Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices 65545 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 63104 (October 

14, 2010) approving SR–ISE–2010–91. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26826 Filed 10–22–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63133; File No. SR– 

NYSEArca–2010–93] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Arca, Inc. To Establish a Pilot Program 

To List Series With Additional 

Expiration Months for Each Class of 

Options Opened for Trading on the 

Exchange 

October 19, 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 

18, 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ 

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 adopt 

Commentary .09 to NYSE Arca Options 

Rule 6.4 to establish a Pilot Program to 

list additional expiration months for 

each class of options opened for trading 

on the Exchange. The text of the 

proposed rule change is available at the 

Exchange, on the Commission’s Web 

site at http://www.sec.gov, at the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to adopt a 

Pilot Program to list additional 

expiration months for each class of 

options opened for trading on the 

Exchange, similar to a Pilot Program 

recently approved for use by the 

International Securities Exchange, Inc. 

(‘‘ISE’’),3 by adding proposed 

Commentary .09 to NYSE Arca Options 

Rule 6.4, Series of Options Open for 

Trading. 

Pursuant to NYSE Arca Rule 6.4(a), 

the Exchange currently opens 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 for that specific 

class. For example, if the Exchange 

listed in late May a new equity option 

on a January-April-July-October 

quarterly cycle, the Exchange would list 

the two nearest term months (June and 

July) and the next two months of the 

cycle (October and January). When the 

June series expires, the Exchange would 

add the August series as the next nearest 

month. And when the July series 

expires, the Exchange would add the 

September series. 

The Exchange believes that there is 

market demand for a greater number of 

expiration months. The Exchange 

therefore proposes to adopt a Pilot 

Program pursuant to which it will list 

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 a period of twelve months 

to commence on the next full month 

after approval is received to establish 

the pilot program. Under the proposal, 

the additional months listed pursuant to 

the pilot program will result in four 

consecutive expiration months plus two 

months from the quarterly cycle. For 

example, for option classes in the 

January cycle that have expiration 

months of June, July, October, and 

January, the Exchange would 

additionally list the August and 

September series. For options classes in 

the February quarterly cycle that have 

expiration months of October, 

November, February, and May, the 

Exchange would additionally list the 

December and January series. Under the 

proposal, no additional LEAP Series 

will be created. 

The Exchange seeks to limit the 

proposed rule change to 20 actively 

traded options classes. By limiting the 

pilot to a small number of classes, the 

Exchange will be able to gauge interest 

in the pilot while limiting any 

additional demands on system 

resources. It has been estimated that this 

pilot could add up to six or seven 

percent to current quote traffic, although 

changes in market maker quoting 

behavior may reduce that increase by up 

to half. The Exchange believes that a 

limited pilot is a prudent step to 

determine actual market demand for 

additional expiration months. 

If the Exchange were to propose an 

extension or an expansion of the pilot 

program, or should the Exchange 

propose to make the pilot program 

permanent, NYSE Arca will submit, 

along with any filing proposing such 

amendments to the pilot program, a 

pilot program report (‘‘Report’’) that will 

provide an analysis of the Pilot Program 

covering the first nine months of the 

pilot program and shall submit the 

Report to the Commission at least sixty 

(60) days prior to the expiration date of 

the pilot program. The Report will 

include, at a minimum: (1) Data and 

written analysis on the open interest 

and trading volume in the classes for 

which additional expiration months 

were opened; (2) an assessment of the 

appropriateness of the options classes 

selected for the pilot program; (3) an 

assessment of the impact of the pilot 

program on the capacity on NYSE Arca, 

OPRA, and on market data vendors (to 

the extent data from market data 

vendors is available); (4) any capacity 

problems or other problems that arose 

during the operation of the pilot 

program and how NYSE Arca addressed 

such problems; (5) any complaints that 

NYSE Arca received during the 

operation of the pilot program and how 

NYSE Arca addressed them; and (6) any 

additional information that would assist 

the Commission in assessing the 

operation of the Pilot Program. 

Finally, the Exchange represents that 

it has the necessary systems capacity to 

support new options series that will 

result from the introduction of 

additional expiration months listed 

pursuant to this proposed rule change. 


emcdonald on DSK2BSOYB1PROD with NOTICES
65546 Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices 

4 15 U.S.C. 78f(b). 

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

6 15 U.S.C. 78s(b)(3)(A). 

7 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. 

8See supra note 3. 

9For 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). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The text of the proposed rule change is attached 

as Exhibit 5 to NSCC’s filing and is available at 

http://www.dtcc.com/downloads/legal/rule_filings/ 

2010/nscc/2010-11.pdf. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 4

(the ‘‘Act’’) in general, and furthers the 

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

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. In 

particular, the Exchange believes listing 

additional near-term expiration months 

will offer investors more variety in 

trading options series that were 

previously not available. The Exchange 

believes this proposal will also generate 

additional volume in these options 

classes without significantly taxing 

system resources. 

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 with respect to the proposed 

rule change. 

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 6 and Rule 19b– 

4(f)(6) thereunder.7

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is substantially 

similar to that of another exchange that 

has been approved by the Commission.8

Therefore, the Commission designates 

the proposal operative upon filing.9

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–NYSEArca–2010–93 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–NYSEArca–2010–93. 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– 

NYSEArca–2010–93 and should be 

submitted on or before November 15, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26926 Filed 10–22–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63126; File No. SR–NSCC– 

2010–11] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing of 

Proposed Rule Change To Enhance 

the Reconfirmation and Pricing 

Service, Including the Creation of the 

Obligation Warehouse 

October 18, 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 

5, 2010, the National Securities Clearing 

Corporation (‘‘NSCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

primarily by NSCC.3 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 purpose of this proposed rule 

change is to enhance the Reconfirmation 

and Pricing Service (‘‘RECAPS’’) process, 


emcdonald on DSK2BSOYB1PROD with NOTICES