Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .06 to Rule 903 in Order To Simplify the $1 Strike Price Program, 61469-61472 [2011-25477]
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Federal Register / Vol. 76, No. 192 / Tuesday, October 4, 2011 / Notices
the objectives of perfecting the
mechanism of a free and open market
and the national market system because
it promotes uniformity across markets
concerning when and how to halt
trading in all stocks as a result of
extraordinary market volatility.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
As the Commission may designated up
to 90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
pmangrum on DSK3VPTVN1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed
changes to the market-wide circuit
breaker regime are consistent with the
Act. The Commission specifically
requests comment on the following:
• As discussed above, the proposed
rule change would narrow the
percentage market declines that would
trigger a market-wide halt in trading.
How would the proposed changes
interact with the existing single-stock
circuit breaker pilot program17 or, if
17 See Securities Exchange Act Release No. 64735
(June 23, 2011), 76 FR 38243 (June 29, 2011) (SR–
BATS–2011–016; SR–BYX–2011–011; SR–BX–
2011–025; SR–CBOE–2011–049; SR–CHX–2011–09;
SR–EDGA–2011–15; SR–EDGX–2011–14; SR–
FINRA–2011–023; SR–ISE–2011–028; SR–
NASDAQ–2011–067; SR–NYSE–2011–21; SR–
NYSEAmex–2011–32; SR–NYSEArca–2011–26; SR–
NSX–2011–06; SR–Phlx–2011–64) (approving the
‘‘Phase III Pilot Program’’). The Phase III Pilot
Program has been extended through January 2012.
See, e.g., Securities Exchange Act Release 65094
(August 10, 2011), 76 FR 50779 (August 16, 2011)
(SR–NASDAQ–2011–011).
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approved, the proposed NMS Plan to
establish a limit-up/limit-down
mechanism for individual securities?18
• To what extent could the
concurrent triggering of single stock
circuit breakers in many S&P 500 Index
stocks lead to difficulties in calculating
the index? Would the triggering of many
single stock circuit breakers in a general
market downturn cause the index
calculation to become stale and thereby
delay the triggering of the market-wide
circuit breaker?
• Should the market-wide circuit
breaker be triggered if a sufficient
number of single-stock circuit breakers
or price limits are triggered, and
materially affect calculations of the S&P
500 Index?
• Should market centers implement
rules that mandate cancellation of
pending orders in the event a marketwide circuit breaker is triggered? If so,
should such a rule require cancellation
of all orders or only certain order types
(e.g., limit orders)? Should all trading
halts trigger such cancellation policies
or should the cancellation policies
apply only to a Level 3 Market Decline?
• Should some provision be made to
end the regular trading session if a
market decline suddenly occurs after
3:25 p.m. but does not reach the 20%
level?
• In the event of a Level 3 Market
Decline, should some provision be made
for the markets to hold a closing
auction?
• Should the primary market have a
longer period (e.g., 30 minutes) to
reopen trading following a Level 2
Market Decline before trading resumes
in other venues?
• In the event of a Level 3 Market
Decline, should the markets wait for the
primary market to reopen trading in a
particular security on the next trading
day before trading in that security
resumes?
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–BATS–2011–038 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–BATS–2011–038. This file
number should be ncluded 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 such filing
also will be available for inspection and
copying at the principal office of BATS.
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 publicly available. All
submissions should refer to File
Number SR–BATS–2011–038 and
should be submitted on or before
October 25, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–25518 Filed 10–3–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65421; File No. SR–
NYSEAmex-2011–70]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Commentary
.06 to Rule 903 in Order To Simplify the
$1 Strike Price Program
September 28, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
19 17
18 See
Securities Exchange Act Release No. 64547
(May 25, 2011), 76 FR 31647 (June 1, 2011).
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61469
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 76, No. 192 / Tuesday, October 4, 2011 / Notices
notice is hereby given that, on
September 26, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Commentary .06 to Rule 903 in order to
simplify the $1 Strike Price Program.
The text of the proposed rule change is
available on the Exchange’s Web site at
https://www.nyse.com, at the Exchange’s
principal office, on the Commission’s
website at https://www.sec.gov, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
pmangrum on DSK3VPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to amend
Commentary .06 to Rule 903 in order to
simplify the $1 Strike Price Program
(‘‘Program’’).
In 2003, the Commission issued an
order permitting the Exchange to
establish the Program on a pilot basis.3
At that time, the underlying stock had
to close at or below $20 on the previous
trading day in order to qualify for the
Program. The range of available $1
strike price intervals was limited to a
range between $3 and $20 and no strike
price was permitted that was greater
than $5 from the underlying stock’s
closing price on the previous trading
day. Series in $1 strike price intervals
3 See Securities Exchange Act Release No. 48024
(June 12, 2003), 68 FR 36617 (June 18, 2003) (SR–
Amex-2003–36).
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were not permitted within $0.50 of an
existing strike. In addition, the
Exchange was limited to selecting five
(5) classes and reciprocal listing was
permitted. Furthermore, Long-Term
Equity Option Series (‘‘LEAPS’’) in $1
strike price intervals were not permitted
for classes selected to participate in the
Program.
The Exchange renewed the pilot
program on a yearly basis and, in 2008,
the Commission granted permanent
approval of the Program.4 At that time,
the Program was expanded to increase
the upper limit of the permissible strike
price range from $20 to $50. In addition,
the number of class selections per
exchange was increased from five (5) to
ten (10).
Since the Program was made
permanent, the number of class
selections per exchange has been
increased from ten (10) classes to 55
classes5 and subsequently increased
from 55 classes to 150 classes.6
The most recent expansion of the
Program was approved by the
Commission in early 2011 and increased
the number of $1 strike price intervals
permitted within the $1 to $50 range.7
Amendments To Simplify NonLEAPS Rule Text
These numerous expansions have
resulted in very lengthy rule text that
the Exchange believes is complicated
and difficult to understand. The
Exchange believes that the proposed
changes to simplify the rule text of the
Program would benefit market
participants since the Program will be
easier to understand and would
maintain the expansions made to the
Program, including those in early 2011.
Through the current proposal, the
Exchange also hopes to make
administration of the Program easier,
e.g., system programming efforts. To
simplify the rules of the Program and,
as a proactive attempt to mitigate any
unintentional listing of improper
strikes, the Exchange is proposing the
following streamlining amendments:
• When the price of the underlying
stock is equal to or less than $20, permit
$1 strike price intervals with an exercise
price up to 100% above and 100%
4 See Securities Exchange Act Release No. 57110
(January 8, 2008), 73 FR 2292 (January 14, 2008)
(SR–Amex-2007–141).
5 See Securities Exchange Act Release No. 59587
(March 17, 2009), 74 FR 12414 (March 24, 2009)
(SR–NYSEALTR–2009–11).
6 See Securities Exchange Act Release No. 62449
(July 2, 2010), 75 FR 40012 (July 13, 2010) (SR–
NYSEAmex-2010–67).
7 See Securities Exchange Act Release No. 63773
(January 25, 2011), 76 FR 5646 (February 1, 2011)
(SR–NYSEAmex-2010–109).
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below the price of the underlying
stock.8
o However, the above restriction
would not prohibit the listing of at least
five (5) strike prices above and below
the price of the underlying stock per
expiration month in an option class.9
Æ For example, if the price of the
underlying stock is $2, the Exchange
would be permitted to list the following
series: $1, $2, $3, $4, $5, $6 and $7.10
• When the price of the underlying
stock is greater than $20, permit $1
strike price intervals with an exercise
price up to 50% above and 50% below
the price of the underlying security up
to $50.11
• For the purpose of adding strikes
under the Program, the ‘‘price of the
underlying stock’’ shall be measured in
the same way as ‘‘the price of the
underlying security’’ is, as set forth in
Rule 903A(b)(1).12
• Prohibit the listing of additional
series in $1 strike price intervals if the
underlying stock closes at or above $50
in its primary market and provide that
additional series in $1 strike price
intervals may not be added until the
underlying stock closes again below
$50.13
Amendments To Simplify LEAPS Rule
Text
The early 2011 expansion of the
Program permitted for some limited
listing of LEAPS in $1 strike price
intervals for classes that participate in
8 See proposed new paragraph (b)(i) to
Commentary .06 to Rule 903.
9 Id.
10 Id.
11 See proposed new paragraph (b)(ii) to
Commentary .06 to Rule 903.
12 See proposed new paragraph (b)(iii) to
Commentary .06 to Rule 903. Rule 903A(b)(1)
provides, ‘‘[t]he price of the underlying security is
measured by: (1) For intra-day add-on series and
next-day series additions, the daily high and low of
all prices reported by all national securities
exchanges; (2) for new expiration months, the daily
high and low of all prices reported by all national
securities exchanges on the day the Exchange
determines its preliminary notification of new
series; and (3) for options series to be added as a
result of pre-market trading, the most recent share
price reported by all national securities exchanges
between 8:45 a.m. and 9:30 a.m. Eastern Time.’’
13 See proposed new paragraph (b)(iv) to
Commentary .06 to Rule 903. The Exchange
believes that it is important to codify this additional
series criterion because there have been conflicting
interpretations among the exchanges that have
adopted similar programs. The $50 price criterion
for additional series was intended when the
Program was originally established (as a pilot) in
2003. See supra note 4 (‘‘Amex will list an
additional expiration month upon expiration of the
near-term month, provided that the underlying
stock prices closes below $20 on Expiration Friday.
If the underlying closes at or above $20 on its
primary market on Expiration Friday, the Exchange
will not list an additional month of $1 strike price
series until the stock again closes below $20.’’).
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Federal Register / Vol. 76, No. 192 / Tuesday, October 4, 2011 / Notices
the Program. The Exchange is proposing
to maintain the expansion as to LEAPS,
but simplify the language and provide
examples of the simplified rule text.
These changes are set forth in proposed
new paragraph (b)(v) to Commentary .06
to Rule 903.
For stocks in the Program, the
Exchange may list one $1 strike price
interval between each standard $5 strike
price interval, with the $1 strike price
interval being $2 above the standard
strike for each interval above the price
of the underlying stock, and $2 below
the standard strike for each interval
below the price of the underlying stock
(‘‘$2 wings’’). For example, if the price
of the underlying stock is $24.50, the
Exchange may list the following
standard strikes in $5 intervals: $15,
$20, $25, $30 and $35. Between these
standard $5 strikes, the Exchange may
list the following $2 wings: $18, $27 and
$32.14
In addition, the Exchange may list the
$1 strike price interval which is $2
above the standard strike just below the
underlying price at the time of listing.
In the above example, since the
standard strike just below the
underlying price ($24.50) is $20, the
Exchange may list a $22 strike. The
Exchange may add additional LEAP
strikes as the price of the underlying
stock moves, consistent with the
Options Listing Procedures Plan
(‘‘OLPP’’).
pmangrum on DSK3VPTVN1PROD with NOTICES
Non-Substantive Amendments to Rule
Text
The early 2011 expansion of the
Program prohibited the listing of $2.50
strike price intervals for classes that
participate in the Program. This
prohibition applies to non-LEAPS and
LEAPS. The Exchange proposes to
maintain this prohibition and codify it
in paragraph (a) to Commentary .06 to
Rule 903 (Program Description).
For ease of reference, the Exchange is
proposing to add the headings ‘‘Program
Description,’’ ‘‘Initial and Additional
Series’’ and ‘‘LEAPS’’ to Commentary
.06 to Rule 903.
The Exchange is proposing to more
accurately reflect the nature of the
Program and is proposing to make
stylistic changes throughout
Commentary .06 to Rule 903 by
renaming the Program ‘‘The $1 Strike
14 The Exchange notes that a $2 wing is not
permitted between the standard $20 and $25 strikes
in the above example. This is because the $2 wings
are added based on reference to the price of the
underlying and as being between the standard
strikes above and below the price of the underlying
stock. Since the price of the underlying stock
($24.50) straddles the standard strikes of $20 and
$25, no $2 wing is permitted between these
standard strikes.
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Price Interval Program’’ and by adding
the phrase ‘‘price interval.’’
The Exchange proposes to reorganize
current paragraphs (c) through (f) of
Commentary .06 to Rule 903 and
portions of the Delisting Policy therein
in order to better organize Commentary
.06. This would include moving current
paragraph (d) out of Commentary .06
and instead including the text as new
Commentary .13 to Rule 903.
Lastly, the Exchange is making
technical changes to Commentary .06 to
Rule 903, e.g., replacing the word
‘‘security’’ with the word ‘‘stock.’’
The Exchange represents that it has
the necessary systems capacity to
support the increase in new options
series that would result from the
proposed streamlining changes to the
Program.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,15 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,16 in particular, because it is
designed to promote just and equitable
principles of trade, remove
impediments to and perfect the
mechanisms of 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 seeks to reduce
investor confusion and to simplify the
provisions of the $1 Strike Price Interval
Program.
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
15 15
16 15
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00132
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61471
filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act17 and Rule 19b4(f)(6) thereunder.18
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 is substantially
similar to that of another exchange that
has been approved by the
Commission.19 Therefore, the
Commission designates the proposal
operative upon filing.20
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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–NYSEAmex–2011–70 on
the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
17 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 Exchange
has satisfied the five-day prefiling requirement.
19 See Securities Exchange Act Release No. 65383
(September 22, 2011) (SR–CBOE–2011–040) (order
approving proposed rule change to simplify the $1
Strike Price Interval Program).
20 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).
18 17
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Federal Register / Vol. 76, No. 192 / Tuesday, October 4, 2011 / Notices
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEAmex–2011–70. 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 such 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
publicly available. All submissions
should refer to File Number SR–
NYSEAmex–2011–70 and should be
submitted on or before October 25,
2011.
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000
(and, as appropriate, Delegation of
Authority No. 257 of April 15, 2003), I
hereby determine that the objects to be
included in the exhibition ‘‘The Game
of Kings: Medieval Ivory Chessmen from
the Isle of Lewis,’’ imported from abroad
for temporary exhibition within the
United States, are of cultural
significance. The objects are imported
pursuant to a loan agreement with the
foreign owner or custodian. I also
determine that the exhibition or display
of the exhibit objects at the Metropolitan
Museum of Art, New York, New York,
from on or about November 14, 2011,
until on or about April 22, 2012, and at
possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these Determinations
be published in the Federal Register.
For
further information, including a list of
the exhibit objects, contact Paul W.
Manning, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6469). The
mailing address is U.S. Department of
State, SA–5, L/PD, Fifth Floor (Suite
5H03), Washington, DC 20522–0505.
FOR FURTHER INFORMATION CONTACT:
Dated: September 27, 2011.
J. Adam Ereli,
Principal Deputy Assistant Secretary, Bureau
of Educational and Cultural Affairs,
Department of State.
[FR Doc. 2011–25534 Filed 10–3–11; 8:45 am]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Elizabeth M. Murphy,
Secretary.
BILLING CODE 4710–05–P
[FR Doc. 2011–25477 Filed 10–3–11; 8:45 am]
[Public Notice: 7633]
BILLING CODE 8011–01–P
Determination Pursuant to Section
2121(h) of the Full-Year Continuing
Appropriations Act, 2011, Relating to
Foreign Military Financing for Lebanon
DEPARTMENT OF STATE
DEPARTMENT OF STATE
[Public Notice: 7634]
pmangrum on DSK3VPTVN1PROD with NOTICES
Culturally Significant Objects Imported
for Exhibition
Determinations: ‘‘The Game of Kings:
Medieval Ivory Chessmen From the Isle
of Lewis’’
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
21 17
CFR 200.30–3(a)(12).
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Pursuant to Section 2121(h) of the
Full-Year Continuing Appropriations
Act, 2011 (Div. B, Pub. L. 112–10) (CR),
I hereby determine that provision of
$74,850,000 in Foreign Military
Financing funds appropriated by the CR
for assistance for Lebanon is in the
national security interest of the United
States.
This determination shall be published
in the Federal Register and copies shall
be provided to the Congress together
with the accompanying Memorandum
of Justification.
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Dated: September 27, 2011.
Thomas R. Nides,
Deputy Secretary of State for Management
and Resources.
[FR Doc. 2011–25535 Filed 10–3–11; 8:45 am]
BILLING CODE 4710–05–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Revised Fiscal Year 2011 Tariff-Rate
Quota Allocations for Refined Sugar
Office of the United States
Trade Representative.
ACTION: Notice.
AGENCY:
The Office of the United
States Trade Representative (USTR) is
providing notice of additional countryby-country allocations of the fiscal year
(FY) 2011 in-quota quantity of the tariffrate quota (TRQ) for imported refined
sugar for entry through November 30,
2011.
SUMMARY:
Effective Date: October 4, 2011.
Inquiries may be mailed or
delivered to Ann Heilman-Dahl,
Director of Agricultural Affairs, Office of
Agricultural Affairs, Office of the United
States Trade Representative, 600 17th
Street, NW., Washington, DC 20508.
FOR FURTHER INFORMATION CONTACT: Ann
Heilman-Dahl, Office of Agricultural
Affairs, telephone: 202–395–6127 or
facsimile: 202–395–4579.
SUPPLEMENTARY INFORMATION: Pursuant
to Additional U.S. Note 5 to chapter 17
of the Harmonized Tariff Schedule of
the United States (HTS), the United
States maintains a tariff-rate quota for
imports of refined sugar.
Section 404(d)(3) of the Uruguay
Round Agreements Act (19 U.S.C.
3601(d)(3)) authorizes the President to
allocate the in-quota quantity of a TRQ
for any agricultural product among
supplying countries or customs areas.
The President delegated this authority
to the USTR under Presidential
Proclamation 6763 (60 FR 1007).
On August 5, 2010, the Secretary of
Agriculture established the FY 2011
(October 1, 2010—September 30, 2011)
refined sugar TRQ at an aggregate
quantity of 99,111 MTRV, of which
20,344 MTRV was refined sugar other
than specialty sugar. On August 17,
2010, USTR allocated this refined sugar
as follows: 10,300 MTRV to Canada;
2,954 MTRV to Mexico; and 7,090
MTRV to be administered on a firstcome, first-served basis. On August 2,
2011, the Secretary of Agriculture
increased the FY 2011 specialty sugar
TRQ by 9,072 MTRV, resulting in a FY
2011 specialty sugar TRQ of 87,839
DATES:
ADDRESSES:
E:\FR\FM\04OCN1.SGM
04OCN1
Agencies
[Federal Register Volume 76, Number 192 (Tuesday, October 4, 2011)]
[Notices]
[Pages 61469-61472]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25477]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65421; File No. SR-NYSEAmex-2011-70]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Commentary
.06 to Rule 903 in Order To Simplify the $1 Strike Price Program
September 28, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\
[[Page 61470]]
notice is hereby given that, on September 26, 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 amend Commentary .06 to Rule 903 in order
to simplify the $1 Strike Price Program. The text of the proposed rule
change is available on the Exchange's Web site at https://www.nyse.com,
at the Exchange's principal office, on the Commission's website at
https://www.sec.gov, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to amend Commentary .06 to Rule 903 in
order to simplify the $1 Strike Price Program (``Program'').
In 2003, the Commission issued an order permitting the Exchange to
establish the Program on a pilot basis.\3\ At that time, the underlying
stock had to close at or below $20 on the previous trading day in order
to qualify for the Program. The range of available $1 strike price
intervals was limited to a range between $3 and $20 and no strike price
was permitted that was greater than $5 from the underlying stock's
closing price on the previous trading day. Series in $1 strike price
intervals were not permitted within $0.50 of an existing strike. In
addition, the Exchange was limited to selecting five (5) classes and
reciprocal listing was permitted. Furthermore, Long-Term Equity Option
Series (``LEAPS'') in $1 strike price intervals were not permitted for
classes selected to participate in the Program.
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\3\ See Securities Exchange Act Release No. 48024 (June 12,
2003), 68 FR 36617 (June 18, 2003) (SR-Amex-2003-36).
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The Exchange renewed the pilot program on a yearly basis and, in
2008, the Commission granted permanent approval of the Program.\4\ At
that time, the Program was expanded to increase the upper limit of the
permissible strike price range from $20 to $50. In addition, the number
of class selections per exchange was increased from five (5) to ten
(10).
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\4\ See Securities Exchange Act Release No. 57110 (January 8,
2008), 73 FR 2292 (January 14, 2008) (SR-Amex-2007-141).
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Since the Program was made permanent, the number of class
selections per exchange has been increased from ten (10) classes to 55
classes\5\ and subsequently increased from 55 classes to 150
classes.\6\
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\5\ See Securities Exchange Act Release No. 59587 (March 17,
2009), 74 FR 12414 (March 24, 2009) (SR-NYSEALTR-2009-11).
\6\ See Securities Exchange Act Release No. 62449 (July 2,
2010), 75 FR 40012 (July 13, 2010) (SR-NYSEAmex-2010-67).
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The most recent expansion of the Program was approved by the
Commission in early 2011 and increased the number of $1 strike price
intervals permitted within the $1 to $50 range.\7\
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\7\ See Securities Exchange Act Release No. 63773 (January 25,
2011), 76 FR 5646 (February 1, 2011) (SR-NYSEAmex-2010-109).
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Amendments To Simplify Non-LEAPS Rule Text
These numerous expansions have resulted in very lengthy rule text
that the Exchange believes is complicated and difficult to understand.
The Exchange believes that the proposed changes to simplify the rule
text of the Program would benefit market participants since the Program
will be easier to understand and would maintain the expansions made to
the Program, including those in early 2011. Through the current
proposal, the Exchange also hopes to make administration of the Program
easier, e.g., system programming efforts. To simplify the rules of the
Program and, as a proactive attempt to mitigate any unintentional
listing of improper strikes, the Exchange is proposing the following
streamlining amendments:
When the price of the underlying stock is equal to or less
than $20, permit $1 strike price intervals with an exercise price up to
100% above and 100% below the price of the underlying stock.\8\
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\8\ See proposed new paragraph (b)(i) to Commentary .06 to Rule
903.
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o However, the above restriction would not prohibit the listing of
at least five (5) strike prices above and below the price of the
underlying stock per expiration month in an option class.\9\
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\9\ Id.
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[cir] For example, if the price of the underlying stock is $2, the
Exchange would be permitted to list the following series: $1, $2, $3,
$4, $5, $6 and $7.\10\
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\10\ Id.
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When the price of the underlying stock is greater than
$20, permit $1 strike price intervals with an exercise price up to 50%
above and 50% below the price of the underlying security up to $50.\11\
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\11\ See proposed new paragraph (b)(ii) to Commentary .06 to
Rule 903.
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For the purpose of adding strikes under the Program, the
``price of the underlying stock'' shall be measured in the same way as
``the price of the underlying security'' is, as set forth in Rule
903A(b)(1).\12\
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\12\ See proposed new paragraph (b)(iii) to Commentary .06 to
Rule 903. Rule 903A(b)(1) provides, ``[t]he price of the underlying
security is measured by: (1) For intra-day add-on series and next-
day series additions, the daily high and low of all prices reported
by all national securities exchanges; (2) for new expiration months,
the daily high and low of all prices reported by all national
securities exchanges on the day the Exchange determines its
preliminary notification of new series; and (3) for options series
to be added as a result of pre-market trading, the most recent share
price reported by all national securities exchanges between 8:45
a.m. and 9:30 a.m. Eastern Time.''
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Prohibit the listing of additional series in $1 strike
price intervals if the underlying stock closes at or above $50 in its
primary market and provide that additional series in $1 strike price
intervals may not be added until the underlying stock closes again
below $50.\13\
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\13\ See proposed new paragraph (b)(iv) to Commentary .06 to
Rule 903. The Exchange believes that it is important to codify this
additional series criterion because there have been conflicting
interpretations among the exchanges that have adopted similar
programs. The $50 price criterion for additional series was intended
when the Program was originally established (as a pilot) in 2003.
See supra note 4 (``Amex will list an additional expiration month
upon expiration of the near-term month, provided that the underlying
stock prices closes below $20 on Expiration Friday. If the
underlying closes at or above $20 on its primary market on
Expiration Friday, the Exchange will not list an additional month of
$1 strike price series until the stock again closes below $20.'').
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Amendments To Simplify LEAPS Rule Text
The early 2011 expansion of the Program permitted for some limited
listing of LEAPS in $1 strike price intervals for classes that
participate in
[[Page 61471]]
the Program. The Exchange is proposing to maintain the expansion as to
LEAPS, but simplify the language and provide examples of the simplified
rule text. These changes are set forth in proposed new paragraph (b)(v)
to Commentary .06 to Rule 903.
For stocks in the Program, the Exchange may list one $1 strike
price interval between each standard $5 strike price interval, with the
$1 strike price interval being $2 above the standard strike for each
interval above the price of the underlying stock, and $2 below the
standard strike for each interval below the price of the underlying
stock (``$2 wings''). For example, if the price of the underlying stock
is $24.50, the Exchange may list the following standard strikes in $5
intervals: $15, $20, $25, $30 and $35. Between these standard $5
strikes, the Exchange may list the following $2 wings: $18, $27 and
$32.\14\
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\14\ The Exchange notes that a $2 wing is not permitted between
the standard $20 and $25 strikes in the above example. This is
because the $2 wings are added based on reference to the price of
the underlying and as being between the standard strikes above and
below the price of the underlying stock. Since the price of the
underlying stock ($24.50) straddles the standard strikes of $20 and
$25, no $2 wing is permitted between these standard strikes.
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In addition, the Exchange may list the $1 strike price interval
which is $2 above the standard strike just below the underlying price
at the time of listing. In the above example, since the standard strike
just below the underlying price ($24.50) is $20, the Exchange may list
a $22 strike. The Exchange may add additional LEAP strikes as the price
of the underlying stock moves, consistent with the Options Listing
Procedures Plan (``OLPP'').
Non-Substantive Amendments to Rule Text
The early 2011 expansion of the Program prohibited the listing of
$2.50 strike price intervals for classes that participate in the
Program. This prohibition applies to non-LEAPS and LEAPS. The Exchange
proposes to maintain this prohibition and codify it in paragraph (a) to
Commentary .06 to Rule 903 (Program Description).
For ease of reference, the Exchange is proposing to add the
headings ``Program Description,'' ``Initial and Additional Series'' and
``LEAPS'' to Commentary .06 to Rule 903.
The Exchange is proposing to more accurately reflect the nature of
the Program and is proposing to make stylistic changes throughout
Commentary .06 to Rule 903 by renaming the Program ``The $1 Strike
Price Interval Program'' and by adding the phrase ``price interval.''
The Exchange proposes to reorganize current paragraphs (c) through
(f) of Commentary .06 to Rule 903 and portions of the Delisting Policy
therein in order to better organize Commentary .06. This would include
moving current paragraph (d) out of Commentary .06 and instead
including the text as new Commentary .13 to Rule 903.
Lastly, the Exchange is making technical changes to Commentary .06
to Rule 903, e.g., replacing the word ``security'' with the word
``stock.''
The Exchange represents that it has the necessary systems capacity
to support the increase in new options series that would result from
the proposed streamlining changes to the Program.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\15\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\16\ in particular, because it
is designed to promote just and equitable principles of trade, remove
impediments to and perfect the mechanisms of 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 seeks to
reduce investor confusion and to simplify the provisions of the $1
Strike Price Interval Program.
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\15\ 15 U.S.C. 78f(b).
\16\ 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 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\17\ and Rule 19b-
4(f)(6) thereunder.\18\
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied the five-day prefiling requirement.
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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 is substantially similar to that of
another exchange that has been approved by the Commission.\19\
Therefore, the Commission designates the proposal operative upon
filing.\20\
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\19\ See Securities Exchange Act Release No. 65383 (September
22, 2011) (SR-CBOE-2011-040) (order approving proposed rule change
to simplify the $1 Strike Price Interval Program).
\20\ 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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-NYSEAmex-2011-70 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission,
[[Page 61472]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEAmex-2011-70. 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 such 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
publicly available. All submissions should refer to File Number SR-
NYSEAmex-2011-70 and should be submitted on or before October 25, 2011.
For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-25477 Filed 10-3-11; 8:45 am]
BILLING CODE 8011-01-P