Self-Regulatory Organizations; Order Approving Proposed Rule Change by NASDAQ OMX PHLX, Inc. To Expand the $.50 Strike Price Program, 65541-65542 [2010-26827]
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Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and Rule
19b–4(f)(6) thereunder.11 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and Rule 19b–4(f)(6)(iii)
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requests that the Commission
waive the 30-day operative delay so that
the Exchange can trade, on a UTP basis,
shares of the Fund immediately. The
Exchange believes that the immediate
trading of shares of the Fund will
promote competition among exchange
markets trading such shares. The
Commission believes that waiving the
30-day operative delay to permit the
Exchange to trade, on a UTP basis,
shares of the Fund without delay is
consistent with the protection of
investors and the public interest.14 The
10 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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 satisfied this requirement.
14 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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11 17
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Commission notes that the proposed
amendments to NYSE Arca Equities
Rule 8.500 are similar to amendments to
NYSE Amex Rule 1600, previously
approved by the Commission 15 and
therefore do not raise any new
regulatory issues. For these reasons, the
Commission designates the proposed
rule change as operative upon filing.16
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend 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
65541
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 NYSE
Arca.17 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 No.
SR–NYSEArca–2010–91 and should be
submitted on or before November 15,
2010.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
Electronic Comments
[FR Doc. 2010–26806 Filed 10–22–10; 8:45 am]
• 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–NYSEArca–2010–91 on the
subject line.
BILLING CODE 8011–01–P
Paper Comments
Self-Regulatory Organizations; Order
Approving Proposed Rule Change by
NASDAQ OMX PHLX, Inc. To Expand
the $.50 Strike Price Program
• 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 No.
SR–NYSEArca–2010–91. 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
15 See Securities Exchange Act Release No. 61807
(March 31, 2010), 75 FR 17818 (April 7, 2010) (SR–
NYSE–Amex–2010–09).
16 The Commission notes that this proposed rule
change only permits trading of products under the
proposed modifications to Exchange Rule 8.500 on
and after the effective date of this filing and does
not relate to any trading under such proposed rules
prior to such date.
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63132; File No. SR–Phlx–
2010–118]
October 19, 2010.
On August 25, 2010, NASDAQ OMX
PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘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 proposed rule
change to expand the Exchange’s $.50
Strike Price Program (‘‘$0.50 Strike
Program’’ or ‘‘Program’’). The proposed
rule change was published for comment
in the Federal Register on September 8,
2010.4 There were no comments on the
proposed rule change. This order
approves the proposed rule change.
The Exchange proposes to amend
Commentary .05 to Exchange Rule 1012,
Series of Options Open for Trading,
17 The text of the proposed rule change is
available on the Commission’s Web site at
www.sec.gov.
18 17 CFR 200.30–3(a)(12).
1 15 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. 62799
(August 25, 2010), 75 FR 54662 (‘‘Notice’’).
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emcdonald on DSK2BSOYB1PROD with NOTICES
65542
Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices
regarding the $.50 Strike Program to: (i)
Expand the permitted price range of the
$.50 Strike Program from $1.00–$3.50 to
$0.50–$5.50; (ii) raise the threshold of
the previous day’s closing price of the
underlying security from $3.00 to $5.00;
and (iii) expand the number of options
classes permitted under the Program
from 5 to 20.
Currently, Commentary .05 to
Exchange Rule 1012 permits strike price
intervals of $.50 or greater beginning at
$1.00 where the strike price is $3.50 or
less, but only for option classes whose
underlying security closed at or below
$3.00 in its primary market on the
previous trading day and which have
national average daily volume that
equals or exceeds 1000 contracts per
day as determined by The Options
Clearing Corporation during the
preceding three calendar months.
Further, the listing of $.50 strike prices
is limited to options classes overlying
no more than 5 individual stocks as
specifically designated by the Exchange.
The Exchange is currently restricted
from listing series with $1 intervals
within $0.50 of an existing strike price
in the same series, except that strike
prices of $2, $3, and $4 shall be
permitted within $0.50 of an existing
strike price for classes also selected to
participate in both the $0.50 Strike
Program and the $1 Strike Program.5
The Exchange also proposes a
corresponding amendment to
Commentary .05(a)(i)(B) of Exchange
Rule 1012 to add $5 to the list of strike
prices permitted within $0.50 of an
existing strike price in the same series
for classes selected for both programs.
In its filing with the Commission, the
Exchange stated that the number of $.50
strike options traded on the Exchange
has continued to increase since the
inception of the Program. The Exchange
stated that the proposal would expand
$.50 strike offerings to market
participants and thereby should
enhance their ability to tailor investing
and hedging strategies and
opportunities in a volatile marketplace.
The Exchange further stated that it
believes an expansion of the $.50 Strike
Program would allow investors to better
enhance returns and manage risk by
providing them with significantly
greater flexibility in the trading of
equity options that overlie lower price
stocks by allowing them to establish
equity options positions that are better
tailored to meet their investment,
trading and risk. In addition, the
Exchange represented that $0.50 strikes
have had no impact on capacity.
5 See
Exchange Rule 1012, Commentary
.05(a)(i)(B) referring to the $1 Strike Program.
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After careful review, the Commission
finds that the proposed rule change is
consistent with the Act and the rules
and regulations thereunder applicable to
a national securities exchange.6 In
particular, the Commission believes that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,7 which
requires, among other things, that the
rules of a national securities exchange
be designed to promote just and
equitable principles of trade, 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
public interest.
Specifically, the Commission believes
that the proposal to expand the $.50
Strike Program should provide investors
with added flexibility in the trading of
equity options and further the public
interest by allowing investors to
establish equity options positions that
are better tailored to meet their
investment objectives. The Commission
also believes that the proposal strikes a
reasonable balance between the
Exchange’s desire to accommodate
market participants by offering a wider
array of investment opportunities and
the need to avoid unnecessary
proliferation of options series and the
corresponding increase in quotes. The
Commission expects that the Exchange
will monitor the trading volume
associated with the additional options
series listed as a result of this proposal
and the effect of these additional series
on market fragmentation and on the
capacity of the Exchange’s, OPRA’s and
vendors’ automated systems.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–Phlx–2010–
118) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–26827 Filed 10–22–10; 8:45 am]
BILLING CODE 8011–01–P
6 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).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78s(b)(2).
9 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63130; File No. SR–
NYSEAmex–2010–52]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Commentary
.02 of Rule 903G To Permit Certain
FLEX Options To Trade Under the
FLEX Trading Procedures for a Limited
Time
October 19, 2010.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on October
5, 2010, NYSE Amex LLC (the
‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Commentary .02 of Rule 903G, Terms of
FLEX Options, to permit certain FLEX
Options to trade under the FLEX
Trading Procedures for a limited time.
The text of the proposed rule change is
available at the Exchange’s Web site at
https://www.nyse.com, on the
Commission’s Web site at https://
www.sec.gov, 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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]]>Agencies
[Federal Register Volume 75, Number 205 (Monday, October 25, 2010)]
[Notices]
[Pages 65541-65542]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-26827]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63132; File No. SR-Phlx-2010-118]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change by NASDAQ OMX PHLX, Inc. To Expand the $.50 Strike Price Program
October 19, 2010.
On August 25, 2010, NASDAQ OMX PHLX, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``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
proposed rule change to expand the Exchange's $.50 Strike Price Program
(``$0.50 Strike Program'' or ``Program''). The proposed rule change was
published for comment in the Federal Register on September 8, 2010.\4\
There were no comments on the proposed rule change. This order approves
the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 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. 62799 (August 25,
2010), 75 FR 54662 (``Notice'').
---------------------------------------------------------------------------
The Exchange proposes to amend Commentary .05 to Exchange Rule
1012, Series of Options Open for Trading,
[[Page 65542]]
regarding the $.50 Strike Program to: (i) Expand the permitted price
range of the $.50 Strike Program from $1.00-$3.50 to $0.50-$5.50; (ii)
raise the threshold of the previous day's closing price of the
underlying security from $3.00 to $5.00; and (iii) expand the number of
options classes permitted under the Program from 5 to 20.
Currently, Commentary .05 to Exchange Rule 1012 permits strike
price intervals of $.50 or greater beginning at $1.00 where the strike
price is $3.50 or less, but only for option classes whose underlying
security closed at or below $3.00 in its primary market on the previous
trading day and which have national average daily volume that equals or
exceeds 1000 contracts per day as determined by The Options Clearing
Corporation during the preceding three calendar months. Further, the
listing of $.50 strike prices is limited to options classes overlying
no more than 5 individual stocks as specifically designated by the
Exchange. The Exchange is currently restricted from listing series with
$1 intervals within $0.50 of an existing strike price in the same
series, except that strike prices of $2, $3, and $4 shall be permitted
within $0.50 of an existing strike price for classes also selected to
participate in both the $0.50 Strike Program and the $1 Strike
Program.\5\
---------------------------------------------------------------------------
\5\ See Exchange Rule 1012, Commentary .05(a)(i)(B) referring to
the $1 Strike Program.
---------------------------------------------------------------------------
The Exchange also proposes a corresponding amendment to Commentary
.05(a)(i)(B) of Exchange Rule 1012 to add $5 to the list of strike
prices permitted within $0.50 of an existing strike price in the same
series for classes selected for both programs.
In its filing with the Commission, the Exchange stated that the
number of $.50 strike options traded on the Exchange has continued to
increase since the inception of the Program. The Exchange stated that
the proposal would expand $.50 strike offerings to market participants
and thereby should enhance their ability to tailor investing and
hedging strategies and opportunities in a volatile marketplace. The
Exchange further stated that it believes an expansion of the $.50
Strike Program would allow investors to better enhance returns and
manage risk by providing them with significantly greater flexibility in
the trading of equity options that overlie lower price stocks by
allowing them to establish equity options positions that are better
tailored to meet their investment, trading and risk. In addition, the
Exchange represented that $0.50 strikes have had no impact on capacity.
After careful review, the Commission finds that the proposed rule
change is consistent with the Act and the rules and regulations
thereunder applicable to a national securities exchange.\6\ In
particular, the Commission believes that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\7\ which requires, among
other things, that the rules of a national securities exchange be
designed to promote just and equitable principles of trade, 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
public interest.
---------------------------------------------------------------------------
\6\ 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).
\7\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------
Specifically, the Commission believes that the proposal to expand
the $.50 Strike Program should provide investors with added flexibility
in the trading of equity options and further the public interest by
allowing investors to establish equity options positions that are
better tailored to meet their investment objectives. The Commission
also believes that the proposal strikes a reasonable balance between
the Exchange's desire to accommodate market participants by offering a
wider array of investment opportunities and the need to avoid
unnecessary proliferation of options series and the corresponding
increase in quotes. The Commission expects that the Exchange will
monitor the trading volume associated with the additional options
series listed as a result of this proposal and the effect of these
additional series on market fragmentation and on the capacity of the
Exchange's, OPRA's and vendors' automated systems.
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-Phlx-2010-118) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-26827 Filed 10-22-10; 8:45 am]
BILLING CODE 8011-01-P
