17174 Federal Register / Vol. 76, No. 59 / Monday, March 28, 2011 / Notices 

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

2 17 CFR 240.19b–4. 

3 In addition to FLEX Options, FLEX currency 

options are also traded on the Exchange. These 

flexible index, equity, and currency options provide 

investors the ability to customize basic option 

features including size, expiration date, exercise 

style, and certain exercise prices; and may have 

expiration dates within five years. See Rule 1079. 

FLEX currency options traded on the Exchange are 

also known as FLEX World Currency Options 

(‘‘WCO’’) or Foreign Currency Options (‘‘FCO’’). The 

pilot program discussed herein does not encompass 

FLEX currency options. 

4 17 CFR 240.19b–4(f)(6)(iii). 

5Market index options and industry index 

options are broad-based index options and narrowbased index options, respectively. See Rule 

1000A(b)(11) and (12). 

6Subsection (a)(8)(A) also provides a third 

alternative: (iii) 50 contracts in the case of FLEX 

currency options. However, this alternative is not 

part of the Pilot Program. 

been complied with to the extent 

necessary to complete the transaction. 

34. The Applicants acknowledge that 

reliance on exemptive relief, if granted, 

depends upon compliance with all of 

the representations and conditions set 

forth in the Application. 

Conclusion: 

Applicants assert that, for all the 

reasons stated in the Applicant, the 

Substitution is consistent with the 

protection of investors and the purposes 

fairly intended by the policy of the 

Contracts and provisions of the Act and 

that the requested order should be 

granted. 

For the Commission, by the Division of 

Investment Management pursuant to 

delegated authority. 

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7152 Filed 3–25–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold an Open Meeting 

on March 30, 2011 at 10 a.m., in the 

Auditorium, Room L–002. 

The subject matters of the Open 

Meeting will be: 

Item 1: The Commission will consider 

whether to propose joint rules with 

other Agencies to implement Section 

941(b) of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

relating to credit risk retention by 

securitizers of asset-backed securities. 

Item 2: The Commission will consider 

whether to propose a new rule and rule 

amendments to implement Section 952 

of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act, which 

requires the Commission to direct the 

national securities exchanges and 

national securities associations to adopt 

certain listing standards with respect to 

compensation committees and 

compensation advisers. Section 952 also 

requires the Commission to adopt new 

disclosure rules concerning the use of 

compensation consultants and conflicts 

of interest. 

Commissioner Casey, as duty officer, 

determined that no earlier notice thereof 

was possible. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: March 24, 2011. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–7342 Filed 3–24–11; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64108; File No. SR–Phlx– 

2011–35] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC To Extend the FLEX 

No Minimum Value Pilot Program 

March 22, 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 March 15, 

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 is filing with the 

Commission a proposal to extend a pilot 

program that eliminates minimum value 

sizes for FLEX index options and FLEX 

equity options (together known as 

‘‘FLEX Options’’).3

The Exchange requests that the 

Commission waive the 30-day operative 

delay period contained in Exchange Act 

Rule 19b-4(f)(6)(iii).4

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.com/ 

NASDAQOMXPHLX/Filings/, at the 

principal office of the Exchange, 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 

Exchange 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 

Exchange 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 Phlx Rule 1079 

(FLEX Index, Equity and Currency 

Options) to extend a pilot program that 

eliminates minimum value sizes for 

FLEX Options (the ‘‘Pilot Program’’ or 

‘‘Pilot’’). 

Rule 1079 deals with the process of 

listing and trading FLEX equity, index, 

and currency options on the Exchange. 

Rule 1079(a)(8)(A) currently sets the 

minimum opening transaction value 

size in the case of a FLEX Option in a 

newly established (opening) series if 

there is no open interest in the 

particular series when an Request-forQuote (‘‘RFQ’’) is submitted (except as 

provided in Commentary .01 to Rule 

1079): (i) $10 million underlying 

equivalent value, respecting FLEX 

market index options, and $5 million 

underlying equivalent value respecting 

FLEX industry index options; 5 (ii) the 

lesser of 250 contracts or the number of 

contracts overlying $1 million in the 

underlying securities, with respect to 

FLEX equity options (together the 

‘‘minimum value size’’).6

Presently, Commentary .01 to Rule 

1079 states that by virtue of the Pilot 

Program ending March 28, 2011, there 

shall be no minimum value size 

requirements for FLEX Options as noted 


Emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 59 / Monday, March 28, 2011 / Notices 17175 

7See Securities Exchange Act Release No. 62900 

(September 13, 2010), 75 FR 57098 (September 17, 

2010)(SR–Phlx–2010–123) (notice of filing and 

immediate effectiveness of proposal to institute 

Pilot Program). 

8The Exchange notes that any positions 

established under this Pilot would not be impacted 

by the expiration of the Pilot. 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. 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. 

9The Exchange has not experienced any adverse 

market effects with respect to the Pilot Program. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78s(b)(3)(A)(iii). 

13 17 CFR 240.19b–4(f)(6). 

14 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. 

15 17 CFR 240.19b–4(f)(6)(iii). 

16See note 7, supra. 

in subsections (a)(8)(A)(i) and 

(a)(8)(A)(ii) above.7

The Exchange now proposes to extend 

the Pilot Program for a period of one 

year ending March 30, 2012.8

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. Extension of the 

Pilot Program would continue to 

provide greater opportunities for traders 

and investors to manage risk through 

the use of FLEX Options, including 

investors that may otherwise trade in 

the unregulated over the counter 

(‘‘OTC’’) market where similar size 

restrictions do not apply.9

In support of the proposed extension 

of the Pilot Program, the Exchange has 

submitted to the Commission a Pilot 

Program Report (‘‘Report’’) that provides 

an analysis of the Pilot Program 

covering the period during which the 

Pilot has been in effect. This Report 

includes: (i) data and analysis on the 

open interest and trading volume in (a) 

FLEX equity options that have an 

opening transaction with a minimum 

size of 0 to 249 contracts and less than 

$1 million in underlying value; (b) 

FLEX index options that have an 

opening transaction with a minimum 

opening size of less than $10 million in 

underlying equivalent value; and (ii) 

analysis of the types of investors that 

initiated opening FLEX Options 

transactions (i.e., institutional, high net 

worth, or retail). The Report has been 

submitted to the Commission on a 

confidential basis. 

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 in the 

prior paragraph. The Exchange will also 

provide the nominal dollar value 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. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 10 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 11

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. 

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. 

The Exchange notes that it has not 

experienced any adverse market effects 

with respect to 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 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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 12 and Rule 

19b–4(f)(6) thereunder.13 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) 14 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),15 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 

Phlx’s original pilot was published for 

comment in the Federal Register and 

that the Commission did not receive any 

comments on the proposed rule 

change.16

Further, Phlx is proposing to extend 

the existing pilots 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 Phlx will 

continue to monitor the pilot and 

submit certain interim reports during 

the extended pilot period, as well as a 

final report covering the pilot period 

should the Exchange decide to extend or 

file for permanent approval of the pilot. 

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 Rule 19b–4(f)(6)(iii) so 

that the pilot can continue on an 

uninterrupted basis, and therefore 


Emcdonald on DSK2BSOYB1PROD with NOTICES
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