Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 2187 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63339 

(November 18, 2010), 75 FR 71771 (November 24, 

2010) (SR–Phlx–2010–158). 

4See Exchange Rule 1012 at Commentary .05. 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 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 this requirement. 

9See Rule 1012, Commentary .05(a)(i)(A) ($1 

Strike Program), Commentary .05(a)(ii) ($0.50 Strike 

Program), and Commentary .05(b) ($2.50 Strike 

Program). 

10See, e.g., Securities Exchange Act Release No. 

60694 (September 18, 2009); 74 FR 49048 

(September 25, 2009) (SR–Phlx–2009–65) 

(approving the $0.50 Strike Program, with 

reciprocity provision). 

11For 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). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63658; File No. SR–Phlx– 

2011–02] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

$5 Strike Price Program 

January 6, 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 January 3, 2011, 

NASDAQ OMX PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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 .05 to Exchange Rule 1012, 

Series of Options Open for Trading, 

specifically to clarify that the Exchange 

may list option classes designated by 

other securities exchanges that employ 

a similar $5 Strike Price Program under 

their respective rules. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of the Exchange, on the 

Commission’s Web site at 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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to modify Commentary .05 to 

Exchange Rule 1012 to clarify that the 

Exchange may list and trade series in 

intervals of $5 or greater where the 

strike price is more than $200 in up to 

five (5) option classes on individual 

stocks (‘‘$5 Strike Price Program’’) or the 

Exchange may list series on any other 

option classes if those classes are 

specifically designated by other 

securities exchanges that employ a 

similar $5 Strike Price Program under 

their respective rules. 

The Exchange recently filed a 

proposed rule change to list and trade 

series in intervals of $5 or greater where 

the strike price is more than $200 in up 

to five (5) option classes on individual 

stocks (‘‘$5 Strike Price Program’’).3 The 

Exchange is now proposing to clarify 

that the options may be listed and 

traded in series that are listed by the 

Exchange or other securities exchanges 

that employ a similar $5 Strike Price 

Program, pursuant to the rules of the 

other securities exchange. Similar 

reciprocity currently is permitted with 

the Exchange’s $1 Strike Program, $.50 

Strike Program and $2.50 Strike Price 

Program.4

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 6

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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 

Exchange believes that clarifying that 

the Exchange may list and trade options 

in series that are listed by the Exchange 

or other securities exchanges that 

employ a similar $5 Strike Price 

Program will provide its members 

greater clarity on the types of options 

that may be listed by the Exchange. 

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 7 and Rule 19b– 

4(f)(6) thereunder.8

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 proposed reciprocity 

provision is similar to reciprocity 

provisions in place for other option 

strike price programs,9 which have been 

previously approved by the 

Commission.10 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 

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. 

mstockstill on DSKH9S0YB1PROD with NOTICES

2188 Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See SR–NASDAQ–2010–001 [sic]. 

4See Chapter IV, Section 6. 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(5). 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an E-mail to rulecomments@sec.gov. Please include File 

Number SR–Phlx–2011–02 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–Phlx–2011–02. 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 (http:// 

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–Phlx– 

2011–02 and should be submitted on or 

before February 2, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–445 Filed 1–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63657; File No. SR– 

NASDAQ–2011–002] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

Stock Market, LLC Relating to the $5 

Strike Price Program 

January 6, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on January 3, 

2011 The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by the NASDAQ. 

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 NASDAQ Stock Market LLC 

proposes to amend Chapter IV, 

Securities Traded on NOM, Section 6, 

Series of Open Contracts Open for 

Trading, to clarify that the Exchange 

may list option classes designated by 

other securities exchanges that employ 

a similar $5 Strike Price Program under 

their respective rules. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaq.

cchwallstreet.com, at the principal 

office of the Exchange, on the 

Commission’s Web site at http:// 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to modify Chapter IV, Section 

6(d) to allow the Exchange to clarify that 

the Exchange may list and trade series 

in intervals of $5 or greater where the 

strike price is more than $200 in up to 

five (5) option classes on individual 

stocks (‘‘$5 Strike Price Program’’) or the 

Exchange may list series on any other 

option classes if those classes are 

specifically designated by other 

securities exchanges that employ a 

similar $5 Strike Price Program under 

their respective rules. 

The Exchange recently filed a 

proposed rule change to list and trade 

series in intervals of $5 or greater where 

the strike price is more than $200 in up 

to five (5) option classes on individual 

stocks (‘‘$5 Strike Price Program’’).3 The 

Exchange is now proposing to clarify 

that the options may be listed and 

traded in series that are listed by the 

Exchange or other securities exchanges 

that employ a similar $5 Strike Price 

Program, pursuant to the rules of the 

other securities exchange. Similar 

reciprocity currently is permitted with 

the Exchange’s $1 Strike Program, $.50 

Strike Program and $2.50 Strike Price 

Program.4

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 6

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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 

Exchange believes that clarifying that 

the Exchange may list and trade options 

in series that are listed by the Exchange 

or other securities exchanges that 

employ a similar $5 Strike Price 

mstockstill on DSKH9S0YB1PROD with NOTICES