Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC To Establish a $5 Strike Price Program, 3686-3688 [2011-1077]

Download as PDF 3686 Federal Register / Vol. 76, No. 13 / Thursday, January 20, 2011 / Notices Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–FINRA–2011–001 on the subject line. Paper Comments [Release No. 34–63708; File No. SR– NYSEAmex–2011–03] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NYSE Amex LLC To Establish a $5 Strike Price Program January 12, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on January 11, 2011, NYSE Amex LLC (the ‘‘Exchange’’ or ‘‘NYSE Amex’’) filed with All submissions should refer to File the Securities and Exchange Number SR–FINRA–2011–001. This file Commission (the ‘‘Commission’’) the number should be included on the proposed rule change as described in subject line if e-mail is used. To help the Items I and II below, which Items have Commission process and review your been prepared by the Exchange. The comments more efficiently, please use only one method. The Commission will Commission is publishing this notice to post all comments on the Commission’s solicit comments on the proposed rule change from interested persons. Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s submission, all subsequent Statement of the Terms of Substance of amendments, all written statements the Proposed Rule Change with respect to the proposed rule change that are filed with the The Exchange proposes to adopt Commission, and all written Commentary .12 to NYSE Amex Rule communications relating to the 903 to allow the Exchange to list and proposed rule change between the trade series in intervals of $5 or greater Commission and any person, other than where the strike price is more than $200 those that may be withheld from the in up to five (5) option classes on public in accordance with the individual stocks. The text of the provisions of 5 U.S.C. 552, will be proposed rule change is available at the available for website viewing and principal office of the Exchange, on the printing in the Commission’s Public Commission’s Web site at http:// Reference Room, 100 F Street, NE., www.sec.gov, at the Commission’s Washington, DC 20549, on official Public Reference Room, and http:// business days between the hours of 10 www.nyse.com. a.m. and 3 p.m. Copies of the filing also will be available for inspection and II. Self-Regulatory Organization’s copying at the principal office of Statement of the Purpose of, and FINRA. All comments received will be Statutory Basis for, the Proposed Rule posted without change; the Commission Change does not edit personal identifying In its filing with the Commission, the information from submissions. You self-regulatory organization included should submit only information that you wish to make available publicly. All statements concerning the purpose of, submissions should refer to File and basis for, the proposed rule change Number SR–FINRA–2011–001 and and discussed any comments it received should be submitted on or before on the proposed rule change. The text February 10, 2011. of those statements may be examined at the places specified in Item IV below. For the Commission, by the Division of The Exchange has prepared summaries, Trading and Markets, pursuant to delegated authority.14 set forth in sections A, B, and C below, of the most significant parts of such Elizabeth M. Murphy, statements. Secretary. mstockstill on DSKH9S0YB1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. [FR Doc. 2011–1078 Filed 1–19–11; 8:45 am] BILLING CODE 8011–01–P 1 15 14 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 18:24 Jan 19, 2011 2 17 Jkt 223001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00088 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to adopt Commentary .12 to Rule 903 to allow the Exchange to list and trade series in intervals of $5 or greater where the strike price is more than $200 in up to five (5) option classes on individual stocks (‘‘$5 Strike Price Program’’) to provide investors and traders with additional opportunities and strategies to hedge high priced securities, based on a recently approved rule change of NASDAQ OMX PHLX (‘‘Phlx’’).3 The Exchange also proposes to adopt a provision recently adopted for Phlx that permits the Exchange to list $5 strike prices on any other option classes designated by other securities exchanges that employ a $5 Strike Program.4 Currently, Commentary .05 to Rule 903 permits strike price intervals of $10 or greater where the strike price is greater than $200.5 The Exchange is proposing to add the proposed $5 Strike Program as an exception to the $10 or greater language in Rule 903 Commentary .05. The proposal would allow the Exchange to list series in intervals of $5 or greater where the strike price is more than $200 in up to five (5) option classes on individual stocks. The Exchange specifically proposes to create new Commentary .12 to Rule 903 to provide: The Exchange may list series in intervals of $5 or greater where the strike price is more than $200 in up to five (5) option classes on individual stocks. The Exchange may list $5 strike prices above $200 in any other option classes if those classes are specifically designated by other securities exchanges that employ a similar $5 Strike Program under their respective rules. The Exchange believes the $5 Strike Price Program would offer investors a greater selection of strike prices at a lower cost. For example, if an investor wanted to purchase an option with an expiration of approximately one month, a $5 strike interval could offer a wider choice of strike prices, which may result in reduced outlays in order to purchase the option. By way of illustration, using Google, Inc. (‘‘GOOG’’) as an example, if 3 See Securities Exchange Act Release No. 63654 (January 6, 2011) (order approving SR–Phlx–2010– 158). 4 See Securities Exchange Act Release No. 63658 (January 6, 2011) (notice of filing and immediate effectiveness of SR–Phlx–2011–02). 5 Commentary .05 permits strike intervals of $2.50 or greater where the strike price is $25 or less, and strike price intervals of $5 or greater where the strike price is greater than $25. E:\FR\FM\20JAN1.SGM 20JAN1 Federal Register / Vol. 76, No. 13 / Thursday, January 20, 2011 / Notices mstockstill on DSKH9S0YB1PROD with NOTICES GOOG were trading at $610 6 with approximately one month remaining until expiration, the front month (one month remaining) at-the-money call option (the 610 strike) might trade at approximately $17.50 and the next highest available strike (the 620 strike) might trade at approximately $13.00. By offering a 615 strike an investor would be able to trade a GOOG front month call option at approximately $15.25, thus providing an additional choice at a different price point. Similarly, if an investor wanted to hedge exposure to an underlying stock position by selling call options, the investor may choose an option term with two months remaining until expiration. An additional $5 strike interval could offer additional and varying yields to the investor. For example if Apple, Inc. (‘‘AAPL’’) were trading at $310 7 with approximately two months remaining until expiration, the second month (two months remaining) at-the-money call option (the 310 strike) might trade at approximately $14.50 and the next highest available strike (the 320) strike might trade at $9.90. If at expiration the price of AAPL closed at $310, the 310 strike call would have yielded a return of 4.67% and the 320 strike call would have yielded a return of 3.20% over the holding period. If the 315 strike call were available, that series might be priced at approximately $12.10 (a yield of 3.93% over the holding period) and would have had a lower risk of having the underlying stock called away at expiration than that of the 310 strike call. The Exchange is also proposing to adopt a provision that options may be listed and traded in series that are listed by other securities exchanges that employ a similar $5 Strike Price Program, pursuant to the rules of the other securities exchange. Similar reciprocity currently is permitted with the Exchange’s $1 Strike Program, $.50 Strike Program and $2.50 Strike Price Program.8 With regard to the impact of this proposal on system capacity, the Exchange has analyzed its capacity and represents that it and the Options Price Reporting Authority have the necessary systems capacity to handle the potential additional traffic associated with the 6 The prices listed in this example are assumptions and not based on actual prices. The assumptions are made for illustrative purposes only using the stock price as a hypothetical. 7 The prices listed in this example are assumptions and not based on actual prices. The assumptions are made for illustrative purposes only using the stock price as a hypothetical. 8 See Exchange Rule 903, Commentary .06 at a. and d. VerDate Mar<15>2010 18:24 Jan 19, 2011 Jkt 223001 listing and trading of classes on individual stocks $5 Strike Price Program. The proposed $5 Strike Price Program would provide investors increased opportunities to improve returns and manage risk in the trading of equity options that overlie high priced stocks. In addition, the proposed $5 Strike Price Program would allow investors to establish equity options positions that are better tailored to meet their investment, trading and risk management requirements. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 9 in general, and furthers the objectives of Section 6(b)(5) of the Act 10 in particular, in that it is 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. The Exchange believes the $5 Strike Price Program proposal will provide the investing public and other market participants increased opportunities because a $5 series in high priced stocks will provide market participants additional opportunities to hedge high priced securities. This will allow investors to better manage their risk exposure, and the Exchange believes the proposed $5 Strike Price Program would benefit investors by giving them more flexibility to closely tailor their investment decisions in a greater number of securities. While the $5 Strike Price Program will generate additional quote traffic, the Exchange does not believe that this increased traffic will become unmanageable since the proposal is limited to a fixed number of classes. Further, the Exchange does not believe that the proposal will result in a material proliferation of additional series because it is limited to a fixed number of classes and the Exchange does not believe that the additional price points will result in fractured liquidity. 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. 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 10 15 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 3687 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) of the Act 11 and Rule 19b– 4(f)(6) thereunder.12 The Exchange has requested that the Commission waive the 30-day operative delay. The Commission believes that waiver of the operative delay is consistent with the protection of investors and the public interest because the $5 Strike Price Program is substantially similar to that of another exchange that is already effective and operative.13 Therefore, the Commission designates the proposal operative upon filing.14 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 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: 11 15 U.S.C. 78s(b)(3)(A). 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 Commission has waived the five-day prefiling requirement in this case. 13 See supra notes 3 and 4. 14 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). 12 17 E:\FR\FM\20JAN1.SGM 20JAN1 3688 Federal Register / Vol. 76, No. 13 / Thursday, January 20, 2011 / Notices Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSEAmex–2011–03 on the subject line. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–1077 Filed 1–19–11; 8:45 am] BILLING CODE 8011–01–P Paper Comments SOCIAL SECURITY ADMINISTRATION • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. Agency Information Collection Activities: Proposed Request and Comment Request mstockstill on DSKH9S0YB1PROD with NOTICES The Social Security Administration (SSA) publishes a list of information collection packages requiring clearance All submissions should refer to File by the Office of Management and Number SR–NYSEAmex–2011–03. This Budget (OMB) in compliance with file number should be included on the Public Law 104–13, the Paperwork subject line if e-mail is used. To help the Reduction Act of 1995, effective October Commission process and review your 1, 1995. This notice includes revisions comments more efficiently, please use to OMB-approved information only one method. The Commission will collections. post all comments on the Commission’s SSA is soliciting comments on the Internet Web site (http://www.sec.gov/ accuracy of the agency’s burden rules/sro.shtml). Copies of the estimate; the need for the information; submission, all subsequent its practical utility; ways to enhance its amendments, all written statements quality, utility, and clarity; and ways to with respect to the proposed rule minimize burden on respondents, change that are filed with the including the use of automated collection techniques or other forms of Commission, and all written information technology. Mail, e-mail, or communications relating to the fax your comments and proposed rule change between the Commission and any person, other than recommendations on the information collection(s) to the OMB Desk Officer those that may be withheld from the and SSA Reports Clearance Officer at public in accordance with the the following addresses or fax numbers. provisions of 5 U.S.C. 552, will be (OMB), Office of Management and available for Web site viewing and Budget, Attn: Desk Officer for SSA, printing in the Commission’s Public Fax: 202–395–6974, E-mail address: Reference Room, 100 F Street, NE., OIRA_Submission@omb.eop.gov; Washington, DC 20549, on official (SSA), Social Security Administration, business days between the hours of 10 DCBFM, Attn: Reports Clearance a.m. and 3 p.m. Copies of the filing also Officer, 1333 Annex Building, 6401 will be available for inspection and Security Blvd., Baltimore, MD 21235, copying at the principal office of the Fax: 410–965–6400, E-mail address: Exchange. All comments received will OPLM.RCO@ssa.gov. be posted without change; the I. The information collections below Commission does not edit personal are pending at SSA. SSA will submit identifying information from them to OMB within 60 days from the submissions. You should submit only date of this notice. To be sure we information that you wish to make consider your comments, we must available publicly. All submissions receive them no later than March 21, should refer to File Number SR– 2011. Individuals can obtain copies of NYSEAmex–2011–03 and should be the collection instruments by calling the submitted on or before February 10, SSA Reports Clearance Officer at 410– 2011. 965–8783 or by writing to the above e-mail address. 15 17 VerDate Mar<15>2010 18:24 Jan 19, 2011 Jkt 223001 PO 00000 CFR 200.30–3(a)(12). Frm 00090 Fmt 4703 Sfmt 4703 1. Petition to Obtain Approval of a Fee for Representing a Claimant before the Social Security Administration—20 CFR 404.1720 and 404.1725; 20 CFR 416.1520 and 416.1525–0960–0104. A Social Security claimant’s representative, whether an attorney or a non-attorney, uses Form SSA–1560–U4 to petition SSA for authorization to charge and collect a fee. A claimant may also use the form to agree or disagree with the requested fee amount or other information the representative provides on the form. The SSA official responsible for setting the fee uses the information from the form to determine a reasonable fee amount representatives may charge for their services. Primary respondents are attorneys and nonattorneys who represent Social Security claimants. Type of Request: Revision of an OMBapproved information collection. Number of Respondents: 48,110. Frequency of Response: 1. Average Burden per Response: 30 minutes. Estimated Annual Burden: 24,055 hours. 2. Annual Earnings Test Direct Mail Follow-Up Program Notices—20 CFR 404.452–404.455—0960–0369. SSA developed the Annual Earnings Test Direct Mail Follow-up Program to improve beneficiary reporting on work and earnings during the year, and earnings information at the end of the year. SSA may reduce benefits payable under the Social Security Act when an individual has wages or selfemployment income exceeding the annual exempt amount. SSA identifies beneficiaries likely to receive more than the annual exempt amount, and requests more frequent estimates of earnings from them. When applicable, SSA also requests a future year estimate to reduce overpayments due to earnings. SSA sends letters (SSA–L9778, L9779, L9781, L9784, L9785, and L9790) to beneficiaries requesting earnings information the month prior to reaching full retirement age. We send each beneficiary a tailored letter, which includes relevant earnings data from SSA records. The Annual Earnings Test Direct Mail Follow-up Program helps to ensure Social Security payments are correct. The respondents are working Social Security beneficiaries. Type of Request: Revision of an OMBapproved information collection. E:\FR\FM\20JAN1.SGM 20JAN1

Agencies

[Federal Register Volume 76, Number 13 (Thursday, January 20, 2011)]
[Notices]
[Pages 3686-3688]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-1077]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63708; File No. SR-NYSEAmex-2011-03]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC To Establish a 
$5 Strike Price Program

January 12, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on January 11, 2011, 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 Exchange. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt Commentary .12 to NYSE Amex Rule 903 
to allow the Exchange to list and trade series in intervals of $5 or 
greater where the strike price is more than $200 in up to five (5) 
option classes on individual stocks. The text of the proposed rule 
change is available at the principal office of the Exchange, on the 
Commission's Web site at http://www.sec.gov, at the Commission's Public 
Reference Room, and http://www.nyse.com.

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 proposed rule change is to adopt Commentary .12 
to Rule 903 to allow the Exchange to list and trade series in intervals 
of $5 or greater where the strike price is more than $200 in up to five 
(5) option classes on individual stocks (``$5 Strike Price Program'') 
to provide investors and traders with additional opportunities and 
strategies to hedge high priced securities, based on a recently 
approved rule change of NASDAQ OMX PHLX (``Phlx'').\3\ The Exchange 
also proposes to adopt a provision recently adopted for Phlx that 
permits the Exchange to list $5 strike prices on any other option 
classes designated by other securities exchanges that employ a $5 
Strike Program.\4\
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    \3\ See Securities Exchange Act Release No. 63654 (January 6, 
2011) (order approving SR-Phlx-2010-158).
    \4\ See Securities Exchange Act Release No. 63658 (January 6, 
2011) (notice of filing and immediate effectiveness of SR-Phlx-2011-
02).
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    Currently, Commentary .05 to Rule 903 permits strike price 
intervals of $10 or greater where the strike price is greater than 
$200.\5\ The Exchange is proposing to add the proposed $5 Strike 
Program as an exception to the $10 or greater language in Rule 903 
Commentary .05. The proposal would allow the Exchange to list series in 
intervals of $5 or greater where the strike price is more than $200 in 
up to five (5) option classes on individual stocks. The Exchange 
specifically proposes to create new Commentary .12 to Rule 903 to 
provide:
---------------------------------------------------------------------------

    \5\ Commentary .05 permits strike intervals of $2.50 or greater 
where the strike price is $25 or less, and strike price intervals of 
$5 or greater where the strike price is greater than $25.

    The Exchange may list series in intervals of $5 or greater where 
the strike price is more than $200 in up to five (5) option classes 
on individual stocks. The Exchange may list $5 strike prices above 
$200 in any other option classes if those classes are specifically 
designated by other securities exchanges that employ a similar $5 
---------------------------------------------------------------------------
Strike Program under their respective rules.

    The Exchange believes the $5 Strike Price Program would offer 
investors a greater selection of strike prices at a lower cost. For 
example, if an investor wanted to purchase an option with an expiration 
of approximately one month, a $5 strike interval could offer a wider 
choice of strike prices, which may result in reduced outlays in order 
to purchase the option. By way of illustration, using Google, Inc. 
(``GOOG'') as an example, if

[[Page 3687]]

GOOG were trading at $610 \6\ with approximately one month remaining 
until expiration, the front month (one month remaining) at-the-money 
call option (the 610 strike) might trade at approximately $17.50 and 
the next highest available strike (the 620 strike) might trade at 
approximately $13.00. By offering a 615 strike an investor would be 
able to trade a GOOG front month call option at approximately $15.25, 
thus providing an additional choice at a different price point.
---------------------------------------------------------------------------

    \6\ The prices listed in this example are assumptions and not 
based on actual prices. The assumptions are made for illustrative 
purposes only using the stock price as a hypothetical.
---------------------------------------------------------------------------

    Similarly, if an investor wanted to hedge exposure to an underlying 
stock position by selling call options, the investor may choose an 
option term with two months remaining until expiration. An additional 
$5 strike interval could offer additional and varying yields to the 
investor. For example if Apple, Inc. (``AAPL'') were trading at $310 
\7\ with approximately two months remaining until expiration, the 
second month (two months remaining) at-the-money call option (the 310 
strike) might trade at approximately $14.50 and the next highest 
available strike (the 320) strike might trade at $9.90. If at 
expiration the price of AAPL closed at $310, the 310 strike call would 
have yielded a return of 4.67% and the 320 strike call would have 
yielded a return of 3.20% over the holding period. If the 315 strike 
call were available, that series might be priced at approximately 
$12.10 (a yield of 3.93% over the holding period) and would have had a 
lower risk of having the underlying stock called away at expiration 
than that of the 310 strike call.
---------------------------------------------------------------------------

    \7\ The prices listed in this example are assumptions and not 
based on actual prices. The assumptions are made for illustrative 
purposes only using the stock price as a hypothetical.
---------------------------------------------------------------------------

    The Exchange is also proposing to adopt a provision that options 
may be listed and traded in series that are listed by other securities 
exchanges that employ a similar $5 Strike Price Program, pursuant to 
the rules of the other securities exchange. Similar reciprocity 
currently is permitted with the Exchange's $1 Strike Program, $.50 
Strike Program and $2.50 Strike Price Program.\8\
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    \8\ See Exchange Rule 903, Commentary .06 at a. and d.
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    With regard to the impact of this proposal on system capacity, the 
Exchange has analyzed its capacity and represents that it and the 
Options Price Reporting Authority have the necessary systems capacity 
to handle the potential additional traffic associated with the listing 
and trading of classes on individual stocks $5 Strike Price Program.
    The proposed $5 Strike Price Program would provide investors 
increased opportunities to improve returns and manage risk in the 
trading of equity options that overlie high priced stocks. In addition, 
the proposed $5 Strike Price Program would allow investors to establish 
equity options positions that are better tailored to meet their 
investment, trading and risk management requirements.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (the ``Act'') \9\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act \10\ 
in particular, in that it is 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. The Exchange believes the 
$5 Strike Price Program proposal will provide the investing public and 
other market participants increased opportunities because a $5 series 
in high priced stocks will provide market participants additional 
opportunities to hedge high priced securities. This will allow 
investors to better manage their risk exposure, and the Exchange 
believes the proposed $5 Strike Price Program would benefit investors 
by giving them more flexibility to closely tailor their investment 
decisions in a greater number of securities. While the $5 Strike Price 
Program will generate additional quote traffic, the Exchange does not 
believe that this increased traffic will become unmanageable since the 
proposal is limited to a fixed number of classes. Further, the Exchange 
does not believe that the proposal will result in a material 
proliferation of additional series because it is limited to a fixed 
number of classes and the Exchange does not believe that the additional 
price points will result in fractured liquidity.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 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) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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 
Commission has waived the five-day prefiling requirement in this 
case.
---------------------------------------------------------------------------

    The Exchange has requested that the Commission waive the 30-day 
operative delay. The Commission believes that waiver of the operative 
delay is consistent with the protection of investors and the public 
interest because the $5 Strike Price Program is substantially similar 
to that of another exchange that is already effective and 
operative.\13\ Therefore, the Commission designates the proposal 
operative upon filing.\14\
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    \13\ See supra notes 3 and 4.
    \14\ 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).
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    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

    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 3688]]

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSEAmex-2011-03 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-NYSEAmex-2011-03. 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 (http://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-
NYSEAmex-2011-03 and should be submitted on or before February 10, 
2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-1077 Filed 1-19-11; 8:45 am]
BILLING CODE 8011-01-P