Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices 70337 

6See Section 19(b)(3)(C) of the Act, 15 U.S.C. 

78s(b)(3)(C). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

additional time to register with the 

MSRB. 

At any time within 60 days of the 

filing of the 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.6

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–MSRB–2010–15 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–MSRB–2010–15. 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 

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 MSRB’s offices. 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–MSRB–2010–15 and should 

be submitted on or before December 8, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28986 Filed 11–16–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63304; File No. SR–ISE– 

2010–108] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Expand the $0.50 Strike 

Program 

November 10, 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 

November 10, 2010, the International 

Securities Exchange, LLC (‘‘ISE’’ or the 

‘‘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 proposes to amend its 

rules to: (i) Expand the $0.50 Strike 

Program for strike prices below $1.00; 

(ii) extend the $0.50 Strike Program to 

strike prices that are $5.50 or less; (iii) 

extend the prices of the underlying 

security to at or below $5.00; and (iv) 

extend the number of options classes 

overlying 20 individual stocks. The text 

of the proposed rule change is available 

on the Exchange’s Web site http:// 

www.ise.com, at the principal office of 

the Exchange, on the Commission’s Web 

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

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to modify the Exchange’s rules 

to expand the $0.50 Strike Program in 

order to provide investors with 

opportunities and strategies to minimize 

losses associated with owning a stock 

declining in price. 

The Exchange is proposing to 

establish strike price intervals of $0.50, 

beginning at $0.50 for certain options 

classes where the strike price is $5.50 or 

less and whose underlying security 

closed at or below $5.00 in its primary 

market on the previous trading day and 

which have national average daily 

volume that equals or exceeds 1000 

contracts per day as determined by The 

Options Clearing Corporation (‘‘OCC’’) 

during the preceding three calendar 

months. The Exchange also proposes to 

limit the listing of $0.50 strike prices to 

options classes overlying no more than 

20 individual stocks as specifically 

designated by the Exchange. 

Currently, Supplementary Material 

.05 to ISE Rule 504 permits strike price 

intervals of $0.50 or greater beginning at 

$1.00 where the strike price is $3.50 or 

less, but only for option classes whose 

underlying security closed at or below 

$3.00 in its primary market on the 

previous trading day and which have 

national average daily volume that 

equals or exceeds 1000 contracts per 

day as determined by OCC during the 

preceding three calendar months. 

Further, the listing of $0.50 strike prices 

is limited to options classes overlying 

no more than 5 individual stocks as 

specifically designated by the Exchange. 

The Exchange is currently restricted 

from listing series with $1 intervals 

within $0.50 of an existing strike price 

in the same series, except that strike 

prices of $2, $3, and $4 shall be 

permitted within $0.50 of an existing 

mstockstill on DSKH9S0YB1PROD with NOTICES

70338 Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices 

3See Supplementary Material .01 to ISE Rule 504 

referring to the $1 Strike Program. 

4SIRI was trading at $0.9678 on July 13, 2010. 

5C was trading at $4.24 on July 14, 2010. 

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

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

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

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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. The Commission 

strike price for classes also selected to 

participate in the $0.50 Strike Program.3

The number of $0.50 strike options 

traded on the Exchange has continued 

to increase since the inception of the 

$0.50 Strike Program. There are now 

approximately 19 of the $0.50 strike 

price option classes listed, and traded, 

across all options exchanges including 

ISE; 3 of which are classes chosen by 

ISE for the $0.50 Strike Program. The 

current proposal would expand $0.50 

strike offerings to market participants, 

such as traders and retail investors, and 

thereby enhance their ability to tailor 

investing and hedging strategies and 

opportunities in a volatile market place. 

By way of example, if an investor 

wants to invest in 5,000 shares of Sirius 

Satellite (‘‘SIRI’’) at $0.9678,4 the only 

choice the investor would have today 

would be to buy out-of-the-money calls, 

at the $1.00 strike, or to invest in the 

underlying stock with a total outlay of 

$0.96 per share or $4,800. However, if 

a $0.50 strike series were available, an 

investor may be able to invest in 5,000 

shares by purchasing an exercisable inthe-money $0.50 strike call option. It is 

reasonable to assume that with SIRI 

trading at $0.96, the $0.50 strike call 

option would trade at an estimated price 

of $0.46 to $0.48 under normal 

circumstances. This would allow the 

investor to manage 5,000 shares with 

the same upside potential return for a 

cost of only $2,350 (assuming $.47 as a 

call price). 

Similarly, if an investor wanted to 

spend $4,800 for 5,000 shares of SIRI, a 

$0.50 put option that would trade for 

$0.01 to $0.05 would provide protection 

against a declining stock price in the 

event that SIRI dropped below $0.50 per 

share. In a down market, where high 

volume widely held shares drop below 

$1.00, investors deserve the opportunity 

to hedge downside risk in the same 

manner as investors have with stocks 

greater than $1.00. 

Increasing the threshold from $3.00 to 

$5.00 and expanding the number of 

$0.50 strikes available for stocks under 

$5.00 further aids investors by offering 

opportunities to manage risk and 

execute a variety of option strategies to 

improve returns. For example, today an 

investor can enhance their yield by 

selling an out-of-the-money call. Using 

an example of an investor who wants to 

hedge Citigroup (‘‘C’’) which is trading at 

$4.24,5 that investor would be able to 

choose the $4.50 strike which is 6% outof-the-money or they would be able to 

choose the $5.00 strike which is 17.92% 

out-of-the-money, under this proposal. 

Today, this investor only has the latter 

choice. Beyond that, this investor today 

may choose the $6.00 strike which is 

41% out-of-the-money and offers 

significantly less premium. Pursuant to 

this proposal if this investor had a 

choice to hedge with a $5.50 strike 

option, the investor would have the 

opportunity to sell the option at only 

29% out-of-the-money and would 

improve their return by gaining more 

premium, while also benefitting from 

29% of upside return in the underlying 

equity. 

By increasing the number of securities 

from 5 individual stocks to 20 

individual stocks would allow the 

Exchange to offer investors additional 

opportunities to use the $0.50 Strike 

Program. The Exchange notes that $0.50 

strikes have had no impact on capacity. 

Further, the Exchange has observed the 

popularity of $0.50 strikes. 

The open interest in the $2.50 August 

strike series for Synovus Financial Corp. 

(‘‘SNV’’), which closed at $2.71 on July 

13, 2010, was 12,743 options; whereas 

open interest in the $2 and $3 August 

strike series was a combined 318 

options. The open interest in the August 

$1.50 strike series for Ambac Financial 

Group, Inc. (‘‘ABK’’), which closed at 

$0.7490 on July 13, 2010, was 15,879 

options compared to 8,174 options for 

the $2 strike series. The August $2.50 

strike series had open interest of 22,280 

options, also more than the traditional 

$2 strike series. 

By expanding the $0.50 Strike 

Program investors would be able to 

better enhance returns and manage risk 

by providing investors with 

significantly greater flexibility in the 

trading of equity options that overlie 

lower price stocks by allowing investors 

to establish equity options positions that 

are better tailored to meet their 

investment, trading and risk. 

The Exchange also proposes making a 

corresponding amendment to 

Supplementary Material .01 to ISE Rule 

504 to add $5 and $6 to $1 Strike 

Program language that addresses listing 

series with $1 intervals within $0.50 of 

an existing strike price in the same 

series. Currently, and to account for the 

overlap with the $0.50 Strike Program, 

the following series are excluded from 

this prohibition: Strike prices of $2, $3, 

and $4. The Exchange proposes to add 

$5 and $6 to that list to account for the 

proposal to expand the $0.50 Strike 

Program to a strike price of $5.50. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 6

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

objectives of Section 6(b)(5) of the Act 7

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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 

Exchange believes that amending the 

current $0.50 Strike Program would 

result in a continuing benefit to 

investors by giving them more flexibility 

to closely tailor their investment 

decisions in a greater number of 

securities. With the increase in active, 

low-price securities, the Exchange 

believes that amending the $0.50 Strike 

Program to allow a $0.50 strike interval 

below $1 for strike prices of $5.50 or 

less is necessary to provide investors 

with additional opportunity to 

minimize and manage risk. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not become operative for 30 

days from the date on which it was 

filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

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

4(f)(6) thereunder.9

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices 70339 

has waived the five-day prefiling requirement in 

this case. 

10See Securities Exchange Act Release No. 63132 

(October 19, 2010) (SR–Phlx–2010–118) (order 

approving expansion of $0.50 Strike Price Program). 

11For 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). 12 17 CFR 200.30–3(a)(12). 

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is substantially 

similar to that of another exchange that 

has been approved by the 

Commission.10 Therefore, the 

Commission designates the proposal 

operative upon filing.11

At any time within 60 days of the 

filing of the 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–ISE–2010–108 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–2010–108. 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–ISE– 

2010–108 and should be submitted on 

or before December 8, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon. 

Deputy Secretary. 

[FR Doc. 2010–28899 Filed 11–16–10; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Reporting and Recordkeeping 

Requirements Under OMB Review 

AGENCY: Small Business Administration. 

ACTION: Notice of Reporting 

Requirements Submitted for OMB 

Review. 

SUMMARY: Under the provisions of the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35), agencies are required to 

submit proposed reporting and 

recordkeeping requirements to OMB for 

review and approval, and to publish a 

notice in the Federal Register notifying 

the public that the agency has made 

such a submission. 

DATES: Submit comments on or before 

December 17, 2010. If you intend to 

comment but cannot prepare comments 

promptly, please advise the OMB 

Reviewer and the Agency Clearance 

Officer before the deadline. 

Copies: Request for clearance (OMB 

83–1), supporting statement, and other 

documents submitted to OMB for 

review may be obtained from the 

Agency Clearance Officer. 

ADDRESSES: Address all comments 

concerning this notice to: Agency 

Clearance Officer, Jacqueline White, 

Small Business Administration, 409 3rd 

Street, SW., 5th Floor, Washington, DC 

20416; and OMB Reviewer, Office of 

Information and Regulatory Affairs, 

Office of Management and Budget, New 

Executive Office Building, Washington, 

DC 20503. 

FOR FURTHER INFORMATION CONTACT: 

Jacqueline White, Agency Clearance 

Officer, (202) 205–7044. 

SUPPLEMENTARY INFORMATION: 

Title: Stockholders Confirmation 

(Corporation Ownership Confirmation 

(Partnership). 

Frequency: On Occasion. 

SBA Form Number’s: 1405, 1405A. 

Description of Respondents: Newly 

Licensed SBIC’S. 

Responses: 600. 

Annual Burden: 600. 

Title: Microloan Program Electronic 

Reporting System (MPERS) 

(MPERsystem). 

Frequency: On Occasion. 

SBA Form Number: N/A. 

Description of Respondents: 

Microloan Program Intermediary 

Lenders. 

Responses: 2,500. 

Annual Burden: 625. 

Title: Loan Program business, Small 

Business Reporting and Recordkeeping 

and recordkeeping requirements. 

Frequency: On Occasion. 

SBA Form Number’s: 2276A, B, C, 

2281. 

Description of Respondents: 

Application for an SBA Loan. 

Responses: 180. 

Annual Burden: 180. 

Jacqueline White, 

Chief, Administrative Information Branch. 

[FR Doc. 2010–28875 Filed 11–16–10; 8:45 am] 

BILLING CODE P 

SOCIAL SECURITY ADMINISTRATION 

Agency Information Collection 

Activities: Comment Request 

The Social Security Administration 

(SSA) publishes a list of information 

collection packages requiring clearance 

by the Office of Management and 

Budget (OMB) in compliance with 

Public Law (Pub. L.) 104–13, the 

Paperwork Reduction Act of 1995, 

effective October 1, 1995. This notice 

includes revisions to OMB-approved 

information collections. 

SSA is soliciting comments on the 

accuracy of the agency’s burden 

estimate; the need for the information; 

its practical utility; ways to enhance its 

quality, utility, and clarity; and ways to 

minimize burden on respondents, 

mstockstill on DSKH9S0YB1PROD with NOTICES