12410 Federal Register / Vol. 74, No. 55 / Tuesday, March 24, 2009 / Notices 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

provide the Commission with written notice of its 

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. BX 

has met this requirement. 

8See Securities Exchange Act Release No. 59587 

(March 17, 2009) (SR–ISE–2009–04, SR–CBOE– 

2009–001, SR–NYSEArca–2009–10, and SR– 

NYSEALTR–2009–11) (Order Granting Accelerated 

Approval of Proposed Rule Changes, as Amended, 

to Expand the $1 Strike Program). 

9For 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). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The $1 Strike Price Program was initially 

approved as a pilot on March 12, 2008. See 

Securities Exchange Act Release No. 57478 (March 

12, 2008), 73 FR 14521 (March 18, 2008) (SR– 

NASDAQ–2007–004 and SR–NASDAQ–2007– 

080).The program was subsequently expanded and 

made permanent. See Securities Exchange Act 

Release No. 58093 (July 3, 2008), 73 FR 39756 (July 

10, 2008) (SR–NASDAQ–2008–057). 

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: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 6 and Rule 19b– 

4(f)(6) thereunder.7

The Exchange has asked the 

Commission to waive the operative 

delay to permit the proposed rule 

change to become operative prior to the 

30th day after filing. The Commission 

has determined that waiving the 30-day 

operative delay of the Exchange’s 

proposal is consistent with the 

protection of investors and the public 

interest because such waiver will enable 

the Exchange to implement its proposed 

expansion of the Program 

contemporaneously with other 

exchanges,8 and respond to increased 

customer demand for $1 strikes without 

delay.9 Therefore, the Commission 

designates the proposal operative upon 

filing. The Commission expects that the 

Exchange will continue to 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. 

At any time within 60 days of the 

filing of such 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 

No. SR–BX–2009–016 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–2009–016. 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, 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 the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit onlyinformation that you 

wish to make available publicly. All 

submissions should refer to File No. 

SR–BX–2009–016 and should be 

submitted on or before April 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6329 Filed 3–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59588; File No. SR– 

NASDAQ–2009–025] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by The 

NASDAQ Stock Market LLC Related To 

the $1 Strike Price Program 

March 17, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1, and Rule 19b–4 2 thereunder, 

notice is hereby given that on March 17, 

2009, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) 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 Nasdaq. 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 

Nasdaq proposes for NOM to modify 

Chapter IV, Section 6 (Securities Traded 

on NOM) of its options rules to expand 

the Exchange’s $1 Strike Price Program 

(the ‘‘Program’’).3

The text of the proposed rule change 

is available from Nasdaq’s website at 

http://nasdaq.cchwallstreet.com, at 

Nasdaq’s principal office, and at the 

Commission’s Public Reference Room. 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 55 / Tuesday, March 24, 2009 / Notices 12411 

4See supra note 3. See also. Securities Exchange 

Act Release Nos. 48013 (June 11, 2003), 68 FR 

35933 (June 17, 2003) (SR–Phlx–2002–55); 49801 

(June 3, 2004), 69 FR 32652 (June 10, 2004) (SR– 

Phlx–2004–38); and 57111 (January 8, 2008), 73 FR 

2297 (January 14, 2008) (SR–Phlx–2008–01). 

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

6 15 U.S.C. 78f(b)(5). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Nasdaq 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. Nasdaq 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 purpose of this proposed rule 

change is to modify Chapter IV, Section 

6 of NOM options rules to expand the 

Program to allow the Exchange to select 

55 individual stocks on which options 

may be listed at $1 strike price intervals 

and to expand the price range on which 

the Exchange may list such options. 

Currently, the Program allows Nasdaq 

to select a total of 10 individual stocks 

on which option series may be listed at 

$1 strike price intervals. In order to be 

eligible for selection into the Program, 

the underlying stock must close below 

$50 in its primary market on the 

previous trading day. If selected for the 

Program, the Exchange may list strike 

prices at $1 intervals from $3 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 Program under their respective 

rules. The Exchange may not list longterm option series at $1 strike price 

intervals for any class selected for the 

Program. The Exchange also is restricted 

from listing any series that would result 

in strike prices being $0.50 apart. 

The Exchange now proposes to 

expand the Program to allow Nasdaq to 

select a total of 55 individual stocks on 

which option series may be listed at $1 

strike price intervals, and to expand 

slightly the price range on which the 

Exchange may list $1 strikes, i.e., from 

$1 to $50. The existing restrictions on 

listing $1 strikes would continue, i.e., 

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, and Nasdaq 

is restricted from listing any series that 

would result in strike prices being $0.50 

apart. 

As stated in the Commission orders 

that initially approved the $1 strike 

price program and in subsequent 

extensions and expansions of the 

program,4 the Exchange believes that $1 

strike price intervals provide investors 

with greater flexibility in the trading of 

equity options that overlie lower price 

stocks by allowing investors to establish 

equity options positions that are better 

tailored to meet their investment 

objectives. Indeed, member firms 

representing customers have repeatedly 

requested that Nasdaq seek to expand 

the Program in terms of the number of 

classes on which option series may be 

listed at $1 strike price intervals. The 

Exchange notes that current market 

conditions, in which the number of 

securities trading below $50 has 

increased dramatically, further warrant 

the expansion of the Program. 

The Exchange is also proposing to set 

forth a delisting policy. Specifically, the 

Exchange would, on a monthly basis, 

review series that were originally listed 

under the Program with strike prices 

that are more than $5 from the current 

values of the options classes in the 

Program. The Exchange would delist 

series with no open interest in both the 

put and the call series having a: (i) 

Strike higher than the highest strike 

price with open interest in the put and/ 

or call series for a given expiration 

month; and (ii) strike lower than the 

lowest strike price with open interest in 

the put and/or call series for a given 

expiration month. 

Notwithstanding the proposed 

delisting policy, Nasdaq could grant 

member requests to add strikes and/or 

maintain strikes in certain options 

classes in series eligible for delisting. 

Further, in connection with the 

proposed delisting policy, if the 

Exchange identifies series for delisting, 

the Exchange shall notify other options 

exchanges with similar delisting 

policies regarding eligible series for 

listing, and shall work with such other 

exchanges to develop a uniform list of 

series to be delisted, so as to ensure 

uniform series delisting of multiply 

listed options classes. Nasdaq expects 

that the proposed delisting policy will 

be adopted by other options exchanges 

that amend their rules to employ a 

similar expansion of the Program. 

With regard to the impact on system 

capacity, Nasdaq has analyzed its 

capacity and represents that it and the 

Options Price Reporting Authority 

(‘‘OPRA’’) have the necessary systems 

capacity to handle the additional traffic 

associated with the listing and trading 

of an expanded number of series as 

proposed by this filing. 

The Exchange believes that the 

Program has provided investors with 

greater trading opportunities and 

flexibility and the ability to more 

closely tailor their investment strategies 

and decisions to the movement of the 

underlying security. Furthermore, the 

Exchange has not detected any material 

proliferation of illiquid options series 

resulting from the narrower strike price 

intervals. For these reasons, Nasdaq 

requests an expansion of the current 

Program. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 6

in particular, in that it is 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. The 

Exchange believes that expanding the 

current $1 Strike Program will result in 

a continuing benefit to investors by 

giving them more flexibility to closely 

tailor their investment decisions in 

greater number of securities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing 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 for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

mstockstill on PROD1PC66 with NOTICES

12412 Federal Register / Vol. 74, No. 55 / Tuesday, March 24, 2009 / Notices 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

provide the Commission with written notice of its 

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. 

Nasdaq has met this requirement. 

9See Securities Exchange Act Release No. 59587 

(March 17, 2009) (SR–ISE–2009–04, SR–CBOE– 

2009–001, SR–NYSEArca–2009–10, and SR– 

NYSEALTR–2009–11) (Order Granting Accelerated 

Approval of Proposed Rule Changes, as Amended, 

to Expand the $1 Strike Program). 

10For 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). 11 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. 

4The $1 Strike Price Program was initially 

approved on June 11, 2003, and was then extended 

several times until June 5, 2008. See Securities 

Exchange Act Release Nos. 48013 (June 11, 2003), 

68 FR 35933 (June 17, 2003) (SR–Phlx–2002–55); 

49801 (June 3, 2004), 69 FR 32652 (June 10, 2004) 

(SR–Phlx–2004–38); 51768 (May 31, 2005), 70 FR 

33250 (June 7, 2005) (SR–Phlx–2005–35); 53938 

(June 5, 2006), 71 FR 34178 (June 13, 2006) (SR– 

Phlx–2006–36); and 55666 (April 25, 2007), 72 FR 

23879 (May 1, 2007) (SR–Phlx–2007–29). The 

program was subsequently expanded and made 

permanent in 2008. See Securities Exchange Act 

Release No. 57111 (January 8, 2008), 73 FR 2297 

(January 14, 2008) (SR–Phlx–2008–01). 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

The Exchange has asked the 

Commission to waive the operative 

delay to permit the proposed rule 

change to become operative prior to the 

30th day after filing. The Commission 

has determined that waiving the 30-day 

operative delay of the Exchange’s 

proposal is consistent with the 

protection of investors and the public 

interest because such waiver will enable 

the Exchange to implement its proposed 

expansion of the Program 

contemporaneously with other 

exchanges,9 and respond to increased 

customer demand for $1 strikes without 

delay.10 Therefore, the Commission 

designates the proposal operative upon 

filing. The Commission expects that the 

Exchange will continue to 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. 

At any time within 60 days of the 

filing of such 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 

No. SR–NASDAQ–2009–025 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–NASDAQ–2009–025. 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, 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 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 No. 

SR–NASDAQ–2009–025 and should be 

submitted on or before April 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6328 Filed 3–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59590; File No. SR–Phlx– 

2009–21] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX, Inc. Related to the $1 

Strike Price Program 

March 17, 2009. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that, on March 

16, 2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘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 modify 

Phlx Rule 1012 (Series of Options Open 

for Trading) to expand the Exchange’s 

$1 Strike Price Program (the 

‘‘Program’’).4 The text of the proposed 

rule change is available on the 

Exchange’s Web site at http:// 

www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings. 

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 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 

Exchange has prepared summaries, set 

mstockstill on PROD1PC66 with NOTICES