Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Rule 6.4 Commentary .04., 21092-21094 [2010-9357]
Download as PDF
21092
Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
input. 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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission will:
(A) by order approve the proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEAmex–2010–35 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
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–9361 Filed 4–21–10; 8:45 am]
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
No. SR–NYSEAmex–2010–35 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:
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 6.4
Commentary .04.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61920; File No. SR–
NYSEArca-2010–29]
April 15, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on April 12,
• Send paper comments in triplicate
2010, NYSE Arca, Inc. (the ‘‘Exchange’’)
to Elizabeth M. Murphy, Secretary,
filed with the Securities and Exchange
Securities and Exchange Commission,
Commission (‘‘SEC’’ or ‘‘Commission’’)
Station Place, 100 F Street, NE.,
the proposed rule change as described
Washington, DC 20549–1090.
in Items I and II below, which Items
All submissions should refer to File
Number SR–NYSEAmex–2010–35. This have been prepared by the Exchange.
The Exchange filed the proposed rule
file number should be included on the
subject line if e-mail is used. To help the change pursuant to Section 19(b)(3)(A)
of the Act,3 and Rule 19b–4(f)(6)
Commission process and review your
thereunder,4 which renders the proposal
comments more efficiently, please use
only one method. The Commission will effective upon filing with the
post all comments on the Commission’s Commission. The Commission is
publishing this notice to solicit
Internet Web site (https://www.sec.gov/
comments on the proposed rule change
rules/sro.shtml). Copies of the
from interested persons.
submission, all subsequent
amendments, all written statements
I. Self-Regulatory Organization’s
with respect to the proposed rule
Statement of the Terms of Substance of
change that are filed with the
the Proposed Rule Change
Commission, and all written
The Exchange proposes to amend
communications relating to the
Rule 6.4 Commentary .04 to permit the
proposed rule change between the
concurrent listing of $3.50 and $4
Commission and any person, other than
those that may be withheld from the
12 17 CFR 200.30–3(a)(12).
public in accordance with the
1 15 U.S.C. 78s(b)(1).
provisions of 5 U.S.C. 552, will be
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
available for Web site viewing and
4 17 CFR 240.19b–4(f)(6).
printing in the Commission’s Public
VerDate Nov<24>2008
18:25 Apr 21, 2010
Jkt 220001
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
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 6.4 Commentary .04 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. Under NYSE Arca’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
5 See Exchange Act Release No. 60721 (September
25, 2009) 74 FR 50858 (October 1, 2009).
E:\FR\FM\22APN1.SGM
22APN1
Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
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
srobinson on DSKHWCL6B1PROD with NOTICES
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.
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
6 15
U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
VerDate Nov<24>2008
18:25 Apr 21, 2010
Jkt 220001
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
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,
U.S.C. 78s(b)(3)(A).
CFR 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).
21093
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–NYSEArca–2010–29 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–NYSEArca–2010–29. 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
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–
NYSEArca–2010–29 and should be
submitted on or before May 13, 2010.
8 15
9 17
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
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
22APN1
21094
Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–9357 Filed 4–21–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61912; File No. SR–NYSE–
2010–15]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving Proposed Rule Change
Making Permanent the Exchange’s
Pilot Program With Respect to Its
Continued Listing Standards
April 15, 2010.
I. Introduction
On February 26, 2010, New York
Stock Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’), pursuant to Section
19(b)(1) 1 of the Securities Exchange Act
of 1934 (the ‘‘Act’’) 2 and Rule 19b–4
thereunder,3 a proposal to make
permanent an amendment to the
continued listing requirements in
Section 802.01B of the Exchange’s
Listed Company Manual (the ‘‘Manual’’)
that is currently in effect on a pilot
program basis (the ‘‘Pilot Program’’). The
proposed rule change was published for
comment in the Federal Register on
March 12, 2010.4 The Commission
received no comments regarding the
proposal. This order approves the
proposed rule change.
srobinson on DSKHWCL6B1PROD with NOTICES
II. Description of the Proposal
The Exchange proposes to make its
Pilot Program permanent. Prior to the
adoption of the Pilot Program,5 Section
802.01B(I) of the Manual provided that
any company that qualified to list under
the Earnings Test set out in Section
102.01C(I) or in Section 103.01B(I) (in
the case of foreign private issuers) or
pursuant to the requirements set forth
under the Assets and Equity Test set
forth in Section 102.01C(IV) or the
‘‘Initial Listing Standard for Companies
Transferring from NYSE Arca’’ (the
‘‘NYSE Arca Transfer Standard’’) set
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 See Securities Exchange Act Release No. 61657
(March 5, 2010), 75 FR 11970.
5 See Securities Exchange Act Release No. 59996
(May 28, 2009), 74 FR 26912 (June 4, 2009) (SR–
NYSE–2009–48) (the ‘‘Pilot Program Notice’’).
1 15
VerDate Nov<24>2008
18:25 Apr 21, 2010
Jkt 220001
forth in Section 102.01(C)(V) (the NYSE
Arca Transfer Standard expired by its
terms on August 31, 2009) was
considered to be below compliance
standards if such company’s average
global market capitalization over a
consecutive 30 trading-day period was
less than $75 million and, at the same
time, total stockholders’ equity was less
than $75 million. Under the Pilot
Program, companies that listed under
the initial listing standards set forth in
the immediately preceding sentence are
considered to be below compliance
standards if average global market
capitalization over a consecutive 30
trading-day period is less than $50
million and, at the same time, total
stockholders’ equity is less than $50
million.
The Pilot Program originally expired
by its terms on October 31, 2009, but the
Exchange extended its application for
an additional five months, until
February 28, 2010.6 NYSE filed an
immediately effective proposed rule
change to extend the Pilot Program for
a further four months, until June 30,
2010.7 This order approves the Pilot
Program on a permanent basis.
III. Discussion and Commission
Findings
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange 8 and, in
particular, the requirements of Section 6
of the Act.9 Specifically, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,10 which requires,
among other things, that the rules of a
national securities exchange be
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
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
6 See Securities Exchange Act Release No. 60911
(November 2, 2009), 74 FR 57730 (November 9,
2010) (SR–NYSE–2009–109).
7 See Securities Exchange Act Release No. 61609
(March 1, 2010), 75 FR 10336 (March 5, 2010) (SR–
NYSE–2010–13).
8 In approving this proposed rule change the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
public interest and are not designed to
permit unfair discrimination between
customers, issuers, brokers or dealers.
The development and enforcement of
adequate standards governing the initial
and continued listing of securities on an
exchange is an activity of critical
importance to financial markets and the
investing public. Listing standards serve
as a means for an exchange to screen
issuers and to provide listed status only
to bona fide companies that have, or in
the case of an initial public offering will
have, sufficient public float, investor
base, and trading interest to provide the
depth and liquidity necessary to
promote fair and orderly markets.
Adequate standards are especially
important given the expectations of
investors regarding exchange trading
and the imprimatur of listing on a
particular market. Once a security has
been approved for initial listing,
maintenance criteria allow an exchange
to monitor the status and trading
characteristics of that issue to ensure
that it continues to meet the exchange’s
standards for market depth and liquidity
so that fair and orderly markets can be
maintained.
The Commission believes that the
proposal to make permanent the Pilot
Program is reasonable and consistent
with the Act, and furthers investor
protection and the public interest.
Under the proposal, companies that
initially listed under the Earnings Test,
Assets and Equity Test, or NYSE Arca
Transfer Standard are considered to be
below compliance standards if average
global market capitalization over a
consecutive 30 trading-day period is
less than $50 million and, at the same
time, total stockholders’ equity is less
than $50 million. The Commission
notes that for companies listed under
the Earnings Test, the Pilot Program
returned continued listing requirements
to those in place prior to the higher
standards adopted on June 9, 2005.11
Thus, even prior to implementation of
the Pilot Program, the Exchange had had
considerable historical experience with
the continued listing of companies that
had continued to trade on the Exchange
with global market capitalization and
stockholders’ equity each below $75
million but greater than $50 million. In
addition, the Exchange represents that
its experience under the Pilot Program
has been very positive, as only one of
the companies that was deemed back in
compliance as a result of the adoption
11 See Securities Exchange Act Release No. 51813
(June 9, 2005), 70 FR 35484 (June 20, 2005) (SR–
NYSE–2004–20). The Assets and Equity Test set
forth in Section 102.01C(IV) and the NYSE Arca
Transfer Standard set forth in Section 102.01C(V)
were adopted subsequent to this amendment.
E:\FR\FM\22APN1.SGM
22APN1
Agencies
[Federal Register Volume 75, Number 77 (Thursday, April 22, 2010)]
[Notices]
[Pages 21092-21094]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9357]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61920; File No. SR-NYSEArca-2010-29]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Rule 6.4
Commentary .04.
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 Arca, Inc. (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 6.4 Commentary .04 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 6.4 Commentary .04 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.
---------------------------------------------------------------------------
\5\ See Exchange Act Release No. 60721 (September 25, 2009) 74
FR 50858 (October 1, 2009).
---------------------------------------------------------------------------
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
Arca'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
[[Page 21093]]
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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-NYSEArca-2010-29 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-NYSEArca-2010-29. 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 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-NYSEArca-2010-29 and should be submitted on or before
May 13, 2010.
---------------------------------------------------------------------------
\11\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov/.
[[Page 21094]]
---------------------------------------------------------------------------
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-9357 Filed 4-21-10; 8:45 am]
BILLING CODE 8011-01-P