Federal Register / Vol. 75, No. 25 / Monday, February 8, 2010 / Notices 6235 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that the text of the 

proposed Regulatory Circular is attached at Exhibit 

2 to the Form 19b–4, but is not attached to this 

Notice. 

4See Securities and Exchange Act Release No. 

60886 (October 27, 2009), 74 FR 56897 (November 

3, 2009) (SR–BX–2009–067). This proposal was 

effective immediately upon filing. 

5The Exchange filed a proposal similar to the 

present proposal for the November 2, 2009 

expansion of 75 classes. See Securities and 

Exchange Act Release No. 60950 (November 6, 

2009), 74 FR 58666 (November 6, 2009) [sic] (SR– 

BX–2009–069). This proposal was effective 

immediately upon filing. 

6The quarterly additions will be effective on 

November 2, 2009, February 1, 2010, May 3, 2010 

and August 2, 2010, respectively. For purposes of 

identifying the classes to be added per quarter, the 

Exchange shall use data from the prior six calendar 

months preceding the implementation month, 

except that the month immediately preceding their 

addition to the Pilot would not be utilized for 

purposes of the six month analysis. For example, 

the quarterly additions to be added on February 1, 

2010 shall be determined using data from the six 

month period ending December 31, 2009. 

7The threshold for designation as ‘‘high priced’’ 

at the time of selection of new classes to be 

included in the Penny Pilot Program is $200 per 

share or a calculated index value of 200. The 

determination of whether a security is trading above 

$200 or above a calculated index value of 200 shall 

be based on the price at the close of trading on the 

Expiration Friday prior to being added to the Penny 

Pilot Program. 

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–Phlx–2010–12 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–Phlx–2010–12. 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–Phlx–2010–12 and should be 

submitted on or before March 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2583 Filed 2–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61456; File No. SR–BX– 

2010–011] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Add 75 

Classes to the Penny Pilot Program 

February 1, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on January 

27, 2010, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) 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 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 

NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) proposes to designate 75 

options classes to be added to the Penny 

Pilot Program, as referenced in Chapter 

V, Section 33 of the Rules of the Boston 

Options Exchange Group, LLC (‘‘BOX’’). 

The Exchange intends to notify BOX 

Options Participants of the classes to be 

added to the Penny Pilot Program via 

Regulatory Circular. The text of the 

proposed Regulatory Circular is 

attached as Exhibit 2.3

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

On October 19, 2009 the Exchange 

submitted a proposed rule change 4 with 

the Securities and Exchange 

Commission (‘‘Commission’’) to, among 

other things, expand the number of 

classes included in the Penny Pilot 

Program over four successive quarters, 

with 75 classes added in each of 

November 2009,5 February 2010, May 

2010, and August 2010.6 Options classes 

with high premiums will be excluded 

for the quarterly additions.7

Based on trading activity for the six 

months ending December 31, 2009, the 

Exchange proposes to add the following 

75 classes to the Penny Pilot Program on 

February 1, 2010: 

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6236 Federal Register / Vol. 75, No. 25 / Monday, February 8, 2010 / Notices 

8Please note that PARD is presently not listed for 

trading on BOX. If PARD is listed for trading on 

BOX at a later date it will be subject to the 

applicable minimum trading increments as set forth 

in Chapter V, Section 6(b) of the BOX Rules. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

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

12 17 CFR 240.19b–4(f)(1). 

Symbol Company name Symbol Company name 

ABT .................................................... Abbott Laboratories. LEAP .................................................. Leap Wireless International 

Inc. 

AEM ................................................... Agnico-Eagle Mines Ltd. LLY ..................................................... Eli Lilly & Co. 

AET .................................................... Aetna Inc. LO ...................................................... Lorillard Inc. 

AFL ..................................................... Aflac Inc. LOW ................................................... Lowe’s Cos Inc. 

AKAM ................................................. Akamai Technologies Inc. M ........................................................ Macy’s Inc. 

AMAT ................................................. Applied Materials Inc. MCO ................................................... Moody’s Corp. 

AMR ................................................... AMR Corp. MET ................................................... MetLife Inc. 

ANF .................................................... Abercrombie & Fitch Co. MMM .................................................. 3M Co. 

APC .................................................... Anadarko Petroleum Corp. MU ..................................................... Micron Technology Inc. 

ATVI ................................................... Activision Blizzard Inc. NUE ................................................... Nucor Corp. 

BBD .................................................... Banco Bradesco SA. OXY ................................................... Occidental Petroleum Corp. 

BCRX ................................................. BioCryst Pharmaceuticals Inc. PARD ................................................. Poniard Pharmaceuticals Inc.8

BK ...................................................... Bank of New York Mellon 

Corp/The. 

PEP .................................................... PepsiCo Inc/NC. 

BRCM ................................................. Broadcom Corp. PM ...................................................... Philip Morris International Inc. 

BTU .................................................... Peabody Energy Corp. PNC ................................................... PNC Financial Services Group 

Inc. 

BX ...................................................... Blackstone Group LP. QID ..................................................... ProShares UltraShort QQQ. 

CAL .................................................... Continental Airlines Inc. SHLD ................................................. Sears Holdings Corp. 

CF ...................................................... CF Industries Holdings Inc. SLM .................................................... SLM Corp. 

CMCSA .............................................. Comcast Corp. SLW ................................................... Silver Wheaton Corp. 

CSX .................................................... CSX Corp. SQNM ................................................ Sequenom Inc. 

CVS .................................................... CVS Caremark Corp. STEC ................................................. STEC Inc. 

CX ...................................................... Cemex SAB de CV. STX .................................................... Seagate Technology. 

DD ...................................................... EI du Pont de Nemours & Co. SU ...................................................... Suncor Energy Inc. 

ERTS .................................................. Electronic Arts Inc. TCK .................................................... Teck Resources Ltd. 

EWJ .................................................... iShares MSCI Japan Index 

Fund. 

TEVA .................................................. Teva Pharmaceutical Industries Ltd. 

FDX .................................................... FedEx Corp. TLT ..................................................... iShares Barclays 20+ Year 

Treasury Bond Fund. 

FNM ................................................... Federal National Mortgage Association. TZA .................................................... Direxion Daily Small Cap Bear 

3X Shares. 

FRE .................................................... Federal Home Loan Mortgage 

Corp. 

UAUA ................................................. UAL Corp. 

GILD ................................................... Gilead Sciences Inc. URE ................................................... ProShares Ultra Real Estate. 

GLW ................................................... Corning Inc. UTX .................................................... United Technologies Corp. 

HBC .................................................... HSBC Holdings PLC. WFR ................................................... MEMC Electronic Materials 

Inc. 

HES .................................................... Hess Corp. WFT ................................................... Weatherford International Ltd. 

HL ....................................................... Hecla Mining Co. WLP ................................................... WellPoint Inc. 

HOG ................................................... Harley-Davidson Inc. XLB .................................................... Materials Select Sector SPDR 

Fund. 

HON ................................................... Honeywell International Inc. XRX .................................................... Xerox Corp. 

JOYG ................................................. Joy Global Inc. XTO .................................................... XTO Energy Inc. 

JWN ................................................... Nordstrom Inc. YRCW ................................................ YRC Worldwide Inc. 

KFT .................................................... Kraft Foods Inc. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,9

in general, and Section 6(b)(5) of the 

Act,10 in particular, in that it is designed 

to foster cooperation and coordination 

with persons engaged in regulating, 

clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and 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 identifying the 

options classes added to the Penny Pilot 

Program in a manner consistent with 

prior rule changes. 

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 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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(i) of the Exchange Act 11 and 

Rule 19b–4(f)(1) thereunder,12 because 

it constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing BOX rule. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the rule change if it appears to the 

Commission that the action is necessary 

or appropriate in the public interest, for 

the protection of investors, or would 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 25 / Monday, February 8, 2010 / Notices 6237 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Contrary Exercise Advices are also referred to as 

Expiring Exercise Declarations (‘‘EED’’) in the OCC 

rules. 

4The Exchange proposes to reorganize the current 

rule text so that the requirement that exercise 

decisions must be made by 5:30 p.m. Eastern Time 

is specified in paragraph (c), while the requirements 

pertaining to submitting CEA instructions are 

contained in new paragraph (d). The language in 

new paragraph (d) is comprised of language moved 

from paragraph (b)(2) and paragraph (c) of the 

current rule. The Exchange also proposes to 

eliminate Supplementary Material .03 to Rule 1100 

because it is duplicative of the language contained 

in paragraph (c) of the current rule and paragraph 

(d)(iii) in the proposal. 

otherwise further 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–BX–2010–011 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–BX–2010–011. 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–2010–011 and should be 

submitted on or before March 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2585 Filed 2–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61458; File No. SR–ISE– 

2010–02] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of Proposed Rule 

Change To Amend Exchange Rules 

Related to Cutoff Time for Contrary 

Exercise Advice Submissions 

February 1, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on January 

11, 2010, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange 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 International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) proposes to amend Rule 1100 in 

order to extend the cut-off time to 

submit contrary exercise advices. The 

text of the proposed rule change is 

available on the Exchange’s Web site 

http://www.ise.com, 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, 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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

sections A, B and C below. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend Rule 1100 to extend 

the cut-off time to submit contrary 

exercise advices (‘‘Contrary Exercise 

Advice’’, or, ‘‘CEA’’) 3 to the Exchange. 

The Exchange also proposes to make 

certain non-substantive changes to 

reorganize the text of Rule 1100 to more 

clearly present the existing 

requirements and to eliminate 

duplicative language.4

The Options Clearing Corporation 

(‘‘OCC’’) has an established procedure, 

under OCC Rule 805, that provides for 

the automatic exercise of certain options 

that are in-the-money by a specified 

amount known as ‘‘Exercise-byException’’ or ‘‘Ex-by-Ex.’’ Under the Exby-Ex process, options holders holding 

option contracts that are in-the-money 

by a requisite amount and who wish to 

have their contracts automatically 

exercised need take no further action. 

However, under OCC Rule 805, option 

holders who do not want their options 

automatically exercised or who want 

their options to be exercised under 

different parameters than that of the Exby-Ex procedures must instruct OCC of 

their ‘‘contrary intention.’’ 

In addition to and separately from the 

OCC requirement, under Exchange Rule 

1100 option holders must file a CEA 

with the Exchange notifying it of the 

contrary intention. Rule 1100 is 

designed, in part, to deter individuals 

from taking improper advantage of late 

breaking news by requiring evidence of 

an option holder’s timely decision to 

exercise or not exercise expiring equity 

options. Members satisfy this 

evidentiary requirement by submitting a 

CEA form directly to the Exchange, or 

by electronically submitting the CEA to 

the Exchange through OCC’s electronic 

communications system. The 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES