Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing and Immediate Effectiveness of a Proposal To Permit the Exchange To List Series With Additional Expiration Months If Such Series Are Listed on Another Exchange, 32383-32385 [2011-13903]
Download as PDF
Federal Register / Vol. 76, No. 108 / Monday, June 6, 2011 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.9 At any time
within 60 days of the filing of such
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. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–13855 Filed 6–3–11; 8:45 am]
BILLING CODE 8011–01–P
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
No. SR–ISE–2011–29 on the subject
line.
jlentini on DSK4TPTVN1PROD with NOTICES
printing in the Commission’s Public
Reference Room. Copies of such filing
also will be available for inspection and
copying at the principal office of the
ISE. 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–ISE–2011–29 and should be
submitted by June 27, 2011.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64570; File No. SR–BX–
2011–029]
Self-Regulatory Organizations;
NASDAQ OMX BX; Notice of Filing and
Immediate Effectiveness of a Proposal
To Permit the Exchange To List Series
With Additional Expiration Months If
Such Series Are Listed on Another
Exchange
May 31, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on May 23,
• Send paper comments in triplicate
2011, NASDAQ OMX BX (the
to Elizabeth Murphy, Secretary,
‘‘Exchange’’) filed with the Securities
Securities and Exchange Commission,
and Exchange Commission
100 F Street, NE., Washington, DC
(‘‘Commission’’) the proposed rule
20549–1090.
change as described in Items I and II
All submissions should refer to File
below, which Items have been prepared
Number SR–ISE–2011–29. This file
by the Exchange. The Exchange has
number should be included on the
designated the proposed rule change as
subject line if e-mail is used. To help the
constituting a non-controversial rule
Commission process and review your
change under Rule 19b–4(f)(6) under the
comments more efficiently, please use
Act,3 which renders the proposal
only one method. The Commission will
effective upon filing with the
post all comments on the Commission’s
Commission. The Commission is
Internet Web site (https://www.sec.gov/
publishing this notice to solicit
rules/sro.shtml). Copies of the
comments on the proposed rule change
submission, all subsequent
from interested persons.
amendments, all written statements
I. Self-Regulatory Organization’s
with respect to the proposed rule
Statement of the Terms of Substance of
change that are filed with the
the Proposed Rule Change
Commission, and all written
communications relating to the
The Exchange proposes to amend the
proposed rule change between the
Rules of the Boston Options Exchange
Commission and any person, other than Group, LLC (‘‘BOX’’) to permit the
those that may be withheld from the
Exchange to list additional expiration
public in accordance with the
provisions of 5 U.S.C. 552, will be
10 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
available for website viewing and
2 17
9 15
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
U.S.C. 78s(b)(3)(A)(ii).
VerDate Mar<15>2010
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PO 00000
Frm 00029
Fmt 4703
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32383
months if such expiration months are
listed on another exchange. The text of
the proposed rule change is available at
the Exchange’s principal office, at
https://www.nasdaqomxbx.
cchwallstreet.com, the Commission’s
Public Reference Room, and at 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
Exchange 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. The
Exchange 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 the proposed rule
change is to amend the BOX Trading
Rules to permit the Exchange to list
additional expiration months if such
expiration months are listed on another
exchange. This filing is based on a filing
previously submitted by the
International Securities Exchange, LLC.4
Under current Chapter IV, Section 6
of the BOX Trading Rules, the Exchange
usually will open four (4) Expiration
months for each type of option of a class
of options open for trading on BOX: the
first two (2) 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. For
example, if the Exchange listed in late
September a new stock option on a
January-April-July-October quarterly
cycle, the Exchange would list the two
nearest-term months (October and
November) and the next two expiration
months of the cycle (January and April).
Further, when the October series expire,
the Exchange would add the December
series as the next nearest month. And
when the November series expire, the
Exchange would add the July series as
the next month of the cycle.
4 See Securities Exchange Act Release No. 64343
(April 26, 2011) 76 FR 24546 (May 2, 2011) (SR–
ISE–2011–26).
E:\FR\FM\06JNN1.SGM
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32384
Federal Register / Vol. 76, No. 108 / Monday, June 6, 2011 / Notices
jlentini on DSK4TPTVN1PROD with NOTICES
In 2010, the Exchange established a
pilot program to add up to two
additional expiration months for each
class of options opened for trading on
BOX (the ‘‘Additional Expiration
Months Pilot’’).5 Under the Additional
Expiration Months Pilot, the Exchange
lists expiration months that are
considered ‘‘mid-month.’’ For example,
for options classes that have expiration
months of October, November, January,
and April, the Exchange lists the
December series. For options classes
that have expiration months of October,
November, February and May, the
Exchange lists the December and
January series. The listing of additional
expiration months has been wellreceived by BOX Options Participants
and has had a very limited impact on
system resources.
ISE submitted a similar filing to one
submitted by NASDAQ OMX PHLX,
Inc. (‘‘PHLX’’).6 PHLX recently
submitted a filing to adopt rules that
permit it to list an unlimited number of
expiration months and series for each
class of standard options opened for
trading on that exchange. Specifically,
PHLX amended its rules so that it can
open ‘‘at least one expiration month’’ for
each class of standard options open for
trading on that exchange. Consequently,
while the Exchange is currently
restricted to listing a limited number of
expiration months that are permissible
under its rules and the Additional
Expiration Months Pilot, PHLX has the
ability to list an unlimited number of
expiration months, including those that
the Exchange would not be able to
currently list under its rules. Indeed,
PHLX has listed additional expiration
months that no other market, including
the Exchange, could list at the time they
were added. For example, in February
2011, PHLX listed the October 2011
expiration in Omnicare, Inc. (ticker:
OCR). PHLX was able to list that
expiration month based on its amended
rule. Meanwhile, the Exchange could
not list the October 2011 series under
Chapter IV, Section 6(a) of the BOX
Trading Rules because the standard
expiration months for OCR in February
are March, April, June, and September.
The Exchange also could not list the
October 2011 series as part of the
Additional Expiration Months Pilot
because OCR is not one of the classes
5 See Securities Exchange Act Release No. 63321
(November 16, 2010) 75 FR 71163 (November 22,
2010) (SR–BX–2010–077).
6 See Securities Exchange Act Release No. 63700
(January 11, 2011) 76 FR 2931 (January 18, 2011)
(SR–PHLX–2011–04). In its filing, PHLX cites to the
Commission’s approval of the NASDAQ Options
Market and rules pertaining thereto as the basis for
making the change to its rules.
VerDate Mar<15>2010
16:06 Jun 03, 2011
Jkt 223001
selected by BOX to participate in the
Additional Expiration Months Pilot. As
a result, PHLX was the only exchange
that listed the October 2011 series in
OCR and traded that series without any
competition until recently when other
options exchanges amended their rules
to permit its listing.
For competitive reasons, the Exchange
now proposes to add new
Supplementary Material .09 to its
Chapter IV, Section 6 and
Supplementary Material .03 to Chapter
XIV, Section 10 of the BOX Trading
Rules to permit the Exchange to list
additional expiration months on options
classes opened for trading on BOX if
such expiration months are opened for
trading on at least one other national
securities exchange. This proposed rule
change will allow the Exchange to
match the listing of expiration months
that PHLX, NOM, ISE, or other
exchanges list in the event the Exchange
is not able to list those expiration
months because they do not comport to
BOX Trading Rules or the Additional
Expiration Months Pilot.
BOX notes that the proposed rule
change affords additional flexibility in
that it will permit listing those
additional expiration months that have
an actual demand from market
participants, thereby potentially
reducing the proliferation of classes and
series. The Exchange believes the
proposed rule change is proper, and
indeed necessary, in light of the need to
have rules that permit the listing of
identical expiration months across
exchanges for products that are
multiply-listed and fungible with one
another.
BOX believes that the proposed rule
change should encourage competition
and be beneficial to traders and market
participants by providing them with a
means to trade on BOX securities that
are listed and traded on other
exchanges.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,7
in general, and Section 6(b)(5) of the
Act,8 in particular, in that it is designed
to foster cooperation and coordination
with persons engaged in regulating,
clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism for a free and open market
and a national market system, and in
general, to protect investors and the
7 15
8 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00030
Fmt 4703
Sfmt 4703
public interest. In particular, the
proposed rule change will permit the
Exchange to accommodate requests
made by BOX Option Participants and
other market participants to list the
additional expiration months and thus
encourage competition without harming
investors or the public interest.
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 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 either
solicited or received.
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 9 and Rule 19b–
(f)(6) thereunder.10
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 proposal should promote
competition by allowing the Exchange,
without undue delay, to list and trade
option series that are trading on other
options exchanges. Therefore, the
Commission designates the proposal
operative upon filing.11
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
9 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.
11 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).
10 17
E:\FR\FM\06JNN1.SGM
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Federal Register / Vol. 76, No. 108 / Monday, June 6, 2011 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Cathy H. Ahn,
Deputy Secretary.
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:
[FR Doc. 2011–13903 Filed 6–3–11; 8:45 am]
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–BX–2011–029 on the
subject line.
jlentini on DSK4TPTVN1PROD with NOTICES
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.
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Extending
the Pilot Period To Allow Cabinet
Trading To Take Place Below $1 Per
Option Contract
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–BX–2011–029. 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–BX–
2011–029 and should be submitted on
or before June 27, 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 May 20,
2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
constituting a non-controversial rule
change under Rule 19b–4(f)(6) under the
Act,3 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
VerDate Mar<15>2010
16:06 Jun 03, 2011
Jkt 223001
BILLING CODE 8011–01–P
32385
proposed rule change. The text of these
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 aspects of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64571; File No. SR–Phlx–
2011–72]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
May 31, 2011.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange submits this proposed
rule change to extend through December
1, 2011, the pilot program in Rule 1059,
Accomodation Transactions, to allow
cabinet trading to take place below $1
per option contract, under specified
circumstances (the ‘‘pilot program’’).
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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
PO 00000
Frm 00031
Fmt 4703
Sfmt 4703
The purpose is to extend through
December 1, 2011, the pilot program in
Commentary .02 of Exchange Rule 1059,
Accommodation Transactions, which
sets forth specific procedures for
engaging in cabinet trades.4 Prior to the
pilot program, Rule 1059 required that
all orders placed in the cabinet were
assigned priority based upon the
sequence in which such orders were
received by the specialist. All closing
bids and offers would be submitted to
the specialist in writing, and the
specialist effected all closing cabinet
transactions by matching such orders
placed with him. Bids or offers on
orders to open for the accounts of
customer, firm, specialists and ROTs
could be made at $1 per option contract,
but such orders could not be placed in
and must yield to all orders in the
cabinet. Specialists effected all cabinet
transactions by matching closing
purchase or sale orders which were
placed in the cabinet or, provided there
was no matching closing purchase or
sale order in the cabinet, by matching a
closing purchase or sale order in the
cabinet with an opening purchase or
sale order.5 All cabinet transactions
were reported to the Exchange following
the close of each business day.6 Any (i)
Member, (ii) member organization, or
(iii) other person who was a nonmember broker or dealer and who
directly or indirectly controlled, was
controlled by, or was under common
control with, a member or member
organization (any such other person
being referred to as an affiliated person)
could effect any transaction as principal
in the over-the-counter market in any
class of option contracts listed on the
4 Cabinet or accommodation trading of option
contracts is intended to accommodate persons
wishing to effect closing transactions in those series
of options dealt in on the Exchange for which there
is no auction market.
5 Specialists and ROTs are not subject to the
requirements of Rule 1014 in respect of orders
placed pursuant to this Rule. Also, the provisions
of Rule 1033(b) and (c), Rule 1034 and Rule 1038
do not apply to orders placed in the cabinet.
Cabinet transactions are not reported on the ticker.
6 See Exchange Rule 1059.
E:\FR\FM\06JNN1.SGM
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Agencies
[Federal Register Volume 76, Number 108 (Monday, June 6, 2011)]
[Notices]
[Pages 32383-32385]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13903]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64570; File No. SR-BX-2011-029]
Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing
and Immediate Effectiveness of a Proposal To Permit the Exchange To
List Series With Additional Expiration Months If Such Series Are Listed
on Another Exchange
May 31, 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 May 23, 2011, NASDAQ OMX BX (the ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the Exchange. The Exchange has designated the proposed rule
change as constituting a non-controversial rule change under Rule 19b-
4(f)(6) under the Act,\3\ which renders the proposal effective upon
filing with the Commission. 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.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Rules of the Boston Options
Exchange Group, LLC (``BOX'') to permit the Exchange to list additional
expiration months if such expiration months are listed on another
exchange. The text of the proposed rule change is available at the
Exchange's principal office, at https://www.nasdaqomxbx.cchwallstreet.com, the Commission's Public Reference Room, and at 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 Exchange 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. The Exchange 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 the proposed rule change is to amend the BOX Trading
Rules to permit the Exchange to list additional expiration months if
such expiration months are listed on another exchange. This filing is
based on a filing previously submitted by the International Securities
Exchange, LLC.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 64343 (April 26,
2011) 76 FR 24546 (May 2, 2011) (SR-ISE-2011-26).
---------------------------------------------------------------------------
Under current Chapter IV, Section 6 of the BOX Trading Rules, the
Exchange usually will open four (4) Expiration months for each type of
option of a class of options open for trading on BOX: the first two (2)
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. For example, if the Exchange listed in late September a
new stock option on a January-April-July-October quarterly cycle, the
Exchange would list the two nearest-term months (October and November)
and the next two expiration months of the cycle (January and April).
Further, when the October series expire, the Exchange would add the
December series as the next nearest month. And when the November series
expire, the Exchange would add the July series as the next month of the
cycle.
[[Page 32384]]
In 2010, the Exchange established a pilot program to add up to two
additional expiration months for each class of options opened for
trading on BOX (the ``Additional Expiration Months Pilot'').\5\ Under
the Additional Expiration Months Pilot, the Exchange lists expiration
months that are considered ``mid-month.'' For example, for options
classes that have expiration months of October, November, January, and
April, the Exchange lists the December series. For options classes that
have expiration months of October, November, February and May, the
Exchange lists the December and January series. The listing of
additional expiration months has been well-received by BOX Options
Participants and has had a very limited impact on system resources.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 63321 (November 16,
2010) 75 FR 71163 (November 22, 2010) (SR-BX-2010-077).
---------------------------------------------------------------------------
ISE submitted a similar filing to one submitted by NASDAQ OMX PHLX,
Inc. (``PHLX'').\6\ PHLX recently submitted a filing to adopt rules
that permit it to list an unlimited number of expiration months and
series for each class of standard options opened for trading on that
exchange. Specifically, PHLX amended its rules so that it can open ``at
least one expiration month'' for each class of standard options open
for trading on that exchange. Consequently, while the Exchange is
currently restricted to listing a limited number of expiration months
that are permissible under its rules and the Additional Expiration
Months Pilot, PHLX has the ability to list an unlimited number of
expiration months, including those that the Exchange would not be able
to currently list under its rules. Indeed, PHLX has listed additional
expiration months that no other market, including the Exchange, could
list at the time they were added. For example, in February 2011, PHLX
listed the October 2011 expiration in Omnicare, Inc. (ticker: OCR).
PHLX was able to list that expiration month based on its amended rule.
Meanwhile, the Exchange could not list the October 2011 series under
Chapter IV, Section 6(a) of the BOX Trading Rules because the standard
expiration months for OCR in February are March, April, June, and
September. The Exchange also could not list the October 2011 series as
part of the Additional Expiration Months Pilot because OCR is not one
of the classes selected by BOX to participate in the Additional
Expiration Months Pilot. As a result, PHLX was the only exchange that
listed the October 2011 series in OCR and traded that series without
any competition until recently when other options exchanges amended
their rules to permit its listing.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 63700 (January 11,
2011) 76 FR 2931 (January 18, 2011) (SR-PHLX-2011-04). In its
filing, PHLX cites to the Commission's approval of the NASDAQ
Options Market and rules pertaining thereto as the basis for making
the change to its rules.
---------------------------------------------------------------------------
For competitive reasons, the Exchange now proposes to add new
Supplementary Material .09 to its Chapter IV, Section 6 and
Supplementary Material .03 to Chapter XIV, Section 10 of the BOX
Trading Rules to permit the Exchange to list additional expiration
months on options classes opened for trading on BOX if such expiration
months are opened for trading on at least one other national securities
exchange. This proposed rule change will allow the Exchange to match
the listing of expiration months that PHLX, NOM, ISE, or other
exchanges list in the event the Exchange is not able to list those
expiration months because they do not comport to BOX Trading Rules or
the Additional Expiration Months Pilot.
BOX notes that the proposed rule change affords additional
flexibility in that it will permit listing those additional expiration
months that have an actual demand from market participants, thereby
potentially reducing the proliferation of classes and series. The
Exchange believes the proposed rule change is proper, and indeed
necessary, in light of the need to have rules that permit the listing
of identical expiration months across exchanges for products that are
multiply-listed and fungible with one another.
BOX believes that the proposed rule change should encourage
competition and be beneficial to traders and market participants by
providing them with a means to trade on BOX securities that are listed
and traded on other exchanges.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\7\ in general, and Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism for a free and open market and a national market
system, and in general, to protect investors and the public interest.
In particular, the proposed rule change will permit the Exchange to
accommodate requests made by BOX Option Participants and other market
participants to list the additional expiration months and thus
encourage competition without harming investors or the public interest.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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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 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 either solicited or received.
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 \9\ and Rule 19b-
(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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.
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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 proposal should promote competition by allowing
the Exchange, without undue delay, to list and trade option series that
are trading on other options exchanges. Therefore, the Commission
designates the proposal operative upon filing.\11\
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\11\ 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
[[Page 32385]]
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:
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-BX-2011-029 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-BX-2011-029. 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-BX-2011-029 and should be
submitted on or before June 27, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
\12\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13903 Filed 6-3-11; 8:45 am]
BILLING CODE 8011-01-P