6756 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

16 15 U.S.C. 78f(b)(1). 

17See NASD Rule 2320. 

18See CBOE Rule 9.15; ISE Rule 616; NYSE Amex 

Rule 926; and NYSE Arca Rule 9.18(g). 

19See FINRA Rule 2360(b); CBOE Rules 9.7 and 

9.9; ISE Rules 608 and 610; NYSE Amex Rule 923; 

and NYSE Arca Rule 918(b)–(c). 

20See CBOE Rule 6.81; ISE Rule 1902; NYSE 

Amex Rule 991NY; and NYSE Arca Rule 6.94. 

Specifically, each of the exchanges is a participant 

in the Options Order Protection and Locked/ 

Crossed Market Plan. 

21 17 CFR 242.600. 

22See Interpretation and Policy .06 to CBOE Rule 

5.3; ISE Rule 502(a)–(b); NYSE Amex Rule 915 

Commentary .06; and NYSE Arca Rule 5.3(a)–(b). 

23See CBOE Rules 4.11 and 4.12; ISE Rules 412 

and 414; NYSE Amex Rules 904 and 905; and NYSE 

Arca Rules 6.8 and 6.9. 

24See CBOE Rule 12.3; ISE Rule 1202; NYSE 

Amex Rule 462; and NYSE Arca Rules 4.15 and 

4.16. See also FINRA Rule 2360(b) and Commentary 

.01 to FINRA Rule 2360. 

25 15 U.S.C. 78s(b)(2). 

26 15 U.S.C. 78s(b)(5). 

27 15 U.S.C. 78s(b)(2). 

28 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

particular the addendum thereto 

concerning Principles Governing the 

Review of Novel Derivative Products, 

the Commission believes that novel 

derivative products that implicate areas 

of overlapping regulatory concern 

should be permitted to trade in either or 

both a CFTC- or Commission-regulated 

environment, in a manner consistent 

with laws and regulations (including the 

appropriate use of all available 

exemptive and interpretive authority). 

As national securities exchanges, each 

of the CBOE, ISE, NYSE Amex, and 

NYSE Arca is required under Section 

6(b)(1) of the Act 16 to enforce 

compliance by its members, and persons 

associated with its members, with the 

provisions of the Act, Commission rules 

and regulations thereunder, and its own 

rules. In addition, brokers that trade 

ETFS Options will also be subject to 

best execution obligations and FINRA 

rules.17 Applicable exchange rules also 

require that customers receive 

appropriate disclosure before trading 

ETFS Options.18 Further, brokers 

opening accounts and recommending 

options transactions must comply with 

relevant customer suitability 

standards.19

ETFS Options will trade as options 

under the trading rules of each of the 

exchanges. These rules, among other 

things, are designed to avoid trading 

through better displayed prices for ETFS 

Options available on other exchanges 

and, thereby, satisfy each exchange’s 

obligation under the Options Order 

Protection and Locked/Crossed Market 

Plan.20 Series of the ETFS Options will 

be subject to exchange rules regarding 

continued listing requirements, 

including standards applicable to the 

underlying ETFS Silver and ETF Gold 

Trusts. Shares of the ETFS Silver and 

ETFS Gold Trusts must continue to be 

traded through a national securities 

exchange or through the facilities of a 

national securities association, and must 

be ‘‘NMS stock’’ as defined under Rule 

600 of Regulation NMS.21 In addition, 

the underlying shares must continue to 

be available for creation or redemption 

each business day from or through the 

issuer in cash or in kind at a price 

related to net asset value.22 If the ETFS 

Silver or ETFS Gold Trust shares fail to 

meet these requirements, the exchanges 

will not open for trading any new series 

of the respective ETFS Options. 

CBOE, ISE, NYSE Amex, and NYSE 

Arca have all represented that they have 

surveillance programs in place for the 

listing and trading of ETFS Options. For 

example, these exchanges may obtain 

trading information via the ISG from the 

NYMEX related to any financial 

instrument traded there that is based, in 

whole or in part, upon an interest in, or 

performance of, silver or gold. 

Additionally, the listing and trading of 

ETFS Options will be subject to the 

exchanges’ rules pertaining to position 

and exercise limits 23 and margin.24

In addition, the Commission finds 

good cause, pursuant to Section 19(b)(2) 

of the Act,25 for approving the proposed 

rule change of CBOE prior to the 

thirtieth day after the date of 

publication of notice in the Federal 

Register. The Commission notes that 

CBOE’s proposal is substantively 

identical to the proposals of ISE, NYSE 

Amex, and NYSE Arca, which were 

published for a 21-day comment period 

and generated no comments. Therefore, 

the Commission does not believe that 

the CBOE proposal raises any new 

regulatory issues different from that of 

the ISE, NYSE Amex, and NYSE Arca 

proposals. Accordingly, the Commission 

finds that there is good cause, consistent 

with Section 6(b)(5) of the Act,26 to 

approve the CBOE proposal on an 

accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,27 that the 

proposed rule changes (SR–ISE–2009– 

106; SR–NYSEAmex–2009–86; and SR– 

NYSEArca–2009–110) be, and are 

hereby, approved and that the proposed 

rule change (SR–CBOE–2010–007) be, 

and is hereby, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.28

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2945 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61482; File No. SR– 

NYSEArca–2010–06] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Adding 75 Options 

Classes 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 

28, 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to designate 

75 options classes to be added to the 

Penny Pilot Program for Options 

(‘‘Penny Pilot’’ or ‘‘Pilot’’) on February 1, 

2010. There are no changes to the rule 

text. A copy of this filing is available on 

the Exchange’s Web site at http:// 

www.nyse.com, at the Exchange’s 

principal office, at the Commission’s 

Public Reference Room and on the 

Commission’s Web site at 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 


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3See Exchange Act Release No. 60711 (September 

23, 2009), 74 FR 49419 (September 28, 2009) (order 

approving SR–NYSEArca–2009–44). 

4 Index products would be included in the 

expansion if the underlying index level was under 

200. 

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 

NYSE Arca proposes to identify the 

next 75 options classes to be added to 

the Penny Pilot effective February 1, 

2010. The Exchange recently received 

approval to extend and expand the Pilot 

through December 31, 2010.3 In that 

filing, the Exchange had proposed 

expanding the Pilot on a quarterly basis 

to add the next 75 most actively traded 

multiply listed options classes based on 

national average daily volume for the 

six months prior to selection, closing 

under $200 per share on the Expiration 

Friday prior to expansion, except that 

the month immediately preceding their 

addition to the Penny Pilot will not be 

used for the purpose of the six month 

analysis.4

NYSE Arca proposes adding the 

following 75 options classes to the 

Penny Pilot on February 1, 2010, based 

on national average daily volume from 

July 1, 2009 through December 31, 2009: 

Nat’l ranking Symbol Company name Nat’l ranking Symbol Company name 

131 ABT Abbott Laboratories .................... 192 ............................................. LEAP Leap Wireless International Inc. 

169 AEM Agnico-Eagle Mines Ltd ............. 205 ............................................. LLY Eli Lilly & Co. 

151 AET Aetna Inc .................................... 162 ............................................. LO Lorillard Inc. 

156 AFL Aflac Inc ..................................... 152 ............................................. LOW Lowe’s Cos Inc. 

181 AKAM Akamai Technologies Inc ........... 176 ............................................. M Macy’s Inc. 

178 AMAT Applied Materials Inc ................. 155 ............................................. MCO Moody’s Corp. 

117 AMR AMR Corp .................................. 217 ............................................. MET MetLife Inc. 

166 ANF Abercrombie & Fitch Co ............ 187 ............................................. MMM 3M Co. 

172 APC Anadarko Petroleum Corp ......... 140 ............................................. MU Micron Technology Inc. 

209 ATVI Activision Blizzard Inc ................ 177 ............................................. NUE Nucor Corp. 

145 BBD Banco Bradesco SA ................... 157 ............................................. OXY Occidental Petroleum Corp. 

190 BCRX BioCryst Pharmaceuticals Inc .... 158 ............................................. PARD Poniard Pharmaceuticals Inc. 

218 BK Bank of New York Mellon Corp/ 

The.

150 ............................................. PEP PepsiCo Inc/NC. 

194 BRCM Broadcom Corp .......................... 141 ............................................. PM Philip Morris International Inc. 

184 BTU Peabody Energy Corp ............... 185 ............................................. PNC PNC Financial Services Group 

Inc. 

144 BX Blackstone Group LP ................. 216 ............................................. QID ProShares UltraShort QQQ. 

200 CAL Continental Airlines Inc .............. 149 ............................................. SHLD Sears Holdings Corp. 

211 CF CF Industries Holdings Inc ........ 175 ............................................. SLM SLM Corp. 

142 CMCSA Comcast Corp ............................ 212 ............................................. SLW Silver Wheaton Corp. 

203 CSX CSX Corp ................................... 215 ............................................. SQNM Sequenom Inc. 

143 CVS CVS Caremark Corp .................. 153 ............................................. STEC STEC Inc. 

174 CX Cemex SAB de CV .................... 219 ............................................. STX Seagate Technology. 

183 DD EI du Pont de Nemours & Co .... 202 ............................................. SU Suncor Energy Inc. 

146 ERTS Electronic Arts Inc ...................... 207 ............................................. TCK Teck Resources Ltd. 

121 EWJ iShares MSCI Japan Index Fund 196 ............................................. TEVA Teva Pharmaceutical Industries 

Ltd. 

186 FDX FedEx Corp ................................ 135 ............................................. TLT iShares Barclays 20+ Year

Treasury Bond Fund. 

118 FNM Federal National Mortgage Association.214 ............................................. TZA Direxion Daily Small Cap Bear 

3X Shares. 

182 FRE Federal Home Loan Mortgage 

Corp.

168 ............................................. UAUA UAL Corp. 

179 GILD Gilead Sciences Inc ................... 154 ............................................. URE ProShares Ultra Real Estate.

198 GLW Corning Inc ................................. 180 ............................................. UTX United Technologies Corp. 

170 HBC HSBC Holdings PLC .................. 204 ............................................. WFR MEMC Electronic Materials Inc. 

197 HES Hess Corp .................................. 115 ............................................. WFT Weatherford International Ltd. 

161 HL Hecla Mining Co ........................ 165 ............................................. WLP WellPoint Inc. 

193 HOG Harley-Davidson Inc ................... 191 ............................................. XLB Materials Select Sector SPDR 

Fund. 

206 HON Honeywell International Inc ........ 173 ............................................. XRX Xerox Corp. 

210 JOYG Joy Global Inc ............................ 148 ............................................. XTO XTO Energy Inc. 

213 JWN Nordstrom Inc ............................ 130 ............................................. YRCW YRC Worldwide Inc. 

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

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 6(b)(5) 

of the Act, in that it is designed to 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system and, in general, to protect 

investors and the public interest, by 

identifying the options classes to be 

added to the Pilot in a manner 

consistent with prior approvals and 

filings. 

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 that is not 


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5 15 U.S.C. 78s(b)(3)(A)(i). 

6 17 CFR 240.19b–4(f)(1). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Each unit represents an equal, fractional, 

undivided ownership interest in the net assets of 

the Trust attributable to the particular class of units. 

4See Securities Exchange Act Release No. 61236 

(December 23, 2009), 75 FR 170 (‘‘Notice’’). 

5The Manager is a limited partnership existing 

under the laws of Ontario, Canada, and acts as 

manager of the Trust pursuant to the Trust’s trust 

agreement and the management agreement. The 

Manager provides management and advisory 

services to the Trust. Additional details regarding 

the Trust are set forth in the Registration Statement 

on Form F–1 for the Sprott Physical Gold Trust, 

filed with the Commission on December 9, 2009 

(No. 333–163601) (‘‘Registration Statement’’). 

6With respect to application of Rule 10A–3 under 

the Act, the Trust relies on the exemption contained 

in Rule 10A–3(c)(7). 

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 is effective 

upon filing pursuant to Section 

19(b)(3)(A)(i) of the Exchange Act 5 and 

Rule 19b–4(f)(1) thereunder,6 in that it 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule of the 

Exchange. At any time within 60 days 

of the filing of the proposed rule change, 

the Commission may summarily 

abrogate the rule change if it appears to 

the Commission that the action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or would otherwise further 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–NYSEArca–2010–06 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–NYSEArca-2010–06. 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 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 

NYSE Arca’s principal office and on its 

Web site at http://www.nyse.com. 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–NYSEArca-2010–06 and should be 

submitted on or before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2953 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61496; File No. SR– 

NYSEArca–2009–113] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Approval of 

a Proposed Rule Change To List and 

Trade the Sprott Physical Gold Trust 

February 4, 2010. 

I. Introduction 

On December 15, 2009, NYSE Arca, 

Inc. (‘‘NYSE Arca’’ or the ‘‘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 list and trade units 3 of the 

Sprott Physical Gold Trust (the ‘‘Trust’’) 

pursuant to NYSE Arca Equities Rule 

8.201. The proposed rule change was 

published for comment in the Federal 

Register on January 4, 2010.4 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to list and 

trade units (‘‘Units’’) of the Trust under 

NYSE Arca Equities Rule 8.201. Sprott 

Asset Management LP is the sponsor or 

manager of the Trust (‘‘Sponsor’’ or 

‘‘Manager’’).5 RBC Dexia Investor 

Services Trust is the trustee of the Trust. 

The Royal Canadian Mint is the 

custodian for the physical gold bullion 

owned by the Trust and RBC Dexia 

serves as the custodian of the Trust’s 

assets other than physical gold bullion. 

The Units will be issued in an initial 

public offering. The Trust may issue 

additional Units: (i) In future offerings 

if the gross proceeds received by the 

Trust per Unit is not less than 100% of 

the most recently calculated net asset 

value (‘‘NAV’’) or (ii) by way of a 

distribution in Units in connection with 

an income distribution. The Trust will 

not issue Units on an ongoing or daily 

basis. At the start of trading, the Trust 

will issue a minimum of 1,000,000 

Units to at least 400 holders 

(‘‘Unitholders’’). The Exchange states 

that the Units satisfy the remaining 

criteria of NYSE Arca Equities Rule 

8.201 and thereby qualify for listing on 

the Exchange.6

The Trust’s investment objective is for 

the Units to reflect the performance of 

the price of gold bullion, less the 

expenses of the Trust’s operations. The 

Trust expects to own only London Good 

Delivery physical gold bullion. The 

Trust is not actively managed and does 

not engage in any activities designed to 

obtain a profit from, or to ameliorate 

losses caused by, changes in the price of 

gold bullion. 

The Exchange states that the Trust 

does not intend to create additional 

Units. The Units will be redeemable 

monthly at the option of the holder for 

physical gold bullion or for cash subject 

to the certain conditions. Generally, 

Units redeemed for physical gold will 


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