Federal Register / Vol. 75, No. 94 / Monday, May 17, 2010 / Notices 27603 

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

2 17 CFR 240.19b–4. 

3 Index-Linked Securities, also known as 

exchange-traded notes, are long-term notes that are 

the non-convertible debt of an issuer with a term 

of at least one year but not greater than thirty years. 

These exchange-traded securities are designed for 

investors who desire to participate in a specific 

market segment by providing exposure to one or 

more identifiable underlying securities, 

commodities, currencies, derivative instruments or 

market indexes. The Exchange’s listing standards 

for options on Index-Linked Securities were 

established in September, 2008. See Securities 

Exchange Act Release No. 58516 (September 11, 

2008), 73 FR 54184 (September 18, 2008) (SR– 

NYSEAmex–2008–69). Other Exchanges have 

established similar listing standards. See Securities 

Exchange Act Release Nos. 58571 (September 17, 

2008), 73 FR 55188 (September 24, 2008) (SR–Phlx– 

2008–60) (notice of filing and immediate 

effectiveness); 59923 (May 14, 2009), 74 FR 23902 

(May 21, 2009) (SR–NASDAQ–2009–046) (notice of 

filing and immediate effectiveness); 58204 (July 22, 

2008), 73 FR 43807 (July 28, 2008) (SR–CBOE– 

2008–64) (approval order); 58203 (July 22, 2008), 73 

FR 43812 (July 28, 2008) (SR–NYSEArca–2008–57) 

(approval order); and 58985 (November 20, 2008), 

73 FR 72538 (November 28, 2008) (SR–ISE–2008– 

86) (notice of filing and immediate effectiveness). 

4See supra Note 3. 

5OCC previously received Commission approval 

to clear options based on Index-Linked Securities. 

See Securities Exchange Act Release No. 60872 

(October 23, 2009), 74 FR 55878 (October 29, 2009) 

(SR–OCC–2009–14) (approval order). 

periodic reports since the period ended 

February 28, 2003. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of SHEP 

Technologies, Inc. because it has not 

filed any periodic reports since the 

period ended December 31, 2004. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of 

WHEREVER.Net Holding Corp. because 

it has not filed any periodic reports 

since it filed a Form 8–A on April 26, 

2000. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

companies. Therefore, it is ordered, 

pursuant to Section 12(k) of the 

Securities Exchange Act of 1934, that 

trading in the securities of the abovelisted companies is suspended for the 

period from 9:30 a.m. EDT on May 13, 

2010 and terminating at 11:59 p.m. EDT 

on May 26, 2010. 

By the Commission. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2010–11806 Filed 5–13–10; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62067; File No. SR– 

NYSEAmex–2010–41] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Establish Strike Price 

Intervals and Trading Hours for 

Options on Index Linked Securities 

May 10, 2010. 

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 April 28, 

2010, 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 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 amend 

Rule 903 Commentary .05 to establish 

strike price intervals for options on 

Index Linked Securities,3 and to amend 

Rule 901NY Commentary .02, to 

establish trading hours for these 

products. The text of the proposed rule 

change is available on NYSE Amex’s 

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

Commission’s Web site at http:// 

www.sec.gov, 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to amend 

Rule 903 Commentary .05, and to 

amend Rule 901NY Commentary .02, to 

establish strike price intervals and 

trading hours for options on IndexLinked Securities (‘‘ILS’’), also known as 

Exchange-Traded Notes (‘‘ETN’’), prior 

to the Exchange actually listing and 

trading these products. 

The Commission has approved the 

Exchange’s proposal, as well as the 

proposals of other options exchanges, to 

enable the listing and trading of options 

on ILS (ETN).4 Options trading has not 

commenced to date and is contingent 

upon the Commission’s approval of The 

Options Clearing Corporation’s (‘‘OCC’’) 

proposed supplement to the Options 

Disclosure Document (‘‘ODD’’) that will 

provide disclosure regarding options on 

Index-Linked Securities.5

$1 Strikes for ILS (ETN) Options 

Prior to the commencement of trading 

options on Index-Linked Securities, the 

Exchange is proposing to establish that 

strike price intervals of $1 will be 

permitted where the strike price is less 

than $200. Where the strike price is 

greater than $200, $5 strikes will be 

permitted. These proposed changes are 

reflected by the addition to Commentary 

.05 to Rule 903. 

The Exchange is seeking to establish 

$1 strikes for ILS (ETN) options where 

the strike price is less than $200 because 

the Exchange believes the marketplace 

and investors will be expecting these 

types of options to trade in a similar 

manner to options on exchange-traded 

funds (‘‘ETFs’’). Strike prices for ETF 

options are permitted in $1 or greater 

intervals where the strike price is $200 

or less and $5 or greater where the strike 

price is greater than $200. Accordingly, 

the Exchange believes that the rationale 

for permitting $1 strikes for ETF options 

equally applies to permitting $1 strikes 

for ILS (ETN) options, and that investors 

will be better served if $1 strike price 

intervals are available for ILS (ETN) 

options where the strike price is less 

than $200. The Exchange believes that 

$1 strike price intervals for options on 

Index-Linked Securities will provide 

investors with greater flexibility by 

allowing them to establish positions that 

are better tailored to meet their 

investment objectives. 

Trading Hours for ILS (ETN) Options 

The Exchange proposes to amend 

Commentary .02 to Rule 901NY to 

provide that options on exchange-traded 

notes including Index-Linked Securities 

may be traded on the Exchange until 

1:15 p.m. (Pacific Time) each business 

day. This will establish similar trading 

hours for ILS (ETN) options as the 


srobinson on DSKHWCL6B1PROD with NOTICES
27604 Federal Register / Vol. 75, No. 94 / Monday, May 17, 2010 / Notices 

6See, for example, Securities Exchange Act 

Release No. 61466 (February 2, 2010), 75 FR 6243 

(February 8, 2010) (SR–CBOE–2010–005) (notice of 

filing). 

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 self-regulatory organization 

to submit to the Commission 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. The 

Exchange has satisfied this requirement. 

11See Securities Exchange Act Release Nos. 

61696 (March 12, 2010), 75 FR 13174 (March 18, 

2010) (SR–CBOE–2010–005); 61943 (April 20, 

2010), 75 FR 21689 (April 26, 2010) (SR–Phlx– 

2010–40). 

12For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12). 

currently-established trading hours for 

ETF options. 

The Exchange expects that other 

option exchanges that have adopted 

rules providing for the listing and 

trading of options on Index-Linked 

Securities has or will submit similar 

proposals.6

The Exchange has analyzed its 

capacity and believes the Exchange and 

the Options Price Reporting Authority 

(‘‘OPRA’’) have the necessary systems 

capacity to handle the additional traffic 

associated with the listing and trading 

of $1 strikes where the strike price is 

less than $200 for ILS (ETN) options. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) 7 of the Securities Exchange Act of 

1934 (the ‘‘Act’’), in general, and furthers 

the objectives of Section 6(b)(5) 8 in 

particular in that it is designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest by having strike price 

intervals and trading hours established 

prior to the commencement of trading in 

options on Index-Linked Securities and 

thereby lessening the likelihood for 

investor confusion. 

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 proposed rule 

change: (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not 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, it 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 asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

doing so is consistent with the 

protection of investors and the public 

interest. The Commission notes that it 

recently approved the same changes to 

strike price intervals and trading hours 

for options on Index-Linked Securities 

for another exchange.11 The 

Commission believes that the proposed 

changes to strike price intervals and 

trading hours for options on IndexLinked Securities do not raise any novel 

regulatory issues, and waiver of the 

operative delay should benefit investors 

by creating consistency and 

predictability for investors who may 

view these products as serving similar 

investment functions in the marketplace 

to ETFs. Therefore, the Commission 

designates the proposal operative upon 

filing.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–NYSEAmex–2010–41 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–2010–41. 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 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 Number SR– 

NYSEAmex–2010–41 and should be 

submitted on or before June 7, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11650 Filed 5–14–10; 8:45 am] 

BILLING CODE 8010–01–P 


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