41474 Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 60184 

(June 29, 2009), 74 FR 32209 (July 7, 2009) 

(hereinafter referred to as ‘‘Notice’’). 

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

5See Notice, supra note 3. 

(f)(2) of Rule 19b–4 9 thereunder. 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–Phlx-2009–66 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx-2009–66. 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 inspection and copying in 

the Commission’s Public Reference 

Room 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 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–Phlx– 

2009–66 and should be submitted on or 

before September 8, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19572 Filed 8–14–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60468; File No. SR– 

NYSEArca–2009–52] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving Proposed 

Rule Change To Amend the Schedule 

of Fees and Charges for Exchange 

Services 

August 10, 2009. 

I. Introduction 

On June 10, 2009, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) through 

its wholly-owned subsidiary, NYSE 

Arca Equities, Inc. (‘‘NYSE Arca 

Equities’’), 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 amending its 

Schedule of Fees and Charges for 

Exchange Services (‘‘Fee Schedule’’) to 

revise the Listing Fees applicable to 

Derivative Securities Products. The 

proposed rule change was published in 

the Federal Register on July 7, 2009.3

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes amending its 

Fee Schedule to revise the Listing Fees 

applicable to Derivative Securities 

Products listed under NYSE Arca Rules 

5.2(j)(3) (Investment Company Units), 

8.100 (Portfolio Depository Receipts), 

8.200 (Trust Issued Receipts), 8.201 

(Commodity-Based Trust Shares), 8.202 

(Currency Trust Shares), 8.203 

(Commodity Index Trust Shares), 8.204 

(Commodity Futures Trust Shares), 

8.300 (Partnership Units), 8.500 (Trust 

Units), and 8.600 (Managed Fund 

Shares) on NYSE Arca, LLC, the equities 

facility of NYSE Arca Equities. 

Specifically, the Exchange proposes to 

add a new provision to the Fee 

Schedule which states that in the case 

where a sponsor, managing owner, 

general partner or equivalent 

(collectively, the ‘‘Sponsor’’) is listing a 

new Derivative Securities Product on 

the Exchange for the first time, the 

Sponsor will be charged a one time 

consultation fee in the amount of 

$20,000. 

The proposed consulting charge 

would apply to all new Sponsors listing 

a new Derivative Securities Product for 

the first time on the Exchange. 

Therefore, under the proposal Sponsors 

who have previously issued a new 

Derivative Securities Product would not 

be charged the proposed consulting fee. 

Moreover, the current Listing and 

Annual Fees applicable to Derivative 

Securities Products would remain 

unchanged and be applicable to all 

Sponsors of Derivative Securities 

Products. 

III. Discussion and Commission’s 

Findings 

After careful review, 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. Specifically, the 

Commission finds that the proposal is 

consistent with Sections 6(b)(4) and 

(b)(5) of the Act,4 which require, among 

other things, that the rules of an 

exchange (i) provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

issuers and other persons using its 

facilities, and (ii) are not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

According to the Exchange, the 

imposition of the proposed one-time 

consulting charge to new Sponsors of 

new Derivative Securities Products is 

necessary to adequately compensate the 

Exchange for all of the additional 

resources dedicated to such new 

Sponsors, such as the additional legal 

and business resources required to 

properly advise novice Sponsors 

through the listing process.5 The 

Exchange believes that the proposed 

consulting fee would enable the 

Exchange to continue to provide new 

issuers with the level of service 

necessary to successfully navigate an 

initial launch of a Derivative Securities 

Product. Moreover, the Exchange has 

represented that the proposed new 

Sponsor Fee is substantially below the 

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Federal Register / Vol. 74, No. 157 / Monday, August 17, 2009 / Notices 41475 

6 Id. 

7The Commission notes that the current listing 

fee for Derivative Securities Products is $5,000, 

while the lowest listing fee for common stock is 

$100,000. See NYSE Arca Equities, Inc. Schedule of 

Fees and Charges for Exchange Services. 

8 15 U.S.C. 78f(b)(4). In approving the 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). 

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

6The Exchange may not list long-term option 

series (‘‘LEAPS’’) at $1 strike price intervals for any 

class selected for the Program. 

7The Exchange recently amended Exchange Rule 

1010, Withdrawal of Approval of Underlying 

Securities or Options, to eliminate the $3 market 

price per share requirement for continued approval 

for an underlying security. The amendment 

eliminated the prohibition against listing additional 

series or options on an underlying security at any 

time when the price per share of such underlying 

security is less than $3. The Exchange explained in 

that proposed rule change that the market price for 

a large number of securities has fallen below $3 in 

the current volatile market environment. See 

Securities Exchange Act Release No. 59346 

(February 3, 2009), 74 FR 6681 (February 10, 2009). 

initial listing fee for issuers of 

traditional equity securities, e.g., 

common stock.6

Accordingly, the Commission believes 

that the Exchange’s proposed rule 

change provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among issuers and further, 

does not unfairly discriminate between 

issuers given the additional time and 

resources dedicated to new Sponsors of 

Derivative Securities Products and given 

that the listing fees, including the onetime consulting fee, for Derivative 

Securities Products is substantially 

below the listing fee for traditional 

equity securities.7 Further, the 

Commission believes that the proposed 

one time consulting fee is equitable in 

that it applies uniformly to all new 

issuers of Derivative Securities 

Products. For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with the Act.8

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–NYSEArca– 

2009–52) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–19623 Filed 8–14–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60466; File No. SR–Phlx– 

2009–65] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NASDAQ OMX PHLX, Inc. Relating to 

Strike Price Intervals of $0.50 for 

Options on Stocks Trading at or Below 

$3.00 

August 10, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on July 31, 

2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘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 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, pursuant to Section 

19(b)(1) of the Act 4 and Rule 19b–4 

thereunder,5 proposes to amend Rule 

1012, Series of Options Open for 

Trading, Commentary .05, in order to 

establish strike price intervals of $0.50, 

beginning at $1, for certain options 

classes whose underlying security 

closed at or below $3 in its primary 

market on the previous trading day. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, 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, the 

Exchange 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, 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to expand the ability of 

investors to hedge risks associated with 

stocks trading at or under $3. Currently, 

Commentary .05(a)(ii) to Phlx Rule 1012 

provides that the interval of strike prices 

of series of options on individual stocks 

may be $2.50 or greater where the strike 

price is $25 or less. Additionally, 

Commentary .05(a)(i) to Phlx Rule 1012 

allows the Exchange to establish $1 

strike price intervals (the ‘‘$1 Strike 

Program’’) on options classes overlying 

no more than fifty-five individual stocks 

designated by the Exchange. In order to 

be eligible for selection into the $1 

Strike Program, the underlying stock 

must close below $50 in its primary 

market on the previous trading day. If 

selected for the $1 Strike Program, the 

Exchange may list strike prices at $1 

intervals from $1 to $50, but no $1 strike 

price may be listed that is greater than 

$5 from the underlying stock’s closing 

price in its primary market on the 

previous day. The Exchange may also 

list $1 strikes on any other option class 

designated by another securities 

exchange that employs a similar $1 

Strike Program its own rules.6 The 

Exchange is restricted from listing any 

series that would result in strike prices 

being within $0.50 of a strike price set 

pursuant to Commentary .05(a)(ii) to 

Phlx Rule 1012 at intervals of $2.50. 

The Exchange is now proposing to 

establish strike prices of $1, $1.50, $2, 

$2.50, $3 and $3.50 for certain stocks 

that trade at or under $3.00.7 The listing 

of these strike prices will be limited to 

options classes whose underlying 

security closed at or below $3 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 

during the preceding three calendar 

months. The listing of $0.50 strike 

prices would be limited to options 

classes overlying no more than 5 

individual stocks (the ‘‘$0.50 Strike 

Program’’) as specifically designated by 

the Exchange. The Exchange would also 

be able to list $0.50 strike prices on any 

other option classes if those classes 

were specifically designated by other 

securities exchanges that employed a 

similar $0.50 Strike Program under their 

respective rules. 

Currently, the Exchange may list 

options on stocks trading at $3 at strike 

prices of $1, $2, $3, $4, $5, $6, $7 and 

$8 if they are designated to participate 

mstockstill on DSKH9S0YB1PROD with NOTICES