6762 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 19b–4(f)(2). 

12The text of the proposed rule change is 

available on ISE’s Web site at http://www.ise.com, 

on the Commission’s Web site at http:// 

www.sec.gov, at ISE, and at the Commission’s 

Public Reference Room. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 61061 

(November 24, 2009), granting partial approval of 

SR–NYSEArca–2009–44, as modified by 

Amendment No. 4 thereto. 

6See Securities Exchange Act Release No. 60864 

(October 22, 2009), granting immediate 

effectiveness to SR–CBOE–2009–76. 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

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

the Act 10 and Rule 19b–4(f)(2) 11

thereunder. At any time within 60 days 

of the filing of such proposed rule 

change, the Commission may summarily 

abrogate 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–ISE–2010–10 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–ISE–2010–10. 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,12 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 

ISE. 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–ISE–2010–10 and should be 

submitted on or before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2956 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61478; File No. SR–CBOE– 

2010–009] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the Penny 

Pilot Program 

February 3, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 

29, 2010, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) 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 Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 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 

CBOE proposes to amend [sic] its 

rules relating to the Penny Pilot 

Program. The text of the rule proposal 

is available on the Exchange’s Web site 

(http://www.cboe.org/legal), at the 

Exchange’s Office of the Secretary, at 

the Commission’s Public Reference 

Room and on the Commission’s Web 

site http://www.sec.gov. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

CBOE proposes to amend its rules in 

connection with the expansion of the 

Penny Pilot on February 1, 2010. 

Specifically, CBOE proposes to amend 

Rule 6.42 to provide that the minimum 

increment for all option series in the 

IWM and SPY option classes will be 

$0.01 effective February 1, 2010. 

Currently, the minimum increments in 

these two classes are $0.01 for all option 

series quoted below $3 (including 

LEAPS), and $0.05 for all option series 

$3 and above (including LEAPS). CBOE 

notes that the SEC recently approved an 

NYSEArca rule filing which provides 

that the minimum increment for all 

option series in the IWM and SPY 

option classes will be $0.01 effective 

February 1, 2010.5

CBOE also proposes to identify the 75 

option classes that will be added to the 

Penny Pilot Program beginning on 

February 1, 2010. CBOE recently 

extended and expanded the Penny Pilot 

Program through December 31, 2010.6

As described in its filing, the Pilot 


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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6763 

7The classes to be added are among the most 

actively-traded, multiply-listed option classes that 

are not currently in the Pilot Program, excluding 

option classes with high premiums. An option class 

would be designated as ‘‘high premium’’ if, at the 

time of selection, the underlying security was 

priced at $200 per share or above, or the underlying 

index level was at 200 or above. 

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

9 15 U.S.C. 78f(b)(5). 

Program will be expanded by adding 

300 option classes, in groups of 75 

classes each quarter on the following 

dates: November 2, 2009, February 1, 

2010, May 3, 2010, and August 2, 2010.7

The option classes will be identified 

based on national average daily volume 

in the six calendar months preceding 

their addition to the Pilot Program using 

data compiled by The Options Clearing 

Corporation, except that the month 

immediately preceding their addition to 

the Pilot Program will not be utilized for 

purposes of the six-month analysis. 

The following 75 option classes will 

be added to the Pilot Program beginning 

on February 1, 2010: 

Symbol Company name Symbol Company name 

ABT .................... Abbott Laboratories. LEAP ................ Leap Wireless International Inc. 

AEM ................... Agnico-Eagle Mines Ltd. LLY ................... Eli Lilly & Co. 

AET .................... Aetna Inc. LO ..................... Lorillard Inc. 

AFL .................... Aflac Inc. LOW ................. Lowe’s Cos Inc. 

AKAM ................. Akamai Technologies Inc. M ...................... Macy’s Inc 

AMAT ................. Applied Materials Inc. MCO ................. Moody’s Corp. 

AMR ................... AMR Corp. MET .................. MetLife Inc. 

ANF .................... Abercrombie & Fitch Co. MMM ................ 3M Co. 

APC ................... Anadarko Petroleum Corp. MU .................... Micron Technology Inc. 

ATVI ................... Activision Blizzard Inc. NUE .................. Nucor Corp. 

BBD ................... Banco Bradesco SA. OXY .................. Occidental Petroleum Corp. 

BCRX ................. BioCryst Pharmaceuticals Inc. PARD ................ Poniard Pharmaceuticals Inc. 

BK ...................... Bank of New York Mellon Corp/The. PEP .................. PepsiCo Inc/NC. 

BRCM ................ Broadcom Corp. PM .................... Philip Morris International Inc. 

BTU .................... Peabody Energy Corp. PNC .................. PNC Financial Services Group Inc. 

BX ...................... Blackstone Group LP. QID ................... ProShares UltraShort QQQ. 

CAL .................... Continental Airlines Inc. SHLD ................ Sears Holdings Corp. 

CF ...................... CF Industries Holdings Inc. SLM .................. SLM Corp. 

CMCSA .............. Comcast Corp. SLW .................. Silver Wheaton Corp. 

CSX ................... CSX Corp. SQNM ............... Sequenom Inc. 

CVS ................... CVS Caremark Corp. STEC ................ STEC Inc. 

CX ...................... Cemex SAB de CV. STX .................. Seagate Technology. 

DD ...................... EI du Pont de Nemours & Co. SU .................... Suncor Energy Inc. 

ERTS ................. Electronic Arts Inc. TCK .................. Teck Resources Ltd. 

EWJ ................... iShares MSCI Japan Index Fund. TEVA ................ Teva Pharmaceutical Industries Ltd. 

FDX .................... FedEx Corp. TLT ................... iShares Barclays 20+ Year Treasury Bond Fund. 

FNM ................... Federal National Mortgage Association. TZA ................... Direxion Daily Small Cap Bear 3X Shares. 

FRE .................... Federal Home Loan Mortgage Corp. UAUA ............... UAL Corp. 

GILD .................. Gilead Sciences Inc. URE .................. ProShares Ultra Real Estate. 

GLW ................... Corning Inc. UTX .................. United Technologies Corp. 

HBC ................... HSBC Holdings PLC. WFR ................. MEMC Electronic Materials Inc. 

HES ................... Hess Corp. WFT .................. Weatherford International Ltd. 

HL ...................... Hecla Mining Co. WLP .................. WellPoint Inc. 

HOG ................... Harley-Davidson Inc. XLB ................... Materials Select Sector SPDR Fund. 

HON ................... Honeywell International Inc. XRX .................. Xerox Corp. 

JOYG ................. Joy Global Inc. XTO .................. XTO Energy Inc. 

JWN ................... Nordstrom Inc. YRCW ............... YRC Worldwide Inc. 

KFT .................... Kraft Foods Inc. 

2. Statutory Basis 

The Exchange believes the rule 

proposal is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

under the Act applicable to a national 

securities exchange and, in particular, 

the requirements of Section 6(b) of the 

Act.8 Specifically, the Exchange 

believes that the proposed rule change 

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

Act 9 requirements that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, to 

prevent fraudulent and manipulative 

acts and, in general, to protect investors 

and the public interest. In particular, the 

proposed rule change allows for an 

expansion of the Penny Pilot Program 

for the benefit of market participants 

and identifies the option classes to be 

added to the Pilot Program in a manner 

consistent with CBOE’s rule filing SR– 

CBOE–2009–76 to extend and expand 

the Pilot Program. The proposed rule 

change also allows for reductions in the 

minimum increments in IWM and SPY, 

which has been shown to reduce 

spreads. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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 

Because the foregoing 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 


sroberts on DSKD5P82C1PROD with NOTICES
6764 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the self-regulatory 

organization to give the Commission 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 date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. 

CBOE has satisfied this requirement. 

12 17 CFR 240.19b–4(f)(6)(iii). 

13See supra note 5. 

14For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 10 and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing.11 However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requested that the 

Commission waive the 30-day operative 

delay, as specified in Rule 19b– 

4(f)(6)(iii),12 which would make the rule 

change effective and operative upon 

filing. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is based on a 

recent Commission-approved proposal 

submitted by another options 

exchange 13 and therefore does not raise 

any novel regulatory issues. Further, 

waiving the operative delay will allow 

the Exchange to commence quoting all 

series of IWM and SPY in increments of 

$0.01 effective February 1, 2010, 

contemporaneously with other options 

exchanges. Accordingly, the 

Commission designates the proposed 

rule change as operative upon filing 

with the Commission.14

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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–CBOE–2010–009 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–CBOE–2010–009. 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 

self-regulatory organization. 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–CBOE–2010–009 and 

should be submitted on or before March 

3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2865 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61489; File No. SR–CBOE– 

2010–008] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Inc.; Notice of Filing of Proposed Rule 

Change Relating to Co-location 

Service Fees 

February 4, 2010. 

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 January 

28, 2010, Chicago Board Options 

Exchange, Inc. (‘‘CBOE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by CBOE. 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 Proposed 

Rule Change 

Chicago Board Options Exchange, Inc. 

(‘‘CBOE’’ or ‘‘Exchange’’) proposes to 

amend its Fees Schedule relating to colocation service fees. The text of the 

proposed rule change is availableon the 

Exchange’s Web site (http:// 

www.cboe.org/legal), 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, 

CBOE 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. CBOE 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 

For a monthly fee, the Exchange 

provides members with cabinet space in 

CBOE’s building for placement of 

network and server hardware. The fee is 


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