25892 Federal Register / Vol. 75, No. 89 / Monday, May 10, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 60604 

(September 1, 2009), 74 FR 46272 (September 8, 

2009) (Order approving (i) the removal of NYSE 

Arca Equities Rule 7.26 ‘‘Limitations on Dealings’’, 

(ii) the adoption of new NYSE Arca Equities Rule 

6.7 ‘‘Trading Ahead of Research Reports’’, and (iii) 

the amendment of NYSE Arca Equities Rule 6.18 

‘‘Supervision’’). 4 Id. 

5See Nasdaq Rule 5710 (Securities Linked to the 

Performance of Indexes and Commodities 

(Including Currencies) and Nasdaq Rule 5740 

(Derivative Securities Traded Under Unlisted 

Trading Privileges). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62013; File No. SR– 

NYSEArca–2010–35] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Market Maker 

Requirements for Certain Covered 

Products 

April 30, 2010. 

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 April 23, 

2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 (i) amend 

NYSE Arca Equities Rule 6.3 and (ii) 

remove the requirement that Market 

Makers in certain covered products 

enumerated below maintain certain 

specifically prescribed information 

barrier procedures, but instead apply 

the standards established with the 

Commission’s order approving SR– 

NYSEArca–2009–78 (hereinafter 

referred to as the ‘‘Order’’).3 A copy of 

this filing is available on the Exchange’s 

Web site at http://www.nyse.com, at the 

Exchange’s principal office, at the 

Commission’s Public Reference Room, 

and on the Commission’s Web site at 

http://www.sec.gov. 

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 

Background Information 

The Exchange eliminated the 

requirement set forth in NYSE Arca 

Equities Rule 7.26 that Market Makers 

on the Corporation maintain certain 

specifically prescribed information 

barrier procedures.4 At the same time, 

the Exchange further proposed new 

NYSE Arca Equities Rule 6.7, which (i) 

prohibits ETP Holders from trading 

ahead of research reports and (ii) 

requires each ETP Holder to establish, 

maintain and enforce procedures 

regarding the flow of information 

between research department personnel 

and trading department personnel. 

Finally, the Exchange revised NYSE 

Arca Equities Rule 6.18 to incorporate 

compliance with NASD Rule 3010(a)(1), 

(b)(1), and (c)(1). 

NYSE Arca Equities Rules 5 & 8 

Currently, certain product related 

NYSE Arca Equities rules cross 

reference NYSE Arca Equities Rule 7.26 

regarding information barriers. These 

cross references to NYSE Arca Equities 

Rule 7.26 and the attendant obligations, 

contained in Rules 5.2(j)(6), 8.200, 

8.201, 8.202, 8.203, 8.204, 8.300, 8.400, 

8.500, and 8.700, generally expanded 

the definition of ‘‘other business 

activities’’ as set forth in NYSE Arca 

Equities Rule 7.26 so as to require ETP 

Holders acting as a Market Maker in the 

covered products to maintain 

information barrier procedures when 

the Market Maker (or an affiliate) 

engages in certain other business 

activities related to the covered 

products. At the time the Exchange 

eliminated NYSE Arca Equities rule 

7.26, it did not further eliminate or 

otherwise amend the obligations set 

forth in Rules 5.2(j)(6), 8.200, 8.201, 

8.202, 8.203, 8.204, 8.300, 8.400, 8.500, 

and 8.700. The current limitations and 

prohibitions set forth in these rules also 

specifically prohibit ETP Holders acting 

as Market Makers in the covered 

products from using any material 

nonpublic information received from 

any person associated with an ETP 

Holder or employee of such person 

regarding trading by such person or 

employee in any components of the 

related products or any related 

derivative instruments. The purpose of 

this filing is to eliminate the 

requirement that Market Makers must 

maintain certain specifically prescribed 

information barrier procedures and 

thereby conform the standards 

applicable to the covered products to 

the standards established with the 

elimination of NYSE Arca Equities Rule 

7.26, the adoption of NYSE Equities 

Rule 6.7, and the amendment to NYSE 

Arca Equities Rule 6.18. In so doing, the 

Exchange also seeks to amend NYSE 

Arca Rule 6.3 in order to confirm that 

ETP Holders acting as Market Makers in 

the covered products (and their 

affiliates) must establish, maintain and 

enforce written policies and procedures 

reasonably designed to prevent the 

misuse of any material nonpublic 

information with respect to such 

products, any components of the related 

products, any physical asset or 

commodity underlying the product, 

applicable currencies, underlying 

indexes, related futures or options on 

futures, and any related derivative 

instruments. This proposal is consistent 

with the elimination of Rule 7.26 and 

the related changes to NYSE Arca 

Equities Rules 6.7 and 6.18. Removal of 

these cross references is also consistent 

with the current approach taken by 

Nasdaq.5 Furthermore, the Exchange 

notes that Market Makers on NYSE Arca 

must comply with their obligations to 

maintain and enforce written policies 

and procedures reasonably designed to 

prevent the misuse of material, nonpublic information. 

Example of Rule Text To Be Removed, 

Commentary .01(a) to Rule 5.2(j)(6) 

The following example identifies the 

typical cross reference to Rule 7.26 and 

the attendant text that the Exchange 

proposes to eliminate. Rule 5.2(j)(6) 

describes the Exchange’s listing 

standards for Equity Index-Linked 

Securities, Commodity-Linked 

Securities, Currency-Linked Securities, 

Fixed Income Index-Linked Securities, 

Futures-Linked Securities and 

Multifactor Index-Linked Securities. 

Commentary .01(a) to this rule states: 

An ETP Holder acting as a registered 

Market Maker in Commodity-Linked 

Securities, Currency-Linked Securities, 

Futures-Linked Securities or Multifactor 

Index-Linked Securities, which is 

composed in part of Commodity or 


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6See note 3, supra. 

Currency Reference Assets, is obligated 

to comply with Rule 7.26 pertaining to 

limitations on dealings when such 

Market Maker, or affiliate of such 

Market Maker, engages in Other 

Business Activities. For purposes of 

Commodity-Linked Securities, 

Currency-Linked Securities, FuturesLinked Securities or Multifactor IndexLinked Securities, if applicable, Other 

Business Activities shall include acting 

as a Market Maker or functioning in any 

capacity involving market-making 

responsibilities in the Commodity 

Reference Asset, Currency Reference 

Asset, or Futures Reference Asset as 

applicable (Commodity Reference 

Assets, Currency Reference Assets, and 

Futures Reference Assets together, 

‘‘Index Assets’’), the components 

underlying the Reference Asset, the 

commodities, currencies or futures 

underlying the Index Asset components, 

or options, futures or options on futures 

on the Index Asset, or any other 

derivatives (collectively, ‘‘derivative 

instruments’’) based on the Index Asset 

or based on any Index Asset component 

or any physical commodity, currency or 

futures underlying an Index Asset 

component. However, an approved 

person of an ETP Holder acting as a 

registered Market Maker in CommodityLinked Securities, Currency-Linked 

Securities, Futures-Linked Securities or 

Multifactor Index-Linked Securities, if 

applicable, that has established and 

obtained Corporation approval of 

procedures restricting the flow of 

material, non-public market information 

between itself and the ETP Holder 

pursuant to Rule 7.26, and any member, 

officer or employee associated 

therewith, may act in a market making 

capacity, other than as a Market Maker 

in the Commodity-Linked Securities, 

Currency-Linked Securities, FuturesLinked Securities or Multifactor IndexLinked Securities, if applicable, on 

another market center, in the Index 

Asset components, the commodities, 

currencies or futures underlying the 

Index Asset components, or any 

derivative instruments based on the 

Index Asset or based on any Index Asset 

component or any physical commodity, 

currency or futures underlying an Index 

Asset component. 

The first sentence of this commentary 

is designed to remind Market Makers on 

NYSE Arca of their obligation to comply 

with Rule 7.26 when it engages in 

‘‘Other Business Activities’’—a term that 

had been defined in Rule 7.26. The 

second sentence of this commentary 

defines, in the context of this product, 

the term ‘‘Other Business Activities’’. 

The third and final sentence of this 

commentary reminds Market Makers 

that, consistent with Rule 7.26, they 

may act in certain market making 

capacities if they have established, and 

obtained the Exchange’s approval of, 

appropriate procedures. 

By removing this commentary and 

applying the standards established by 

the Order, the Exchange is amending its 

rules in a manner consistent with the 

standards previously approved by the 

Commission.6 Market Makers must 

comply with NYSE Arca Equities Rules 

6.3 (as revised herein) and 6.18, which 

prohibit Market Makers from using 

material non-public information and 

require all ETP Holders to establish, 

maintain, and enforce written policies 

and procedures designed to supervise 

the business in which it engages and to 

prevent the misuse of material, nonpublic information. In this regulatory 

framework, it is no longer necessary for 

the Exchange to prescribe specific 

information barrier procedures. In 

addition, as revised, the requirements of 

Rule 5.2(j)(6) are generally consistent 

with those set forth in Nasdaq Rule 

5710. 

By eliminating Rule 7.26 and 

establishing standards similar to 

Nasdaq’s, the Exchange has placed its 

participants on notice as to their 

obligations to maintain and enforce 

written policies and procedures 

reasonably designed to prevent the 

misuse of material, non-public 

information. Moreover, by revising Rule 

6.3, as described herein, ETP Holders 

acting as Market Makers are on notice 

that they are prohibited from using 

material, non-public information. 

Finally, Market Makers on NYSE Arca 

(and their affiliates) remain on notice of 

their obligations to maintain and 

enforce written policies and procedures 

reasonably designed to prevent the 

misuse of material, non-public 

information. 

Conforming Commentary to NYSE Arca 

Equities Rule 6.3 

The Exchange proposes adding new 

commentary .04 to Rule 6.3, Prevention 

of the Misuse of Material, Nonpublic 

Information. By adding this 

commentary, described below, the 

Exchange seeks to extend the 

requirements of Rule 6.3 regarding each 

ETP Holder’s obligation to establish, 

maintain, and enforce written policies 

and procedures reasonably designed to 

prevent the misuse of material, nonpublic information applies to Market 

Makers engaged in the trading of 

securities and/or any derivatives or non 

security components of any of the 

products listed and traded on the 

Exchange pursuant to Rule 5 and Rule 

8. The proposed language of 

commentary .04 to Rule 6.3 is as 

follows: 

ETP Holders acting as a registered 

Market Maker in products listed under 

NYSE Arca Equities Rules 5 and 8, and 

their affiliates, shall also establish, 

maintain and enforce written policies 

and procedures reasonably designed to 

prevent the misuse of any material 

nonpublic information with respect to 

such products, any components of the 

related products, any physical asset or 

commodity underlying the product, 

applicable currencies, underlying 

indexes, related futures or options on 

futures, and any related derivative 

instruments. 

With the addition of this commentary, 

the Exchange proposes to remove 

similar commentary contained in each 

of the rules highlighted below. The 

specific proposed changes, consistent 

with the example described above, are 

identified in further as follows. 

• NYSE Arca Equities Rule 5.2(j)(6), 

the Exchange’s listing standards for 

Equity Index-Linked Securities, 

Commodity-Linked Securities, 

Currency-Linked Securities, Fixed 

Income Index-Linked Securities, 

Futures-Linked Securities and 

Multifactor Index-Linked Securities. 

The Exchange is removing Commentary 

.01 (a) and (d) and is changing the 

numbering within the rule to 

accommodate for this deletion. 

• NYSE Arca Equities Rule 8.200, the 

Exchange’s listing standards for Trust 

Issued Receipts. The Exchange is 

removing Commentary .02 (e)(1) and (4) 

and is changing the numbering within 

the rule to accommodate for this 

deletion. 

• NYSE Arca Equities Rule 8.201, the 

Exchange’s listing standards for 

Commodity-Based Trust Shares. The 

Exchange is removing Sections (g) and 

(i) and is changing the numbering 

within the rule to accommodate for this 

deletion. 

• NYSE Arca Equities Rule 8.202, the 

Exchange’s listing standards for 

Currency Trust Shares. The Exchange is 

removing Sections (g) and (i) and is 

changing the numbering within the rule 

to accommodate for this deletion. 

• NYSE Arca Equities Rule 8.203, the 

Exchange’s listing standards for 

Commodity Index Trust Shares. The 

Exchange is removing Sections (g) and 

(i) and is changing the numbering 

within the rule to accommodate for this 

deletion. 

• NYSE Arca Equities Rule 8.204, the 

Exchange’s listing standards for 

Commodity Futures Trust Shares. The 


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

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

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

10 17 CFR 240.19b–4(f)(6). 

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

12 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. 

Exchange is removing Subsection (f)(1) 

and (4) and is changing the numbering 

within the rule to accommodate for this 

deletion. 

• NYSE Arca Equities Rule 8.300, the 

Exchange’s listing standards for 

Partnership Units. The Exchange is 

removing Subsection (e)(1) and (4) and 

is changing the numbering within the 

rule to accommodate for this deletion. 

• NYSE Arca Equities Rule 8.400, the 

Exchange’s listing standards for Paired 

Trust Shares. The Exchange is removing 

Subsection (e)(1) and (4) and is 

changing the numbering within the rule 

to accommodate for this deletion. 

• NYSE Arca Equities Rule 8.500, the 

Exchange’s listing standards for Trust 

Units. The Exchange is removing 

Sections (f) and (h) and is changing the 

numbering within the rule to 

accommodate for this deletion. 

• NYSE Arca Equities Rule 8.700, the 

Exchange’s listing standards for 

Managed Trust Securities. The 

Exchange is removing Subsection (f)(1) 

and (4) and is changing the numbering 

within the rule to accommodate for this 

deletion. 

Conforming Commentary to NYSE Arca 

Equities Rule 6.18 

Finally, the Exchange is adding new 

Commentary .02 to NYSE Arca Equities 

Rule 6.18. Currently, NYSE Arca 

Equities Rule 6.18 refers to the 

obligation of an ETP Holder to supervise 

the business in which it engages as well 

as the activities of its associated 

persons. By virtue of the obligations set 

forth in NYSE Arca Equities Rule 6.3 (as 

discussed above), however, ETP Holders 

that are registered Market Makers in 

products listed under NYSE Arca 

Equities Rules 5 and 8, must also 

supervise the activity of its affiliates. 

The Exchange is hereby adding 

Commentary .02 in order to conform the 

supervisory obligations of such ETP 

Holders to the standards of NYSE Arca 

Equities Rule 6.3. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 

Act of 1934 (the ‘‘Act’’),7 in general, and 

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

of the Act,8 in particular, because 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, and, in general, to protect 

investors and the public interest. The 

Exchange believes that the proposed 

rule change will eliminate unnecessary 

confusion in its rule structure, while 

conforming the standards applicable to 

covered products regarding the 

obligations of its participants to 

maintain and enforce written policies 

and procedures reasonably designed to 

prevent the misuse of material, nonpublic information to the standards 

established with the elimination of 

NYSE Arca Equities Rule 7.26, the 

adoption of NYSE Equities Rule 6.7, and 

the amendment to NYSE Arca Equities 

Rule 6.18. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

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

19b–4(f)(6) thereunder.10 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, 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 11 and Rule 19b–4(f)(6)(iii) 

thereunder.12

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–NYSEArca–2010–35 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–NYSEArca–2010–35. 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 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 


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13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The Penny Pilot was established in March 2008 

and in October 2009 was expanded and extended 

through December 31, 2010. See Securities 

Exchange Act Release Nos. 57579 (March 28, 2008), 

73 FR 18587 (April 4, 2008)(SR–NASDAQ–2008– 

026)(notice of filing and immediate effectiveness 

establishing Penny Pilot); 60874 (October 23, 2009), 

74 FR 56682 (November 2, 2009)(SR–NASDAQ– 

2009–091)(notice of filing and immediate 

effectiveness expanding and extending Penny 

Pilot); 60965 (November 9, 2009), 74 FR 59292 

(November 17, 2009)(SR–NASDAQ–2009– 

097)(notice of filing and immediate effectiveness 

adding seventy-five classes to Penny Pilot); and 

61455 (February 1, 2010), 75 FR 6239 (February 8, 

2010)(SR–NASDAQ–2010–013)(notice of filing and 

immediate effectiveness adding seventy-five classes 

to Penny Pilot). 

4See Chapter VI, Section 5 regarding the Penny 

Pilot. 

5See Securities Exchange Act Release No. 60874 

(October 23, 2009), 74 FR 56682 (November 2, 2009) 

(SR–NASDAQ–2009–091) (notice of filing and 

immediate effectiveness). 

available publicly. All submissions 

should refer to File Number SR– 

NYSEArca–2010–35 and should be 

submitted on or before June 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10967 Filed 5–7–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62029; File No. SR– 

NASDAQ–2010–053] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by the 

NASDAQ Stock Market LLC to Add 

Seventy-Five Options Classes to the 

Penny Pilot Program 

May 4, 2010. 

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 April 27, 

2010, 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, II, and 

III, 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 is filing with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) a proposal for the 

NASDAQ Options Market (‘‘NOM’’ or 

‘‘Exchange’’) to designate seventy-five 

options classes to be added to the Penny 

Pilot Program (‘‘Penny Pilot’’ or ‘‘Pilot’’) 

on May 3, 2010.3 The Exchange is not 

proposing to amend any rule text, but 

simply administering or enforcing an 

existing rule.4

The text of the proposed rule change 

is available from Nasdaq’s website at 

http://nasdaq.cchwallstreet.com/ 

Filings/, at Nasdaq’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, 

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 filing is to 

identify the next seventy-five options 

classes to be added to the Penny Pilot 

effective May 3, 2010. 

In the Exchange’s immediately 

effective filing to extend and expand the 

Penny Pilot through December 31, 

2010,5 the Exchange proposed 

expanding the Pilot four times on a 

quarterly basis. Each such quarterly 

expansion would be of the next seventyfive most actively traded multiply listed 

options classes based on the national 

average daily volume (‘‘ADV’’) for the six 

months prior to selection, closing under 

$200 per share on the Expiration Friday 

prior to expansion; however, the month 

immediately preceding the addition of 

options to the Penny Pilot will not be 

used for the purpose of the six month 

analysis. Index option products would 

be included in the quarterly expansions 

if the underlying index levels were 

under 200. 

The Exchange is identifying, in the 

chart below, seventy-five options classes 

that it will add to the Penny Pilot on 

May 3, 2010, based on ADVs for the six 

months ending March 31, 2010. 

Nat’l ranking Symbol Security name Nat’l 

ranking Symbol Security name 

153 ............ XLV Health Care Select Sector SPDR Fund ......... 247 .... JCP JC Penney Co Inc. 

155 ............ CIEN Ciena Corp ...................................................... 248 .... ACL Alcon Inc. 

157 ............ AMLN Amylin Pharmaceuticals Inc ............................ 249 .... STP Suntech Power Holdings Co Ltd. 

158 ............ CTIC Cell Therapeutics Inc ...................................... 250 .... TLB Talbots Inc. 

159 ............ MDT Medtronic Inc .................................................. 251 .... SYMC Symantec Corp. 

162 ............ TIVO TiVo Inc ........................................................... 253 .... AMED Amedisys Inc. 

163 ............ MNKD MannKind Corp ............................................... 255 .... TM Toyota Motor Corp. 

171 ............ MDVN Medivation Inc ................................................. 257 .... HK Petrohawk Energy Corp. 

176 ............ BRKB Berkshire Hathaway Inc .................................. 258 .... ENER Energy Conversion Devices Inc. 

178 ............ APOL Apollo Group Inc ............................................. 259 .... STT State Street Corp. 

181 ............ BSX Boston Scientific Corp .................................... 260 .... BHP BHP Billiton Ltd. 

185 ............ XLY Consumer Discretionary Sel. Sec. SPDR 

Fund.

261 .... NFLX NetFlix Inc. 

188 ............ CLF Cliffs Natural Resources Inc ........................... 262 .... LDK LDK Solar Co Ltd. 

190 ............ ZION Zions Bancorporation ...................................... 263 .... SPG Simon Property Group Inc. 

194 ............ IOC InterOil Corp .................................................... 264 .... TIF Tiffany & Co. 

197 ............ ITMN InterMune Inc .................................................. 265 .... BUCY Bucyrus International Inc. 

204 ............ GME GameStop Corp .............................................. 266 .... WAG Walgreen Co. 

209 ............ XLK Technology Select Sector SPDR Fund .......... 268 .... IP International Paper Co. 

210 ............ AKS AK Steel Holding Corp .................................... 271 .... XME SPDR S&P Metals & Mining ETF. 

212 ............ GRMN Garmin Ltd ...................................................... 272 .... KGC Kinross Gold Corp. 


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