Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. To Add Seventy-Five Options Classes to the Penny Pilot Program, 25890-25891 [2010-10964]
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[Federal Register Volume 75, Number 89 (Monday, May 10, 2010)] [Notices] [Pages 25890-25891] From the Federal Register Online via the Government Printing Office [www.gpo.gov] [FR Doc No: 2010-10964] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-62028; File No. SR-Phlx-2010-65] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. To Add Seventy-Five Options Classes to the Penny Pilot Program May 4, 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 27, 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 designate seventy-five options classes to be added to the Penny Pilot Program (``Penny Pilot'' or ``Pilot'') on May 3, 2010.\3\ The Exchange is not proposing to amend any rule text, but simply administering or enforcing an existing rule.\4\ --------------------------------------------------------------------------- \3\ The Penny Pilot was established in January 2007 and in October 2009 was expanded and extended through December 31, 2010. See Securities Exchange Act Release Nos. 55153 (January 23, 2007), 72 FR 4553 (January 31, 2007) (SR-Phlx-2006-74) (notice of filing and approval order establishing Penny Pilot); 60873 (October 23, 2009), 74 FR 56675 (November 2, 2009) (SR-Phlx-2009-91) (notice of filing and immediate effectiveness expanding and extending Penny Pilot); and 60966 (November 9, 2009), 74 FR 59331 (November 17, 2009) (SR-Phlx-2009-94) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); and 61454 (February 1, 2010), 75 FR 6233 (February 8, 2010) (SR-Phlx-2010-12) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot). \4\ See Rule 1034 regarding the Penny Pilot. --------------------------------------------------------------------------- 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 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 this filing is to identify the next seventy-five options classes to be added to the Penny Pilot effective May 3, 2010. In the Exchange's immediately effective filing to extend and expand the Penny Pilot through December 31, 2010,\5\ the Exchange proposed expanding the Pilot four times on a quarterly basis. Each such quarterly expansion would be of the next seventy-five most actively traded multiply listed options classes based on the national average daily volume (``ADV'') for the six months prior to selection, closing under $200 per share on the Expiration Friday prior to expansion; however, the month immediately preceding the addition of options to the Penny Pilot will not be used for the purpose of the six month analysis. Index option products would be included in the quarterly expansions if the underlying index levels were under 200. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 60873 (October 23, 2009), 74 FR 56675 (November 2, 2009) (SR-Phlx-2009-91) (notice of filing and immediate effectiveness). --------------------------------------------------------------------------- The Exchange is identifying, in the chart below, seventy-five options classes that it will add to the Penny Pilot on May 3, 2010, based on ADVs for the six months ending March 31, 2010. ---------------------------------------------------------------------------------------------------------------- Nat'l ranking Symbol Security name Nat'l ranking Symbol Security name ---------------------------------------------------------------------------------------------------------------- 153............... XLV............... Health Care 247.............. JCP.............. JC Penney Co Select Sector Inc. SPDR Fund. 155............... CIEN.............. Ciena Corp...... 248.............. ACL.............. Alcon Inc. 157............... AMLN.............. Amylin 249.............. STP.............. Suntech Power Pharmaceuticals Holdings Co Inc. Ltd. 158............... CTIC.............. Cell 250.............. TLB.............. Talbots Inc. Therapeutics Inc. 159............... MDT............... Medtronic Inc... 251.............. SYMC............. Symantec Corp. 162............... TIVO.............. TiVo Inc........ 253.............. AMED............. Amedisys Inc. 163............... MNKD.............. MannKind Corp... 255.............. TM............... Toyota Motor Corp. 171............... MDVN.............. Medivation Inc.. 257.............. HK............... Petrohawk Energy Corp. 176............... BRKB.............. Berkshire 258.............. ENER............. Energy Hathaway Inc. Conversion Devices Inc. 178............... APOL.............. Apollo Group Inc 259.............. STT.............. State Street Corp. 181............... BSX............... Boston 260.............. BHP.............. BHP Billiton Scientific Corp. Ltd. 185............... XLY............... Consumer 261.............. NFLX............. NetFlix Inc. Discretionary Sel. Sec. SPDR Fund. 188............... CLF............... Cliffs Natural 262.............. LDK.............. LDK Solar Co Resources Inc. Ltd. 190............... ZION.............. Zions 263.............. SPG.............. Simon Property Bancorporation. Group Inc. 194............... IOC............... InterOil Corp... 264.............. TIF.............. Tiffany & Co. 197............... ITMN.............. InterMune Inc... 265.............. BUCY............. Bucyrus International Inc. 204............... GME............... GameStop Corp... 266.............. WAG.............. Walgreen Co. 209............... XLK............... Technology 268.............. IP............... International Select Sector Paper Co. SPDR Fund. 210............... AKS............... AK Steel Holding 271.............. XME.............. SPDR S&P Metals Corp. & Mining ETF. 212............... GRMN.............. Garmin Ltd...... 272.............. KGC.............. Kinross Gold Corp. 213............... MRVL.............. Marvell 273.............. EP............... El Paso Corp. Technology Group Ltd. 215............... XLP............... Consumer Staples 274.............. SEED............. Origin Agritech Select Sector Ltd. SPDR Fund. [[Page 25891]] 216............... UNP............... Union Pacific 275.............. WIN.............. Windstream Corp. Corp. 220............... DTV............... DIRECTV......... 279.............. DHI.............. DR Horton Inc. 223............... WMB............... Williams Cos Inc/ 280.............. ADBE............. Adobe Systems The. Inc. 225............... MEE............... Massey Energy Co 281.............. PCX.............. Patriot Coal Corp. 227............... CELG.............. Celgene Corp.... 282.............. SPWRA............ SunPower Corp. 229............... GMCR.............. Green Mountain 284.............. LCC.............. US Airways Group Coffee Roasters Inc. Inc. 231............... WDC............... Western Digital 285.............. PRU.............. Prudential Corp. Financial Inc. 234............... DAL............... Delta Air Lines 286.............. LEN.............. Lennar Corp. Inc. 235............... FXE............... CurrencyShares 287.............. EWT.............. iShares MSCI Euro Trust. Taiwan Index Fund. 237............... COST.............. Costco Wholesale 288.............. KBH.............. KB Home. Corp. 239............... MJN............... Mead Johnson 289.............. CREE............. Cree Inc. Nutrition Co. 240............... ALL............... Allstate Corp/ 290.............. SIRI............. Sirius XM Radio The. Inc. 241............... SII............... Smith 291.............. MMR.............. McMoRan International Exploration Co. Inc. 242............... RTN............... Raytheon Co..... 292.............. CENX............. Century Aluminum Co. 243............... DVN............... Devon Energy 293.............. GFI.............. Gold Fields Ltd. Corp. 244............... MT................ ArcelorMittal... ---------------------------------------------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \6\ in general, and furthers the objectives of Section 6(b)(5) of the Act \7\ 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 identifying the options classes to be added to the Penny Pilot in a manner consistent with prior approvals and filings. --------------------------------------------------------------------------- \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 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 Pursuant to Section 19(b)(3)(A)(i) of the Act \8\ and Rule 19b- 4(f)(1) thereunder,\9\ the Exchange has designated this proposal as one constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(i). \9\ 17 CFR 240.19b-4(f)(1). --------------------------------------------------------------------------- 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 CommentsUse 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-2010-65 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-2010-65. 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 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-Phlx-2010-65 and should be submitted on or before June 1, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Florence E. Harmon, Deputy Secretary. [FR Doc. 2010-10964 Filed 5-7-10; 8:45 am] BILLING CODE 8010-01-P
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