Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 903 Commentary .06, 21074-21076 [2010-9278]
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21074
Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments relating to the
proposed rule change were not and are
not intended to be solicited or received.
DTC will notify the Commission of any
written comments received by DTC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A)(iii) of
the Act 14 and Rule 19b–4(f)(4) 15
thereunder because the proposed rule
change effects a change in an existing
service of DTC that: (i) Does not
adversely affect the safeguarding of
securities or funds in the custody or
control of DTC or for which it is
responsible and (ii) does not
significantly affect the respective rights
or obligations of DTC or persons using
the service. At any time within sixty
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.
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 such filings
also will be available for inspection and
copying at the principal office of DTC
and on DTC’s Web site at https://
www.dtcc.com/downloads/legal/
rule_filings/2010/dtc/2010–07.pdf. 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–DTC–2010–07 and should
be submitted on or before May 13, 2010.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
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–DTC–2010–07 on the
subject line.
srobinson on DSKHWCL6B1PROD with NOTICES
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:
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Secretary, Elizabeth M. Murphy,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–DTC–2010–07. 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
[FR Doc. 2010–9279 Filed 4–21–10; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–61921; File No. SR–
NYSEAmex–2010–38]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 903
Commentary .06
April 15, 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 April 12,
2010, NYSE Amex LLC (the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
15 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(4).
VerDate Nov<24>2008
18:25 Apr 21, 2010
Jkt 220001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 903 Commentary .06 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 attached as Exhibit 5 to the
19b–4 form. A copy of this filing is
available on the Exchange’s Web site at
https://www.nyse.com, at the Exchange’s
principal office and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
Rule 903 Commentary .06 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
3 15
16 17
14 15
have been prepared by the Exchange.
The Exchange filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act,3 and Rule 19b–4(f)(6)
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See Exchange Act Release No. 60720 (September
25, 2009) 74 FR 51205 (October 5, 2009).
4 17
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Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
srobinson on DSKHWCL6B1PROD with NOTICES
$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. Under NYSE Amex’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, under the Exchange’s current
rules, if a $3.50 strike for an option 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 add $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 Exchange believes the proposed
rule change is consistent with Section
6(b) 6 of the Securities Exchange Act of
1934 (the ‘‘Act’’), in general, and furthers
the objectives of Section 6(b)(5) 7 in
particular in that it is designed to
promote just and equitable principles of
trade, to prevent fraudulent and
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Nov<24>2008
18:25 Apr 21, 2010
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 permitting 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 are better tailored to meet
their investment objectives.
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 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 list
series available on other exchanges. The
Commission finds that waiver of the
operative delay is consistent with the
protection of investors and the public
interest because such waiver will enable
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. Therefore, the
8 15
9 17
Jkt 220001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
Frm 00099
Fmt 4703
Sfmt 4703
21075
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
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–2010–38 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–2010–38. 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,11 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
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).
11 The text of the proposed rule change is
available on the Commission’s Web site at https://
www.sec.gov/.
E:\FR\FM\22APN1.SGM
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21076
Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
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–2010–38 and should be
submitted on or before May 13, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–9278 Filed 4–21–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61915; File No. SR–CBOE–
2010–033]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated: Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Strategy
Fee Cap Program
April 15, 2010.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934, 15
U.S.C. 78s(b)(1), notice is hereby given
that on March 26, 2010, Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ or the ‘‘Exchange’’) 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 CBOE. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
srobinson on DSKHWCL6B1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’ or ‘‘Exchange’’)
proposes to amend its strategy fee cap
program. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.org/legal), at
the Exchange’s Office of the Secretary
and at the Commission.
12 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
18:25 Apr 21, 2010
Jkt 220001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. CBOE has prepared
summaries, set forth in section (A), (B),
and (C) below, of the most significant
aspects of such statements.
(a) Purpose
The Exchange caps market-maker,
firm, and broker-dealer transaction fees
associated with dividend, merger and
short stock interest strategies, as
described in Footnote 13 of the CBOE
Fees Schedule (‘‘Strategy Fee Cap’’).
Specifically, market-maker, firm and
broker-dealer transaction fees are
capped at $1,000 for all (i) Dividend
strategies,1 (ii) merger strategies 2 and
(iii) short stock interest strategies 3
executed on the same trading day in the
same options class. In addition, such
transaction fees for these strategies are
further capped at $25,000 per month per
initiating member or firm.
The Exchange proposes a limited
expansion of the Strategy Fee Cap
program. Specifically, the Exchange
proposes to cap market-maker and
broker-dealer transaction fees at $1,000
for all reversals, conversions and jelly
roll strategies (as defined below)
executed on the same trading day in the
same Flexible Exchange (FLEX) option
class, excluding any option class on
which the Exchange charges the
surcharge fee under Footnote 14 of the
CBOE Fees Schedule. As under the
current program, such transaction fees
would be further capped at $25,000 per
month per initiating member or firm,
and to qualify transactions for the cap
a rebate request with supporting
documentation must be submitted to the
1 A dividend strategy is defined as transactions
done to achieve a dividend arbitrage involving the
purchase, sale and exercise of in-the-money options
of the same class, executed prior to the date on
which the underlying stock goes ex-dividend.
2 A merger strategy is defined as transactions
done to achieve a merger arbitrage involving the
purchase, sale and exercise of options of the same
class and expiration date, each executed prior to the
date on which shareholders of record are required
to elect their respective form of consideration, i.e.,
cash or stock.
3 A short stock interest strategy is defined as
transactions done to achieve a short stock interest
arbitrage involving the purchase, sale and exercise
of in-the-money options of the same class.
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
Exchange within 3 business days of the
transactions.4
Reversals, conversions and jelly roll
strategies are included in the strategy
fee cap programs of other exchanges.5
Reversals and conversions are
transactions that employ calls, puts and
the underlying security to lock in a
nearly risk free profit. Reversals are
established by combining a short
security position with a short put and a
long call position that shares the same
strike and expiration. Conversions
employ long positions in the underlying
security that accompany long puts and
short calls sharing the same strike and
expiration.
A Jelly Roll is a long calendar call
spread combined with the same short
calendar put spread, or vice versa. This
option strategy aims to profit from a
time value spread through the purchase
and sale of two call and two put
options, each with different expiration
dates. A Jelly Roll is created by entering
into two separate positions
simultaneously. One position involves
buying a put and selling a call with the
same strike price and expiration. The
second position involves selling a put
and buying a call, with the same strike
price, but a different expiration from the
first position. Below is an example of a
Jelly Roll strategy execution.
XYZ Jun/Oct 25 Jelly Roll:
—Buy XYZ Jun 25 put and sell XYZ Jun
25 call
—Sell XYZ Oct 25 Put and buy XYZ Oct
25 call
Market BBO:
Jun 25 call .51 at .53
Jun 25 put .72 at .74
Oct 25 call 1.52 at 1.55
Oct 25 put 2.35 at 2.39
.74(long Jun put) + 1.52(long Oct
call)¥.51(short Jun call)¥2.35(short Oct
put) = .60 credit received for the Jelly
roll.
The proposed fee change would
become operative on March 29, 2010.
The Exchange proposes to amend
Footnote 6 of the Fees Schedule in
conjunction with the proposed
expansion of the strategy fee cap to
include reversals, conversions and jelly
roll strategies. Specifically, the
Exchange proposes to amend Footnote 6
to clarify that the marketing fee will not
4 In addition, the Exchange proposes to amend
Footnote 13 of the Fees Schedule to clarify that
‘‘license fees’’ has the same meaning as ‘‘Surcharge
Fees’’ and that the pass-through of Surcharge Fees
is only applicable to the cap on dividend, merger
and short stock interest strategies since the cap on
reversals, conversions and jelly roll strategies
excludes any option class on which the Exchange
assesses the Surcharge Fee.
5 See the options fee schedules of NYSE Amex,
LLC and NYSE Arca, LLC.
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Agencies
[Federal Register Volume 75, Number 77 (Thursday, April 22, 2010)]
[Notices]
[Pages 21074-21076]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9278]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61921; File No. SR-NYSEAmex-2010-38]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Rule 903
Commentary .06
April 15, 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 April 12, 2010, NYSE Amex LLC (the ``Exchange'') filed with the
Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Exchange filed the proposed
rule change pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule
19b-4(f)(6) thereunder,\4\ which renders the proposal effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 903 Commentary .06 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 attached as Exhibit 5 to the 19b-4 form.
A copy of this filing is available on the Exchange's Web site at https://www.nyse.com, at the Exchange's principal office and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to amend Rule 903 Commentary .06 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
[[Page 21075]]
$0.50 Strike Program and the $1 Strike Program.
---------------------------------------------------------------------------
\5\ See Exchange Act Release No. 60720 (September 25, 2009) 74
FR 51205 (October 5, 2009).
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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. Under NYSE
Amex'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, under the
Exchange's current rules, if a $3.50 strike for an option 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 add
$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 Exchange believes the proposed rule change is consistent with
Section 6(b) \6\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5) \7\ 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 permitting 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 are better
tailored to meet their investment objectives.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 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 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 CFR 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 list series available on
other exchanges. The Commission finds that waiver of the operative
delay is consistent with the protection of investors and the public
interest because such waiver will enable 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. 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 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-2010-38 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-2010-38. 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,\11\ 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
[[Page 21076]]
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-2010-38 and should
be submitted on or before May 13, 2010.
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\11\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov/.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-9278 Filed 4-21-10; 8:45 am]
BILLING CODE 8011-01-P