Federal Register / Vol. 74, No. 136 / Friday, July 17, 2009 / Notices 34811 

7 15 U.S.C. 78s(b)(3)(A). 

8 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. ISE has satisfied this requirement. 

9See 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). 

10For 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). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

‘‘Act’’) and the rules and regulations 

thereunder and, in particular, the 

requirements of section 6(b) of the Act. 

Specifically, the Exchange believes the 

proposed rule change is consistent with 

Section 6(b)(5) requirements that the 

rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, 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 

Quarterly Options Series Program will 

result in a continuing benefit to 

investors, by allowing them to more 

closely tailor their investment decisions. 

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 

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 19(b)(3)(A) 

of the Act 7 and Rule 19b–4(f)(6) 

thereunder.8

The Exchange requests 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.9 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.10 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–ISE–2009–50 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–2009–50. 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–ISE–2009–50 and should be 

submitted on or before August 7, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–17004 Filed 7–16–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60281; File No. SR–ISE– 

2009–49] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Extend a Pilot Program for 

Short Term Options Series 

July 10, 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. 

mstockstill on DSKH9S0YB1PROD with NOTICES

34812 Federal Register / Vol. 74, No. 136 / Friday, July 17, 2009 / Notices 

3See Securities Exchange Act Release No. 52012 

(July 12, 2005), 70 FR 41246 (July 18, 2005). 

4See Securities Exchange Act Release Nos. 54117 

(July 12, 2006), 71 FR 40564 (July 17, 2006); 56047 

(July 11, 2007), 72 FR 39106 (July 17, 2007). 

5See Securities Exchange Act Release No. 58020 

(June 25, 2008), 73 FR 38000 (July 2, 2008). 

6 15 U.S.C. 78(f)(b). 

7 15 U.S.C. 78(f)(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 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. ISE has satisfied this requirement. 

10For 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). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing to amend 

its rules to extend the Short Term 

Option Series Pilot Program (‘‘Pilot 

Program’’) for an additional year. 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’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 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 

On July 12, 2005, the Commission 

approved the Short Term Option Series 

Pilot Program (‘‘Pilot Program’’) that 

allows ISE to list and trade Short Term 

Option Series.3 Under the terms of the 

Pilot Program, the Exchange can select 

up to five options classes on which 

Short Term Option Series may be 

opened on any Short Term Option 

Series Opening Date. The Exchange is 

also allowed to list Short Term Option 

Series on any option class that is 

selected by other securities exchanges 

that employ a similar pilot program 

under their respective rules. 

The Pilot Program was subsequently 

extended 4 and the current Pilot 

Program is set to expire on July 12, 

2009.5 The purpose of this proposed 

rule change is to extend the Pilot 

Program for an additional one year. The 

Exchange believes that Short Term 

Option Series provides investors with a 

flexible and valuable tool to manage risk 

exposure, minimize capital outlays, and 

be more responsive to the timing of 

events affecting the securities that 

underlie option contracts. While ISE has 

not listed any Short Term Option Series 

during the Pilot Program, there has been 

investor interest in trading short-term 

options at the Chicago Board Options 

Exchange. For competitive reasons and 

in order to have the ability to respond 

to customer interest in Short Term 

Option Series, the Exchange proposes 

the continuation of the Pilot Program at 

ISE. 

In the original proposal to establish 

the Pilot Program, the Exchange stated 

that if it were to propose an extension 

or an expansion of the Pilot Program, 

the Exchange would submit, along with 

any filing proposing such amendments 

to the Pilot Program, a report (‘‘Pilot 

Program Report’’) that would provide an 

analysis of the Pilot Program covering 

the entire period during which the Pilot 

Program was in effect. Since the 

Exchange did not list any Short Term 

Option Series during the preceding year 

of the Pilot Program, there is no data 

available to compile such a report at this 

time. Therefore, the Exchange is not 

submitting a Pilot Program Report with 

this proposal. 

Finally, the Exchange represents that 

it has the necessary systems capacity to 

support the listing of Short Term 

Options Series should it determine to do 

so in the future. 

2. Statutory Basis 

The Exchange believes that Short 

Term Option Series increases the variety 

of listed options available to investors 

and provides investors with a valuable 

tool to manage risk exposure, minimize 

capital outlays and be more responsive 

to the timing of events affecting the 

securities that underlie options 

contracts. For these reasons, the 

Exchange believes the proposed rule 

change is consistent with Section 6(b) of 

the Act.6 Specifically, the Exchange 

believes the proposed rule change is 

consistent with Section 6(b)(5) 7

requirements that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, serve 

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. 

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 

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 19(b)(3)(A) 

of the Act 8 and Rule 19b–4(f)(6) 

thereunder.9

The Exchange has asked the 

Commission to waive the operative 

delay to permit the proposed rule 

change to become operative prior to the 

30th day after filing. The Commission 

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 and will promote competition 

because such waiver will allow ISE to 

continue the existing Pilot Program 

without interruption.10 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. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 136 / Friday, July 17, 2009 / Notices 34813 

11 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. 

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–2009–49 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–2009–49. 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–ISE–2009–49 and should be 

submitted on or before August 7, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–17006 Filed 7–16–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60283; File No. SR– 

NYSEAmex–2009–41] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending Its Option 

Trading Rules in Order To Adopt the 

Quarterly Option Series Pilot Program 

on a Permanent Basis 

July 10, 2009. 

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 July 9, 

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 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 Exchange proposes to amend its 

option trading rules in order to adopt 

the Quarterly Option Series Pilot 

Program on a permanent basis. 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 

The Exchange is proposing to adopt 

the Quarterly Option Series Pilot 

Program (‘‘QOS Program’’) on a 

permanent basis. On July 12, 2006, the 

Exchange filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

SR–Amex–2006–67, which was effective 

on filing and established the QOS 

Program. The QOS Program allows 

NYSE Amex 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, NYSE Amex 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, NYSE Amex 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. 

NYSE Amex shall list strike prices for 

a Quarterly Option series that are within 

$5 of 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 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. 

To the extent that any additional strike 

mstockstill on DSKH9S0YB1PROD with NOTICES