5646 Federal Register / Vol. 76, No. 21 / Tuesday, February 1, 2011 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 63463 

(December 8, 2010), 75 FR 77923 (‘‘Notice’’). 

4Rule 903 Commentary .06(b). 

5See id. 

6See id. The standard strike interval for LongTerm Equity Option Series (LEAPs) is $2.50 where 

the strike price is $25 or less. See Rule 903 

Commentary .05. However, under a separate 

provision of the rules, the Exchange may list series 

with $1 strike prices up to $5 in LEAPS in up to 

200 option classes on individual stocks, provided 

the $1 intervals are not within $0.50 of an existing 

series with a $2.50 strike price. See Rule 903 

Commentary .06(e). This provision would not 

change under the current proposal. 

7Rule 903A codifies the limitation on strike price 

ranges outlined in the OLPP, which, except in 

limited circumstances, prohibits options series with 

an exercise price more than 100% above or below 

the price of the underlying security if that price is 

$20 or less. If the price of the underlying security 

is greater than $20, an exchange may not list new 

options series with an exercise price more than 

50% above or below the price of the underlying 

security. 

available publicly. All submissions 

should refer to File Number SR–CBOE– 

2011–006 and should be submitted on 

or before February 22, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–2119 Filed 1–31–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63773; File No. SR– 

NYSEAmex–2010–109] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Order Granting Approval of 

Proposed Rule Change Regarding the 

Listing of Options Series With $1 

Strike Prices 

January 25, 2011. 

I. Introduction 

On November 24, 2010, NYSE Amex 

LLC (‘‘NYSE Amex’’ or ‘‘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 allow the Exchange to modify 

the operation of the $1 Strike Price 

Program. The proposed rule change was 

published for comment in the Federal 

Register on December 14, 2010.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

NYSE Amex has proposed to amend 

Rule 903 Commentary .06 to modify the 

operation of the $1 Strike Price Program. 

Currently, the $1 Strike Price Program 

allows the listing of new series with 

strikes at $1 intervals only if such series 

have strike prices within $5 of the 

previous day’s closing price in the 

primary listing market.4 The proposal 

would allow the Exchange also to: (a) 

List new series with $1 interval strike 

prices within $5 of the official opening 

price in the primary listing market, and 

(b) add $1 interval strike prices between 

the closing price and the opening price, 

regardless of whether such strikes are 

within $5 of the previous day’s closing 

price or the day’s opening price. 

In support of allowing the listing of $1 

interval strike between the closing and 

opening prices, the Exchange stated 

that, on occasion, the price movement 

in an underlying security has been so 

great that listing series with strikes 

within $5 of the previous day’s closing 

price and the day’s opening price would 

leave a gap in the continuity of strike 

prices. Thus, if an issue closes at $14 

one day, and the next day opens above 

$27, the $21 and $22 strikes would be 

more than $5 from either benchmark. 

The Exchange proposed that any such 

discontinuity be avoided by allowing 

the listing of options on all $1 interval 

strike prices that fall between the 

previous day’s closing price and the 

opening price. 

The Exchange also has proposed to 

prohibit the listing of $2.50 interval 

strikes below $50 in all classes chosen 

for the $1 Strike Price Program, and in 

all long-term option series. According to 

the Exchange, this change is designed to 

eliminate discontinuities in strike prices 

and a lack of parallel strikes in different 

expiration months of the same issue. 

Currently, Exchange rules provide that 

the Exchange may not list series within 

$1 strike price intervals within $0.50 of 

an existing strike price in the same 

class, unless the class in question has 

been selected to participate in the $0.50 

Strike Program.5 In addition, Exchange 

rules currently stipulate that the 

Exchange may not list series with $1 

strike price intervals for any long-term 

options (i.e., options having greater than 

nine months to expiration) under the $1 

Strike Price Program.6

However, as the Exchange noted in its 

proposal, due to the prohibition on $1 

strike price intervals within $0.50 of an 

existing strike price, the existence of 

series with $2.50 interval strikes for 

classes selected for the $1 Strike Price 

Program could lead to discontinuities in 

strike prices and a lack of parallel 

strikes in different expiration months of 

the same issue. For example, if a $12.50 

strike series was open in a class selected 

for the $1 Strike Price Program, the 

Exchange would not be able to list series 

with a $12 or $13 strike, potentially 

resulting in sequence of strike prices at 

irregular intervals (i.e., $10, $11, $12.50, 

$14, and $15). 

To replace these now-forbidden $2.50 

interval strikes, the Exchange proposes 

to allow the listing of one additional 

series within each natural $5 interval, as 

follows. The Exchange proposed to 

permit the listing of a series with a 

strike $2 above the $5-interval strike for 

each such $5-interval strike above the 

price of the underlying security at the 

time of listing. Conversely, the 

Exchange’s proposal would permit the 

listing of a series with a strike $2 below 

the $5-interval strike for each such $5- 

interval strike below the price of the 

underlying security at the time of 

listing. For example, if the underlying 

security was trading at $19, the 

Exchange could list a $27 strike between 

the $25 and the $30 strikes, and a $32 

strike between the $30 and $35 strikes; 

as well as a $13 strike between the $10 

and $15 strikes, and an $8 strike 

between the $10 and $15 strikes. The 

Exchange also notes that each such 

additional series may be listed only if 

such listing is consistent with the 

Options Listing Procedures Plan 

(‘‘OLPP’’) Provisions in Rule 903A.7 The 

foregoing provisions would apply to all 

classes selected for the $1 Strike Price 

Program, both with respect to standard 

and long-term options. In addition, 

since series with $1-interval strikes are 

not permitted for most long-term 

options, the proposal would allow the 

Exchange to list the long-term strike that 

is $2 above the $5-interval just below 

the underlying price at the time of 

listing. For example, if the underlying 

security is trading at $21.25, this 

provision would allow the Exchange to 

add a $22 strike ($2 above the $20 

strike) for the long-term option series. 

In support of its proposal, the 

Exchange stated that the proposed rule 

change seeks to reduce investor 

confusion resulting from discontinuous 

strike prices that has arisen in the 

operation of the $1 Strike Price Program, 

by providing a consistent application of 

strike price intervals for issues in the $1 

Strike Price Program. 

The Exchange further represented that 

it has the necessary systems capacity to 

support the potential increase in new 

options series that will result from the 

proposed changes to the $1 Strike Price 

Program. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 21 / Tuesday, February 1, 2011 / Notices 5647 

8 In approving this 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. 78f(b)(5). 

10 15 U.S.C. 78s(b)(2). 11 17 CFR 200.30–3(a)(12). 

III. Discussion 

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.8 Specifically, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,9 which requires, among other 

things, that the rules of a national 

securities exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts and practices, 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. 

As the Exchange notes, the proposal 

is intended to reduce investor confusion 

resulting from the operation of the $1 

Strike Price Program by reducing the 

occurrences of discontinuities in strike 

prices and non-parallel strikes in 

different expiration months of the same 

issue. The Commission believes that the 

proposal strikes a reasonable balance 

between the Exchange’s desire to 

accommodate market participants and 

the need to avoid unnecessary 

proliferation of options series and the 

corresponding increase in quotes and 

market fragmentation. The Commission 

expects the Exchange to monitor the 

trading and quotation 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. 

In approving this proposal, the 

Commission notes that Exchange has 

represented that it has the necessary 

systems capacity to support the 

potential increase in new options series 

that will result from the proposed 

changes to the $1 Strike Price Program. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (SR–NYSEAmex– 

2010–109) be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–2122 Filed 1–31–11; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #12449 and #12450] 

Pennsylvania Disaster #PA–00036 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the Commonwealth of Pennsylvania 

dated 01/25/2011. 

Incident: Apartment Building Fire. 

Incident Period: 01/10/2011. 

Effective Date: 01/25/2011. 

Physical Loan Application Deadline 

Date: 03/28/2011. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 10/25/2011. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Philadelphia. 

Contiguous Counties: Pennsylvania: 

Bucks, Delaware, Montgomery. 

New Jersey: 

Burlington, Camden, Gloucester. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners With Credit Available Elsewhere ...................... 4.500 

Homeowners Without Credit 

Available Elsewhere .............. 2.250 

Businesses With Credit Available Elsewhere ...................... 6.000 

Businesses Without Credit 

Available Elsewhere .............. 4.000 

Non-Profit Organizations With 

Credit Available Elsewhere ... 3.250 

Percent 

Non-Profit Organizations Without Credit Available Elsewhere ..................................... 3.000 

For Economic Injury: 

Businesses & Small Agricultural 

Cooperatives Without Credit 

Available Elsewhere .............. 4.000 

Non-Profit Organizations Without Credit Available Elsewhere ..................................... 3.000 

The number assigned to this disaster 

for physical damage is 12449 5 and for 

economic injury is 12450 0. 

The States which received an EIDL 

Declaration # are Pennsylvania, New 

Jersey. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

Dated: January 25, 2011. 

Karen G. Mills, 

Administrator. 

[FR Doc. 2011–2176 Filed 1–31–11; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

Public Availability of U.S. Small 

Business Administration FY 2010 

Service Contract Inventory 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of Public Availability of 

FY 2010 Service Contract Inventories. 

SUMMARY: In accordance with Section 

743 of Division C of the Consolidated 

Appropriations Act of 2010 (Pub. L. 

111–117), the Small Business 

Administration is publishing this notice 

to advise the public of the availability 

of the FY 2010 Service Contract 

inventory. This inventory provides 

information on service contract actions 

over $25,000 that were made in FY 

2010. The information is organized by 

function to show how contracted 

resources are distributed throughout the 

agency. The inventory has been 

developed in accordance with guidance 

issued on November 5, 2010 by the 

Office of Management and Budget’s 

Office of Federal Procurement Policy 

(OFPP). OFPP’s guidance is available at 

http://www.whitehouse.gov/sites/

default/files/omb/procurement/memo/

service-contract-inventories-guidance11052010.pdf. The Small Business 

Administration has posted its inventory 

and a summary of the inventory on the 

Small Business Administration 

homepage at the following link: http:// 

www.sba.gov/content/service-contractinventory. 


srobinson on DSKHWCL6B1PROD with NOTICES