Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving Proposed Rule Change To Adopt a Pilot Program To List Additional Expiration Months for Each Class of Options Opened for Trading on the Exchange, 64773 [2010-26339]

Download as PDF Federal Register / Vol. 75, No. 202 / Wednesday, October 20, 2010 / Notices 64773 SECURITIES AND EXCHANGE COMMISSION seeks to limit the pilot to the 20 most actively traded options classes. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63104; File No. SR–ISE– 2010–91] III. Discussion [Release No. 34–63108; File No. S7–29–10] After careful review, 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.4 Specifically, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,5 in that the proposal has been designed to promote just and equitable principles of trade, and to protect investors and the public interest. The Commission believes that allowing the Exchange to list and trade series with up to two additional expiration months, under the terms described in the Exchange’s proposal, should provide investors with additional means of managing their risk exposures and carrying out their investment objectives. The Commission notes that the pilot program limits the series that may be opened pursuant to the pilot program to the 20 most actively traded options classes. The Commission believes this restriction should allow the Exchange to offer a wider array of investment opportunities, while minimizing the impact on quotation message traffic. The Commission also notes that the proposal requires the Exchange to closely monitor the trading and quotation volume associated with the additional options series created under the pilot program and the effect of these additional series on the capacity of the Exchange’s, OPRA’s, and vendors’ systems.6 Study Required by Section 989G(b) of the Dodd-Frank Act Regarding Compliance With Section 404(b) of the Sarbanes-Oxley Act Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving Proposed Rule Change To Adopt a Pilot Program To List Additional Expiration Months for Each Class of Options Opened for Trading on the Exchange October 14, 2010. I. Introduction On August 25, 2010, the International Securities Exchange, LLC (the ‘‘Exchange’’ or ‘‘ISE’’) filed with the Securities and Exchange Commission, pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt a pilot program to list additional expiration months for each class of options opened for trading on the Exchange. The proposed rule change was published for comment in the Federal Register on September 2, 2010.3 The Commission received no comments on the proposal. This order approves the proposal. emcdonald on DSK2BSOYB1PROD with NOTICES II. Description of the Proposal Pursuant to ISE Rule 504(e), the Exchange currently opens series with four expiration months for each class of options open for trading on the Exchange: The first two being the two nearest months, regardless of the quarterly cycle on which that class trades; the third and fourth being the next two months of the quarterly cycle previously designated by the Exchange for that specific class. The Exchange believes that there is market demand for series with a greater number of expiration months. The Exchange therefore proposes to adopt a pilot program pursuant to which it will list series with up to an additional two expiration months, for a total of six expiration months for each class of options open for trading on the Exchange. The proposal will become effective on a pilot basis for twelve months commencing on the next full month after approval is received to establish the pilot program. Under the proposal, series with the additional months listed pursuant to the pilot program will result in four consecutive expiration months plus two months from the quarterly cycle. The Exchange 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 62772 (August 26, 2010), 75 FR 53991 (‘‘Notice’’). 2 17 VerDate Mar<15>2010 17:17 Oct 19, 2010 Jkt 223001 IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–ISE–2010–91) is approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–26339 Filed 10–19–10; 8:45 am] BILLING CODE 8011–01–P 4 The Commission has considered the proposed rule change’s impact on efficiency, competition and capital formation. See 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(5). 6 If the Exchange were to propose an extension, expansion, or permanent approval of the pilot program, the Exchange would be required to submit a report on the pilot program to the Commission at least 60 days prior to the pilot program expiration date. See Notice, supra note 3, at 53991–92. 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 Securities and Exchange Commission. ACTION: Request for comment. AGENCY: The Securities and Exchange Commission is requesting public comment related to a study of how the Commission could reduce the burden of complying with Section 404(b) of the Sarbanes-Oxley Act of 2002 for companies whose public float is between $75 million and $250 million, while maintaining investor protections for such companies, and whether any methods of reducing the compliance burden or a complete exemption for such companies from the auditor attestation requirement in Section 404(b) would encourage companies to list on exchanges in the United States in their initial public offerings. This study is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. DATES: Comments should be received on or before December 6, 2010. ADDRESSES: Comments may be submitted by any of the following methods: SUMMARY: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/other.shtml); or • Send an e-mail to rule-comments@ sec.gov. Please include File Number S7– 29–10 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, U.S. Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number S7–29–10. To help us 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). Comments are also 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. All comments received will be posted without change; we do not edit personal identifying E:\FR\FM\20OCN1.SGM 20OCN1

Agencies

[Federal Register Volume 75, Number 202 (Wednesday, October 20, 2010)]
[Notices]
[Page 64773]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-26339]



[[Page 64773]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63104; File No. SR-ISE-2010-91]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Order Approving Proposed Rule Change To Adopt a Pilot Program To 
List Additional Expiration Months for Each Class of Options Opened for 
Trading on the Exchange

October 14, 2010.

I. Introduction

    On August 25, 2010, the International Securities Exchange, LLC (the 
``Exchange'' or ``ISE'') filed with the Securities and Exchange 
Commission, pursuant to Section 19(b)(1) of the Securities Exchange Act 
of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule 
change to adopt a pilot program to list additional expiration months 
for each class of options opened for trading on the Exchange. The 
proposed rule change was published for comment in the Federal Register 
on September 2, 2010.\3\ The Commission received no comments on the 
proposal. This order approves the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 62772 (August 26, 
2010), 75 FR 53991 (``Notice'').
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II. Description of the Proposal

    Pursuant to ISE Rule 504(e), the Exchange currently opens series 
with four expiration months for each class of options open for trading 
on the Exchange: The first two being the two nearest months, regardless 
of the quarterly cycle on which that class trades; the third and fourth 
being the next two months of the quarterly cycle previously designated 
by the Exchange for that specific class.
    The Exchange believes that there is market demand for series with a 
greater number of expiration months. The Exchange therefore proposes to 
adopt a pilot program pursuant to which it will list series with up to 
an additional two expiration months, for a total of six expiration 
months for each class of options open for trading on the Exchange. The 
proposal will become effective on a pilot basis for twelve months 
commencing on the next full month after approval is received to 
establish the pilot program. Under the proposal, series with the 
additional months listed pursuant to the pilot program will result in 
four consecutive expiration months plus two months from the quarterly 
cycle. The Exchange seeks to limit the pilot to the 20 most actively 
traded options classes.

III. Discussion

    After careful review, 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.\4\ 
Specifically, the Commission finds that the proposal is consistent with 
Section 6(b)(5) of the Act,\5\ in that the proposal has been designed 
to promote just and equitable principles of trade, and to protect 
investors and the public interest.
---------------------------------------------------------------------------

    \4\ The Commission has considered the proposed rule change's 
impact on efficiency, competition and capital formation. See 15 
U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that allowing the Exchange to list and 
trade series with up to two additional expiration months, under the 
terms described in the Exchange's proposal, should provide investors 
with additional means of managing their risk exposures and carrying out 
their investment objectives. The Commission notes that the pilot 
program limits the series that may be opened pursuant to the pilot 
program to the 20 most actively traded options classes. The Commission 
believes this restriction should allow the Exchange to offer a wider 
array of investment opportunities, while minimizing the impact on 
quotation message traffic. The Commission also notes that the proposal 
requires the Exchange to closely monitor the trading and quotation 
volume associated with the additional options series created under the 
pilot program and the effect of these additional series on the capacity 
of the Exchange's, OPRA's, and vendors' systems.\6\
---------------------------------------------------------------------------

    \6\ If the Exchange were to propose an extension, expansion, or 
permanent approval of the pilot program, the Exchange would be 
required to submit a report on the pilot program to the Commission 
at least 60 days prior to the pilot program expiration date. See 
Notice, supra note 3, at 53991-92.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-ISE-2010-91) is approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-26339 Filed 10-19-10; 8:45 am]
BILLING CODE 8011-01-P
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