Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Granting Approval of Proposed Rule Change Expanding the Short Term Option Series Program, 72482 [2011-30200]

Download as PDF 72482 Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,6 that the proposed rule change (SR–Phlx–2011– 131) be, and it hereby is, approved. Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order Granting Approval of Proposed Rule Change Expanding the Short Term Option Series Program In the Notice, the Exchange stated that the principal reason for the proposed expansion is market demand for additional STO classes and series. The Exchange stated that it has had to turn away STO customers because it could not list, or had to delist, STO Series or could not open adequate STO Series because of restrictions in the STO Program. The Exchange also stated that it has analyzed its capacity, and represented that it and the Options Price Reporting Authority (‘‘OPRA’’) have the necessary systems capacity to handle the potential additional traffic associated with trading of an expanded number of classes in the Program. November 17, 2011. III. Discussion I. Introduction 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.4 Specifically, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,5 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 proliferation of options series. In approving this proposal, the Commission notes that Exchange has represented that it and OPRA have the necessary systems capacity to handle the potential additional traffic associated with trading of an expanded number of classes in the Program. 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. Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of Proposed Rule To Increase the Number of Series Permitted Per Class in the Short Term Option Series Program [FR Doc. 2011–30201 Filed 11–22–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65776; File No. SR–Phlx– 2011–131] On September 28, 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 Short Term Option Program (‘‘Program’’) to allow the Exchange to: (1) Select up to 30 option classes on which Short Term Option Series (‘‘STO Series’’) may be listed; and (2) open Short Term Option Series that are opened by other securities exchanges in option classes selected by such exchanges under their respective short term option rules. The proposed rule change was published for comment in the Federal Register on October 17, 2011.3 The Commission received no comment letters on the proposal. This order approves the proposed rule change. sroberts on DSK5SPTVN1PROD with NOTICES II. Description of the Proposal The Exchange proposed to amend Rule 1012 (Series of Options Open for Trading) and Rule 1101A (Terms of Option Contracts) to expand the Short Term Option Series Program (‘‘STO Program’’ or ‘‘Program’’) to: (1) Increase from 15 to 30 the number of option classes on which STO Series may be opened; and (2) allow the Exchange to open STO Series that are opened by other securities exchanges (the ‘‘STO Exchanges’’) in option classes selected by such exchanges under their respective short term option rules. 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Securities Exchange Act Release No. 65529 (October 11, 2011), 76 FR 64144 (‘‘Notice’’). 1 15 VerDate Mar<15>2010 17:03 Nov 22, 2011 Jkt 226001 4 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). 5 15 U.S.C. 78f(b)(5). PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2011–30200 Filed 11–22–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65772; File No. SR–CBOE– 2011–086] November 17, 2011. I. Introduction On September 19, 2011, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ 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 increase the number of series permitted per class in the Short Term Options Series Program. The proposed rule change was published for comment in the Federal Register on October 6, 2011.3 The Commission received no comment letters on the proposal. This order approves the proposed rule change. II. Description of the Proposal The proposed rule change seeks to amend CBOE Rules 5.5 and 24.9 to increase the number of Short Term Options Series (‘‘Weekly options’’) that may be opened for each option class that participates in the Exchange’s Short Term Option Series Program (‘‘Weeklys Program’’).4 Currently, Exchange rules 6 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Securities Exchange Act Release No. 65445 (September 30, 2011), 76 FR 62102 (‘‘Notice’’). 4 In 2005, the Commission approved the Weeklys Program on a pilot basis. See Securities Exchange Act Release No. 52011 (July 12, 2005), 70 FR 41451 (July 19, 2005) (SR–CBOE–2004–63). In 2009, the Commission approved the Weeklys Program on a permanent basis. See Securities Exchange Act 7 17 E:\FR\FM\23NON1.SGM 23NON1

Agencies

[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Page 72482]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30200]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65776; File No. SR-Phlx-2011-131]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order 
Granting Approval of Proposed Rule Change Expanding the Short Term 
Option Series Program

November 17, 2011.

I. Introduction

    On September 28, 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 Short Term Option Program 
(``Program'') to allow the Exchange to: (1) Select up to 30 option 
classes on which Short Term Option Series (``STO Series'') may be 
listed; and (2) open Short Term Option Series that are opened by other 
securities exchanges in option classes selected by such exchanges under 
their respective short term option rules. The proposed rule change was 
published for comment in the Federal Register on October 17, 2011.\3\ 
The Commission received no comment letters on the proposal. This order 
approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 65529 (October 11, 
2011), 76 FR 64144 (``Notice'').
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II. Description of the Proposal

    The Exchange proposed to amend Rule 1012 (Series of Options Open 
for Trading) and Rule 1101A (Terms of Option Contracts) to expand the 
Short Term Option Series Program (``STO Program'' or ``Program'') to: 
(1) Increase from 15 to 30 the number of option classes on which STO 
Series may be opened; and (2) allow the Exchange to open STO Series 
that are opened by other securities exchanges (the ``STO Exchanges'') 
in option classes selected by such exchanges under their respective 
short term option rules.
    In the Notice, the Exchange stated that the principal reason for 
the proposed expansion is market demand for additional STO classes and 
series. The Exchange stated that it has had to turn away STO customers 
because it could not list, or had to delist, STO Series or could not 
open adequate STO Series because of restrictions in the STO Program.
    The Exchange also stated that it has analyzed its capacity, and 
represented that it and the Options Price Reporting Authority 
(``OPRA'') have the necessary systems capacity to handle the potential 
additional traffic associated with trading of an expanded number of 
classes in 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.\4\ 
Specifically, the Commission finds that the proposal is consistent with 
Section 6(b)(5) of the Act,\5\ 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 proliferation of options series.
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    \4\ 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).
    \5\ 15 U.S.C. 78f(b)(5).
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    In approving this proposal, the Commission notes that Exchange has 
represented that it and OPRA have the necessary systems capacity to 
handle the potential additional traffic associated with trading of an 
expanded number of classes in the Program. 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.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-Phlx-2011-131) be, and it 
hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30200 Filed 11-22-11; 8:45 am]
BILLING CODE 8011-01-P