Federal Register / Vol. 74, No. 62 / Thursday, April 2, 2009 / Notices 15021 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5The Penny Pilot Program has been in effect on 

BOX since January 26, 2007. See Securities 

Exchange Act Release No. 55155 (January 23, 2007), 

72 FR 4741 (February 1, 2007)(SR–BSE–2006–49). 

The Penny Pilot Program was later extended 

through September 27, 2007. See Securities 

Exchange Act Release No. 56149 (July 26, 2007), 72 

FR 42450 (August 2, 2007)(SR–BSE–2007–38). A 

subsequent rule filing by the Exchange on 

September 27, 2007 initiated a two-phased 

expansion of the Penny Pilot Program. See 

Securities Exchange Act Release No. 56566 

(September 27, 2007), 72 FR 56400 (October 3, 

2007)(SR–BSE–2007–40). See also Securities 

Exchange Act Release No. 57566 (March 26, 2008), 

73 FR 18013 (April 2, 2008)(SR–BSE–2008–20). The 

Penny Pilot Program is currently set to expire on 

March 27, 2009. The extension of the effective date 

is the only change to the Penny Pilot Program being 

proposed at this time. 

6BOX has previously delivered several Penny 

Pilot Reports to the Commission composed of data 

from preceding time periods during which the 

Penny Pilot Program has been in effect on BOX. 

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

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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. The Exchange 

has satisfied the pre-filing requirement. 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59629; File No. SR–BX– 

2009–017] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Penny Pilot Program on the Boston 

Options Exchange Facility 

March 26, 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 March 24, 

2009, NASDAQ OMX BX, Inc. (the 

‘‘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 self-regulatory organization. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act,3 and Rule 19b–4(f)(6) 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 Exchange proposes to amend 

Chapter V, Section 33 (Penny Pilot 

Program) of the Rules of the Boston 

Options Exchange Group, LLC (‘‘BOX’’) 

to extend, through July 3, 2009, the pilot 

program that permits certain classes to 

be quoted in penny increments on BOX 

(‘‘Penny Pilot Program’’). The text of the 

proposed rule change is available at the 

principal office of the Exchange, at the 

Commission’s Public Reference Room 

and also on the Exchange’s Web site at 

http://nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 proposed rule change seeks to 

extend the effective date of the Penny 

Pilot Program on BOX for approximately 

three additional months, through July 3, 

2009.5 The Penny Pilot Program permits 

certain classes to be quoted in penny 

increments on BOX. The minimum 

price variation for all classes included 

in the Penny Pilot Program, except for 

the QQQQs, will continue to be $0.01 

for all quotations in option series that 

are quoted at less than $3 per contract 

and $0.05 for all quotations in option 

series that are quoted at $3 per contract 

or greater. The QQQQs will continue to 

be quoted in $0.01 increments for all 

options series. The Exchange is not 

currently proposing any changes to the 

classes included within the Penny Pilot 

Program. 

BOX will deliver a report (‘‘Penny 

Pilot Report’’) to the Commission which 

will be composed of data from 

approximately three months of trading, 

from February 1, 2009 through April 30, 

2009. This Penny Pilot Report will be 

delivered to the Commission during the 

month of May 2009. The Penny Pilot 

Report will analyze the impact of penny 

pricing on market quality and options 

system capacity.6

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,7

in general, and Section 6(b)(5) of the 

Act,8 in particular, in that it is designed 

to foster cooperation and coordination 

with persons engaged in regulating, 

clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. Specifically, the 

proposed extension will allow the 

Penny Pilot Program to remain in effect 

on BOX without interruption. 

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 rule 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 from the date on which it 

was filed, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 9 and Rule 

19b–4(f)(6) thereunder.10

The Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposed rule change 

may become operative upon filing with 

the Commission pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) 12 thereunder. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

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15022 Federal Register / Vol. 74, No. 62 / Thursday, April 2, 2009 / Notices 

13For the 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. 78(c)(f). 

14 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)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 55153 

(January 23, 2007), 72 FR 4553 (January 31, 2007) 

(SR–Phlx–2006–74). In that filing, the Exchange 

also made conforming amendments to various 

Exchange rules in order to be consistent with the 

pilot. These conforming changes were also 

approved on a pilot basis. Therefore, the Exchange 

is proposing to extend the effective date for these 

rules through July 3, 2009. 

6Any additions to or deletions from the list will 

be published in an Options Trader Alert, which will 

be available on the Exchange’s Web site. 

interest because such waiver will allow 

the Penny Pilot Program to continue 

without interruption through July 3, 

2009.13 Accordingly, the Commission 

designates the proposed rule change 

operative upon filing with the 

Commission. 

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–BX–2009–017 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–2009–017. 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–BX–2009–017 and should be 

submitted on or before April 23, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7408 Filed 4–1–09; 8:45 am] 

BILLING CODE 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59631; File No. SR–Phlx– 

2009–25] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to an 

Extension of the Penny Pilot Program 

March 26, 2009. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on March 25, 

2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) 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 the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 extend a 

pilot (the ‘‘pilot’’) that permits certain 

options series to be quoted and traded 

in increments of $0.01. The Exchange 

proposes to extend the pilot through 

July 3, 2009. The text of the proposed 

rule change is available on the 

Exchange’s Web site at http:// 

nasdaqomxphlx.cchwallstreet.com/ 

NASDAQOMXPHLX/Filings/, 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 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 

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 the proposed rule 

change is to continue to permit 

specified options series to be quoted 

and traded in increments of $0.01 by 

extending the pilot through July 3, 2009. 

The pilot began on January 26, 2007.5

All series in options included in the 

pilot (‘‘pilot options’’) trading at a price 

of less than $3.00 are currently quoted 

and traded in minimum increments of 

$0.01, and pilot options with a price of 

$3.00 or higher are currently quoted and 

traded in minimum increments of $0.05, 

except that options overlying the 

PowerShares QQQ Trust (‘‘QQQQ’’) are 

quoted and traded in minimum 

increments of $0.01 for all series 

regardless of the price. A list of all pilot 

options was communicated to 

membership via Exchange circular.6

Report to the Commission 

Throughout the pilot, the Exchange 

has prepared and submitted periodic 

analytical reports (‘‘reports’’) to the 

Commission that address the impact of 

mstockstill on PROD1PC66 with NOTICES