Federal Register / Vol. 76, No. 61 / Wednesday, March 30, 2011 / Notices 17727 

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

2Securities Exchange Act Release No. 34–63811 

(February 1, 2011), 76 FR 6648 (February 7, 2011). 

3A reference security may be an exchange-traded 

fund (‘‘ETF’’). 

4Securities Exchange Act Release No. 34–63575 

(December 17, 2010), 75 FR 81320 (December 27, 

2010) [File No. SR–Phlx–2010–176]. 

5The combination of the two components is 

referred to as an ‘‘Alpha Pair.’’ The first component 

of each Alpha Pair is referred to as the ‘‘Target 

Component’’ and the second component is referred 

to as the ‘‘Benchmark Component.’’ 

6 15 U.S.C. 78q–1(b)(3)(F). 

7 15 U.S.C. 78q–1. 

8 15 U.S.C. 78s(b)(2). 

9 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition and capital formation. 15 

U.S.C. 78c(f). 

10 17 CFR 200.30–3(a)(12). 

possible manipulative conduct 

occurring in the market for the 

company’s stock. Euro Solar is quoted 

on the OTC Bulletin Board and OTC 

Link under the ticker symbol ESLP. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

company. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of the above-listed company is 

suspended for the period from 9:30 a.m. 

EDT on March 28, 2011, through 11:59 

p.m. EDT on April 8, 2011. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–7572 Filed 3–28–11; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64119; File No. SR–OCC– 

2011–02] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Approving Proposed Rule Change To 

Accommodate the Clearance of 

Relative Performance Options 

March 24, 2011. 

I. Introduction 

On January 19, 2011, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change SR–OCC–2011–02 

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

Securities Exchange Act of 1934 

(‘‘Act’’).1 The proposed rule change was 

published for comment in the Federal 

Register on February 7, 2011.2 No 

comment letters were received on the 

proposal. This order approves the 

proposal. 

II. Description 

The purpose of this rule change is to 

accommodate the clearance of options 

on certain indexes measuring the 

relative performance of one reference 

security or reference index relative to a 

second reference security or reference 

index (‘‘Relative Performance 

Options’’).3 The revised rules have been 

broadly drafted to cover Alpha Options, 

a Relative Performance Option 

described below, and any similar 

product that may be listed on any 

participant exchange in the future. 

NASDAQ OMX PHLX LLC (‘‘Phlx’’) is 

proposing to list options (‘‘Alpha 

Options’’) 4 on NASDAQ OMX Alpha 

Indexes (‘‘Alpha Indexes’’), a family of 

indexes developed by NASDAQ OMX 

Group, Inc. (‘‘Nasdaq’’). Alpha Indexes 

measure relative total returns of one 

underlying stock and one underlying 

ETF, which are also traded on the Phlx.5

An Alpha Index is calculated by 

measuring the total return performance 

of the Target Component relative to the 

total return performance of the 

Benchmark Component based upon 

prices of transactions on the primary 

listing exchange of each underlying 

component. Each Alpha Index will 

initially be set at 100.00. Alpha Options 

will be cash-settled, European-style 

options. In the event of a corporate 

event that eliminates one of the 

underlying components of an Alpha 

Index, Nasdaq will cease calculation of 

the Alpha Index for that pair of 

underlying components, and all 

outstanding option positions will be 

immediately settled at the last 

disseminated price of that Alpha Index. 

Relative Performance Options are 

highly similar to other index options 

cleared by OCC except for the identity 

and nature of the underlying index. 

Therefore, OCC believes that the 

provisions of its By-Laws and Rules 

governing index options, as they are 

currently in effect, are generally 

sufficient to support the clearance and 

settlement of Relative Performance 

Options. However, minor modifications 

are needed to support the clearance and 

settlement of Alpha Options and other 

types of Relative Performance Options 

that may be introduced in the future. 

For example, OCC’s current Rules do 

not account for the possibility of an 

index having a negative value as could 

occur for certain Relative Performance 

Indexes. If this should ever occur, the 

index value would be deemed to be 

equal to zero or, because certain systems 

may not accept a zero index value, a 

near-zero positive amount. Therefore, 

OCC is modifying its By-Laws to 

provide for such potential adjustments 

of the index value by either the listing 

exchange or OCC. 

In addition, OCC’s current By-Laws 

do not account for the possibility that an 

expiration date may be accelerated 

when a reference security (i.e., an 

individual reference security and not a 

reference index) that is one of the 

components of an underlying relative 

performance index ceases to be 

published as a result of a cash-out 

merger or similar corporate event. If the 

value of an underlying Relative 

Performance Index ceases to be 

published as a result of such an event, 

the value of the overlying options would 

become fixed. Therefore, OCC proposes 

to modify its By-Laws to provide that 

OCC will either accelerate or not 

accelerate the expiration in consultation 

with the relevant exchange on which 

the index underlying a Relative 

Performance Option is listed. 

III. Discussion 

Section 17A(b)(3)(F) of the Act 6

requires, among other things, that the 

rules of a clearing agency be designed to 

remove impediments to and perfect the 

mechanism of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions. 

Because the proposed rule change 

modifies OCC’s Rules and By-Laws to 

support the clearance of Alpha Options 

and other types of Relative Performance 

Options that may be introduced in the 

future, the proposed rule change is 

facilitating the perfection of the national 

system for the clearance and settlement 

of securities transactions and therefore 

is consistent with the requirements of 

Section 17A(b)(3)(F) of the Act. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the Act 7

and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (File No. SR– 

OCC–2011–02) be, and hereby is, 

approved.9

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7366 Filed 3–29–11; 8:45 am] 

BILLING CODE 8011–01–P 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES