49048 Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 60466 

(August 10, 2009), 74 FR 4147 (‘‘Notice’’). 

5 In addition, the $1 Strike Program permits the 

Exchange to list strike prices at $1 intervals from 

$1 to $50, provided that 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. Further, 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 addressing $2.50 strike intervals. The 

Exchange may also list $1 strikes on any other 

option class designated by another securities 

exchange that employs a similar $1 Strike Program. 

Further, the Exchange may not list long-term option 

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

class selected for the $1 Strike Program. 

6The 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). 

accommodation to access the public 

meetings listed above should contact Dr. 

Stine at least five business days prior to 

the meeting so that appropriate 

arrangements can be made. 

Deborah D. Stine, 

Executive Director, President’s Council of 

Advisors on Science and Technology Policy. 

[FR Doc. E9–23253 Filed 9–24–09; 8:45 am] 

BILLING CODE 3170–W9–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, October 1, 2009 at 2 p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Walter, as duty officer, 

voted to consider the items listed for the 

Closed Meeting in a closed session. 

The subject matter of the Closed 

Meeting scheduled for Thursday, 

October 1, 2009 will be: 

Institution and settlement of injunctive 

actions; 

Institution and settlement of 

administrative proceedings; 

A litigation matter; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: September 23, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23373 Filed 9–23–09; 4:15 pm] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

Genova Biotherapeutics Inc.; Order of 

Suspension of Trading 

September 23, 2009. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Genova 

Biotherapeutics Inc. (‘‘Genova’’). 

Genova is incorporated under the 

laws of Nevada and has its primary 

headquarters in New York, New York. 

Questions have arisen regarding stock 

promotional activity for Genova and the 

adequacy and accuracy of press releases, 

financial statements, and statements on 

the company’s Web site concerning the 

company’s current financial condition, 

business and operations, and stock 

promoting activity. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in Genova’s securities. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of the above-listed company is 

suspended for the period from 9:30 a.m. 

EST, on September 23, 2009 through 

11:59 p.m. EST, on October 6, 2009. 

By the Commission. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23297 Filed 9–23–09; 4:15 pm] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60694; File No. SR–Phlx– 

2009–65] 

Self-Regulatory Organizations; Order 

Approving 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 

September 18, 2009. 

On July 31, 2009, NASDAQ OMX 

PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (the ‘‘Act’’) 2 and 

Rule 19b–4 thereunder,3 a proposed rule 

change to permit the Exchange to list 

options on selected stocks trading at or 

below $3.00 at $0.50 intervals (‘‘$0.50 

Strike Program’’). The proposed rule 

change was published for comment in 

the Federal Register on August 17, 

2009.4 There were no comments on the 

proposed rule change. This order 

approves the proposed rule change. 

The Exchange 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. 

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. To be eligible for the $1 

Strike Program, an underlying stock 

must close below $50 in its primary 

market on the previous trading day.5

The Exchange now proposes to 

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

$2.50, $3 and $3.50 for certain stocks 

that trade at or under $3.00.6 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 


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Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Notices 49049 

7Current sections (ii), (iii) and (iv) will be 

renumbered as sections (iii), (iv) and (v) 

respectively. 

8The option on the qualifying stock could also 

have strike prices set at $5, $7.50 and so forth at 

$2.50 intervals (pursuant to Commentary .05(a)(ii) 

to Phlx Rule 1012) or, if it has been selected for the 

$1 Strike Program, at $4, $5, $6, $7 and $8. 

9 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78s(b)(2). 

12 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)(i). 

4 17 CFR 240.19b–4(f)(1). 

during the preceding three calendar 

months. The listing of $0.50 strike 

prices will be limited to options classes 

overlying no more than five individual 

stocks as specifically designated by the 

Exchange. The Exchange also will be 

able to list $0.50 strike prices on any 

other option classes if those classes 

were specifically designated by other 

securities exchanges that employ 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 

in the $1 Strike Program. If these stocks 

have not been selected for the 

Exchange’s $1 Strike Program, the 

Exchange may list strike prices of $2.50, 

$5, $7.50 and so forth as provided in 

Commentary .05(a), but not strike prices 

of $1, $2, $3, $4, $6, $7 and $8. The 

proposed amendments to Commentary 

.05 to Phlx Rule 1012 will permit the 

Exchange to list strike prices on options 

on qualifying stocks that trade at or 

under $3.00, which may include stocks 

also participating in the $1 Strike 

Program, in finer intervals of $0.50, 

beginning at $1 up to $3.50.7 Thus, a 

stock trading at $3 that is selected for 

the $0.50 Strike Program would have 

option strike prices established not just 

at $2.50, $5.00, $7.50 and so forth (for 

stocks not in the Exchange’s $1 Strike 

Program) or just at $1, $2, $3, $4, $5, $6, 

$7 and $8 (for stocks designated to 

participate in the $1 Strike Program), 

but rather at strike prices established at 

$1, $1.50, $2, $2.50, $3 and $3.50.8

In its filing with the Commission, the 

Exchange stated that the number of 

securities trading below $3.00 has 

increased dramatically recently and that 

the Exchange therefore believes that 

new strike prices for securities trading 

at or below $3.00 are appropriate. 

According to the Exchange, as the price 

of a stock declines below $3 or even $2, 

the availability of options with strike 

prices at intervals of $0.50 could 

provide investors with opportunities 

and strategies to minimize losses 

associated with owning a stock 

declining in price. In addition, the 

Exchange represented that it and the 

Options Price Reporting Authority 

(‘‘OPRA’’) have the necessary systems 

capacity to handle the additional traffic 

associated with the expanded number of 

options series proposed to be listed and 

traded. 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.9 In 

particular, the Commission believes that 

the proposed rule change is consistent 

with Section 6(b)(5) of the Act,10 which 

requires, among other things, that the 

rules of a national securities exchange 

be 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. 

Specifically, the Commission believes 

that the proposal to permit the Exchange 

to select a total of 5 individual 

underlying stocks trading at or under $3 

on which option series may be listed at 

$0.50 strike intervals should provide 

investors with added flexibility in the 

trading of equity options and further the 

public interest by allowing investors to 

establish equity options positions that 

are better tailored to meet their 

investment objectives. The Commission 

also believes that the proposal strikes a 

reasonable balance between the 

Exchange’s desire to accommodate 

market participants by offering a wider 

array of investment opportunities and 

the need to avoid unnecessary 

proliferation of options series and the 

corresponding increase in quotes. The 

Commission expects that the Exchange 

will monitor the trading volume 

associated with the additional options 

series listed as a result of this proposal 

and the effect of these additional series 

on market fragmentation and on the 

capacity of the Exchange’s, OPRA’s and 

vendors’ automated systems. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (SR–Phlx–2009– 

65) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23098 Filed 9–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60690; File No. SR–MSRB– 

2009–14] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Consisting of an Interpretive 

Notice Regarding MSRB Rule G–15(a), 

on Customer Confirmations 

September 18, 2009. 

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 

September 15, 2009, the Municipal 

Securities Rulemaking Board (‘‘Board’’ 

or ‘‘MSRB’’), filed with the Securities 

and Exchange Commission 

(‘‘Commission’’ or ‘‘SEC’’) the proposed 

rule change as described in Items I, II 

and III below, which Items have been 

prepared by the Board. The MSRB has 

designated the proposed rule change as 

constituting a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule of the 

self-regulatory organization pursuant to 

Section 19(b)(3)(A)(i) of the Act,3 and 

Rule 19b–4(f)(1) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. 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 MSRB has filed with the 

Commission a proposed rule change 

consisting of an interpretive notice 

regarding MSRB Rule G–15(a), on 

customer confirmations, concerning use 

of electronic confirmations produced by 

a clearing agency or qualified vendor to 

satisfy the requirements of Rule G–15(a). 

The text of the proposed rule change is 

available on the MSRB’s Web site 

(http://www.msrb.org/msrb1/sec.asp), at 

the MSRB’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, the 

MSRB included statements concerning 

the purpose of and basis for the 


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