65692 Federal Register / Vol. 75, No. 206 / Tuesday, October 26, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63132 

(October 19, 2010) (SR–Phlx–2010–118). 

4See Securities Exchange Act Release No. 63132 

(October 19, 2010) (SR–Phlx–2010–118). 

5See Securities Exchange Act Release Nos. 60694 

(September 18, 2009), 74 FR 49048 (September 25, 

2009) (SR–Phlx–2009–65) (order approving); and 

61630 (March 2, 2010), 75 FR 11211 (March 10, 

2010) (SR–Phlx-2010–26) (notice of filing and 

immediate effectiveness allowing concurrent listing 

of $3.50 and $4 strikes for classes that participate 

in both the $0.50 Strike Program and the $1 Strike 

Program). 

6See Securities Exchange Act Release No. 63132 

(October 19, 2010) (SR–Phlx–2010–118). 

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 Exchange to give the 

Commission written notice of the Exchange’s 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 Commission 

has waived the five-day pre-filing requirement in 

this case. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63134; File No. SR–Phlx– 

2010–149] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX PHLX LLC Relating to the $0.50 

Strike Price Program 

October 20, 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 October 

19, 2010, NASDAQ OMX PHLX LLC 

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

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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 

Exchange Rule 1012, Series of Options 

Open for Trading, to correct a minor 

error related to a previous rule change 

regarding the $0.50 Strike Program.3

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of the Exchange, 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 

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 Exchange proposes amending 

Rule 1012, Series of Options Open for 

Trading, to add additional language to 

Rule 1012 related to the Exchange’s 

ability to list a strike price of $6.00 

within $.50 of an existing strike price 

for classes selected to participate in the 

$0.50 Strike Program.4 The Exchange 

filed a rule change to expand the $0.50 

Strike Program.5 Specifically, the 

Exchange amended its $0.50 Strike 

Program to establish strike price 

intervals of $.50, beginning at $.50 for 

certain options classes where the strike 

price is $5.50 or less and whose 

underlying security closed at or below 

$5.00 in its primary market on the 

previous trading day and which have 

national average daily volume that 

equals or exceeds 1000 contracts per 

day as determined by The Options 

Clearing Corporation (‘‘OCC’’) during the 

preceding three calendar months. The 

Exchange also amended Exchange Rule 

1012 to increase the number of classes 

permitted in the $.50 Strike Program 

from 5 to 20 individual stocks.6

At that time, the Exchange made an 

additional amendment to Commentary 

.05(a)(i)(B) of Exchange Rule 1012 to 

add language to the $1 Strike Program 

that addresses listing series with $1 

intervals within $.50 of an existing 

strike price in the same series. 

Specifically, the Exchange added $5 to 

the listed strike prices of $2, $3 and $4 

to account for the overlap with the $0.50 

Strike Program amendments. 

The Exchange proposes to add $6 to 

that list to account for existing 

amendments to the $0.50 Strike Program 

to allow for a strike price of $5.50. The 

Exchange intended to expand this 

language originally to account for all 

possible strike prices as a result of its 

recent filing. This minor amendment 

was not made at that time as a result of 

an oversight. The Exchange proposes 

this language to correct that oversight. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 7 in general, and furthers the 

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

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

correcting a minor error in a previous 

rule change to account for recent 

amendments to the $0.50 Strike 

Program. This amendment will clarify 

Exchange Rule 1012 by adding $6 to the 

list of strike prices permitted within 

$.50 of an existing strike price for 

classes selected to participate in the 

$0.50 Strike Program. This amendment 

will clarify Exchange Rule 1012 to 

correct the minor error. 

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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, 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, 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 requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 206 / Tuesday, October 26, 2010 / Notices 65693 

11For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

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 Nos. 59277 

(November 6, 2009), 74 FR 59277 (November 17, 

2009 (SR–NASDAQ–2009–099) (order approving); 

and 61736 (March 18, 2010), 75 FR 14229 (March 

24, 2010) (SR–NASDAQ–2010–038) (notice of filing 

and immediate effectiveness allowing concurrent 

listing of $3.50 and $4 strikes for classes that 

participate in both the $0.50 Strike Program and the 

$1 Strike Program). 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because doing so will permit immediate 

correction of the Exchange’s error in 

their prior filing revising the terms of 

the $0.50 Strike Price Program. 

Therefore, the Commission designates 

the proposal operative upon filing.11

At any time within 60-days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend 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–Phlx–2010–149 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–2010–149. 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 the 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–Phlx– 

2010–149 and should be submitted on 

or before November 16, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27003 Filed 10–25–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63135; File No. SR– 

NASDAQ–2010–131] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

NASDAQ Stock Market, LLC To 

Expand the $0.50 Strike Price Program 

Date: October 20, 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 October 

13, 2010, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘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 NASDAQ Stock Market LLC 

proposes to amend Chapter IV titled 

Securities Traded on NOM, Sec. 6 

(Series of Options Contracts Open for 

Trading), specifically the Exchange’s 

$.50 Strike Price Program (the ‘‘$.50 

Strike Program’’ or ‘‘Program’’) 3 to: (i) 

Expand the $.50 Strike Program for 

strike prices below $1.00; (ii) extend the 

$.50 Strike Program to strike prices that 

are $5.50 or less; (iii) extend the prices 

of the underlying security to at or below 

$5.00; and (iv) extend the number of 

options classes overlying 20 individual 

stocks. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

www.nasdaq.cchwallstreet.com, at the 

principal office of the Exchange, 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 

Exchange included statements 

concerning the purpose of and basis for 

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 proposed rule 

change is to modify Supplementary 

Material of Chapter IV, Section 6 at .05 

to expand the $.50 Strike Program in 

order to provide investors with 

opportunities and strategies to minimize 

losses associated with owning a stock 

declining in price. 

The Exchange is proposing to 

establish strike price intervals of $.50, 

beginning at $.50 for certain options 

classes where the strike price is $5.50 or 

less and whose underlying security 

closed at or below $5.00 in its primary 

market on the previous trading day and 

which have national average daily 

volume that equals or exceeds 1,000 

contracts per day as determined by The 

Options Clearing Corporation (‘‘OCC’’) 

during the preceding three calendar 

months. The Exchange also proposes to 

limit the listing of $.50 strike prices to 


emcdonald on DSK2BSOYB1PROD with NOTICES