Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices 18817 

Standards of Security Futures Products) (SR–OC– 

2006–02). 

7 74 FR 61380 (November 24, 2009). 

8See Securities Exchange Act Release No. 61346 

(January 13, 2010), 75 FR 3515 (January 21, 2010) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change, as Modified by Amendment 

No. 1, Changing Its Listing Standards in 

Conformance with the November 9, 2009 Joint 

Order Modifying the Listing Standards 

Requirements under Section 6(h) of the Securities 

Exchange Act of 1934 and the Criteria under 

Section 2(a)(1) of the Commodity Exchange Act) 

(SR–OC–2009–04). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 63914 

(February 15, 2011), 76 FR 9846 (‘‘Notice’’). 

New Listing Standard Conforming With 

Joint Order 

CFE is proposing to conform its listing 

standards to those approved by the SEC 

and the Commodity Futures Trading 

Commission in their Joint Order dated 

November 19, 2009.7 To affect this 

change, CFE is proposing to add new 

paragraph E to CFE Policy and 

Procedure VIII that references the Joint 

Order and provides that, ‘‘the Exchange 

may list security futures on any security 

that is eligible to underlie options on a 

national securities exchange.’’ CFE notes 

that OCX made a similar change 

conforming its listing standards to those 

set forth in the Joint Order.8

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 9 of the Securities Exchange 

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

the objectives of Section 6(b)(5) 10 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. The 

proposed rule change updates certain 

CFE listing and trading rules for security 

futures and conforms them to ones 

previously changed by OCX for security 

futures. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CFE 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 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 proposed rule change has become 

effective on March 22, 2011. 

At any time within 60 days of the date 

of effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

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–CFE–2011–001 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–CFE–2011–001. 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–CFE– 

2011–001 and should be submitted on 

or before April 26, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7980 Filed 4–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64157; File No. SR–Phlx– 

2011–15] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Order 

Granting Approval of Proposed Rule 

Change To Expand the $2.50 Strike 

Price Program 

March 31, 2011. 

I. Introduction 

On February 2, 2011, NASDAQ OMX 

PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to expand the $2.50 Strike Price 

Program. The proposed rule change was 

published for comment in the Federal 

Register on February 22, 2011.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

Phlx has proposed to modify 

Exchange Rule 1012, Series of Options 

Open for Trading, to expand the range 

of option strike prices for which $2.50 

strike price intervals may be listed 

under the $2.50 Strike Price Program 


srobinson on DSKHWCL6B1PROD with NOTICES
18818 Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices 

4 In addition, the $2.50 Strike Price Program also 

permits the Exchange to list any option class with 

$2.50 strike intervals that is included in the $2.50 

Strike Price Program of another exchange. See Phlx 

Rule 1012, Commentary .05(b). 

5 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

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

7 15 U.S.C. 78s(b)(2). 

8 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 7 U.S.C. 7a–2(c). 

3See Securities Exchange Act Release No. 62139 

(May 19, 2010) 75 FR 29597 (May 26, 2010) (order 

approving proposal to list and trade GVZ options 

on CBOE). 

4 74 FR 61380 (November 24, 2009). See also CFE 

Policy and Procedure VIII E. (Eligibility for Listing 

Security Futures on Securities Approved for 

Options Trading). 

(‘‘Program’’) from between $50 and $75 

to between $50 and $100, provided the 

$2.50 strike price intervals are no more 

than $10 from the closing price of the 

underlying stock in the primary market. 

The Exchange also proposed to increase 

the number of option classes on 

individual stocks, from 46 to 60, that it 

may select for the Program.4

In support of its proposal, Phlx stated 

that $2.50 strike intervals above $75 

would afford investors the ability to 

more closely tailor investment strategies 

to the precise movement of the 

underlying security. The Exchange also 

stated that the number of option classes 

in the Program has not expanded since 

1998, although increasingly more 

companies have completed initial 

public offerings since 1998 and 

significantly more options classes are 

trading now as compared to 1998. The 

Exchange stated that the increase would 

allow it to accommodate investor 

requests for $2.50 strikes in additional 

options classes. 

Finally, Phlx stated that it analyzed 

its capacity, and represented that the 

Exchange and the Options Price 

Reporting Authority have the necessary 

systems capacity to handle the potential 

additional traffic that would result from 

expanding the Program. 

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.5 Specifically, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,6 which requires, among other 

things, that the rules of a national 

securities exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, 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 Commission believes that the 

proposal strikes a reasonable balance 

between the Exchange’s desire to offer a 

wider array of investment opportunities 

and the need to avoid unnecessary 

proliferation of options series and the 

corresponding increase in quotes and 

market fragmentation. The Commission 

expects the Exchange to monitor the 

trading volume associated with the 

additional options series listed as a 

result of this proposal and the effect of 

these additional series on market 

fragmentation and on the capacity of the 

Exchange’s, OPRA’s, and vendors’ 

automated systems. 

In addition, the Commission notes 

that Phlx has represented that it believes 

the Exchange and the Options Price 

Reporting Authority have the necessary 

systems capacity to handle the 

additional traffic associated with the 

newly permitted listings. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–Phlx–2011– 

15) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8054 Filed 4–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64153; File No. SR–CFE– 

2011–002] 

Self-Regulatory Organizations; CBOE 

Futures Exchange, LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

Listing and Trading CBOE Gold ETF 

Volatility Index Security Futures 

March 30, 2011. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

March 18, 2011, CBOE Futures 

Exchange, LLC. (‘‘CFE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

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

the proposed rule change described in 

Items I, II, and III below, which Items 

have been prepared by CFE. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. CFE 

also filed this proposed rule change 

concurrently with the Commodity 

Futures Trading Commission (‘‘CFTC’’). 

CFE filed a written certification with the 

CFTC under Section 5c(c) of the 

Commodity Exchange Act (‘‘CEA’’) 2 on 

March 18, 2011. 

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

The Exchange proposes to amend its 

rules to permit the Exchange to list and 

trade the Gold ETF Volatility Index 

(‘‘GVZ’’) security futures contract. The 

text of the proposed rule change is 

available on the Exchange’s Web site at 

http://www.cfe.cboe.com, on the 

Commission’s Web site at http:// 

www.sec.gov, 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, CFE 

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. CFE 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 permit the Exchange to list 

and trade security futures on the CBOE 

Gold ETF Volatility Index (‘‘GVZ’’ or 

‘‘GVZ Index’’). Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’) 

received approval from the SEC to list 

and trade GVZ options.3 Consistent with 

the Joint Order issued by the SEC and 

the CFTC dated November 19, 2009 

(Securities Exchange Act Release No. 

61027) (‘‘Joint Order’’),4 the GVZ Index 

may underlie a security futures contract 

since the GVZ Index is eligible to 

underlie options traded on a national 

securities exchange. 

Index Design and Calculation 

The calculation of GVZ is based on 

the VIX methodology applied to options 

on the SPDR Gold Trust (‘‘GLD’’). The 


srobinson on DSKHWCL6B1PROD with NOTICES