Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Commentary .02 to Rule 5.32, Terms of FLEX Options, to Establish a Pilot Program To Permit FLEX Options to Trade With no Minimum Size Requirement, 27381-27383 [2010-11542]
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emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices
principal underwriters of, and dealers
in, the redeemable securities of any
registered investment company to
accomplish the same purposes as
contemplated by Section 22(a). Rule
22c–1 under the Act prohibits a
registered investment company issuing
any redeemable security, a person
designated in such issuer’s prospectus
as authorized to consummate
transactions in any such security, and a
principal underwriter of, or dealer in,
such security, from selling, redeeming,
or repurchasing any such security
except at a price based on the current
net asset value of such security which
is next computed after receipt of a
tender of such security for redemption
or of an order to purchase or sell such
security.
8. Applicants state that it is possible
that someone might view JNL New
York’s recapture of the Contract
Enhancements as resulting in the
redemption of redeemable securities for
a price other than one based on the
current net asset value of the JNLNY
Separate Account. Applicants contend,
however, that the recapture of the
Contract Enhancement does not violate
Rule 22c–1. The recapture of some or all
of the Contract Enhancement does not
involve either of the evils that Section
22(c) and Rule 22c–1 were intended to
eliminate or reduce as far as reasonably
practicable, namely: (i) The dilution of
the value of outstanding redeemable
securities of registered investment
companies through their sale at a price
below net asset value or repurchase at
a price above it, and (ii) other unfair
results, including speculative trading
practices. To effect a recapture of a
Contract Enhancement, JNL New York
will redeem interests in a Contract
owner’s contract value at a price
determined on the basis of the current
net asset value of the JNLNY Separate
Account. The amount recaptured will be
less than or equal to the amount of the
Contract Enhancement that JNL New
York paid out of its general account
assets. Although Contract owners will
be entitled to retain any investment
gains attributable to the Contract
Enhancement and to bear any
investment losses attributable to the
Contract Enhancement, the amount of
such gains or losses will be determined
on the basis of the current net asset
values of the JNLNY Separate Account.
Thus, no dilution will occur upon the
recapture of the Contract Enhancement.
Applicants also submit that the second
harm that Rule 22c–1 was designed to
address, namely, speculative trading
practices calculated to take advantage of
backward pricing, will not occur as a
VerDate Mar<15>2010
18:07 May 13, 2010
Jkt 220001
result of the recapture of the Contract
Enhancement. Because neither of the
harms that Rule 22c-1 was meant to
address is found in the recapture of the
Contract Enhancement, Rule 22c–1
should not apply to any Contract
Enhancement. However, to avoid any
uncertainty as to full compliance with
Rule 22c-1, Applicants request an order
granting an exemption from the
provisions of Rule 22c–1 to the extent
deemed necessary to permit them to
recapture the Contract Enhancement
under the Contracts.
9. Applicants submit that extending
the requested relief to encompass Future
Contracts and Other Accounts is
appropriate in the public interest
because it promotes competitiveness in
the variable annuity market by
eliminating the need to file redundant
exemptive applications prior to
introducing new variable annuity
contracts. Investors would receive no
benefit or additional protection by
requiring Applicants to repeatedly seek
exemptive relief that would present no
issues under the Act not already
addressed in the application.
10. Applicants submit, for the reasons
stated herein, that their exemptive
request meets the standards set out in
Section 6(c) of the Act, namely, that the
exemptions requested are appropriate in
the public interest and consistent with
the protection of investors and the
purposes fairly intended by the policy
and provisions of the Act and that,
therefore, the Commission should grant
the requested order.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–11543 Filed 5–13–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62054; File No. SR–
NYSEArca–2010–34]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Adopt Commentary
.02 to Rule 5.32, Terms of FLEX
Options, to Establish a Pilot Program
To Permit FLEX Options to Trade With
no Minimum Size Requirement
May 6, 2010.
PO 00000
Frm 00097
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on April 29,
2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. 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 proposes to adopt
Commentary .02 to Rule 5.32, Terms of
FLEX Options, to establish a Pilot
Program to permit FLEX Options to
trade with no minimum size
requirement. 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, at the Commission’s
Public Reference Room, and on the
Commission’s Web site at https://
www.sec.gov.
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 the filing is to adopt
rules to establish a Pilot Program to
eliminate minimum value sizes for both
FLEX Equity options and FLEX Index
options similar to a pilot approved for
the Chicago Board Options Exchange
(‘‘CBOE’’).3
Presently, the Exchange minimum
value size requirements for an opening
FLEX Equity transaction in any FLEX
series in which there is no open interest
1 15
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Fmt 4703
Sfmt 4703
27381
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Exchange Act Release No. 34–61439
(January 28, 2010) 75 FR 5831 (February 4, 2010).
2 17
E:\FR\FM\14MYN1.SGM
14MYN1
27382
Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
at the time the Request for Quote is
submitted is the lesser of 250 contracts
or the number of contracts overlying $1
million in underlying securities. An
opening FLEX Index transaction in a
FLEX series in which there is no open
interest requires a minimum size of $10
million Underlying Equivalent Value.
The Exchange proposes to adopt a
fourteen month pilot program that
eliminates the minimum value size
requirements for both FLEX Equity and
FLEX Index options. If, in the future, the
Exchange proposes an extension of the
minimum value size Pilot Program, or
should the Exchange propose to make
the new Program permanent, the
Exchange will submit, along with any
filing proposing such amendments to
the Program, a Pilot Program report that
would provide an analysis of the Pilot
covering the period during which the
Program was in effect. This minimum
value size report would include: (i) Data
and analysis on the open interest and
trading volume in (a) FLEX Equity
Options with opening transaction with
a minimum size of 0 to 249 contracts
and less than $1 million in underlying
value; (b) FLEX Index Options with
opening transaction with a minimum
opening size of less than $10 million in
underlying equivalent value; and (ii)
analysis on the types of investors that
initiated opening FLEX Equity and
Index Options transactions (i.e.,
institutional, high net worth, or retail).
The report would be submitted to the
Commission at least two months prior to
the expiration date of the Pilot Program
and would be provided on a
confidential basis.
The Exchange notes that any positions
established under this Pilot would not
be affected by the expiration of the Pilot.
For example, a 10-contract FLEX Equity
Option opening position that overlies
less than $1 million in the underlying
security and expires in January 2015
could be established during the 14month Pilot. If the Pilot Program were
not extended, the position would
continue to exist and any further trading
in the series would be subject to the
minimum value size requirements for
continued trading in that series. The
proposed minimum opening transaction
size elimination is based on a similar
pilot approved for use on CBOE.4
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) 5 of the Securities Exchange Act of
1934 (the ‘‘Act’’), in general, and furthers
4 See
5 15
Note 3 above.
U.S.C. 78f(b).
VerDate Mar<15>2010
18:07 May 13, 2010
Jkt 220001
the objectives of Section 6(b)(5) 6 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 eliminating a
minimum size for FLEX transactions,
which the Exchange believes will
provide greater opportunities for
investors to manage risk through the use
of FLEX options.
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: (1) Significantly affect
the protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.9 However, Rule 19b–
4(f)(6) 10 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. NYSE
6 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6). When filing a proposed
rule change pursuant to Rule 19b–4(f)(6) under the
Act, an Exchange is required to give the
Commission written notice of its intent to file the
proposed rule change, along with a brief description
and text of the proposed rule change, at least five
business days prior to the date of filing of the
proposed rule change, or such shorter time as
designated by the Commission. The Exchange has
met this requirement.
9 17 CFR 240.19b–4(f)(6)(iii).
10 Id.
Arca has requested that the Commission
waive the 30-day operative delay.
The Commission has considered
NYSE Arca’s request to waive the 30day operative delay. Because, however,
the Commission does not believe,
practically speaking, that a pilot should
retroactively commence, the
Commission is only waiving the
operative delay as of the date of this
notice for the reasons discussed below.
The Commission believes that
shortening the 30-day operative delay to
allow the commencement of the pilot as
of the date of this notice is consistent
with the protection of investors and the
public interest. The Commission notes
that the proposed rule change is
substantially similar to a pilot that was
previously approved by the Commission
and is currently in existence for
CBOE.11 The Commission also notes
that the corresponding CBOE pilot was
subject to full notice and comment in
the Federal Register, and that the
Commission only received comments
that supported that proposal.12
Moreover, waiving the operative date as
of the date of this notice is consistent
with approval of CBOE’s pilot, which
allowed implementation as of the date
of the Commission’s approval order. For
these reasons, the Commission
designates the proposal to be operative
upon the date of issuance of this
notice.13
At any time within 60 days of the
filing of such 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 the 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:
7 15
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
11 See CBOE Rule 24A.4 Interpretations and
Policies .01(b); see also Securities Exchange Act
Release No. 61439 (January 28, 2010) 75 FR 5831
(February 4, 2010) (SR–CBOE–2009–087).
12 See Securities Exchange Act Release No. 61439
(January 28, 2010) 75 FR 5831 (February 4, 2010)
(SR–CBOE–2009–087).
13 For the purposes only of waiving the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\14MYN1.SGM
14MYN1
Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices
Electronic Comments
DEPARTMENT OF STATE
• 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–2010–34 on
the subject line.
[Public Notice 7003]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘A Gift
From the Desert: The Art, History and
Culture of the Arabian Horse’’
emcdonald on DSK2BSOYB1PROD with NOTICES
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
Paper Comments
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
• Send paper comments in triplicate
2459), Executive Order 12047 of March
to Elizabeth M. Murphy, Secretary,
27, 1978, the Foreign Affairs Reform and
Securities and Exchange Commission,
Restructuring Act of 1998 (112 Stat.
100 F Street, NE., Washington, DC
2681, et seq.; 22 U.S.C. 6501 note, et
20549–1090.
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
All submissions should refer to File
No. 236 of October 19, 1999, as
Number SR–NYSEArca–2010–34. This
amended, and Delegation of Authority
file number should be included on the
subject line if e-mail is used. To help the No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
Commission process and review your
included in the exhibition ‘‘A Gift from
comments more efficiently, please use
the Desert: The Art, History and Culture
only one method. The Commission will
of the Arabian Horse,’’ imported from
post all comments on the Commission’s abroad for temporary exhibition within
Internet Web site (https://www.sec.gov/
the United States, are of cultural
rules/sro.shtml). Copies of the
significance. The objects are imported
submission, all subsequent
pursuant to loan agreements with the
amendments, all written statements
foreign owners or custodians. I also
with respect to the proposed rule
determine that the exhibition or display
change that are filed with the
of the exhibit objects at the International
Commission, and all written
Museum of the Horse, from on or about
communications relating to the
May 29, 2010, until on or about October
proposed rule change between the
15, 2010, and at possible additional
Commission and any person, other than exhibitions or venues yet to be
determined, is in the national interest.
those that may be withheld from the
I have ordered that Public Notice of
public in accordance with the
these Determinations be published in
provisions of 5 U.S.C. 552, will be
the Federal Register.
available for Web site viewing and
printing in the Commission’s Public
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
Reference Room, 100 F Street, NE.,
the exhibit objects, contact Paul W.
Washington, DC 20549, on official
Manning, Attorney-Adviser, Office of
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also the Legal Adviser, U.S. Department of
State (telephone: 202–632–6469). The
will be available for inspection and
mailing address is U.S. Department of
copying at the principal office of the
State, SA–5, L/PD, Fifth Floor (Suite
Exchange. All comments received will
5H03), Washington, DC 20522–0505.
be posted without change; the
Dated: May 10, 2010.
Commission does not edit personal
identifying information from
Maura M. Pally,
submissions. You should submit only
Deputy Assistant Secretary for Professional
and Cultural Exchanges, Bureau of
information that you wish to make
Educational and Cultural Affairs, Department
available publicly. All submissions
of State.
should refer to File Number SR–
[FR Doc. 2010–11604 Filed 5–13–10; 8:45 am]
NYSEArca–2010–34 and should be
BILLING CODE 4710–05–P
submitted on or before June 4, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–11542 Filed 5–13–10; 8:45 am]
BILLING CODE 8010–01–P
14 17
18:07 May 13, 2010
[Public Notice 7002]
Waiver of Restriction on Assistance To
the Central Government of the Kyrgyz
Republic
Pursuant to section 7088(c)(2) of the
Department of State, Foreign
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
DEPARTMENT OF STATE
Jkt 220001
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
27383
Operations, and Related Programs
Appropriations Act, 2009 (Division H,
Pub. L. 111–8) (‘‘the Act’’), and
Department of State Delegation of
Authority Number 245–1, I hereby
determine that it is important to the
national interest of the United States to
waive the requirements of section
7088(c)(1) of the Act with respect to the
Government of the Kyrgyz Republic,
and I hereby waive such restriction.
This determination shall be reported
to the Congress, and published in the
Federal Register.
Dated: May 5, 2010.
Jacob J. Lew,
Deputy Secretary of State for Management
and Resources, Department of State.
[FR Doc. 2010–11597 Filed 5–13–10; 8:45 am]
BILLING CODE 4710–46–P
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. AB 55 (Sub-No. 702X)]
CSX Transportation, Inc.—
Abandonment Exemption—in Marion
County, IN.
On April 26, 2010, CSX
Transportation, Inc. (CSXT) filed with
the Board a petition under 49 U.S.C.
10502 for exemption from the
provisions of 49 U.S.C. 10903 to
abandon a 0.82-mile line of railroad in
its Northern Region, Great Lakes
Division, Indianapolis Terminal
Subdivision, between milepost QSZ
3.60 and milepost QSZ 4.42, known as
the Speedway Running Track, in
Indianapolis, Marion County, Ind. The
line traverses United States Postal
Service Zip Code 46222 and includes no
stations.
In addition to an exemption from the
prior approval requirements of 49 U.S.C.
10903, CSXT seeks exemption from 49
U.S.C. 10904 [offer of financial
assistance (OFA) procedures]. In
support, CSXT states that it intends to
reclassify the track as excepted track
and sell or lease it to Heritage-Crystal
Clean (HCC), the only shipper on the
line. According to CSXT, the line is no
longer needed for common carrier
service, and HCC wants to acquire and
maintain the line to allow for expanded
intra-plant operations and rail use
without incurring a common carrier
obligation. This request will be
addressed in the final decision.
The line does not contain federally
granted rights-of-way. Any
documentation in CSXT’s possession
will be made available promptly to
those requesting it.
E:\FR\FM\14MYN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 93 (Friday, May 14, 2010)]
[Notices]
[Pages 27381-27383]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11542]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62054; File No. SR-NYSEArca-2010-34]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Adopt Commentary
.02 to Rule 5.32, Terms of FLEX Options, to Establish a Pilot Program
To Permit FLEX Options to Trade With no Minimum Size Requirement
May 6, 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 29, 2010, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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 proposes to adopt Commentary .02 to Rule 5.32, Terms
of FLEX Options, to establish a Pilot Program to permit FLEX Options to
trade with no minimum size requirement. 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, at the Commission's Public
Reference Room, and on the Commission's Web site at https://www.sec.gov.
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 the filing is to adopt rules to establish a Pilot
Program to eliminate minimum value sizes for both FLEX Equity options
and FLEX Index options similar to a pilot approved for the Chicago
Board Options Exchange (``CBOE'').\3\
---------------------------------------------------------------------------
\3\ See Exchange Act Release No. 34-61439 (January 28, 2010) 75
FR 5831 (February 4, 2010).
---------------------------------------------------------------------------
Presently, the Exchange minimum value size requirements for an
opening FLEX Equity transaction in any FLEX series in which there is no
open interest
[[Page 27382]]
at the time the Request for Quote is submitted is the lesser of 250
contracts or the number of contracts overlying $1 million in underlying
securities. An opening FLEX Index transaction in a FLEX series in which
there is no open interest requires a minimum size of $10 million
Underlying Equivalent Value. The Exchange proposes to adopt a fourteen
month pilot program that eliminates the minimum value size requirements
for both FLEX Equity and FLEX Index options. If, in the future, the
Exchange proposes an extension of the minimum value size Pilot Program,
or should the Exchange propose to make the new Program permanent, the
Exchange will submit, along with any filing proposing such amendments
to the Program, a Pilot Program report that would provide an analysis
of the Pilot covering the period during which the Program was in
effect. This minimum value size report would include: (i) Data and
analysis on the open interest and trading volume in (a) FLEX Equity
Options with opening transaction with a minimum size of 0 to 249
contracts and less than $1 million in underlying value; (b) FLEX Index
Options with opening transaction with a minimum opening size of less
than $10 million in underlying equivalent value; and (ii) analysis on
the types of investors that initiated opening FLEX Equity and Index
Options transactions (i.e., institutional, high net worth, or retail).
The report would be submitted to the Commission at least two months
prior to the expiration date of the Pilot Program and would be provided
on a confidential basis.
The Exchange notes that any positions established under this Pilot
would not be affected by the expiration of the Pilot. For example, a
10-contract FLEX Equity Option opening position that overlies less than
$1 million in the underlying security and expires in January 2015 could
be established during the 14-month Pilot. If the Pilot Program were not
extended, the position would continue to exist and any further trading
in the series would be subject to the minimum value size requirements
for continued trading in that series. The proposed minimum opening
transaction size elimination is based on a similar pilot approved for
use on CBOE.\4\
---------------------------------------------------------------------------
\4\ See Note 3 above.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \5\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5) \6\ 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 eliminating a minimum size for
FLEX transactions, which the Exchange believes will provide greater
opportunities for investors to manage risk through the use of FLEX
options.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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: (1)
Significantly affect the protection of investors or the public
interest; (2) impose any significant burden on competition; and (3)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). When filing a proposed rule change
pursuant to Rule 19b-4(f)(6) under the Act, an Exchange is required
to give the Commission written notice of its intent to file the
proposed rule change, along with a brief description and text of the
proposed rule change, at least five business days prior to the date
of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange has met this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\9\
However, Rule 19b-4(f)(6) \10\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. NYSE Arca has requested that the
Commission waive the 30-day operative delay.
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\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ Id.
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The Commission has considered NYSE Arca's request to waive the 30-
day operative delay. Because, however, the Commission does not believe,
practically speaking, that a pilot should retroactively commence, the
Commission is only waiving the operative delay as of the date of this
notice for the reasons discussed below.
The Commission believes that shortening the 30-day operative delay
to allow the commencement of the pilot as of the date of this notice is
consistent with the protection of investors and the public interest.
The Commission notes that the proposed rule change is substantially
similar to a pilot that was previously approved by the Commission and
is currently in existence for CBOE.\11\ The Commission also notes that
the corresponding CBOE pilot was subject to full notice and comment in
the Federal Register, and that the Commission only received comments
that supported that proposal.\12\ Moreover, waiving the operative date
as of the date of this notice is consistent with approval of CBOE's
pilot, which allowed implementation as of the date of the Commission's
approval order. For these reasons, the Commission designates the
proposal to be operative upon the date of issuance of this notice.\13\
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\11\ See CBOE Rule 24A.4 Interpretations and Policies .01(b);
see also Securities Exchange Act Release No. 61439 (January 28,
2010) 75 FR 5831 (February 4, 2010) (SR-CBOE-2009-087).
\12\ See Securities Exchange Act Release No. 61439 (January 28,
2010) 75 FR 5831 (February 4, 2010) (SR-CBOE-2009-087).
\13\ For the purposes only of waiving the operative date of this
proposal, 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 such 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 the 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:
[[Page 27383]]
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-2010-34 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-2010-34. 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-
NYSEArca-2010-34 and should be submitted on or before June 4, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11542 Filed 5-13-10; 8:45 am]
BILLING CODE 8010-01-P
