Federal Register / Vol. 75, No. 202 / Wednesday, October 20, 2010 / Notices 64773 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62772 

(August 26, 2010), 75 FR 53991 (‘‘Notice’’). 

4The Commission has considered the proposed 

rule change’s impact on efficiency, competition and 

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

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

6 If the Exchange were to propose an extension, 

expansion, or permanent approval of the pilot 

program, the Exchange would be required to submit 

a report on the pilot program to the Commission at 

least 60 days prior to the pilot program expiration 

date. See Notice, supra note 3, at 53991–92. 

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

8 17 CFR 200.30–3(a)(12). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63104; File No. SR–ISE– 

2010–91] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Order Approving Proposed Rule 

Change To Adopt a Pilot Program To 

List Additional Expiration Months for 

Each Class of Options Opened for 

Trading on the Exchange 

October 14, 2010. 

I. Introduction 

On August 25, 2010, the International 

Securities Exchange, LLC (the 

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

Securities and Exchange Commission, 

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

Securities Exchange Act of 1934 

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

proposed rule change to adopt a pilot 

program to list additional expiration 

months for each class of options opened 

for trading on the Exchange. The 

proposed rule change was published for 

comment in the Federal Register on 

September 2, 2010.3 The Commission 

received no comments on the proposal. 

This order approves the proposal. 

II. Description of the Proposal 

Pursuant to ISE Rule 504(e), the 

Exchange currently opens series with 

four expiration months for each class of 

options open for trading on the 

Exchange: The first two being the two 

nearest months, regardless of the 

quarterly cycle on which that class 

trades; the third and fourth being the 

next two months of the quarterly cycle 

previously designated by the Exchange 

for that specific class. 

The Exchange believes that there is 

market demand for series with a greater 

number of expiration months. The 

Exchange therefore proposes to adopt a 

pilot program pursuant to which it will 

list series with up to an additional two 

expiration months, for a total of six 

expiration months for each class of 

options open for trading on the 

Exchange. The proposal will become 

effective on a pilot basis for twelve 

months commencing on the next full 

month after approval is received to 

establish the pilot program. Under the 

proposal, series with the additional 

months listed pursuant to the pilot 

program will result in four consecutive 

expiration months plus two months 

from the quarterly cycle. The Exchange 

seeks to limit the pilot to the 20 most 

actively traded options classes. 

III. Discussion 

After careful review, 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 Specifically, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,5 in that the proposal has been 

designed to promote just and equitable 

principles of trade, and to protect 

investors and the public interest. 

The Commission believes that 

allowing the Exchange to list and trade 

series with up to two additional 

expiration months, under the terms 

described in the Exchange’s proposal, 

should provide investors with 

additional means of managing their risk 

exposures and carrying out their 

investment objectives. The Commission 

notes that the pilot program limits the 

series that may be opened pursuant to 

the pilot program to the 20 most actively 

traded options classes. The Commission 

believes this restriction should allow 

the Exchange to offer a wider array of 

investment opportunities, while 

minimizing the impact on quotation 

message traffic. The Commission also 

notes that the proposal requires the 

Exchange to closely monitor the trading 

and quotation volume associated with 

the additional options series created 

under the pilot program and the effect 

of these additional series on the 

capacity of the Exchange’s, OPRA’s, and 

vendors’ systems.6

IV. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–ISE–2010–91) 

is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26339 Filed 10–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63108; File No. S7–29–10] 

Study Required by Section 989G(b) of 

the Dodd-Frank Act Regarding 

Compliance With Section 404(b) of the 

Sarbanes-Oxley Act 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Request for comment. 

SUMMARY: The Securities and Exchange 

Commission is requesting public 

comment related to a study of how the 

Commission could reduce the burden of 

complying with Section 404(b) of the 

Sarbanes-Oxley Act of 2002 for 

companies whose public float is 

between $75 million and $250 million, 

while maintaining investor protections 

for such companies, and whether any 

methods of reducing the compliance 

burden or a complete exemption for 

such companies from the auditor 

attestation requirement in Section 

404(b) would encourage companies to 

list on exchanges in the United States in 

their initial public offerings. This study 

is required by the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act. 

DATES: Comments should be received on 

or before December 6, 2010. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/other.shtml); or 

• Send an e-mail to rule-comments@

sec.gov. Please include File Number S7– 

29–10 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, U.S. 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number S7–29–10. To help us 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). Comments are also 

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. All comments received 

will be posted without change; we do 

not edit personal identifying 


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