Federal Register / Vol. 77, No. 61 / Thursday, March 29, 2012 / Notices 19047 

3 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). 

4See Securities Exchange Act Release No. 64107 

(March 22, 2011), 76 FR 17178 (March 28, 2011) 

(SR–NYSEAmex–2011–15). 

5 Id. 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site 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 the principal office of CME 

and on CME’s Web site at http://www.

cmegroup.com/market-regulation/rulefilings.html. 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–CME–2012–06 and should 

be submitted on or before April 19, 

2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.3

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7515 Filed 3–28–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66649; File No. SR– 

NYSEAMEX–2012–18] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Its Option 

Trading Rules To Extend the Operation 

of Its Pilot Program Regarding 

Minimum Value Sizes for Flexible 

Exchange Options Until March 29, 2013 

March 23, 2012. 

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 March 12, 

2012, NYSE Amex LLC (the ‘‘Exchange’’ 

or ‘‘NYSE Amex’’) 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 Exchange has 

designated the proposed rule change as 

constituting a rule change under Rule 

19b–4(f)(6) under the Act,3 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 Exchange proposes to amend its 

option trading rules to extend the 

operation of its pilot program (‘‘Pilot 

Program’’) regarding minimum value 

sizes for flexible exchange options 

(‘‘FLEX Options’’), currently scheduled 

to expire on March 30, 2012, until 

March 29, 2013. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and www.nyse.com. 

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, 

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 

The Exchange hereby proposes to 

amend its option trading rules to extend 

the operation of its Pilot Program 

regarding minimum value sizes for 

FLEX Options, currently scheduled to 

expire on March 30, 2012,4 until March 

29, 2013. This filing does not propose 

any substantive changes to the Pilot 

Program and contemplates that all other 

terms of FLEX Options will remain the 

same. The Exchange believes that 

extending the Pilot Program will benefit 

public customers and other market 

participants who will be able to use 

FLEX Options to manage risk for smaller 

portfolios. 

In support of the proposed extension 

of the Pilot Program, and as required by 

the terms of the Pilot Program’s 

implementation,5 the Exchange has 

submitted to the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) a Pilot Program Report 

that provides an analysis of the Pilot 

Program covering the period during 

which the Pilot Program has been in 

effect. This Pilot Program Report 

includes (i) data and analysis on the 

open interest and trading volume in (a) 

FLEX Equity Options that have opening 

transactions with a minimum size of 0 

to 249 contracts and less than $1 million 

in underlying value; (b) FLEX Index 

Options that have opening transactions 

with a minimum opening size of less 

than $10 million in underlying 

equivalent value; and (ii) analysis on the 

types of investors that initiated opening 

FLEX Equity and Index Options 

transactions (i.e., institutional, high net 

worth, or retail). The report has been 

submitted to the Commission on a 

confidential basis. 

The Exchange believes that there is 

sufficient investor interest and demand 

in the Pilot Program to warrant 

extension for an additional year. The 

Exchange believes that the Pilot 

Program has provided investors with 

additional means of managing their risk 

exposures and carrying out their 

investment objectives. The Exchange 

has not experienced any adverse market 

effects with respect to the Pilot Program. 

If, in the future, the Exchange 

proposes an additional extension of the 

Pilot Program, or should the Exchange 

propose to make the Pilot Program 

permanent, the Exchange will submit, 

along with any filing proposing such 

amendments to the Pilot Program, an 

additional Pilot Program Report 

covering the period during which the 

Pilot Program was in effect and 

including the details referenced above, 

along with the nominal dollar value of 

the underlying security of each trade. 

The Pilot Program Report would be 

submitted to the Commission at least 

two months prior to the expiration date 

of the Pilot Program and would be 

provided on a confidential basis. 

The Exchange notes that any positions 

established under this Pilot Program 

would not be impacted by the 

expiration of the Pilot Program. For 

example, a 10-contract FLEX Equity 

Option opening position that overlies 

less than $1 million in the underlying 

security and expires in January 2015 

could be established during the Pilot 

Program. If the Pilot Program were not 

extended, the position would continue 

to exist and any further trading in the 

series would be subject to the minimum 

value size requirements for continued 

trading in that series. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 (the 

mstockstill on DSK4VPTVN1PROD with NOTICES

19048 Federal Register / Vol. 77, No. 61 / Thursday, March 29, 2012 / Notices 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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 Exchange has satisfied this 

requirement. 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6). 

12For 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). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

‘‘Act’’),6 in general, and furthers the 

objectives of Section 6(b)(5),7 in 

particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

Specifically, the Exchange believes that 

the proposed extension of the Pilot 

Program, which eliminates the 

minimum value size applicable to FLEX 

Options, would provide greater 

opportunities for investors to manage 

risk through the use of FLEX Options. 

Further, the Exchange notes that it has 

not experienced any adverse effects 

from the operation of the Pilot Program. 

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 

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 

Because the proposed rule change 

does not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative prior to 30 days from the date 

on which it was filed, or such shorter 

time as the Commission may designate, 

the proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 8 and Rule 19b–4(f)(6) 

thereunder.9

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 10 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 11

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission notes that 

waiving the 30-day operative delay 

would prevent the expiration of the 

Pilot Program on March 30, 2012, prior 

to the extension to March 29, 2013 

taking effect, and believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest.12 Therefore, the 

Commission designates the proposal 

operative upon filing. 

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 email to rulecomments@sec.gov. Please include File 

Number SR–NYSEAMEX–2012–18 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–NYSEAMEX–2012–18. This 

file number should be included on the 

subject line if email 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 site 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–NYSEAMEX–2012–18 and 

should be submitted on or before April 

19, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7517 Filed 3–28–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66650; File No. SR– 

NYSEARCA–2012–20] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Its Option 

Trading Rules To Extend the Operation 

of Its Pilot Program Regarding 

Minimum Value Sizes for Flexible 

Exchange Options Until March 29, 2013 

March 23, 2012. 

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 March 12, 

2012, NYSE Arca, Inc. (the ‘‘Exchange’’ 

or ‘‘NYSE Arca’’) 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 Exchange has 

designated the proposed rule change as 

mstockstill on DSK4VPTVN1PROD with NOTICES