17176 Federal Register / Vol. 76, No. 59 / Monday, March 28, 2011 / Notices 

17For 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 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 62054 

(May 6, 2010), 75 FR 27381 (May 14, 2010) (SR– 

NYSEArca–2010–34). 

5 Id. 

designates the proposal operative upon 

filing.17

At any time within 60 days of the 

filing of such 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–Phlx–2011–35 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–2011–35. 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 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 

available publicly. All submissions 

should refer to File No. SR–Phlx–2011– 

35 and should be submitted on or before 

April 18, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7181 Filed 3–25–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64111; File No. SR– 

NYSEArca–2011–10) 

Self-Regulatory Organizations; NYSE 

Arca Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Its Option 

Trading Rules To Extend the Operation 

of Its Pilot Program Regarding 

Minimum Value Sizes for Flexible 

Exchange Options 

March 23, 2011. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on March 

11, 2011, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 self-regulatory 

organization. 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes [sic] its 

option trading rules to extend the 

operation of its pilot program (‘‘Pilot 

Program’’) regarding minimum value 

sizes for flexible exchange options 

(‘‘FLEX Options’’), currently scheduled 

to expire on March 28, 2011, until 

March 30, 2012. The text of the 

proposed rule change is available at the 

Exchange’s Web site at http:// 

www.nyse.com, on the Commission’s 

Web site at http://www.sec.gov, at the 

Exchange’s principal office, 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 hereby proposes to 

amend its option trading rules to extend 

the operation of its Pilot Program 

regarding minimum value sizes for 

FLEX Options, currently scheduled to 

expire on March 28, 2011,4 until March 

30, 2012. This filing does not propose 

any substantive changes to the Pilot 

Program and contemplates that all other 

terms of FLEX Options will remain the 

same. The Exchange believes that 

extending the Pilot Program will benefit 

public customers and other market 

participants who will be able to use 

FLEX Options to manage risk for smaller 

portfolios. 

In support of the proposed extension 

of the Pilot Program, and as required by 

the terms of the Pilot Program’s 

implementation,5 the Exchange has 

submitted to the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) a Pilot Program Report 

that provides an analysis of the Pilot 

Program covering the period during 

which the Pilot Program has been in 

effect. This Pilot Program Report 

includes (i) data and analysis on the 

open interest and trading volume in (a) 

FLEX Equity Options that have opening 

transactions with a minimum size of 0 

to 249 contracts and less than $1 million 

in underlying value; (b) FLEX Index 

Options that have opening transactions 

with a minimum opening size of less 

than $10 million in underlying 

equivalent value; and (ii) analysis on the 


Emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 59 / Monday, March 28, 2011 / Notices 17177 

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

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A)(iii). 

9 17 CFR 240.19b–4(f)(6). 

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

4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its 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 filing of the proposed rule change, or 

such shorter time as designated by the Commission. 

The Commission notes that the Exchange has 

satisfied this requirement. 

11 17 CFR 240.19b–4(f)(6)(iii). 

12See supra note 4. 

13For 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). 

types of investors that initiated opening 

FLEX Equity and Index Options 

transactions (i.e., institutional, high net 

worth, or retail). The report has been 

submitted to the Commission on a 

confidential basis. 

The Exchange believes that there is 

sufficient investor interest and demand 

in the Pilot Program to warrant 

extension for an additional year. The 

Exchange believes that the Pilot 

Program has provided investors with 

additional means of managing their risk 

exposures and carrying out their 

investment objectives. The Exchange 

has not experienced any adverse market 

effects with respect to the Pilot Program. 

If, in the future, the Exchange 

proposes an additional extension of the 

Pilot Program, or should the Exchange 

propose to make the Pilot Program 

permanent, the Exchange will submit, 

along with any filing proposing such 

amendments to the Pilot Program, an 

additional Pilot Program Report 

covering the period during which the 

Pilot Program was in effect and 

including the details referenced above, 

along with the nominal dollar value of 

the underlying security of each trade. 

The Pilot Program Report would be 

submitted to the Commission at least 

two months prior to the expiration date 

of the Pilot Program and would be 

provided on a confidential basis. 

The Exchange notes that any positions 

established under this Pilot Program 

would not be impacted by the 

expiration of the Pilot Program. For 

example, a 10-contract FLEX Equity 

Option opening position that overlies 

less than $1 million in the underlying 

security and expires in January 2015 

could be established during the Pilot 

Program. If the Pilot Program were not 

extended, the position would continue 

to exist and any further trading in the 

series would be subject to the minimum 

value size requirements for continued 

trading in that series. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),6 in general, and furthers the 

objectives of Section 6(b)(5),7 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 Exchange believes that 

the proposed extension of the Pilot 

Program, which eliminates the 

minimum value size applicable to FLEX 

Options, would provide greater 

opportunities for investors to manage 

risk through the use of FLEX Options. 

Further, the Exchange notes that it has 

not experienced any adverse effects 

from the operation of the Pilot 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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 8 and Rule 

19b–4(f)(6) thereunder.9 Because the 

proposed 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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6) (iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 10 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),11 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay to permit the current pilot to 

continue uninterrupted. 

The Commission finds that waiver of 

the operative delay is consistent with 

the protection of investors and the 

public interest. The Commission notes 

in waiving the 30-day operative delay 

that the Exchange’s original pilot was 

published for comment in the Federal 

Register and the Commission did not 

receive any comments.12 Further, the 

Exchange is proposing to extend the 

existing Pilot Program on the same 

terms and conditions as they were 

originally approved by the Commission. 

This includes, as described in more 

detail above, a representation that the 

Exchange will continue to monitor the 

Pilot Program and submit certain 

interim reports during the extended 

Pilot Program period, as well as a final 

report covering the Pilot Program period 

should the Exchange decide to extend or 

file for permanent approval of the Pilot 

Program. Finally, the Commission notes 

that the Exchange has represented that 

it has not experienced any adverse 

market effects with respect to the Pilot 

Program. Based on the above, the 

Commission finds that it is consistent 

with investor protection and the public 

interest to waive the 30-day operative 

delay in accordance with 19b-4(f)(6)(iii) 

so that the Pilot Program can continue 

on an uninterrupted basis, and therefore 

designates the proposal operative upon 

filing.13

At any time within 60 days of the 

filing of such 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 


Emcdonald on DSK2BSOYB1PROD with NOTICES
17178 Federal Register / Vol. 76, No. 59 / Monday, March 28, 2011 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 62084 

(May 12, 2010), 75 FR 28091 (May 19, 2010) (SR– 

NYSEAmex–2010–40). 

5 Id. 

Number SR–NYSEArca–2011–10 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–NYSEArca–2011–10. 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 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 

available publicly. All submissions 

should refer to File No. SR–NYSEArca– 

2011–10 and should be submitted on or 

before April 18, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7231 Filed 3–25–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64107; File No. SR– 

NYSEAmex–2011–15] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Operation 

of Its Pilot Program Regarding 

Minimum Value Sizes for Flexible 

Exchange Options 

March 22, 2011. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on March 11, 

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 self-regulatory organization. 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 its 

option trading rules to extend the 

operation of its pilot program (‘‘Pilot 

Program’’) regarding minimum value 

sizes for flexible exchange options 

(‘‘FLEX Options’’), currently scheduled 

to expire on March 28, 2011, until 

March 30, 2012. The text of the 

proposed rule change is available at the 

Exchange; on the Exchange’s Web site 

(http://www.nyse.com); on the 

Commission’s Web site at http:// 

www.sec.gov; and 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange hereby proposes to 

amend its option trading rules to extend 

the operation of its Pilot Program 

regarding minimum value sizes for 

FLEX Options, currently scheduled to 

expire on March 28, 2011,4 until March 

30, 2012. This filing does not propose 

any substantive changes to the Pilot 

Program and contemplates that all other 

terms of FLEX Options will remain the 

same. The Exchange believes that 

extending the Pilot Program will benefit 

public customers and other market 

participants who will be able to use 

FLEX Options to manage risk for smaller 

portfolios. 

In support of the proposed extension 

of the Pilot Program, and as required by 

the terms of the Pilot Program’s 

implementation,5 the Exchange has 

submitted to the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) a Pilot Program Report 

that provides an analysis of the Pilot 

Program covering the period during 

which the Pilot Program has been in 

effect. This Pilot Program Report 

includes (i) data and analysis on the 

open interest and trading volume in (a) 

FLEX Equity Options that have opening 

transactions with a minimum size of 0 

to 249 contracts and less than $1 million 

in underlying value; (b) FLEX Index 

Options that have opening transactions 

with a minimum opening size of less 

than $10 million in underlying 

equivalent value; and (ii) analysis on the 

types of investors that initiated opening 

FLEX Equity and Index Options 

transactions (i.e., institutional, high net 

worth, or retail). The report has been 

submitted to the Commission on a 

confidential basis. 

The Exchange believes that there is 

sufficient investor interest and demand 

in the Pilot Program to warrant 

extension for an additional year. The 

Exchange believes that the Pilot 

Program has provided investors with 

additional means of managing their risk 

exposures and carrying out their 

investment objectives. The Exchange 

has not experienced any adverse market 

effects with respect to the Pilot Program. 

If, in the future, the Exchange 

proposes an additional extension of the 

Pilot Program, or should the Exchange 

propose to make the Pilot Program 


Emcdonald on DSK2BSOYB1PROD with NOTICES