Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Granting Approval of Proposed Rule Change To Expand the $2.50 Strike Price Program, 18817-18818 [2011-8054]
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Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices
New Listing Standard Conforming With
Joint Order
CFE is proposing to conform its listing
standards to those approved by the SEC
and the Commodity Futures Trading
Commission in their Joint Order dated
November 19, 2009.7 To affect this
change, CFE is proposing to add new
paragraph E to CFE Policy and
Procedure VIII that references the Joint
Order and provides that, ‘‘the Exchange
may list security futures on any security
that is eligible to underlie options on a
national securities exchange.’’ CFE notes
that OCX made a similar change
conforming its listing standards to those
set forth in the Joint Order.8
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) 9 of the Securities Exchange
Act (the ‘‘Act’’), in general, and furthers
the objectives of Section 6(b)(5) 10 in
particular in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system. The
proposed rule change updates certain
CFE listing and trading rules for security
futures and conforms them to ones
previously changed by OCX for security
futures.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
srobinson on DSKHWCL6B1PROD with NOTICES
CFE does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
Standards of Security Futures Products) (SR–OC–
2006–02).
7 74 FR 61380 (November 24, 2009).
8 See Securities Exchange Act Release No. 61346
(January 13, 2010), 75 FR 3515 (January 21, 2010)
(Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change, as Modified by Amendment
No. 1, Changing Its Listing Standards in
Conformance with the November 9, 2009 Joint
Order Modifying the Listing Standards
Requirements under Section 6(h) of the Securities
Exchange Act of 1934 and the Criteria under
Section 2(a)(1) of the Commodity Exchange Act)
(SR–OC–2009–04).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
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15:18 Apr 04, 2011
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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 proposed rule change has become
effective on March 22, 2011.
At any time within 60 days of the date
of effectiveness of the proposed rule
change, the Commission, after
consultation with the CFTC, may
summarily abrogate the proposed rule
change and require that the proposed
rule change be refiled in accordance
with the provisions of Section 19(b)(1)
of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• 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
Number SR–CFE–2011–001 on the
subject line.
18817
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–CFE–
2011–001 and should be submitted on
or before April 26, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–7980 Filed 4–4–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64157; File No. SR–Phlx–
2011–15]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Order
Granting Approval of Proposed Rule
Change To Expand the $2.50 Strike
Price Program
March 31, 2011.
I. Introduction
On February 2, 2011, NASDAQ OMX
PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed
• Send paper comments in triplicate
with the Securities and Exchange
to Elizabeth M. Murphy, Secretary,
Commission (‘‘Commission’’), pursuant
Securities and Exchange Commission,
to Section 19(b)(1) of the Securities
100 F Street, NE., Washington, DC
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
20549–1090.
19b–4 thereunder,2 a proposed rule
All submissions should refer to File
change to expand the $2.50 Strike Price
Number SR–CFE–2011–001. This file
Program. The proposed rule change was
number should be included on the
subject line if e-mail is used. To help the published for comment in the Federal
Register on February 22, 2011.3 The
Commission process and review your
Commission received no comment
comments more efficiently, please use
only one method. The Commission will letters on the proposal. This order
post all comments on the Commission’s approves the proposed rule change.
Internet Web site (https://www.sec.gov/
II. Description of the Proposal
rules/sro.shtml). Copies of the
Phlx has proposed to modify
submission, all subsequent
Exchange Rule 1012, Series of Options
amendments, all written statements
Open for Trading, to expand the range
with respect to the proposed rule
of option strike prices for which $2.50
change that are filed with the
strike price intervals may be listed
Commission, and all written
under the $2.50 Strike Price Program
communications relating to the
proposed rule change between the
11 17 CFR 200.30–3(a)(12).
Commission and any person, other than
1 15 U.S.C. 78s(b)(1).
those that may be withheld from the
2 17 CFR 240.19b–4.
public in accordance with the
3 Securities Exchange Act Release No. 63914
(February 15, 2011), 76 FR 9846 (‘‘Notice’’).
provisions of 5 U.S.C. 552, will be
Paper Comments
PO 00000
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18818
Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices
(‘‘Program’’) from between $50 and $75
to between $50 and $100, provided the
$2.50 strike price intervals are no more
than $10 from the closing price of the
underlying stock in the primary market.
The Exchange also proposed to increase
the number of option classes on
individual stocks, from 46 to 60, that it
may select for the Program.4
In support of its proposal, Phlx stated
that $2.50 strike intervals above $75
would afford investors the ability to
more closely tailor investment strategies
to the precise movement of the
underlying security. The Exchange also
stated that the number of option classes
in the Program has not expanded since
1998, although increasingly more
companies have completed initial
public offerings since 1998 and
significantly more options classes are
trading now as compared to 1998. The
Exchange stated that the increase would
allow it to accommodate investor
requests for $2.50 strikes in additional
options classes.
Finally, Phlx stated that it analyzed
its capacity, and represented that the
Exchange and the Options Price
Reporting Authority have the necessary
systems capacity to handle the potential
additional traffic that would result from
expanding the Program.
III. Discussion
srobinson on DSKHWCL6B1PROD with NOTICES
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.5 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,6 which requires, among other
things, that the rules of a national
securities exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, 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 Commission believes that the
proposal strikes a reasonable balance
between the Exchange’s desire to offer a
wider array of investment opportunities
and the need to avoid unnecessary
4 In addition, the $2.50 Strike Price Program also
permits the Exchange to list any option class with
$2.50 strike intervals that is included in the $2.50
Strike Price Program of another exchange. See Phlx
Rule 1012, Commentary .05(b).
5 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
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proliferation of options series and the
corresponding increase in quotes and
market fragmentation. The Commission
expects the Exchange to 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.
In addition, the Commission notes
that Phlx has represented that it believes
the Exchange and the Options Price
Reporting Authority have the necessary
systems capacity to handle the
additional traffic associated with the
newly permitted listings.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–Phlx–2011–
15) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8054 Filed 4–4–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64153; File No. SR–CFE–
2011–002]
Self-Regulatory Organizations; CBOE
Futures Exchange, LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
Listing and Trading CBOE Gold ETF
Volatility Index Security Futures
March 30, 2011.
Pursuant to Section 19(b)(7) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 18, 2011, CBOE Futures
Exchange, LLC. (‘‘CFE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which Items
have been prepared by CFE. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons. CFE
also filed this proposed rule change
concurrently with the Commodity
Futures Trading Commission (‘‘CFTC’’).
CFE filed a written certification with the
CFTC under Section 5c(c) of the
7 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(7).
8 17
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Commodity Exchange Act (‘‘CEA’’) 2 on
March 18, 2011.
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change
The Exchange proposes to amend its
rules to permit the Exchange to list and
trade the Gold ETF Volatility Index
(‘‘GVZ’’) security futures contract. The
text of the proposed rule change is
available on the Exchange’s Web site at
https://www.cfe.cboe.com, on the
Commission’s Web site at https://
www.sec.gov, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, CFE
included statements concerning the
purpose of and basis for the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. CFE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to permit the Exchange to list
and trade security futures on the CBOE
Gold ETF Volatility Index (‘‘GVZ’’ or
‘‘GVZ Index’’). Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’)
received approval from the SEC to list
and trade GVZ options.3 Consistent with
the Joint Order issued by the SEC and
the CFTC dated November 19, 2009
(Securities Exchange Act Release No.
61027) (‘‘Joint Order’’),4 the GVZ Index
may underlie a security futures contract
since the GVZ Index is eligible to
underlie options traded on a national
securities exchange.
Index Design and Calculation
The calculation of GVZ is based on
the VIX methodology applied to options
on the SPDR Gold Trust (‘‘GLD’’). The
27
U.S.C. 7a–2(c).
Securities Exchange Act Release No. 62139
(May 19, 2010) 75 FR 29597 (May 26, 2010) (order
approving proposal to list and trade GVZ options
on CBOE).
4 74 FR 61380 (November 24, 2009). See also CFE
Policy and Procedure VIII E. (Eligibility for Listing
Security Futures on Securities Approved for
Options Trading).
3 See
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]]>Agencies
[Federal Register Volume 76, Number 65 (Tuesday, April 5, 2011)]
[Notices]
[Pages 18817-18818]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8054]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64157; File No. SR-Phlx-2011-15]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order
Granting Approval of Proposed Rule Change To Expand the $2.50 Strike
Price Program
March 31, 2011.
I. Introduction
On February 2, 2011, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``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
expand the $2.50 Strike Price Program. The proposed rule change was
published for comment in the Federal Register on February 22, 2011.\3\
The Commission received no comment letters on the proposal. This order
approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 63914 (February 15,
2011), 76 FR 9846 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
Phlx has proposed to modify Exchange Rule 1012, Series of Options
Open for Trading, to expand the range of option strike prices for which
$2.50 strike price intervals may be listed under the $2.50 Strike Price
Program
[[Page 18818]]
(``Program'') from between $50 and $75 to between $50 and $100,
provided the $2.50 strike price intervals are no more than $10 from the
closing price of the underlying stock in the primary market. The
Exchange also proposed to increase the number of option classes on
individual stocks, from 46 to 60, that it may select for the
Program.\4\
---------------------------------------------------------------------------
\4\ In addition, the $2.50 Strike Price Program also permits the
Exchange to list any option class with $2.50 strike intervals that
is included in the $2.50 Strike Price Program of another exchange.
See Phlx Rule 1012, Commentary .05(b).
---------------------------------------------------------------------------
In support of its proposal, Phlx stated that $2.50 strike intervals
above $75 would afford investors the ability to more closely tailor
investment strategies to the precise movement of the underlying
security. The Exchange also stated that the number of option classes in
the Program has not expanded since 1998, although increasingly more
companies have completed initial public offerings since 1998 and
significantly more options classes are trading now as compared to 1998.
The Exchange stated that the increase would allow it to accommodate
investor requests for $2.50 strikes in additional options classes.
Finally, Phlx stated that it analyzed its capacity, and represented
that the Exchange and the Options Price Reporting Authority have the
necessary systems capacity to handle the potential additional traffic
that would result from expanding the Program.
III. Discussion
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.\5\
Specifically, the Commission finds that the proposal is consistent with
Section 6(b)(5) of the Act,\6\ which requires, among other things, that
the rules of a national securities exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts, 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.
---------------------------------------------------------------------------
\5\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that the proposal strikes a reasonable
balance between the Exchange's desire to offer a wider array of
investment opportunities and the need to avoid unnecessary
proliferation of options series and the corresponding increase in
quotes and market fragmentation. The Commission expects the Exchange to
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.
In addition, the Commission notes that Phlx has represented that it
believes the Exchange and the Options Price Reporting Authority have
the necessary systems capacity to handle the additional traffic
associated with the newly permitted listings.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-Phlx-2011-15) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8054 Filed 4-4-11; 8:45 am]
BILLING CODE 8011-01-P
