Federal Register / Vol. 75, No. 89 / Monday, May 10, 2010 / Notices 25889 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 61759 

(March 23, 2010), 75 FR 15758 (‘‘Notice’’). 

4 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

5 15 U.S.C. 78f. 

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

7 15 U.S.C. 78s(b)(2). 

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 such filing 

also will be available for inspection and 

copying at the principal office of 

NYSEArca. 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– 

NYSEArca–2010–33 and should be 

submitted on or before June 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10957 Filed 5–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62019; File No. SR– 

NYSEArca–2010–16] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Approval of 

Proposed Rule Change Amending Rule 

6.37A and Rule 6.64 

April 30, 2010. 

On March 11, 2010, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a proposed 

rule change pursuant to Section 19(b)(1) 

of the Securities Exchange Act of 1934 

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

amend the bid-ask differentials for 

market maker quotations outlined in 

NYSE Arca Rule 6.37A(b)(4) and amend 

NYSE Arca Rule 6.64(b) to establish bidask parameters in the OX System to be 

used during the opening auction process 

(‘‘Auction’’) and to implement an 

associated conforming change to NYSE 

Arca Rule 6.87. The proposed rule 

change was published for comment in 

the Federal Register on March 30, 

2010.3 The Commission received no 

comment letters regarding the proposal. 

This order approves the proposed rule 

change. 

Currently, NYSE Arca Rule 

6.37A(b)(4) specifies the bid-ask 

differential requirements applicable to 

market maker quotations when 

electronically bidding and offering on 

the OX System during an Auction. The 

Exchange now proposes to replace the 

applicable bid-ask differentials for 

market maker quoting obligations 

during an Auction, with the $5 quote 

differential that is in place at all other 

times. 

NYSE Arca also proposes to establish 

parameters for the opening auction as 

described in Rule 6.64. Pursuant to this 

proposed rule change, the OX System 

will not conduct an Auction in a given 

series unless the composite NYSE Arca 

bid-ask is within an acceptable range. 

For the purposes of the Auction, an 

acceptable range will be the bid-ask 

parameters pursuant to Rule 

6.37(b)(1)(A)–(E). These bid-ask 

differentials are identical to the existing 

legal width differentials for market 

maker Auction quotations which this 

filing proposes to delete. The Exchange 

represented that by establishing price 

protection parameters within the 

Auction process of the OX System, 

rather than just as a requirement for 

submitted quotes, customers and other 

market participants will be afforded a 

higher level of price protection than 

they presently have on NYSE Arca. 

In addition, the Exchange proposes a 

minor change to Rule 6.87—Obvious 

Errors and Catastrophic Errors. Rule 

6.87(b)(2)(B) presently contains a 

reference to bid-ask differentials 

pursuant to Rule 6.37A(b)(4)–(5). Due to 

the proposed changes contained in this 

filing related to the bid-ask differentials 

of Rule 6.37A(b)(4)–(5), the Exchange 

proposes to now reference the bid-ask 

differentials contained in Rule 

6.37(b)(1)(A)–(E). The bid-ask 

differentials of each rule are identical, 

therefore the change will not alter in 

any way the methods used by the 

Exchange when making obvious error 

determinations. 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 4 and, in 

particular, the requirements of Section 6 

of the Act.5 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,6 which requires, 

among other things, that the rules of a 

national securities exchange be 

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 mechanisms of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

The Commission notes that the 

requirements provided under the 

Exchange’s current quote parameters 

applicable during the Auction are not 

being eliminated but instead are being 

transferred and integrated into the 

Auction process itself. Pursuant to the 

proposed rule change, the OX System 

will not conduct an Auction in a given 

series unless the BBO is within an 

acceptable range, delineated by the 

parameters in NYSE Arca Rule 

6.37(b)(1)(A)–(E), the identical width 

differentials for market maker Auction 

quotations that currently exist. The 

Commission believes that establishing 

parameters in the Auction process itself 

instead should enhance efficiency in 

pricing for customers and other market 

participants. Lastly, the proposed 

conforming changes to NYSE Arca Rule 

6.87 are not substantive and thus do not 

raise any regulatory concerns. For these 

reasons, the Commission finds that the 

proposed changes are consistent with 

the Act. 

Therefore, it is ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–NYSEArca– 

2010–16) is hereby approved. 


jlentini on DSKJ8SOYB1PROD with NOTICES
25890 Federal Register / Vol. 75, No. 89 / Monday, May 10, 2010 / Notices 

8 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 January 2007 

and in October 2009 was expanded and extended 

through December 31, 2010. See Securities 

Exchange Act Release Nos. 55153 (January 23, 

2007), 72 FR 4553 (January 31, 2007) (SR–Phlx– 

2006–74) (notice of filing and approval order 

establishing Penny Pilot); 60873 (October 23, 2009), 

74 FR 56675 (November 2, 2009) (SR–Phlx–2009– 

91) (notice of filing and immediate effectiveness 

expanding and extending Penny Pilot); and 60966 

(November 9, 2009), 74 FR 59331 (November 17, 

2009) (SR–Phlx–2009–94) (notice of filing and 

immediate effectiveness adding seventy-five classes 

to Penny Pilot); and 61454 (February 1, 2010), 75 

FR 6233 (February 8, 2010) (SR–Phlx–2010–12) 

(notice of filing and immediate effectiveness adding 

seventy-five classes to Penny Pilot). 

4See Rule 1034 regarding the Penny Pilot. 

5See Securities Exchange Act Release No. 60873 

(October 23, 2009), 74 FR 56675 (November 2, 2009) 

(SR–Phlx–2009–91) (notice of filing and immediate 

effectiveness). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10962 Filed 5–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62028; File No. SR–Phlx– 

2010–65] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX, Inc. 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, 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, II, 

and III, 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 is filing with the 

Commission a proposal 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 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 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. 

213 ............... MRVL .......... Marvell Technology Group Ltd .............. 273 .............. EP ............... El Paso Corp. 

215 ............... XLP ............. Consumer Staples Select Sector SPDR 

Fund.

274 .............. SEED .......... Origin Agritech Ltd. 


jlentini on DSKJ8SOYB1PROD with NOTICES