Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices 65541 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(6). 

12 15 U.S.C. 78s(b)(3)(A). 

13 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 Exchange 

has satisfied this requirement. 

14For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

15See Securities Exchange Act Release No. 61807 

(March 31, 2010), 75 FR 17818 (April 7, 2010) (SR– 

NYSE–Amex–2010–09). 

16The Commission notes that this proposed rule 

change only permits trading of products under the 

proposed modifications to Exchange Rule 8.500 on 

and after the effective date of this filing and does 

not relate to any trading under such proposed rules 

prior to such date. 

17The text of the proposed rule change is 

available on the Commission’s Web site at 

www.sec.gov. 

18 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 62799 

(August 25, 2010), 75 FR 54662 (‘‘Notice’’). 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 10 and Rule 

19b–4(f)(6) thereunder.11 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 12 and Rule 19b–4(f)(6)(iii) 

thereunder.13

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay so that 

the Exchange can trade, on a UTP basis, 

shares of the Fund immediately. The 

Exchange believes that the immediate 

trading of shares of the Fund will 

promote competition among exchange 

markets trading such shares. The 

Commission believes that waiving the 

30-day operative delay to permit the 

Exchange to trade, on a UTP basis, 

shares of the Fund without delay is 

consistent with the protection of 

investors and the public interest.14 The 

Commission notes that the proposed 

amendments to NYSE Arca Equities 

Rule 8.500 are similar to amendments to 

NYSE Amex Rule 1600, previously 

approved by the Commission 15 and 

therefore do not raise any new 

regulatory issues. For these reasons, the 

Commission designates the proposed 

rule change as operative upon filing.16

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 

No. SR–NYSEArca–2010–91 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–NYSEArca–2010–91. 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 NYSE 

Arca.17 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–NYSEArca–2010–91 and should be 

submitted on or before November 15, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26806 Filed 10–22–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63132; File No. SR–Phlx– 

2010–118] 

Self-Regulatory Organizations; Order 

Approving Proposed Rule Change by 

NASDAQ OMX PHLX, Inc. To Expand 

the $.50 Strike Price Program 

October 19, 2010. 

On August 25, 2010, NASDAQ OMX 

PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (the ‘‘Act’’) 2 and 

Rule 19b–4 thereunder,3 a proposed rule 

change to expand the Exchange’s $.50 

Strike Price Program (‘‘$0.50 Strike 

Program’’ or ‘‘Program’’). The proposed 

rule change was published for comment 

in the Federal Register on September 8, 

2010.4 There were no comments on the 

proposed rule change. This order 

approves the proposed rule change. 

The Exchange proposes to amend 

Commentary .05 to Exchange Rule 1012, 

Series of Options Open for Trading, 


emcdonald on DSK2BSOYB1PROD with NOTICES
65542 Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices 

5See Exchange Rule 1012, Commentary 

.05(a)(i)(B) referring to the $1 Strike Program. 

6 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

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

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

regarding the $.50 Strike Program to: (i) 

Expand the permitted price range of the 

$.50 Strike Program from $1.00–$3.50 to 

$0.50–$5.50; (ii) raise the threshold of 

the previous day’s closing price of the 

underlying security from $3.00 to $5.00; 

and (iii) expand the number of options 

classes permitted under the Program 

from 5 to 20. 

Currently, Commentary .05 to 

Exchange Rule 1012 permits strike price 

intervals of $.50 or greater beginning at 

$1.00 where the strike price is $3.50 or 

less, but only for option classes whose 

underlying security closed at or below 

$3.00 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 during the 

preceding three calendar months. 

Further, the listing of $.50 strike prices 

is limited to options classes overlying 

no more than 5 individual stocks as 

specifically designated by the Exchange. 

The Exchange is currently restricted 

from listing series with $1 intervals 

within $0.50 of an existing strike price 

in the same series, except that strike 

prices of $2, $3, and $4 shall be 

permitted within $0.50 of an existing 

strike price for classes also selected to 

participate in both the $0.50 Strike 

Program and the $1 Strike Program.5

The Exchange also proposes a 

corresponding amendment to 

Commentary .05(a)(i)(B) of Exchange 

Rule 1012 to add $5 to the list of strike 

prices permitted within $0.50 of an 

existing strike price in the same series 

for classes selected for both programs. 

In its filing with the Commission, the 

Exchange stated that the number of $.50 

strike options traded on the Exchange 

has continued to increase since the 

inception of the Program. The Exchange 

stated that the proposal would expand 

$.50 strike offerings to market 

participants and thereby should 

enhance their ability to tailor investing 

and hedging strategies and 

opportunities in a volatile marketplace. 

The Exchange further stated that it 

believes an expansion of the $.50 Strike 

Program would allow investors to better 

enhance returns and manage risk by 

providing them with significantly 

greater flexibility in the trading of 

equity options that overlie lower price 

stocks by allowing them to establish 

equity options positions that are better 

tailored to meet their investment, 

trading and risk. In addition, the 

Exchange represented that $0.50 strikes 

have had no impact on capacity. 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.6 In 

particular, the Commission believes that 

the proposed rule change is consistent 

with Section 6(b)(5) of the Act,7 which 

requires, among other things, that the 

rules of a national securities exchange 

be 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. 

Specifically, the Commission believes 

that the proposal to expand the $.50 

Strike Program should provide investors 

with added flexibility in the trading of 

equity options and further the public 

interest by allowing investors to 

establish equity options positions that 

are better tailored to meet their 

investment objectives. The Commission 

also believes that the proposal strikes a 

reasonable balance between the 

Exchange’s desire to accommodate 

market participants by offering a wider 

array of investment opportunities and 

the need to avoid unnecessary 

proliferation of options series and the 

corresponding increase in quotes. The 

Commission expects that the Exchange 

will monitor the trading volume 

associated with the additional options 

series listed as a result of this proposal 

and the effect of these additional series 

on market fragmentation and on the 

capacity of the Exchange’s, OPRA’s and 

vendors’ automated systems. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–Phlx–2010– 

118) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26827 Filed 10–22–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63130; File No. SR– 

NYSEAmex–2010–52] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Commentary 

.02 of Rule 903G To Permit Certain 

FLEX Options To Trade Under the 

FLEX Trading Procedures for a Limited 

Time 

October 19, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on October 

5, 2010, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Commentary .02 of Rule 903G, Terms of 

FLEX Options, to permit certain FLEX 

Options to trade under the FLEX 

Trading Procedures for a limited time. 

The text of the proposed rule change is 

available at the Exchange’s Web site at 

http://www.nyse.com, on the 

Commission’s Web site at http:// 

www.sec.gov, at the Exchange’s 

principal office, 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. 


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