Self-Regulatory Organizations; NYSE MKT LLC; Order Granting Approval of Proposed Rule Change, as Modified by Amendment No. 1, Amending Rule 903(h) and Related Commentary .10 To Expand the Number of Expirations Available Under the Short Term Option Series Program (“STOS Program”), To Allow for the Exchange To Delist Series in the STOS Program That Do Not Have Open Interest, and To Expand the Number of Series in the STOS Program Under Limited Circumstances, 68194-68195 [2012-27720]
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68194
Federal Register / Vol. 77, No. 221 / Thursday, November 15, 2012 / Notices
2012.3 The Commission received no
comment letters on the proposal. This
order approves the proposed rule
change, as modified by Amendment No.
1.
TKELLEY on DSK3SPTVN1PROD with NOTICES
II. Description of the Proposal
The Exchange proposes to amend
Commentary .07 to (i) expand the
number of expirations available under
the STOS Program; (ii) allow the
Exchange to delist, in certain
circumstances, series in the STOS
program that do not have open interest;
and (iii) allow the Exchange to list, in
certain circumstances, additional series
in the STOS program.
The proposed rule change allows the
Exchange to open a maximum of five
consecutive expirations under the STOS
Program for trading on the Exchange.
The Exchange notes that it will not add
expirations in a STOS series if such
expirations would coincide with an
existing expiration of a monthly or
quarterly series of an option in the same
class of the STOS series.
The proposed rule change also
amends the circumstances in which the
Exchange may delist or list series in the
STOS Program. Specifically, the
proposed rule change provides that the
Exchange will delist series in the STOS
Program with no open interest in both
the call and the put series having a: (i)
Strike price higher than the highest
strike price with open interest in the put
and/or call series for a given expiration
month; and (ii) strike price lower than
the lowest strike price with open
interest in the put and/or call series for
a given month, so as to list series that
are at least 10% but not more than 30%
above or below the current price of the
underlying security. The Exchange
would also be permitted, under the
proposed rule change, to list additional
series in excess of the 30 series
otherwise allowed 4 under Commentary
.07 that are between 10% and 30%
above or below the price of the
underlying security. The Exchange will
only be allowed to delist or list series
in accordance with the proposed rule
change in the event that the underlying
security has moved so that there are no
series that are at least 10% above or
3 Securities Exchange Act Release No. 67898
(September 20, 2012), 77 FR 59233 (‘‘Notice’’). The
Commission notes that on September 18, 2012, the
Exchange submitted Amendment No. 1 to the
proposed rule change to make certain amendments
that, in part, clarified the circumstances in which
the Exchange will delist series with no open
interest.
4 Commentary .07(a) provides, in part, that for
each option class eligible for participation in the
STOS Program, the Exchange may open up to 30
Short Term Option Series for each expiration date
in that class.
VerDate Mar<15>2010
16:22 Nov 14, 2012
Jkt 229001
below the current price of the
underlying security.
The Exchange asserts that the ability
to list five consecutive expirations
under the STOS Program is designed to
meet increased customer demand and
provide market participants with the
ability to hedge in a greater number of
option classes and series.5 The
Exchange also claims that the proposed
amendments regarding delisting or
listing STOS series are designed to
provide investors flexibility by ensuring
that there are series within the band of
at least 10% but not more than 30%
above or below the current price of the
underlying security.6
III. Discussion and Commission
Findings
After careful review of the proposed
rule change, 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.7 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,8 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 proposed change may
provide the investing public and other
market participants with greater
flexibility to closely tailor their
investment and hedging decisions in a
greater number of series, thus allowing
investors to better manage their risk
exposure.
In approving this proposal, the
Commission notes that the Exchange
has represented that it and OPRA have
the necessary systems capacity to
handle the potential additional traffic
associated with opening of up to five
consecutive expirations under the STOS
Program.9 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
5 See
Notice, supra note 3 at 59233.
id. at 59234.
7 In approving this proposed rule change, the
Commission considered the proposed rule’s impact
on efficiency, competition, and capital formation.
See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(5).
9 See Notice, supra note 3 at 59233.
6 See
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Frm 00093
Fmt 4703
Sfmt 4703
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,10 that the
proposed rule change, as modified by
Amendment No. 1, (SR–NYSEArca–
2012–95) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27719 Filed 11–14–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68191; File No. SR–
NYSEMKT–2012–42]
Self-Regulatory Organizations; NYSE
MKT LLC; Order Granting Approval of
Proposed Rule Change, as Modified by
Amendment No. 1, Amending Rule
903(h) and Related Commentary .10 To
Expand the Number of Expirations
Available Under the Short Term Option
Series Program (‘‘STOS Program’’), To
Allow for the Exchange To Delist
Series in the STOS Program That Do
Not Have Open Interest, and To
Expand the Number of Series in the
STOS Program Under Limited
Circumstances
November 8, 2012.
I. Introduction
On September 6, 2012, NYSE MKT
LLC (‘‘NYSE MKT’’ 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 amend Rule 903(h) and
related Commentary .10 (‘‘Commentary
.10’’) to make certain modifications to
the Exchange’s Short Term Option
Series Program (‘‘STOS Program’’). The
proposed rule change was published for
comment in the Federal Register on
September 26, 2012.3 The Commission
received no comment letters on the
proposal. This order approves the
10 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. 67897
(September 20, 2012), 77 FR 59236 (‘‘Notice’’). The
Commission notes that on September 18, 2012, the
Exchange submitted Amendment No. 1 to the
proposed rule change to make certain amendments
that, in part, clarified the circumstances in which
the Exchange will delist series with no open
interest.
11 17
E:\FR\FM\15NON1.SGM
15NON1
Federal Register / Vol. 77, No. 221 / Thursday, November 15, 2012 / Notices
TKELLEY on DSK3SPTVN1PROD with NOTICES
proposed rule change, as modified by
Amendment No. 1.
II. Description of the Proposal
The Exchange proposes to amend
Commentary .10 to (i) expand the
number of expirations available under
the STOS Program; (ii) allow the
Exchange to delist, in certain
circumstances, series in the STOS
program that do not have open interest;
and (iii) allow the Exchange to list, in
certain circumstances, additional series
in the STOS program.
The proposed rule change allows the
Exchange to open a maximum of five
consecutive expirations under the STOS
Program for trading on the Exchange.
The Exchange notes that it will not add
expirations in a STOS series if such
expirations would coincide with an
existing expiration of a monthly or
quarterly series of an option in the same
class of the STOS series.
The proposed rule change also
amends the circumstances in which the
Exchange may delist or list series in the
STOS Program. Specifically, the
proposed rule change provides that the
Exchange will delist series in the STOS
Program with no open interest in both
the call and the put series having a: (i)
Strike price higher than the highest
strike price with open interest in the put
and/or call series for a given expiration
month; and (ii) strike price lower than
the lowest strike price with open
interest in the put and/or call series for
a given month, so as to list series that
are at least 10% but not more than 30%
above or below the current price of the
underlying security. The Exchange
would also be permitted, under the
proposed rule change, to list additional
series in excess of the 30 series
otherwise allowed 4 under Commentary
.10 that are between 10% and 30%
above or below the price of the
underlying security. The Exchange will
only be allowed to delist or list series
in accordance with the proposed rule
change in the event that the underlying
security has moved so that there are no
series that are at least 10% above or
below the current price of the
underlying security.
The Exchange asserts that the ability
to list five consecutive expirations
under the STOS Program is designed to
meet increased customer demand and
provide market participants with the
ability to hedge in a greater number of
option classes and series.5 The
Exchange also claims that the proposed
amendments regarding delisting or
listing STOS series are designed to
provide investors flexibility by ensuring
that there are series within the band of
at least 10% but not more than 30%
above or below the current price of the
underlying security.6
VerDate Mar<15>2010
16:22 Nov 14, 2012
Jkt 229001
Amendment No. 1, (SR–NYSEMKT–
2012–42) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27720 Filed 11–14–12; 8:45 am]
III. Discussion and Commission
Findings
BILLING CODE 8011–01–P
After careful review of the proposed
rule change, 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.7 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,8 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 proposed change may
provide the investing public and other
market participants with greater
flexibility to closely tailor their
investment and hedging decisions in a
greater number of series, thus allowing
investors to better manage their risk
exposure.
In approving this proposal, the
Commission notes that the Exchange
has represented that it and OPRA have
the necessary systems capacity to
handle the potential additional traffic
associated with opening of up to five
consecutive expirations under the STOS
Program.9 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.
SMALL BUSINESS ADMINISTRATION
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change, as modified by
6 See
id.
approving this proposed rule change, the
Commission considered the proposed rule’s impact
on efficiency, competition, and capital formation.
See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(5).
9 See Notice, supra note 3 at 59237.
10 15 U.S.C. 78s(b)(2).
7 In
4 Commentary .10(a) provides, in part, that for
each option class eligible for participation in the
STOS Program, the Exchange may open up to 30
Short Term Option Series for each expiration date
in that class.
5 See Notice, supra note 3 at 59237.
68195
PO 00000
Frm 00094
Fmt 4703
Sfmt 9990
[Disaster Declaration #13365 and #13366]
New York Disaster Number NY–00130
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for the State of New York
(FEMA–4085–DR), dated 10/30/2012.
Incident: Hurricane Sandy.
Incident Period: 10/27/2012 and
continuing.
Effective Date: 11/02/2012.
Physical Loan Application Deadline
Date: 12/31/2012.
EIDL Loan Application Deadline Date:
07/31/2013.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration Processing, And
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the Presidential disaster declaration
for the State of NEW YORK, dated 10/
30/2012 is hereby amended to include
the following areas as adversely affected
by the disaster:
Primary Counties: (Physical Damage and
Economic Injury Loans): Rockland,
Westchester.
Contiguous Counties: (Economic Injury
Loans Only):
Connecticut: Fairfield.
New Jersey: Passaic.
New York: Orange, Putnam.
All other information in the original
declaration remains unchanged.
SUMMARY:
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2012–27781 Filed 11–14–12; 8:45 am]
BILLING CODE 8025–01–P
11 17
E:\FR\FM\15NON1.SGM
CFR 200.30–3(a)(12).
15NON1
]]>Agencies
[Federal Register Volume 77, Number 221 (Thursday, November 15, 2012)]
[Notices]
[Pages 68194-68195]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27720]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68191; File No. SR-NYSEMKT-2012-42]
Self-Regulatory Organizations; NYSE MKT LLC; Order Granting
Approval of Proposed Rule Change, as Modified by Amendment No. 1,
Amending Rule 903(h) and Related Commentary .10 To Expand the Number of
Expirations Available Under the Short Term Option Series Program
(``STOS Program''), To Allow for the Exchange To Delist Series in the
STOS Program That Do Not Have Open Interest, and To Expand the Number
of Series in the STOS Program Under Limited Circumstances
November 8, 2012.
I. Introduction
On September 6, 2012, NYSE MKT LLC (``NYSE MKT'' 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
amend Rule 903(h) and related Commentary .10 (``Commentary .10'') to
make certain modifications to the Exchange's Short Term Option Series
Program (``STOS Program''). The proposed rule change was published for
comment in the Federal Register on September 26, 2012.\3\ The
Commission received no comment letters on the proposal. This order
approves the
[[Page 68195]]
proposed rule change, as modified by Amendment No. 1.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 67897 (September 20,
2012), 77 FR 59236 (``Notice''). The Commission notes that on
September 18, 2012, the Exchange submitted Amendment No. 1 to the
proposed rule change to make certain amendments that, in part,
clarified the circumstances in which the Exchange will delist series
with no open interest.
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to amend Commentary .10 to (i) expand the
number of expirations available under the STOS Program; (ii) allow the
Exchange to delist, in certain circumstances, series in the STOS
program that do not have open interest; and (iii) allow the Exchange to
list, in certain circumstances, additional series in the STOS program.
The proposed rule change allows the Exchange to open a maximum of
five consecutive expirations under the STOS Program for trading on the
Exchange. The Exchange notes that it will not add expirations in a STOS
series if such expirations would coincide with an existing expiration
of a monthly or quarterly series of an option in the same class of the
STOS series.
The proposed rule change also amends the circumstances in which the
Exchange may delist or list series in the STOS Program. Specifically,
the proposed rule change provides that the Exchange will delist series
in the STOS Program with no open interest in both the call and the put
series having a: (i) Strike price higher than the highest strike price
with open interest in the put and/or call series for a given expiration
month; and (ii) strike price lower than the lowest strike price with
open interest in the put and/or call series for a given month, so as to
list series that are at least 10% but not more than 30% above or below
the current price of the underlying security. The Exchange would also
be permitted, under the proposed rule change, to list additional series
in excess of the 30 series otherwise allowed \4\ under Commentary .10
that are between 10% and 30% above or below the price of the underlying
security. The Exchange will only be allowed to delist or list series in
accordance with the proposed rule change in the event that the
underlying security has moved so that there are no series that are at
least 10% above or below the current price of the underlying security.
---------------------------------------------------------------------------
\4\ Commentary .10(a) provides, in part, that for each option
class eligible for participation in the STOS Program, the Exchange
may open up to 30 Short Term Option Series for each expiration date
in that class.
---------------------------------------------------------------------------
The Exchange asserts that the ability to list five consecutive
expirations under the STOS Program is designed to meet increased
customer demand and provide market participants with the ability to
hedge in a greater number of option classes and series.\5\ The Exchange
also claims that the proposed amendments regarding delisting or listing
STOS series are designed to provide investors flexibility by ensuring
that there are series within the band of at least 10% but not more than
30% above or below the current price of the underlying security.\6\
---------------------------------------------------------------------------
\5\ See Notice, supra note 3 at 59237.
\6\ See id.
---------------------------------------------------------------------------
III. Discussion and Commission Findings
After careful review of the proposed rule change, 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.\7\ Specifically, the Commission finds
that the proposal is consistent with Section 6(b)(5) of the Act,\8\
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
proposed change may provide the investing public and other market
participants with greater flexibility to closely tailor their
investment and hedging decisions in a greater number of series, thus
allowing investors to better manage their risk exposure.
---------------------------------------------------------------------------
\7\ In approving this proposed rule change, the Commission
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In approving this proposal, the Commission notes that the Exchange
has represented that it and OPRA have the necessary systems capacity to
handle the potential additional traffic associated with opening of up
to five consecutive expirations under the STOS Program.\9\ 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.
---------------------------------------------------------------------------
\9\ See Notice, supra note 3 at 59237.
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change, as modified by Amendment No. 1,
(SR-NYSEMKT-2012-42) be, and it hereby is, approved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-27720 Filed 11-14-12; 8:45 am]
BILLING CODE 8011-01-P
