34816 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. 

3See Securities Exchange Act Release No. 34– 

52013 (July 12, 2005), 70 FR 41471 (July 19, 2005), 

approval order for SR–PCX–2005–32. 

4See Securities Exchange Act Release No. 34– 

58085 (July 2, 2008), 73 FR 39767 (July 10, 2008), 

SR–NYSEArca–2008–68 (Pilot Program extension). 

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

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60285; File No. SR– 

NYSEArca–2009–67] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Arca, Inc. To Extend the One Week 

Option Series Pilot Program 

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 9, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘Exchange’’) 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 selfregulatory 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 extend the 

One Week Option Series Pilot Program 

(‘‘Pilot Program’’) for an additional oneyear period. 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 

On July 12, 2005 the Commission 

approved the Pilot Program 3 that allows 

NYSE Arca to list and trade One Week 

Options Series. Under the terms of the 

Pilot Program, the Exchange can select 

up to five options classes on which One 

Week Option Series may be opened on 

any One Week Option Opening Date. 

The Exchange is also allowed to list One 

Week Option Series on any option class 

that is selected by other securities 

exchanges that employ a similar Pilot 

Program under their respective rules. 

The purpose of this proposal is to 

extend the Pilot Program for a one year 

period ending on July 12, 2010. The 

current Pilot Program expires on July 

12, 2009.4 The Exchange believes that 

One Week Term Option Series can 

provide 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 NYSE Arca has 

not listed any One Week Option Series 

during the Pilot Program there has been 

continued investor interest in trading 

short-term options at the Chicago Board 

Options Exchange (‘‘CBOE’’). In order to 

have the ability respond to customer 

interests if warranted, the Exchange 

proposes the continuation of the Pilot 

Program at NYSE Arca. 

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 program, the 

Exchange would submit, along with any 

filing proposing such amendments to 

the program, a Pilot Program report 

(‘‘Report’’). The Report would provide 

an analysis of the Pilot Program 

covering the entire period during which 

the Pilot Program was in effect. Since 

the Exchange does not have any One 

Week Options Series listed as part of the 

Pilot Program, there is no data available 

to compile such a report at this time. 

Therefore there is no Report associated 

with the program included with this 

proposal to extend the pilot Program. 

The Exchange represents that it has 

the necessary system capacity needed to 

support any additional option series 

listed under the Pilot Program. 

2. Statutory Basis 

The Exchange believes that One Week 

Option Series can stimulate customer 

interest in options and provide 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. For these 

reasons, the Exchange believes the 

proposed rule change is consistent with 

the 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 

the section 6(b)(5) 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. 

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: (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 6 and Rule 19b–4(f)(6) 

thereunder.7

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Federal Register / Vol. 74, No. 136 / Friday, July 17, 2009 / Notices 34817 

8For 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). 

9 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 4See SR–NYSEAmex–2009–40. 

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 the 

Exchange to continue the existing Pilot 

Program without interruption.8

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–NYSEArca–2009–67 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–2009–67. 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–NYSEArca–2009–67 and 

should be submitted on or before 

August 7, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–17011 Filed 7–16–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60287; File No. SR–NYSE– 

2009–69] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Amending NYSE 

Rule 72 To Eliminate Parity Allocations 

for DMM Interest Added Intra Day 

During a Slow Quote or When Verbally 

Trading With Floor Brokers at the Point 

of Sale 

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, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or 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 

NYSE Rule 72 to eliminate parity 

allocations for DMM interest added 

intra day during a slow quote or when 

verbally trading with Floor brokers at 

the point of sale. The text of the 

proposed rule change is available at the 

Exchange, 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 

NYSE proposes to amend NYSE Rule 

72 to eliminate parity executions for 

DMM interest added intra-day during a 

slow quote or when verbally trading 

with Floor brokers at the point of sale 

(‘‘slow trading condition’’). Through 

this proposal Exchange systems’ 

allocation logic will be modified so that 

DMM interest added intra day during a 

slow trading condition yield to all other 

interest present at the price point. As 

such, all other interest eligible to receive 

an execution at the price will receive 

share allocation in full before any shares 

are allocated to the additional DMM 

interest. If shares remain, then the DMM 

interest added at the price point during 

the slow trading condition would 

receive an allocation. If no shares 

remain then the DMM interest will not 

be allocated any shares in the 

transaction and would be cancelled by 

operation of the proposed rule. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of the NYSE Amex LLC (formerly 

the American Stock Exchange).4

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