.
comments more efficiently, please use
(‘‘the Act’’), and Department of State
only one method. The Commission will
post all comments on the Commission’s Delegation of Authority No. 214, Section
14, dated September 20, 1994, I hereby
Internet Web site (https://www.sec.gov/
designate the Vietnam News Agency, an
rules/sro.shtml). Copies of the
entity engaged in activities in the
submission, all subsequent
United States that is effectively
amendments, all written statements
controlled by the Government of
with respect to the proposed rule
Vietnam, and all entities in the United
change that are filed with the
States that are designated by the
Commission, and all written
Department of State as Miscellaneous
communications relating to the
Foreign Government Offices of the
proposed rule change between the
Commission and any person, other than Government of Vietnam now or in the
future, including the Vietnam Trade
those that may be withheld from the
Promotion Center, as well as any other
public in accordance with the
entity in the United States which is
provisions of 5 U.S.C. 552, will be
substantially owned or effectively
available for Web site viewing and
controlled by the Government of
printing in the Commission’s Public
Vietnam, to be ‘‘foreign missions’’ within
Reference Room, 100 F Street, NE.,
the meaning of Section 4302(a)(3) of the
Washington, DC 20549, on official
Act and determine that the provisions of
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also Section 4305 of the Act apply to the
acquisition, proposed sale or disposition
will be available for inspection and
of real property by or on behalf of such
copying at the principal office of the
entities.
Exchange. All comments received will
be posted without change; the
13 17 CFR 200.30–3(a)(12).
Commission does not edit personal
VerDate Nov<24>2008
15:18 Apr 06, 2010
Jkt 220001
PO 00000
Frm 00142
Fmt 4703
Sfmt 4703
[FR Doc. 2010–7905 Filed 4–6–10; 8:45 am]
BILLING CODE 4710–43–P
[Public Notice 6946]
Shipping Coordinating Committee;
Notice of Committee Meeting
The Shipping Coordinating
Committee (SHC) will conduct an open
meeting at 10 a.m. on Tuesday, April 20,
2010, in Room 1422 of the United States
Coast Guard Headquarters Building,
2100 Second Street, SW., Washington,
DC 20593–0001. The primary purpose of
the meeting is to prepare for the
International Maritime Organization
(IMO) Diplomatic Conference to Revise
the International Convention on
Liability and Compensation for Damage
in Connection with the Carriage of
Hazardous and Noxious Substances by
Sea, 1996 (HNS Convention) to be held
at the IMO Headquarters, United
Kingdom, from April 26 to April 30,
2010.
The primary matters to be considered
include:
—Election of the President
—Adoption of the agenda
—Adoption of the Rules of Procedure
—Election of the Vice-Presidents and
other officers of the Conference
—Appointment of the Credentials
Committee
—Organization of the work of the
Conference, including the establishment
of other committees, as necessary
—Consideration of a draft protocol to
the International Convention on
Liability and Compensation for Damage
in Connection with the Carriage of
Hazardous and Noxious Substances by
Sea, 1996 and any draft Conference
resolutions
—Consideration of the reports of the
credentials committee and other
committees
—Adoption of the Final Act and any
instruments, recommendations and
resolutions resulting from the work of
the Conference
—Signature of the Final Act
Members of the public may attend
this meeting up to the seating capacity
of the room. To facilitate the building
security process, those who plan to
attend should contact the meeting
coordinator, Ms. Bronwyn G. Douglass,
by e-mail at
bronwyn.douglass@uscg.mil, by phone
at (202) 372–3792, by fax at (202) 372–
3972, or in writing at Commandant (CG–
E:\FR\FM\07APN1.SGM
07APN1
]]>Agencies
[Federal Register Volume 75, Number 66 (Wednesday, April 7, 2010)]
[Notices]
[Pages 17820-17822]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7781]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61812; File No. SR-Phlx-2010-49]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change by NASDAQ OMX PHLX, Inc. To
Establish $2.50 Strike Price Intervals for Options on the NASDAQ
Internet Index \SM\
March 31, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on March 29, 2010, NASDAQ OMX PHLX, Inc. (``Phlx'' or
``Exchange'') 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 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\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing with the Commission a proposal to amend:
Phlx Rule 1101A (Terms of Options Contracts) regarding listing options
on the NASDAQ Internet Index \SM\ trading under the symbol QNET at
$2.50 strike-price intervals below $200; and Phlx Rule 1107A (NASDAQ
OMX Group, Inc. Indexes) regarding disclaimer of express or implied
warranties in respect of NASDAQ OMX Group, Inc. (``NASDAQ'') indexes.
The Exchange requests that the Commission waive the 30-day
operative delay period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\3\
---------------------------------------------------------------------------
\3\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, 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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the
[[Page 17821]]
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
The purpose of the proposal is to amend Rule 1101A regarding
listing options on the NASDAQ Internet Index \SM\ trading under the
symbol QNET (the ``Index'') at $2.50 strike-price intervals below $200;
and to amend Rule 1107A regarding disclaimer of express or implied
warranties in respect of NASDAQ Indexes.
The NASDAQ Internet Index \SM\ has been listed and maintained by
NASDAQ OMX continuously since November 27, 2007.\4\ The Index is
designed to track the performance of the largest and most liquid U.S.-
listed companies engaged in internet-related businesses that are listed
on a U.S. stock exchange. The Index includes companies engaged in a
broad range of internet-related services including, but not limited to
internet software, internet access providers, internet search engines,
web hosting, Web site design, and internet retail commerce. The
Exchange intends to list options on the Index per subsection (b) of
Rule 1009A (Designation of the Index).\5\
---------------------------------------------------------------------------
\4\ For a description of the Index, Index Methodology, and Index
pricing, see https://indexes.nasdaqomx.com/. An Exchange-Traded Fund
denominated The PowerShares Nasdaq Internet Portfolio (PNQI), which
is based on the Index, was initiated last year.
\5\ No options are currently traded on the Index. Rule 1009A
establishes generic listing standards for options on narrow-based
and broad-based indexes pursuant to Rule 19b-4(e) of the Act. See
Securities Exchange Act Release No. 40761 (December 8, 1998), 63 FR
70952 (December 22, 1998). The listing standards in Rule 1009A are
similar to those of other options exchanges such as, for example,
Chicago Board Options Exchange, Incorporated (``CBOE'');
International Stock Exchange LLC (``ISE''); and The NASDAQ Stock
Market LLC (``NASDAQ Market'').
---------------------------------------------------------------------------
Phlx Rule 1101A currently indicates in subsection (a) that the
Exchange shall determine fixed point strike price intervals for index
options at no less than $5.00, provided that for indexes that are
listed in Rule 1101A, the Exchange may determine to list strike prices
at no less than $2.50 intervals if the strike price is less than $200.
The rule provides also that such options may be listed at no less than
$2.50 strike price intervals on indexes delineated in this rule, and in
response to demonstrated customer interest or specialist request.
Demonstrated customer interest includes institutional (firm) corporate
or customer interest expressed directly to the Exchange or through the
customer's floor brokerage unit, but not interest expressed by a
Registered Options Trader (``ROT'') with respect to trading for the
ROT's own account.\6\
---------------------------------------------------------------------------
\6\ Subsection (b) of Rule 1014 states that an ROT is a regular
member or a foreign currency options participant of the Exchange
located on the trading floor who has received permission from the
Exchange to trade in options for his own account, and includes a
Streaming Quote Trader and a Remote Streaming Quote Trader as
defined in Rule 1014.
---------------------------------------------------------------------------
The proposed rule change adds the NASDAQ Internet Index\SM\ to the
list of indexes in Rule 1101A upon which the Exchange may list options
at $2.50 strike price intervals.\7\
---------------------------------------------------------------------------
\7\ For recent rule change proposals wherein the Exchange
similarly added other indexes to Rule 1101A, see Securities Exchange
Act Release Nos. 57899 (June 2, 2008), 73 FR 32379 (June 6, 2008)
(SR-Phlx-2008-40) (notice of filing and immediate effectiveness);
and 57515 (March 18, 2008), 73 FR 15554 (March 24, 2008) (SR-Phlx-
2008-21) (notice of filing and immediate effectiveness).
---------------------------------------------------------------------------
Phlx Rule 1107A currently provides that NASDAQ does not guarantee
the accuracy and/or uninterrupted calculation of the NASDAQ-100
Index[reg] (the ``index'') or any data included therein; makes no
warranty, express or implied, as to results to be obtained by the
Exchange, owners of the options on the index, or any other person or
entity from the use of the index or any data included therein; and
makes no express or implied warranties, and expressly disclaims all
warranties of merchantability or fitness for a particular purpose or
use with respect to the index or any data included therein. The rule
also provides, without limiting any of the foregoing, that in no event
shall NASDAQ have any liability for any lost profits or special,
incidental, punitive, indirect, or consequential damages, even if
notified of the possibility of such damages. In proposing adoption of
Rule 1007A, the Exchange stated that Rule 1107A, being similar in
concept to current Rules 1104A, 1105A, and 1106A, as well as rules of
other options exchanges, should put NASDAQ on similar footing with
other licensors of options on indexes to the Exchange.\8\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 58194 (July 18,
2008), 73 FR 43275 (July 24, 2008) (SR-Phlx-2003-21) (notice of
filing and immediate effectiveness regarding adoption of Rule
1107A). See also disclaimers and limitation of liability at NYSE
Amex (formerly ``AMEX'') Rule 902C and at CBOE Rule 24.14.
---------------------------------------------------------------------------
The proposed rule change expands the coverage of Rule 1107A to
include the NASDAQ Internet Index \SM\.
The Exchange believes that its proposal to modify Rules 1101A and
1107A should encourage listing and trading options on the NASDAQ
Internet Index \SM\ at appropriate strike price intervals and should
encourage maintenance of the index so that overlying options may be
available for listing and trading, thereby expanding investment and
hedging opportunities for investors and other market participants.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \9\ in general, and furthers the objectives of Section
6(b)(5) of the Act \10\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanisms of
a free and open market and a national market system, by encouraging
listing options on the NASDAQ Internet Index \SM\ at appropriate strike
price intervals and encouraging maintenance of the index so that
options overlying the index may be available for trading and hedging.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 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 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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange believes that the foregoing proposed rule change may
take effect upon filing with the Commission pursuant to Section
19(b)(3)(A) \11\ of the Act and Rule 19b-4(f)(6)(iii) thereunder \12\
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
[[Page 17822]]
operative for 30 days from the date on which it was filed, or such
shorter time as the Commission may designate.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
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-Phlx-2010-49 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-Phlx-2010-49. 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-Phlx-2010-49 and should be
submitted on or before April 28, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-7781 Filed 4-6-10; 8:45 am]
BILLING CODE 8011-01-P
