Federal Register / Vol. 76, No. 45 / Tuesday, March 8, 2011 / Notices 12771 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange’s Weeklys Program became 

effective on July 15, 2010. See Securities Exchange 

Act Release No. 62505 (July 15, 2010), 75 FR 42792 

(July 22, 2010) (SR–BX–2010–047). 4However, if BOX opens less than twenty (20) 

Weekly options for a Weekly Option Expiration 

Date, additional series may be opened for trading 

on BOX when the Exchange deems it necessary to 

maintain an orderly market, to meet customer 

demand or when the market price of the underlying 

security moves substantially from the exercise price 

or prices of the series already opened. Any 

additional strike prices listed by the Exchange shall 

be within thirty percent (30%) above or below the 

current price of the underlying security. BOX may 

also open additional strike prices of Weekly Option 

Series that are more than 30% above or below the 

current price of the underlying security provided 

that demonstrated customer interest exists for such 

series, as expressed by institutional, corporate or 

individual customers or their brokers (marketmakers trading for their own account shall not be 

considered when determining customer interest 

under this provision). 

Number SR–FINRA–2011–007 and 

should be submitted on or before March 

29, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5139 Filed 3–7–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64009; File No. SR–BX– 

2011–014] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

BOX Trading Rules To Expand the 

Short Term Option Series Program 

March 2, 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 March 1, 

2011, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The 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 

Chapter IV, Section 6 (Series of Options 

Contracts Open for Trading) and 

Chapter XIV, Section 10 (Terms of Index 

Option Contracts) of the Rules of the 

Boston Options Exchange Group, LLC 

(‘‘BOX’’) to expand the Short Term 

Option Series Program (‘‘Weeklys 

Program’’) so that BOX may select fifteen 

option classes on which Weekly options 

may be opened. The text of the 

proposed rule change is available from 

the principal office of the Exchange, on 

the Commission’s Web site at http:// 

www.sec.gov, at the Commission’s 

Public Reference Room, and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 amend Chapter IV, Section 

6 (Series of Options Contracts Open for 

Trading) and Chapter XIV, Section 10 

(Terms of Index Option Contracts) of the 

Rules of the Boston Options Exchange 

Group, LLC (‘‘BOX’’) to expand the Short 

Term Option Series Program (‘‘Weeklys 

Program’’) so that BOX may select fifteen 

option classes on which Weekly options 

may be opened.3 The Weeklys Program 

is codified in the Supplementary 

Material to the BOX Rules Sections 

identified above. These rules provide 

that after an option class has been 

approved for listing and trading on 

BOX, BOX may open for trading on any 

Thursday or Friday that is a business 

day series of options on no more than 

five option classes that expire on the 

Friday of the following business week 

that is a business day. In addition to the 

five-option class limitation, there is also 

a limitation that no more than twenty 

series for each expiration date in those 

classes that may be opened for trading.4

Furthermore, the strike price of each 

Weekly option has to be fixed with 

approximately the same number of 

strike prices being opened above and 

below the value of the underlying 

security at about the time that the 

Weekly options are initially opened for 

trading on BOX, and with strike prices 

being within thirty percent (30%) above 

or below the closing price of the 

underlying security from the preceding 

day. The Exchange does not propose 

any changes to these additional Weeklys 

Program limitations. The Exchange 

proposes only to increase from five to 

fifteen the number of option classes that 

may be opened pursuant to the Weeklys 

Program. 

The principal reason for the proposed 

expansion is customer demand for 

adding, or not removing, Weekly option 

classes from the Program. Since there is 

reciprocity in matching other 

exchanges’ Weekly option choices, BOX 

discontinues trading Weekly option 

classes that other exchanges change 

from week-to-week. BOX believes that 

these class pick changes have negatively 

impacted investors and traders, 

particularly retail public customers, 

who have, on occasion requested that 

BOX add Weekly option classes. 

BOX understands that a retail investor 

recently requested another exchange to 

reinstate a Weekly option class that the 

exchange had removed from trading 

because of the five-class option limit 

within the Weekly Program. The 

investor advised that the removed class 

was a powerful tool for hedging a 

market sector, and that various 

strategies that the investor put into play 

were disrupted and eliminated when 

the class was removed. BOX feels that 

it is essential that such negative, 

potentially very costly impacts on retail 

investors are eliminated by modestly 

expanding the Program to enable 

additional classes to be traded. 

With regard to the impact of this 

proposal on system capacity, BOX has 

analyzed its capacity and represents 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 

Weeklys Program. 

BOX believes that the Weeklys 

Program has provided investors with 

greater trading opportunities and 

flexibility and the ability to more 

closely tailor their investment and risk 

management strategies and decisions. 

Furthermore, BOX has had to eliminate 

option classes on numerous occasions 

because of the limitation imposed by the 


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12772 Federal Register / Vol. 76, No. 45 / Tuesday, March 8, 2011 / Notices 

5As discussed above, because of the reciprocity 

provision of the Weeklys Program, the classes that 

BOX lists to participate in the Weeklys Program 

change when another exchange changes its class 

selections for the Weeklys Program. 

6The Report would include the following: (1) 

Data and written analysis on the open interest and 

trading volume in the classes for which Short Term 

Option Series were opened; (2) an assessment of the 

appropriateness of the option classes selected for 

the Weeklys Program; (3) an assessment of the 

impact of the Weeklys Program on the capacity of 

BOX, OPRA, and market data vendors (to the extent 

data from market data vendors is available); (4) any 

capacity problems or other problems that arose 

during the operation of the Weeklys Program and 

how BOX addressed such problems; (5) any 

complaints that BOX or the Exchange received 

during the operation of the Weeklys Program and 

how they were addressed; and (6) any additional 

information that would assist in assessing the 

operation of the Weeklys Program. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

11See Securities Exchange Act Release No. 63875 

(February 9, 2011), 76 FR 8793 (February 15, 2011) 

(SR–Phlx–2010–183) (order approving expansion of 

Short Term Option Program). 

12For 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). 

Program.5 For these reasons, the 

Exchange requests an expansion of the 

current Weeklys Program and the 

opportunity to provide investors with 

additional short term option classes for 

investment, trading, and risk 

management purposes. 

Finally, the Commission has 

requested, and BOX has agreed for the 

purposes of this filing, to submit a 

report to the Commission providing an 

analysis of the Weeklys Program (the 

‘‘Report’’). The Report will cover the 

period from the date of effectiveness of 

the Weeklys Program through January 

2011, and will describe the experience 

of BOX with the Weeklys Program in 

respect of the options classes that BOX 

included in such program.6

The Report will be submitted on a 

confidential basis under separate cover 

at the same time as this proposed rule 

change. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 8

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to 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. The Exchange believes 

that expanding the number of classes 

eligible to participate in the Weeklys 

Program will allow the investing public 

and other market participants to better 

manage their risk exposure, and would 

benefit investors by giving them more 

flexibility to closely tailor their 

investment decisions in a greater 

number of securities. While the 

expansion of the Weeklys Program will 

generate additional quote traffic, BOX 

does not believe that this increased 

traffic will become unmanageable since 

the proposal is limited to a fixed 

number of classes. Further, BOX does 

not believe that the proposal will result 

in a material proliferation of additional 

series because it is limited to a fixed 

number of classes and BOX does not 

believe that the additional price points 

will result in fractured liquidity. 

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 

The Exchange has neither solicited 

nor received comments on 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 9 and Rule 19b– 

4(f)(6) thereunder.10

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is substantially 

similar to that of another exchange that 

has been approved by the 

Commission.11 Therefore, the 

Commission designates the proposal 

operative upon filing.12

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. 

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–BX–2011–014 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–BX–2011–014. 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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 45 / Tuesday, March 8, 2011 / Notices 12773 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 59009 

(November 24, 2008), 73 FR 73363 (December 2, 

2008) (order approving SR–NYSEALTR–2008–07); 

see also Securities Exchange Act Release No. 59473 

(February 27, 2009) 74 FR 9853 (March 6, 2009) 

(order approving SR–NYSEALTR–2009–18). 

4See Securities Exchange Act Release No. 55590 

(April 5, 2007), 72 FR 18707 (April 13, 2007) (notice 

of immediate effectiveness of SR–NYSE–2007–29); 

see also Securities Exchange Act Release No. 58680 

(September 29, 2008), 73 FR 58283 (October 6, 

2008) (order approving SR–NYSE–2008–76). See 

Securities Exchange Act Release No. 54238 (July 28, 

2006), 71 FR 44758 (August 7, 2006) (order 

approving SR–NYSEArca–2006–13); see also 

Securities Exchange Act Release No. 52497 

(September 22, 2005), 70 FR 56949 (September 29, 

2005) (SR–PCX–2005–90); see also Securities 

Exchange Act Release No. 44983 (October 25, 2001), 

66 FR 55225 (November 1, 2001) (SR–PCX–00–25); 

see also Securities Exchange Act Release No. 58681 

(September 29, 2008), 73 FR 58285 (October 6, 

2008) (order approving NYSEArca–2008–90). 

5See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (order approving SR–Amex-2008–62). See 

also Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(order approving SR–AMEX–2008–63). 

6See Securities Exchange Act Release No. 62831 

(September 2, 2010), 75 FR 55388 (September 10, 

2010) (Notice of immediate effectiveness of SR– 

NYSEAmex–2010–91). 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9The Exchange is currently analyzing the 

condition regarding non-public information and 

system changes in order to better reflect the 

operation of Arca Securities. 

copying at the principal office of the 

Exchange. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–BX– 

2011–014 and should be submitted on 

or before March 29, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5141 Filed 3–7–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64014; File No. SR– 

NYSEAmex–2011–10] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Extending the Pilot 

Period of the Exchange’s Prior 

Approvals To Receive Inbound Routes 

of Equities Orders From Archipelago 

Securities LLC 

March 2, 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 February 

24, 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 NYSE Amex. 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 extend the 

pilot period of the Exchange’s prior 

approvals to receive inbound routes of 

equities orders from Archipelago 

Securities LLC (‘‘Arca Securities’’), an 

NYSE Amex affiliated member. The text 

of the proposed rule change is available 

at the Exchange, the Commission’s 

Public Reference Room, and http:// 

www.nyse.com. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Currently, Arca Securities is the 

approved outbound order routing 

facility of the Exchange.3 Arca 

Securities is also the approved 

outbound order routing facility of the 

New York Stock Exchange (‘‘NYSE’’) and 

NYSE Arca, Inc. (‘‘NYSE Arca’’).4 The 

Exchange has also been previously 

approved to receive inbound routes of 

equities orders by Arca Securities in its 

capacity as an order routing facility of 

the NYSE and NYSE Arca.5 The 

Exchange’s authority to receive inbound 

routes of equities orders by Arca 

Securities is subject to a pilot period 

ending March 31, 2011.6 The Exchange 

hereby seeks to extend the previously 

approved pilot period (with the 

attendant obligations and conditions) 

for an additional six months, through 

September 30, 2011. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),7 in general, and furthers the 

objectives of Section 6(b)(5),8 in 

particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

Specifically, the proposed rule change 

will allow the Exchange to continue 

receiving inbound routes of equities 

orders from Arca Securities acting in its 

capacity as a facility of the NYSE and 

NYSE Arca, in a manner consistent with 

prior approvals and established 

protections. The Exchange believes that 

extending the previously approved pilot 

period for six months will permit both 

the Exchange and the Commission to 

further assess the impact of the 

Exchange’s authority to receive direct 

inbound routes of equities orders via 

Arca Securities (including the attendant 

obligations and conditions).9

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 rule change 

does not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date on 

which it was filed, or such shorter time 


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