Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 / Notices 71163 

17 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. 78f(b). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29351 Filed 11–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63321; File No. SR–BX– 

2010–077] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change to Establish a 

Pilot Program to List Series With 

Additional Expiration Months for Each 

Class of Options Opened for Trading 

on BOX 

November 16, 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, NASDAQ OMX BX, 

Inc. (the ‘‘Exchange’’) 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 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 

Chapter IV, Section 6 (Series of Options 

Contracts Open for Trading) of the Rules 

of the Boston Options Exchange Group, 

LLC (‘‘BOX’’) to adopt a Pilot Program to 

list additional expiration months for 

each class of options opened for trading 

on BOX. The text of the proposed rule 

change is available from the principal 

office of the Exchange, on the 

Commission’s Web site at http:// 

www.sec.gov, at the Commission’s 

Public Reference Room and also on the 

Exchange’s Internet web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to adopt a 

Pilot Program to list additional 

expiration months for each class of 

options opened for trading on BOX, by 

adding proposed Supplementary 

Material .08 in Chapter IV, Section 6 of 

the BOX Rules. 

Pursuant to Chapter IV, Section 6(e) of 

the BOX Rules, BOX currently opens 

four expiration months for each class of 

options open for trading on BOX, the 

first two being the two nearest months, 

regardless of the quarterly cycle on 

which that class trades; the third and 

fourth being the next two months of the 

quarterly cycle previously designated 

for that specific class. For example, if 

BOX listed in late May a new equity 

option on a January-April-July-October 

quarterly cycle, BOX would list the two 

nearest term months (June and July) and 

the next two months of the cycle 

(October and January). When the June 

series expires, BOX would add the 

August series as the next nearest month. 

And when the July series expires, BOX 

would add the September series. 

BOX believes that there is market 

demand for a greater number of 

expiration months. The Exchange 

therefore proposes to adopt a Pilot 

Program pursuant to which it will list 

up to an additional two expiration 

months, for a total of six expiration 

months for each class of options open 

for trading on BOX. The program will be 

effective on a pilot basis immediately 

after approval is received to establish 

the pilot program, and expiring on 

October 31, 2011. Under the proposal, 

the additional months listed pursuant to 

the pilot program will result in four 

consecutive expiration months plus two 

months from the quarterly cycle. For 

example, for option classes in the 

January cycle that have expiration 

months of June, July, October, and 

January, BOX would additionally list 

the August and September series. For 

options classes in the February quarterly 

cycle that have expiration months of 

October, November, February, and May, 

BOX would additionally list the 

December and January series. Under the 

proposal, no additional LEAP Series 

will be created. 

BOX seeks to limit the proposed rule 

change to 20 actively traded options 

classes. By limiting the pilot to a small 

number of classes, BOX will be able to 

gauge interest in the pilot while limiting 

any additional demands on system 

resources. It has been estimated that this 

pilot could add up to six or seven 

percent to current quote traffic, although 

changes in market maker quoting 

behavior may reduce that increase by up 

to half. BOX believes that a limited pilot 

is a prudent step to determine actual 

market demand for additional 

expiration months. 

If the Exchange were to propose an 

extension or an expansion of the pilot 

program, or should the Exchange 

propose to make the pilot program 

permanent, BOX will submit, along with 

any filing proposing such amendments 

to the pilot program, a pilot program 

report (‘‘Report’’) that will provide an 

analysis of the Pilot Program covering 

the first nine months of the pilot 

program and shall submit the Report to 

the Commission at least sixty (60) days 

prior to the expiration date of the pilot 

program. The Report will include, at a 

minimum: (1) Data and written analysis 

on the open interest and trading volume 

in the classes for which additional 

expiration months were opened; (2) an 

assessment of the appropriateness of the 

options classes selected for the pilot 

program; (3) an assessment of the 

impact of the pilot program on the 

capacity on BOX, OPRA, and on market 

data vendors (to the extent data from 

market data vendors is available); (4) 

any capacity problems or other 

problems that arose during the 

operation of the pilot program and how 

BOX addressed such problems; (5) any 

complaints that BOX or the Exchange 

received during the operation of the 

pilot program and how BOX and the 

Exchange addressed them; and (6) any 

additional information that would assist 

the Commission in assessing the 

operation of the Pilot Program. 

Finally, BOX represents that it has the 

necessary systems capacity to support 

new options series that will result from 

the introduction of additional expiration 

months listed pursuant to this proposed 

rule change. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,3


jlentini on DSKJ8SOYB1PROD with NOTICES
71164 Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 / Notices 

4 15 U.S.C. 78f(b)(5). 

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

6 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 

has waived the five-day pre-filing requirement in 

this case. 

7See Securities Exchange Act Release No. 63104 

(October 14, 2010), 75 FR 64773 (October 20, 2010) 

(Approving Additional Expiration Months Pilot 

Program). 

8For 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). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

in general, and Section 6(b)(5) of the 

Act,4 in particular, in that it is designed 

to prevent fraudulent and manipulative 

acts and practices, promote just and 

equitable principles of trade, foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and remove 

impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, the 

Exchange believes listing additional 

near-term expiration months will offer 

investors more variety in trading 

options series that were previously not 

available. The Exchange believes this 

proposal will also generate additional 

volume in these options classes without 

significantly taxing system resources. 

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 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 neither solicited 

nor received comments on 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 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 5 and Rule 19b– 

4(f)(6) thereunder.6

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.7

Therefore, the Commission designates 

the proposal operative upon filing.8

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–BX–2010–077 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–BX–2010–077. 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 website 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–BX– 

2010–077 and should be submitted on 

or before December 13, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29352 Filed 11–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63319; File No. SR–FINRA– 

2010–060] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Update Certain CrossReferences and Make Non-Substantive 

Technical Changes to Certain FINRA 

Rules 

November 16, 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, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 


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