30346 Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices 

4Exchange Rule 515(n)(C)(1). 

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

6CBOE Rule 8.7(b)(iv)(C). 

7 ISE Rule 803(b)(4). 

8 15 U.S.C. 78s(b)(1). 9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

conditions,’’ 4 such as those in the 

current environment. Nevertheless, OCX 

believes that for the integrity of the 

marketplace, that the $5 spread be 

codified. 

2. Statutory Basis 

The proposed rule change is 

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

Act 5 in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to protect investors 

and the public interest, and to remove 

impediments to and perfect the 

mechanism for a free and open market 

and a national market system. Further, 

this proposed rule change is nearly 

identical to those of the CBOE 6 and the 

ISE 7 and therefore under Section 

6(h)(3)(C), the requirements for listing 

standards and conditions for trading for 

security futures must ‘‘be no less 

restrictive than comparable listing 

standards for options traded on a 

national securities exchange * * *.’’ 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

OneChicago does not believe that the 

proposed rule change will have an 

impact on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Comments on the OneChicago 

proposed rule change have not been 

solicited and none has been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change will 

become effective on June 9, 2009. At any 

time within 60 days of the date of 

effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refilled in accordance 

with the provisions of Section 19(b)(1) 

of the Act.8

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–OC–2009–02 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–OC–2009–02. 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 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–OC–2009–02 and should be 

submitted on or before July 16, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14958 Filed 6–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60146; File No. SR–ISE– 

2009–32] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of Proposed Rule 

Change Relating to the Penny Pilot 

Program 

June 19, 2009. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on June 11, 

2009, the International Securities 

Exchange, LLC (‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission (the ‘‘SEC’’ or the 

‘‘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 

The ISE proposes to amend its rules 

relating to a pilot program to quote and 

to trade certain options in pennies. The 

text of the proposed rule change is as 

follows, with deletions in [brackets] and 

additions in italics: 

Rule 710. Minimum Trading 

Increments 

(a) The Board may establish minimum 

trading increments for options traded on 

the Exchange. Such changes by the 

Board will be designated as a stated 

policy, practice, or interpretation with 

respect to the administration of this 

Rule 710 within the meaning of 

subparagraph (3)(A) of Section 19(b) of 

the Exchange Act and will be filed with 

the SEC as a rule change for 

effectiveness upon filing. Until such 

time as the Board makes a change in the 

increments, the following principles 

shall apply: 

(1) if the options contract is trading at 

less than $3.00 per option, $.05; and 

(2) if the options contract is trading at 

$3.00 per option or higher, $.10. 

(b) Minimum trading increments for 

dealings in options contracts other than 

those specified in paragraph (a) may be 

fixed by the Exchange from time to time 

for options contracts of a particular 

series. 


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3See Securities Exchange Act Release No. 55161 

(January 24, 2007), 72 FR 4754 (February 1, 2007) 

(the ‘‘Initial Filing’’). The Penny Pilot Program was 

subsequently extended for an additional two month 

period, until September 27, 2007. See Securities 

Exchange Act Release No. 56151 (July 26, 2007), 72 

FR 42452 (August 2, 2007). 

4See Securities Exchange Act Release Nos. 56564 

(September 27, 2007), 72 FR 56412 (October 3, 

2007) and 57508 (March 17, 2008), 73 FR 15243 

(March 21, 2008). 5The Exchange will not include options classes 

in which the issuer of the underlying security is 

subject to an announced merger or is in the process 

of being acquired by another company, or if the 

issuer is in bankruptcy. For purposes of assessing 

national average daily volume, the Exchange will 

use data compiled and disseminated by the Options 

Clearing Corporation. 

6 ISE will also issue a Regulatory Information 

Circular, which will be published on its Web site, 

identifying the options classes added to the Penny 

Pilot Program. 

7For purposes of identifying the issues to be 

added per quarter, the Exchange shall use data from 

the prior six calendar months immediately 

preceding the implementation month. For example, 

the quarterly additions to be added on October 26, 

2009 shall be determined using data from the sixth 

month period ending September 30, 2009. 

(c) Notwithstanding the above, the 

Exchange may trade in the minimum 

variation of the primary market in the 

underlying security. 

Supplementary Material to Rule 710 

.01 Notwithstanding any other 

provision of this Rule 710, the Exchange 

will operate a pilot program to permit 

options classes to be quoted and traded 

in: [increments as low as $.01.] 

(a) $.01 increments if the options 

contract is trading at less than $1.00 per 

option; 

(b) $.05 increments if the options 

contract is trading between $1.00 and 

$3.00 per option; and 

(c) $.10 increments if the options 

contract is trading at higher than $3.00 

per option. 

The Exchange will specify which 

options trade in such pilot, and in what 

increments, in Regulatory Information 

Circulars filed with the Commission 

pursuant to Rule 19b–4 under the 

Exchange Act and distributed to 

Members. 

.02 No Change. 

* * * * * 

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 parts of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On January 24, 2007, the SEC 

approved ISE’s rule filing, SR–ISE– 

2006–62, which initiated a pilot 

program to quote and to trade certain 

options in penny increments (the 

‘‘Penny Pilot Program’’).3 Under the 

Penny Pilot Program, the minimum 

price variation for all participating 

options classes, except for the Nasdaq100 Index Tracking Stock (‘‘QQQQ’’), is 

$0.01 for all quotations in options series 

that are quoted at less than $3 per 

contract and $0.05 for all quotations in 

options series that are quoted at $3 per 

contract or greater. The QQQQs are 

quoted in $0.01 increments for all 

options series. Through subsequent 

expansions, the Penny Pilot now 

consists of 63 underlying securities.4

The Penny Pilot Program is scheduled 

to expire on July 3, 2009. ISE now 

proposes to extend the Penny Pilot 

Program through December 31, 2010. 

The Exchange also proposes to 

expand the number of issues included 

in the Penny Pilot Program to include 

the top 300 most actively traded 

multiply listed options classes that are 

not currently a part of the Penny Pilot 

Program. ISE is prepared to further 

expand the Penny Pilot Program to all 

ISE listed symbols at the end of the 

proposed extension, subject to the 

performance of the expanded pilot, as 

proposed by this rule change. 

Under this proposal, these additional 

classes will be determined based on 

their national average daily volume over 

a six month period immediately 

preceding their inclusion in the Penny 

Pilot Program.5 The Exchange notes that 

it will submit proposed rule changes 

pursuant to Rule 19b–4 under the 

Exchange Act announcing the names of 

the options classes selected to 

participate in the Penny Pilot Program.6

The Exchange represents that after the 

addition of the 300 options classes, as 

proposed under this rule change, it has 

the necessary system capacity to 

support the listing of additional series 

under the Penny Pilot Program. 

The Exchange proposes to extend the 

existing Penny Pilot Program until 

October 1, 2009 and then phase in the 

additional classes to the Penny Pilot 

Program over four successive quarters. 

Specifically, the Exchange proposes to 

add 35 classes in October 2009 and in 

January 2010 followed by an additional 

115 classes both in April 2010 and in 

July 2010, each group to be effective for 

trading on the Monday ten days after 

Expiration Friday. Thus, the quarterly 

additions would be effective on October 

26, 2009; January 25, 2010; April 26, 

2010; and July 26, 2010.7 The above 

roll-out schedule contemplates the 

launch of the new Linkage Plan, which 

is scheduled to occur on August 31, 

2009. ISE believes that the new Linkage 

Plan should be implemented before the 

current Penny Pilot Program is 

expanded because intermarket sweep 

orders (ISOs) will be available in the 

new Linkage Plan, which will allow 

market participants to access 

simultaneously better priced quotations 

across all options exchanges. 

During the course of the Penny Pilot 

Program, ISE has thoroughly analyzed 

the impact of trading options in penny 

increments. ISE has also submitted 

reports to the SEC describing its 

findings. For the most part, the Penny 

Pilot Program has continued without 

any operational issues. The quoted 

spread tightened in the year following 

introduction of pennies, but widened 

for phase 1 and 2 symbols in the past 

six months. The size available at the 

BBO, however, has decreased 

significantly since the start of the Penny 

Pilot Program, while trading volume has 

increased. 

Despite the increase in the number of 

quotes that is in large part attributed to 

the Penny Pilot Program, ISE is 

supportive of an expanded Penny Pilot 

Program but one that is measured. 

Quoting options in penny increments 

also significantly increases quotation 

traffic and imposes significant costs on 

exchanges, market makers and other 

market participants. Thus, ISE believes 

that a focused expansion where there 

would be the most benefit is the 

responsible and prudent way to 

proceed. Accordingly, ISE proposes to 

expand the Penny Pilot Program by 

adopting three ‘‘breakpoints,’’ as 

follows: 

• $0.01 increments for options 

contracts trading at less than $1.00 per 

option; 

• $0.05 increments for options 

contracts trading between $1.00 and 

$3.00 per option; and 

• $0.10 increments for options 

contracts trading higher than $3.00 per 

option. 

ISE believes an expansion with these 

tiers will allow the industry to manage 

the large number of quotes generated in 

high-priced series that have little, if any, 

trading volume, and which thus far have 

been excluded from the Penny Pilot 


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30348 Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices 

Program due to their high quotation 

rates. If these options were migrated to 

pennies indiscriminately, the number of 

quotes sent to OPRA for these series 

would double. By retaining these tiers, 

ISE believes that the number of quotes 

generated by high priced series will be 

manageable and adequate liquidity will 

be maintained in higher priced option 

series. ISE’s proposal would also apply 

to the QQQQs, which are currently 

quoted in $0.01 increments for all 

options series. 

The Penny Pilot Program generally 

has been beneficial to retail investors 

and ISE believes its proposal would 

preserve the benefits of penny trading 

for lower-priced, more retail-oriented 

contracts. Institutional investors, on the 

other hand, have been disadvantaged 

with the lack of liquidity at the inside 

in the classes that are currently in the 

pilot and the Exchange believes its 

proposal will serve to increase the 

displayed liquidity for options trading 

above $1.00. 

As proposed in the Initial Filing, ISE 

represents that options trading in penny 

increments will not be eligible for split 

pricing, as permitted under ISE Rule 

716. In the Initial Filing, the Exchange 

also made references to quote mitigation 

strategies that are currently in place and 

proposed to apply them to the Penny 

Pilot Program. The Exchange proposes 

to continue applying those quote 

mitigation strategies during the 

extension of the Penny Pilot Program, as 

contemplated by this rule filing. 

Specifically, as proposed in Rule 804, 

ISE will continue to utilize a holdback 

timer that delays quotation updates for 

up to, but not longer than, one second. 

The Exchange’s monitoring and 

delisting policies, as proposed in the 

Initial Filing, shall also continue to 

apply. 

The Exchange agrees to submit semiannual reports to the Commission 

analyzing the Penny Pilot Program for 

the following time periods: 

• July 1, 2009–December 31, 2009. 

• January 1, 2010–June 30, 2010. 

• July 1, 2010–December 31, 2010. 

The Exchange anticipates its report 

will analyze the impact of penny pricing 

on market quality and options system 

capacity. The Exchange will submit the 

report within one month following the 

end of the period being analyzed. 

ISE believes in a measured extension 

and expansion of the Penny Pilot 

Program. A properly thought out plan 

will serve to benefit public customers by 

providing them with penny quoting and 

trading in a greater number of actively 

traded securities. While an expansion of 

the Penny Pilot Program will lead to 

greater quotation traffic and confront 

exchanges with systems capacity issues, 

the Exchange believes that the benefits 

of the Penny Pilot Program outweigh 

these costs. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Exchange 

Act’’) for this proposed rule change is 

found in Section 6(b)(5), in that the 

proposed rule change is designed to 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system and, in general, to protect 

investors and the public interest. In 

particular, the proposed rule change 

allows for a measured expansion of the 

Penny Pilot Program for the benefit of 

market participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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. In 

addition, the Commission seeks 

comment on the following issues: 

1. The Commission requests comment 

specifically on the extent and cost of the 

impact, if any, to market participants’ 

technological systems and platforms to 

accommodate ISE’s proposed change in 

breakpoints for option classes included 

in the Penny Pilot. 

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–ISE–2009–32 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–ISE–2009–32. 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 the filing will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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–ISE– 

2009–32 and should be submitted on or 

before July 16, 2009. 


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Federal Register / Vol. 74, No. 121 / Thursday, June 25, 2009 / Notices 30349 

8 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. 59956 (May 21, 

2009), 74 FR 25782 (May 29, 2009) (SR– 

NYSEAmex-2009–15) (Order Granting Accelerated 

Approval of Proposed Rule Change, as Modified by 

Amendment No. 1, Amending Rule 935NY—Order 

Exposure Requirements to Reduce the Exposure 

Periods from Three Seconds to One Second). 

4See Exchange Act Release No. 59557 (March 11, 

2009), 74 FR 11389 (March 17, 2009) (SR– 

NASDAQ–2009–017). 

5A Firm ID is a 5 character identification code 

(letters and/or numbers) Each ATP Holder is 

assigned its own unique Firm ID. 

6The Chicago Board Options Exchange (‘‘CBOE’’) 

also allows attributable orders. See Exchange Act 

Release No, 58394 (August 20, 2008), 73 FR 50379 

(August 26, 2008) (SR–CBOE–2008–85) (Notice of 

Filing and Immediate Effectiveness of a Proposed 

Rule Change Adopting A New Order Type). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–14959 Filed 6–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60140; File No. SR– 

NYSEAmex-2009–27] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to WAIT 

Modifiers, PNP Plus Orders, and 

Attributable Orders 

June 18, 2009. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on June 8, 

2009, NYSE Amex LLC (‘‘NYSE Amex’’ 

or the ‘‘Exchange’’) 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 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 

Rule 900.3NY to (i) offer the ‘‘WAIT’’ 

order modifier for use with orders 

entered into the NYSE Amex System; 

(ii) allow the use of attributable orders 

(iii) offer PNP Plus orders. The WAIT 

modifier is designed to enhance 

compliance with the order exposure 

requirement of NYSE Amex Rule 

935NY. Attributable orders allow users 

to voluntarily display their firm IDs on 

the orders. PNP Plus orders allow Users 

greater control over the circumstances of 

order execution. The text of the 

proposed rule change is attached as 

Exhibit 5 to the 19b–4 form. A copy of 

this filing is available on the Exchange’s 

Web site at http://www.nyse.com, 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

WAIT Orders 

On May 21, 2009, the Securities and 

Exchange Commission approved NYSE 

Amex’s proposal to reduce the order 

exposure requirement of Rule 935NY 

from three seconds to one second.3 Rule 

935NY prohibits Users from executing 

as principal orders they represent as 

agent unless (i) agency orders are first 

exposed on the Exchange for at least one 

(1) second or (ii) the User has been 

bidding or offering on the Exchange for 

at least one (1) second prior to receiving 

an agency order that is executable 

against such bid or offer. This Rule 

insures that a User does not gain at the 

expense of customers by depriving them 

of the opportunity to interact with 

orders in the NYSE Amex System. 

Users that enter agency orders into the 

NYSE Amex System have noted the 

proposal by the NASDAQ Options 

Market (‘‘NOM’’) for a WAIT order 

modifier,4 and have asked the Exchange 

to develop an automated mechanism 

that permits them to enter orders into 

the NYSE Amex System as soon as the 

orders are received but that also 

prevents them from interacting with 

their own agency orders in violation of 

the order exposure requirement. NYSE 

Amex believes this is an efficient use of 

resources because it will allow NYSE 

Amex to program its System once rather 

than have multiple Users re-program 

their systems. 

In order to accomplish that request, 

NYSE Amex has developed the ‘‘WAIT’’ 

modifier which can be appended to an 

order prior to entry into the NYSE Amex 

System. The WAIT modifier will 

instruct the System to wait precisely 

one second from the time of order entry 

before processing the order in 

accordance with the other instructions 

attached to that order. Upon expiration 

of the one-second WAIT period, the 

System will time stamp, route, display, 

or execute the order in accordance with 

the entering party’s other order entry 

instructions. Thus, the WAIT modifier 

does not affect the existing display, 

routing, or execution priorities of the 

NYSE Amex System or any other 

obligations of Users as set forth in the 

NYSE Amex rules. 

Orders designated with the WAIT 

modifier are independent of all other 

orders, including an agency order that is 

being exposed pursuant to Rule 935NY. 

WAIT orders are not associated or in 

any way linked to another order entered 

into the System, as is the case with 

certain facilitation orders at other 

options exchanges. The System will 

process the WAIT order even if a 

customer order entered into the System 

simultaneously with the WAIT order 

has been executed or cancelled during 

the WAIT second, unless the WAIT 

order itself is modified or cancelled 

pursuant to System rules. As a result, 

there is no guarantee that an order 

designated as WAIT will execute against 

another specific order. Use of the WAIT 

modifier is completely voluntary. 

Attributable Orders 

The Exchange proposes to modify 

Rule 900.3NY (Orders Defined) to allow 

for the submission of attributable orders. 

These orders allow users to voluntarily 

display their firm IDs on the orders.5

The NASDAQ Options Market, LLC 

(‘‘NOM’’) currently allows its 

participants to submit attributable 

orders (See NOM Chapter VI, Section 

(1)(d)(1)).6 As proposed, the Exchange 

may limit the processes for which 

attributable orders will be available. 

This proposal is responsive to requests 

by Exchange Users who believe that 

enhanced executions may be obtained if 

Firm ID is allowed on orders (on a 

voluntary basis). 


sroberts on PROD1PC70 with NOTICES