3506 Federal Register / Vol. 75, No. 13 / Thursday, January 21, 2010 / Notices 

20 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. 

4See Securities Exchange Act Release No. 58037 

(June 26, 2008), 73 FR 38008 (July 2, 2008). 

5Under this formula, an opening transaction in a 

FLEX Equity series in a stock priced at $40 or more 

would reach the $1 million limit before it would 

reach the contract size limit, i.e., 250 contracts 

times the multiplier (100) times the stock price 

($40) equals $1 million in underlying value. For a 

FLEX Equity series in a stock priced at less than 

$40, the 250 contract size limit applies. 

6Under this proposed formula, an opening 

transaction in a FLEX Equity series in a stock priced 

at approximately $66.67 or more would reach the 

$1 million limit before it would reach the contract 

size limit, i.e., 150 contracts times the multiplier 

(100) times the stock price ($66.67) equals just over 

$1 million in underlying value. For a FLEX Equity 

series in a stock priced at less than $66.67, the 150 

contract size limit would apply. 

7The Commission notes that the Exchange has 

stated that it will provide the Commission with an 

updated report 45 days before any request to extend 

or make permanent the current pilot program 

regarding the minimum value size for opening a 

FLEX Equity Option transaction. See E-mail from 

Andrew Stevens, Chief Counsel, U.S. Equities and 

Derivatives, NYSE Amex, to Jennifer Colihan, 

Special Counsel, Division of Trading and Markets, 

Commission, dated January 13, 2010. 

Securities and Exchange Commission, 

100 F Street, NE., Washington DC 

20549–1090. 

All submissions should refer to File 

Number SR–BX–2009–088. 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–2009–088 and should be 

submitted on or before February 11, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–1015 Filed 1–20–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61343; File No. SR– 

NYSEAmex–2009–94] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending Commentary .01 

to Rule 903G 

January 13, 2010. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on December 

23, 2009, NYSE Amex LLC (‘‘NYSE 

Amex’’ or the ‘‘Exchange’’) 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 self-regulatory organization. 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 

Commentary .01 to Rule 903G in order 

to extend until August 31, 2010, the 

current pilot period regarding the 

minimum value size for opening a FLEX 

Equity Option transaction (‘‘Pilot 

Program’’). The text of the proposed rule 

change is attached as Exhibit 5 to the 

19b–4 form. A copy of this filing is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’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 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Pilot Program provides for an 

initial series opening transaction size to 

be 150 contracts (or $1 million in 

underlying value, whichever is less).4

The Exchange believes that the 

proposed reduction of the minimum 

value size for opening a series provides 

FLEX participating members and their 

customers with greater flexibility in 

structuring the terms of FLEX Equity 

Options to better suit the FLEX traders’ 

particular needs. Prior to the initiation 

of the Pilot Program, the minimum 

opening transaction value size in the 

case of FLEX Equity Options series was 

the lesser of (i) 250 contracts or (ii) the 

number of contracts overlying $1 

million in the underlying series.5 The 

Pilot Program modifies the minimum 

opening size formula by reducing the 

‘‘250 contracts’’ component to ‘‘150 

contracts’’ (the $1 million underlying 

value component continues to apply 

unchanged).6

The Pilot Program expired on 

December 19, 2009. The purpose of this 

proposed rule change is to extend the 

pilot period that applies to the 

minimum value size for an opening Flex 

Equity Options transaction until August 

31, 2010. This is merely an extension. 

The Exchange is not seeking any other 

changes to the Pilot Program.7

In support of the proposed rule 

change, the Exchange is submitting to 

the commission [sic] a Pilot Program 

report (the ‘‘Report’’) detailing the 

Exchange’s experience with the Pilot 

Program. Specifically, the Report 

contains (i) data and analysis on the 

open interest and trading volume in 

FLEX Equity Options for which series 

were opened with a minimum opening 

size of 150 to 249 contracts with less 

than $1 million in underlying value; 

and (ii) analysis on the types of 

investors that initiated opening FLEX 

Equity Options transactions (i.e., 

institutional, high net worth or retail, if 

any). The Exchange is submitting the 

Report under separate cover and seeking 

confidential treatment under the 

Freedom of Information Act. 

The Exchange believes that 

maintaining the minimum opening 

transaction value size broadens the base 

of institutional investors that use FLEX 

Equity Options to manage their trading 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 13 / Thursday, January 21, 2010 / Notices 3507 

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

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 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13See supra note 4. 

14For purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12). 

and investment risk, including investors 

that currently trade in the over-thecounter market for customized options 

which can take on contract 

characteristics similar to FLEX Options 

but for which similar opening size 

restriction do not apply. The Exchange 

believes that market participants benefit 

from being able to trade these 

customized options in an exchange 

environment in several ways, including, 

but not limited to, enhanced efficiency 

in initiating and closing out positions; 

increased market transparency; and 

heightened contra-party 

creditworthiness due to the role of The 

Options Clearing Corporation as issuer 

and guarantor of FLEX Equity Options. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act 8 in general, and furthers 

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

Act, in that it is designed to promote 

just and equitable principles of trade, 

remove impediments to and perfect the 

mechanisms of a free and open market 

and a national market system. 

Specifically, the Exchange believes that 

reducing the minimum value sizes for 

certain opening transactions in FLEX 

Equity Options series thereby providing 

FLEX participating members and their 

customers greater flexibility to trade 

FLEX Equity Options will benefit the 

marketplace and market participants. 

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 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 

prior to 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)(iii) 

thereunder.10

A proposed rule change filed under 

Rule 19b-4(f)(6) 11 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),12 the 

Commission may 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 believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. The 

Commission notes that the original pilot 

program was published for notice and 

comment and no comments were 

received.13 In addition, extending the 

pilot through August 31, 2010 does not 

raise any new or novel regulatory issues 

that were not previously considered in 

approving the original pilot. Based on 

the above, the Commission designates 

the proposal as operative upon filing.14

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–NYSEAmex–2009–94 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–2009–94. 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 

Section, 100 F Street, NE., Washington, 

DC 20549–1090 on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of the filing will also be 

available for inspection and copying at 

the NYSE’s principal office and on its 

Internet Web site at http:// 

www.nyse.com. 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–2009–94 and should be 

submitted on or before February 11, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–1017 Filed 1–20–10; 8:45 am] 

BILLING CODE 8011–01–P 


jlentini on DSKJ8SOYB1PROD with NOTICES