Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Notices 26301 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The rules of BATS Options, including rules 

applicable to BATS Options’ participation in the 

Penny Pilot, were approved on January 26, 2010. 

See Securities Exchange Act Release No. 61419 

(January 26, 2010), 75 FR 5157 (February 1, 2010) 

(SR–BATS–2009–031). BATS Options commenced 

operations on February 26, 2010. This proposal 

represents the first expansion of classes subject to 

the Penny Pilot since BATS Options commenced 

operations. 

4See Rule 21.5 regarding the Penny Pilot. 

5See Securities Exchange Act Release No. 61097 

(December 2, 2009), 74 FR 64788 (December 8, 

2009) (SR–BATS–2009–031) (Notice of Filing of 

Proposed Rule Change to Establish Rules Governing 

the Trading of Options on the BATS Options 

Exchange. 

available for Web site viewing 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 NYSE Arca’s principal office. 

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–2010–39 and 

should be submitted on or before June 

1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–11093 Filed 5–10–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62033; File No. SR–BATS– 

2010–009] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change 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 (the 

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

notice is hereby given that on April 30, 

2010, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) filed with the 

Securities and Exchange Commission 

(‘‘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 for the BATS 

Exchange Options Market (‘‘BATS 

Options’’) to designate seventy-five 

options classes to be added to the Penny 

Pilot Program (‘‘Penny 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 at the Exchange’s Web site 

at http://www.batstrading.com, 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 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 

identify the next seventy-five options 

classes to be added to the Penny Pilot 

effective May 3, 2010. In the Exchange’s 

filing to adopt rules to govern BATS 

Options,5 the Exchange proposed 

commencing operations for BATS 

Options by trading all options classes 

that were, as of such date, traded by 

other options exchanges pursuant to the 

Penny Pilot and then expanding the 

Penny Pilot on a quarterly basis, 75 

classes at a time, through August 2010. 

Each such quarterly expansion would be 

of the seventy-five 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, except that the month 

immediately preceding the addition of 

options to the Penny Pilot would 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. 


emcdonald on DSK2BSOYB1PROD with NOTICES
26302 Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Notices 

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

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A)(i). 

9 17 CFR 240.19b–4(f)(1). 

Nat’l ranking Symbol Security name Nat’l ranking Symbol Security name 

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. 

216 ............ UNP ......... Union Pacific Corp ....................................... 275 .......... WIN ......... Windstream Corp. 

220 ............ DTV ......... DIRECTV ...................................................... 279 .......... DHI .......... DR Horton Inc. 

223 ............ WMB ....... Williams Cos Inc/The ................................... 280 .......... ADBE ...... Adobe Systems Inc. 

225 ............ MEE ........ Massey Energy Co ....................................... 281 .......... PCX ......... Patriot Coal Corp. 

227 ............ CELG ...... Celgene Corp ............................................... 282 .......... SPWR A .. SunPower Corp. 

229 ............ GMCR ..... Green Mountain Coffee Roasters Inc .......... 284 .......... LCC ......... US Airways Group Inc. 

231 ............ WDC ........ Western Digital Corp .................................... 285 .......... PRU ......... Prudential Financial Inc. 

234 ............ DAL ......... Delta Air Lines Inc ........................................ 286 .......... LEN ......... Lennar Corp. 

235 ............ FXE ......... CurrencyShares Euro Trust ......................... 287 .......... EWT ........ iShares MSCI Taiwan Index Fund. 

237 ............ COST ...... Costco Wholesale Corp ............................... 288 .......... KBH ......... KB Home. 

239 ............ MJN ......... Mead Johnson Nutrition Co ......................... 289 .......... CREE ...... Cree Inc. 

240 ............ ALL .......... Allstate Corp/The .......................................... 290 .......... SIRI ......... Sirius XM Radio Inc. 

241 ............ SII ............ Smith International Inc ................................. 291 .......... MMR ........ McMoRan Exploration Co. 

242 ............ RTN ......... Raytheon Co ................................................ 292 .......... CENX ...... Century Aluminum Co. 

243 ............ DVN ......... Devon Energy Corp ...................................... 293 .......... GFI .......... Gold Fields Ltd. 

244 ............ MT ........... ArcelorMittal .................................................. ............. .............

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the Act.6

In particular, the Exchange believes that 

the proposal is consistent with Section 

6(b)(5) of the Act,7 because it would 

promote just and equitable principles of 

trade, remove impediments to, and 

perfect the mechanism of, a free and 

open market and a national market 

system, by identifying the options 

classes to be added to the Penny Pilot 

in a manner consistent with prior 

approvals and filings. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

(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 written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A)(i) of 

the Act 8 and paragraph (f)(1) of Rule 

19b–4 thereunder,9 the Exchange has 

designated this proposal as one 

constituting a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule. 

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 proposal 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 

No. SR–BATS–2010–009 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 No. 

SR–BATS–2010–009. 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 changes 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 

will also 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 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Notices 26303 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 4 17 CFR 240.17d–2. 5 15 U.S.C. 78f(b)(5). 

available publicly. All submissions 

should refer to File No. SR–BATS– 

2010–009 and should be submitted on 

or before June 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–11095 Filed 5–10–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62034; File No. SR–CBOE– 

2010–035] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending CBOE Rules 

9.11, 9.18 and 9.21 To Correspond and 

Harmonize With Rules of the Financial 

Industry Regulatory Authority, Inc. 

May 4, 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 the Chicago 

Board Options Exchange, Incorporated 

(‘‘Exchange’’ or ‘‘CBOE’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) on April 9, 2010, 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been substantially prepared by the 

Exchange. The Exchange has designated 

the proposed rule change as constituting 

a ‘‘non-controversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 under the 

Act,3 which renders the proposal 

effective upon receipt of the filing by 

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 its 

guarantees and profit sharing, 

confirmation to customers, and options 

communication rules to harmonize the 

Exchange’s requirements with those of 

the Financial Industry Regulatory 

Authority (‘‘FINRA’’). The text of the 

proposed rule change is available on the 

Exchange’s Web site at http:// 

www.cboe.org/Legal, at the Exchange’s 

Office of the Secretary, 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, 

CBOE 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 

Pursuant to Rule 17d–2 under the 

Act,4 the BATS Exchange, Inc. 

(‘‘BATS’’), CBOE, C2 Options Exchange, 

Incorporated (‘‘C2’’), the International 

Securities Exchange, LLC (‘‘ISE’’), 

FINRA, the New York Stock Exchange 

LLC (‘‘NYSE’’), NYSE Amex LLC 

(‘‘Amex’’), NYSE Arca, Inc. (‘‘Arca’’), The 

NASDAQ Stock Market LLC 

(‘‘NASDAQ’’), NASDAQ OMX BX, Inc. 

(‘‘BX’’), and NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’), (collectively the ‘‘Options Self 

Regulatory Council’’), entered into an 

agreement dated February 9, 2010 (the 

‘‘17d–2 Agreement’’) to allocate 

regulatory responsibility for common 

rules. 

First, by this proposal, the Exchange 

seeks to harmonize its ‘‘Sharing in 

Accounts’’ rule with FINRA’s rule 

pursuant to the terms of the 17d–2 

Agreement. In order to maintain 

substantial similarity with FINRA rules, 

the Exchange proposes to amend CBOE 

Rule 9.18(a) to clarify that the 

prohibition against guarantees also 

applies to persons associated with a 

member and to delete the language of 

CBOE Rule 9.18 related to profit sharing 

of a customer account, and replace it 

with the language of FINRA Rule 

2150(c), Sharing in Accounts; Extent 

Permissible. FINRA Rule 2150(c) 

contains the same prohibition against 

sharing in accounts as CBOE Rule 9.18, 

but with additional limited exceptions. 

The general prohibition contained in 

CBOE Rule 9.18 against sharing in the 

profits or losses of a customer account 

is currently covered by the 17d–2 

Agreement. However, the limited 

exceptions of FINRA Rule 2150(c) are 

not covered by the 17d–2 Agreement. 

The Exchange proposes to add those 

limited exceptions to CBOE Rule 9.18 to 

harmonize its rule with the FINRA rule 

and add those limited exceptions 

pursuant to the 17d–2 Agreement. The 

portion of the rule prohibiting the 

guarantee of a customer against loss will 

remain unchanged. 

Second, CBOE proposes to amend its 

confirmation rule, CBOE Rule 9.11, to 

add a requirement that confirmations 

disclose whether the transaction was an 

opening or closing transaction to 

harmonize the rule with FINRA Rule 

2360(b)(12). 

Third, CBOE proposes to amend its 

options communication rule, CBOE 

Rule 9.21, by deleting the term ‘‘market 

letters’’ in the definition of ‘‘sales 

literature’’ and adding the term ‘‘market 

letters’’ to the definition of 

‘‘correspondence’’ to harmonize the rule 

with FINRA Rule 2220 and NASD Rule 

2210(a)(2). 

2. Statutory Basis 

CBOE believes that the proposed rule 

change is consistent with the provisions 

of, and furthers the objectives of, 

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

requires, among other things, that the 

Exchange’s rules must 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, 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. Specifically, the 

proposed rule changes, by harmonizing 

CBOE rules with FINRA rules, would 

provide CBOE Members with a clearer 

regulatory scheme. The Exchange 

further notes that the proposed rule 

changes are neither novel nor 

controversial and are modeled on 

existing FINRA rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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. 


emcdonald on DSK2BSOYB1PROD with NOTICES