34806 Federal Register / Vol. 74, No. 136 / Friday, July 17, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 56086 

(July 17, 2007), 72 FR 40182 (July 23, 2007) (SR– 

Room 10230, New Executive Office 

Building, Washington, DC 20503. 

Charles Mierzwa, 

Clearance Officer. 

[FR Doc. E9–16968 Filed 7–16–09; 8:45 am] 

BILLING CODE 7905–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 11785 and # 11786] 

South Dakota Disaster Number SD– 

00023 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of South Dakota (FEMA–1844– 

DR), dated 06/16/2009. 

Incident: Severe Storms and Flooding. 

Incident Period: 03/11/2009 through 

07/06/2009. 

Effective Date: 07/06/2009. 

Physical Loan Application Deadline 

Date: 08/17/2009. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 03/16/2010. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of South 

Dakota, dated 06/16/2009, is hereby 

amended to establish the incident 

period for this disaster as beginning 03/ 

11/2009 and continuing through 07/06/ 

2009. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. E9–17120 Filed 7–16–09; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #11787 and #11788] 

Arkansas Disaster Number AR–00032 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Arkansas (FEMA–1845–DR), 

dated 06/16/2009. 

Incident: Severe Storms, Tornadoes, 

and Flooding. 

Incident Period: 04/27/2009 through 

05/23/2009. 

Effective Date: 05/23/2009. 

Physical Loan Application Deadline 

Date: 08/17/2009. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 03/16/2010. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of Arkansas, 

dated 06/16/2009, is hereby amended to 

establish the incident period for this 

disaster as beginning 04/27/2009 and 

continuing through 05/23/2009. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

Roger B. Garland, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. E9–17115 Filed 7–16–09; 8:45 am] 

BILLING CODE 8025–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60270; File No. SR–BX– 

2009–037] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Make 

Permanent the Quarterly Options 

Series Pilot Program on the Boston 

Options Exchange Facility 

July 9, 2009. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on July 9, 

2009, NASDAQ OMX BX, Inc. (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 Exchange filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act,3 and Rule 

19b–4(f)(6) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. 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 the 

Rules of the Boston Options Exchange 

Group, LLC (‘‘BOX’’) to make permanent 

its Quarterly Option Series pilot 

program (‘‘QOS Program’’). The text of 

the proposed rule change is available 

from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

Phlx 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. Phlx 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 is proposing to make 

the QOS Program permanent. On July 

17, 2007, the Exchange filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) SR–BSE–2007–36, 

which was effective on filing and 

established the QOS Program.5 The QOS 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 136 / Friday, July 17, 2009 / Notices 34807 

BSE–2007–36). The QOS Program has since been 

extended and is currently scheduled to expire on 

July 10, 2009. See Securities Exchange Act Release 

No. 58131 (July 9, 2008), 73 FR 41138 (July 17, 

2008) (SR–BSE–2008–37) (Immediately effective 

rule change extending the QOS Program through 

July 10, 2009). 

6See Securities Exchange Act Release No. 57594 

(April 1, 2008), 73 FR 18828 (April 7, 2008) (SR– 

BSE–2008–17) (Amended QOS Program to permit 

the listing of additional Quarterly Option Series in 

ETF options). 7 Id. 

8See Securities Exchange Act Release No. 58996 

(November 21, 2008), 73 FR 72878 (December 1, 

2008) (SR–BSE–2008–55) (temporary increase to the 

number of additional Quarterly Options Series in 

ETF options). 

Program allows BOX to list and trade 

Quarterly Option Series, which expire at 

the close of business on the last 

business day or a calendar quarter. 

Under the QOS Program, BOX may 

select up to five (5) currently listed 

exchange traded fund (‘‘ETF’’) or index 

option classes on which Quarterly 

Option Series may be opened. In 

addition, BOX may also list Quarterly 

Option Series on any options classes 

that are selected by other securities 

exchanges that employ a similar pilot 

program under their respective rules. 

The Exchange may list series that expire 

at the end of the next consecutive four 

(4) calendar quarters, as well as the 

fourth quarter of the next calendar year. 

For example, if the Exchange is trading 

Quarterly Options Series in the month 

of May 2009, it may list series that 

expire at the end of the second, third, 

and fourth quarters of 2009, as well as 

the first and fourth quarters of 2010. 

Following the second quarter 2009 

expiration, the Exchange could add 

series that expire at the end of the 

second quarter of 2010. 

Quarterly Option Series are P.M. 

settled. 

Quarterly Option Series in ETF Options 

If an ETF option is selected for 

participation in the QOS Program, the 

strike price of each Quarterly Option 

Series is fixed at a price per share, with 

at least two strike prices above and two 

strike prices below the approximate 

value of the underlying security at about 

the time the Quarterly Options Series is 

opened for trading on the Exchange. 

BOX shall list strikes prices for a 

Quarterly Option series that are within 

$5 from the closing price of the 

underlying on the preceding day. 

The Exchange may open for trading 

additional Quarterly Options Series of 

the same class when the Exchange 

deems is necessary to maintain an 

orderly market, to meet customer 

demand or when the market price of the 

underlying security moves substantially 

from the initial exercise price or prices. 

To the extent that any additional strike 

prices are listed by the Exchange, such 

additional strike prices shall be within 

thirty percent (30%) above or below the 

closing price of the underlying ETF on 

the preceding day.6 The Exchange may 

also open additional strike prices of 

Quarterly Option Series in ETF options 

that are more than 30% above or below 

the current price of the underlying ETF 

provided that demonstrated customer 

interest exists for such series, as 

expressed by institutional, corporate or 

individual customers or their brokers. 

Market Makers trading for their own 

account shall not be considered when 

determining customer interest under 

this provision. The opening of the new 

Quarterly Options Series shall not affect 

the series of options of the same class 

previously opened. In addition to the 

initial listed series, the Exchange may 

list up to sixty (60) additional series per 

expiration month for each Quarterly 

Options Series in ETF options. 

The interval between strike prices on 

Quarterly Options Series shall be the 

same as the interval for strike prices for 

series in that same options class that 

expire in accordance with the normal 

monthly expiration cycle. 

The Exchange has adopted a delisting 

policy with respect to QOS in ETF 

options.7 On a monthly basis, the 

Exchange reviews series that are outside 

a range of five (5) strikes above and five 

(5) strikes below the current price of the 

underlying ETF, and delists series with 

no open interest in both the put and the 

call series having a: (i) Strike higher 

than the highest strike price with open 

interest in the put and/or call series for 

a given expiration month; and (ii) strike 

lower than the lowest strike price with 

open interest in the put and/or call 

series for a given expiration month. 

Notwithstanding the delisting policy, 

customer requests to add strikes and/or 

maintain strikes in QOS in ETF options 

in series eligible for delisting shall be 

granted. 

Further, in connection with the 

delisting policy, if the Exchange 

identifies series for delisting, the 

Exchange shall notify other options 

exchanges with similar delisting 

policies regarding eligible series for 

listing, and shall work with such other 

exchanges to develop a uniform list of 

series to be delisted, so as to ensure 

uniform series delisting of multiply 

listed QOS in ETF options. 

During the last quarter of 2008 (and 

for the new expiration month added 

after December Quarterly Option Series 

expiration), the Exchange was permitted 

to list up to one hundred (100) 

additional series per expiration month 

for each Quarterly Options Series in 

ETF options.8

Quarterly Option Series in Index 

Options 

If an index option is selected for 

participation in the QOS Program, the 

strike price of each Quarterly Option 

Series will be fixed at a price per share, 

with at least two, but no more than five, 

strike prices above and at least two, but 

no more than five, strike prices below 

the value of the underlying index at 

about the time that a Quarterly Options 

Series is opened for trading on the 

Exchange. The Exchange shall list strike 

prices for Quarterly Options Series that 

are reasonably related to the current 

index value of the underlying index to 

which such series relates at about the 

time such series of options is first 

opened for trading on the Exchange. The 

term ‘‘reasonably related to the current 

index value of the underlying index’’ 

means that the exercise price is within 

thirty percent (30%) of the current 

index value. 

The Exchange may open for trading 

additional Quarterly Options Series of 

the same class when the Exchange 

deems it necessary to maintain an 

orderly market, to meet customer 

demand or when the market price of the 

underlying security moves substantially 

from the initial exercise price or prices. 

The Exchange may also open for trading 

additional Quarterly Options Series that 

are more than thirty percent (30%) of 

the current index value, provided that 

demonstrated customer interest exists 

for such series, as expressed by 

institutional, corporate, or individual 

customers or their brokers. Market 

Makers trading for their own account 

shall not be considered when 

determining customer interest under 

this provision. 

The Exchange may open additional 

strike prices of a Quarterly Option 

Series that are above the value of the 

underlying index provided that the total 

number of strike prices above the value 

of the underlying index is no greater 

than five. The Exchange may open 

additional strike prices of a Quarterly 

Option Series that are below the value 

of the underlying index provided that 

the total number of strike prices below 

the value of the underlying index is no 

greater than five. The opening of any 

new Quarterly Option Series shall not 

affect the series of options of the same 

class previously opened. 

The Exchange has selected the 

following five ETF option classes to 

participate in the QOS Program: 

DIAMONDS Trust (DIA) options, 

Standard and Poor’s Depositary 

mstockstill on DSKH9S0YB1PROD with NOTICES

34808 Federal Register / Vol. 74, No. 136 / Friday, July 17, 2009 / Notices 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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. 

13See Securities Exchange Act Release No. 60164 

(June 23, 2009), 74 FR 31333 (June 30, 2009) (SR– 

CBOE–2009–029) (approving the quarterly options 

series program on a permanent basis). 

14For 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). 

Receipts/SPDRs (SPY) options, iShares 

Russell 2000 Index Fund (IWM) options, 

PowerShares QQQ Trust (QQQQ) 

options and Energy Select SPDR (XLE) 

options. The Exchange believes the QOS 

Program has been successful and well 

received by BOX Participants and the 

investing public for the nearly two years 

that it has been in operation as a pilot 

on BOX. 

The Exchange is now proposing to 

make the QOS Program permanent. In 

support of approving the QOS Program 

on a permanent basis, BOX has 

submitted to the Commission Pilot 

Program Reports (‘‘Reports’’) detailing 

the Exchange’s experience with the QOS 

Program. Specifically, the Reports 

contain data and written analysis 

regarding the five ETF option classes 

included in the QOS Program. The 

Reports have been submitted under 

separate cover with confidential 

treatment requested under the Freedom 

of Information Act. 

The Exchange believes there is 

sufficient investor interest and demand 

in the QOS Program to warrant its 

permanent approval. The Exchange 

believes that, for the nearly three [sic] 

years that it has been in operation in the 

options markets, the QOS Program has 

provided investors with additional 

means of managing their risk exposures 

and carrying out their investment 

objectives. Furthermore, the Exchange 

has not experienced any capacityrelated problems with respect to 

Quarterly Option Series. The Exchange 

also represents that BOX has the 

necessary system capacity to continue to 

support the option series listed under 

the QOS Program. 

In seeking permanent approval, the 

Exchange is taking this opportunity to 

update the expiration examples 

provided in Supplementary Material .04 

to Chapter IV, Section 6 and 

Supplementary Material .01 to Chapter 

XIV, Section 10. The revisions do not 

change the substance of the QOS 

Program. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,9

in general, and Section 6(b)(5) of the 

Act,10 in particular, in that it is designed 

to foster cooperation and coordination 

with persons engaged in regulating, 

clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that permanent approval of the QOS 

Program will result in an ongoing 

benefit to investors, and will continue to 

allow them additional means to manage 

their risk exposures and carry out their 

investment objectives. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

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 neither solicited 

nor received comments on 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: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

The Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the Exchange can 

permanently establish a Quarterly 

Options Series Program that is 

consistent with those of other options 

exchanges.13 In addition, the 

Commission notes that the Exchange’s 

QOS Program currently is scheduled to 

expire on July 10, 2009. The 

Commission therefore has determined 

that waiving the 30-day operative delay 

of the Exchange’s proposal is consistent 

with the protection of investors and the 

public interest because such waiver will 

enable the Exchange to permanently 

establish the QOS program without 

disruption.14 Therefore, the 

Commission designates the proposal 

operative upon filing. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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–BX–2009–037 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–BX–2009–037. 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 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 136 / Friday, July 17, 2009 / Notices 34809 

15 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 No. 54113 

(July 7, 2006); 71 FR 39694 (July 13, 2006) (SR–ISE– 

2006–24) (the ‘‘Quarterly Options Series Pilot 

Program Approval Order’’). The Quarterly Options 

Series Program has since been extended and is 

currently scheduled to expire on July 10, 2009. See 

Securities Exchange Act Release Nos. 56031 (July 9, 

2007), 72 FR 38637 (July 13, 2007) (SR–ISE–2007– 

53); 58019 (June 25, 2008), 73 FR 38014 (July 2, 

2008) (SR–ISE–2008–49). 

4See Securities Exchange Act Release No. 57425 

(March 4, 2008), 73 FR 12783 (March 10, 2008) (SR– 

ISE–2008–19). 

5 Id. 

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–BX–2009–037 and should 

be submitted on or before August 7, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–17002 Filed 7–16–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60275; File No. SR–ISE– 

2009–50] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Permanently Establish the 

Quarterly Options Series Pilot Program 

July 9, 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 July 8, 

2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange 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 Substance of 

the Proposed Rule Change 

The ISE is proposing to make 

permanent its quarterly options series 

pilot program and make minor changes 

to conform the program to that of other 

exchanges. The text of the proposed rule 

change is available on the Exchange’s 

Web site http://www.ise.com, at the 

Exchange’s Office of the Secretary, and 

at the Commission. 

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 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 is proposing to make 

permanent an ISE pilot program to list 

options series that would expire at the 

close of business on the last business 

day of a calendar quarter (‘‘Quarterly 

Options Series Program’’). On May 2, 

2006, the Exchange filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) SR–ISE–2006–24 to 

establish the Quarterly Options Series 

Program that was subsequently 

approved by the Commission on July 7, 

2006.3 Under the Quarterly Options 

Series Pilot Program, the Exchange is 

allowed to open up to five (5) currently 

listed options classes that are either 

index options or options on exchange 

traded funds (‘‘ETFs’’). The Exchange is 

also allowed to list Quarterly Options 

Series on any options class that is 

selected by other securities exchanges 

that employ a similar pilot program 

under their respective rules. 

The Exchange may list series that 

expire at the end of the next consecutive 

four (4) calendar quarters, as well as the 

fourth quarter of the next calendar year. 

For example, if the Exchange is trading 

Quarterly Options Series in the month 

of May 2009, it may list series that 

expire at the end of the second, third, 

and fourth quarters of 2009, as well as 

the first and fourth quarters of 2010. 

Following the second quarter 2009 

expiration, the Exchange could add 

series that expire at the end of the 

second quarter of 2010. 

Quarterly Option Series in ETF Options 

If an ETF option is selected for 

participation in the Quarterly Options 

Series Program, the strike price of each 

Quarterly Option Series is fixed at a 

price per share, with at least two strike 

prices above and two strike prices below 

the approximate value of the underlying 

security at about the time the Quarterly 

Options Series is opened for trading on 

the Exchange. ISE shall list strikes 

prices for a Quarterly Option series that 

are within $5 from the closing price of 

the underlying on the preceding day. 

The Exchange may open for trading 

additional Quarterly Options Series of 

the same class when the Exchange 

deems is necessary to maintain an 

orderly market, to meet customer 

demand or when the market price of the 

underlying security moves substantially 

from the initial exercise price or prices. 

To the extent that any additional strike 

prices are listed by the Exchange, such 

additional strike prices shall be within 

thirty percent (30%) above or below the 

closing price of the underlying ETF (or 

‘‘Exchange-Traded Fund Shares’’) as 

defined in Rule 502(h) on the preceding 

day.4 The Exchange may also open 

additional strike prices of Quarterly 

Option Series in ETF options that are 

more than 30% above or below the 

current price of the underlying ETF 

provided that demonstrated customer 

interest exists for such series, as 

expressed by institutional, corporate or 

individual customers or their brokers. 

Market-Makers trading for their own 

account shall not be considered when 

determining customer interest under 

this provision. The opening of the new 

Quarterly Options Series shall not affect 

the series of options of the same class 

previously opened. In addition to the 

initial listed series, the Exchange may 

list up to sixty (60) additional series per 

expiration month for each Quarterly 

Options Series in ETF options. 

The interval between strike prices on 

Quarterly Options Series shall be the 

same as the interval for strike prices for 

series in that same options class that 

expire in accordance with the normal 

monthly expiration cycle. 

The Exchange has adopted a delisting 

policy with respect to Quarterly Options 

Series in ETF options.5 On a monthly 

basis, the Exchange reviews series that 

are outside a range of five (5) strikes 

above and five (5) strikes below the 

current price of the underlying ETF, and 

delists series with no open interest in 

both the put and the call series having 

mstockstill on DSKH9S0YB1PROD with NOTICES