Document ID: SEC-2010-1168-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2010-08-04T04:00Z

[Federal Register: August 4, 2010 (Volume 75, Number 149)]
[Notices]               
[Page 47054-47056]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04au10-106]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62594; File No. SR-ISE-2010-79]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Add 75 Options Classes To the Penny Pilot Program

July 29, 2010.
    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 23, 2010, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of theTerms of Substance of 
the Proposed Rule Change

    The ISE proposes to designate 75 options classes to be added to the 
pilot program to quote and to trade certain options in pennies (the 
``Penny Pilot'') on August 2, 2010. The text of the proposed rule 
change is available on the Exchange's Web site (http://www.ise.com), at 
the principal office of the Exchange, 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
    ISE proposes to identify the next 75 options classes to be added to 
the Penny Pilot effective August 2, 2010. The Exchange recently 
received approval to extend and expand the Penny Pilot through December 
31, 2010.\3\ In that filing, the Exchange had proposed expanding the 
Penny Pilot on a quarterly basis to add the next 75 most actively 
traded multiply listed options classes based on national average daily 
volume for the six months prior to selection, closing under $200 per 
share on the Expiration Friday prior to expansion, except that the 
month immediately preceding their addition to the Penny Pilot will not 
be used for the purpose of the six month analysis.\4\
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    \3\ See Securities Exchange Act Release No. 60865 (October 22, 
2009), 74 FR 55880 (October 29, 2009) (SR-ISE-2009-82). The 
Commission notes that this proposed rule change was submitted 
pursuant to Section 19(b)(3)(A)(iii) of the Act and was, therefore, 
effective upon filing. The Commission does not approve proposed rule 
changes submitted pursuant to this section of the Act.
    \4\ Index products would be included in the expansion if the 
underlying index level was under 200.
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    ISE proposes to add the following 75 options classes to the Penny 
Pilot on August 2, 2010, based on national average daily volume from 
January 1, 2010 through June 30, 2010:

--------------------------------------------------------------------------------------------------------------------------------------------------------
           Nat'l ranking                   Symbol               Security name            Nat'l ranking           Symbol              Security name
--------------------------------------------------------------------------------------------------------------------------------------------------------
199...............................  MBI.................  MBIA Inc.................  316.................  CB                  Chubb Corp
205...............................  MA..................  Mastercard Inc...........  320.................  ADM                 Archer-Daniels-Midland Co
224...............................  ATPG................  ATP Oil & Gas Corp/United  322.................  HSY                 Hershey Co/The
                                                           States.
226...............................  YUM.................  Yum! Brands Inc..........  323.................  TXT                 Textron Inc
232...............................  RCL.................  Royal Caribbean Cruises    324.................  GGP                 General Growth Properties
                                                           Ltd.                                                                 Inc
238...............................  BPOP................  Popular Inc..............  325.................  NOV                 National Oilwell Varco
                                                                                                                                Inc
248...............................  EK..................  Eastman Kodak Co.........  326.................  TWX                 Time Warner Inc
252...............................  CNX.................  Consol Energy Inc........  327.................  XOP                 SPDR S&P Oil & Gas
                                                                                                                                Exploration & Production
                                                                                                                                ETF
260...............................  DCTH................  Delcath Systems Inc......  328.................  MYL                 Mylan Inc/PA
274...............................  MTG.................  MGIC Investment Corp.....  329.................  TSO                 Tesoro Corp
277...............................  PXP.................  Plains Exploration &       330.................  CI                  CIGNA Corp
                                                           Production Co.

[[Page 47055]]

278...............................  GPS.................  Gap Inc/The..............  331.................  ESI                 ITT Educational Services
                                                                                                                                Inc
280...............................  TSL.................  Trina Solar Ltd..........  332.................  NKE                 NIKE Inc
282...............................  EWW.................  iShares MSCI Mexico        335.................  FIS                 Fidelity National
                                                           Investable Market Index                                              Information Services Inc
                                                           Fund.
283...............................  CRM.................  Salesforce.com Inc.......  336.................  SUN                 Sunoco Inc
286...............................  SWN.................  Southwestern Energy Co...  338.................  BBBY                Bed Bath & Beyond Inc
287...............................  HBAN................  Huntington Bancshares Inc/ 340.................  APWR                A-Power Energy Generation
                                                           OH.                                                                  Systems Ltd
288...............................  EOG.................  EOG Resources Inc........  341.................  FWLT                Foster Wheeler AG
290...............................  APA.................  Apache Corp..............  342.................  LNC                 Lincoln National Corp
291...............................  VVUS................  Vivus Inc................  343.................  RSH                 RadioShack Corp
292...............................  JDSU................  JDS Uniphase Corp........  344.................  TYC                 Tyco International Ltd
293...............................  ACI.................  Arch Coal Inc............  345.................  CL                  Colgate-Palmolive Co
294...............................  NE..................  Noble Corp...............  346.................  FXP                 ProShares UltraShort FTSE/
                                                                                                                                Xinhua China 25
296...............................  BAX.................  Baxter International Inc.  347.................  NTAP                NetApp Inc
297...............................  ADSK................  Autodesk Inc.............  348.................  SO                  Southern Co
299...............................  KRE.................  SPDR KBW Regional Banking  349.................  PHM                 Pulte Group Inc
                                                           ETF.
300...............................  XL..................  XL Group Plc.............  350.................  HOT                 Starwood Hotels & Resorts
                                                                                                                                Worldwide Inc
302...............................  WLT.................  Walter Energy Inc........  351.................  QLD                 ProShares Ultra QQQ
303...............................  IBN.................  ICICI Bank Ltd...........  352.................  VRSN                VeriSign Inc
305...............................  EWY.................  iShares MSCI South Korea   353.................  PCL                 Plum Creek Timber Co Inc
                                                           Index Fund.
306...............................  WHR.................  Whirlpool Corp...........  354.................  NBR                 Nabors Industries Ltd
307...............................  BHI.................  Baker Hughes Inc.........  355.................  ESRX                Express Scripts Inc
308...............................  KMP.................  Kinder Morgan Energy       356.................  ACAS                American Capital Ltd
                                                           Partners LP.
309...............................  MRO.................  Marathon Oil Corp........  357.................  XLNX                Xilinx Inc
310...............................  AGO.................  Assured Guaranty Ltd.....  358.................  DO                  Diamond Offshore Drilling
                                                                                                                                Inc
311...............................  GIS.................  General Mills Inc........  359.................  CMA                 Comerica Inc
312...............................  ANR.................  Alpha Natural Resources    360.................  KEY                 KeyCorp
                                                           Inc.
314...............................  GENZ................  Genzyme Corp.............  ....................  ..................  .........................
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2. 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 identifies the options classes to be added to the 
Penny Pilot in a manner consistent with prior approvals and filings.

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 written comments from members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change is effective upon filing pursuant to 
Section 19(b)(3)(A)(i) \5\ of the Exchange Act and Rule 19b-4(f)(1) \6\ 
thereunder, in that it constitutes a stated policy, practice or 
interpretation with respect to the meaning, administration or 
enforcement of an existing rule of the Exchange.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(i).
    \6\ 17 CFR 240.19b-4(f)(1).
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    At any time within the 60-day period beginning on the date of the 
filing of the proposed rule change, the Commission summarily may 
temporarily suspend such rule change if it appears to the Commission 
that such action is necessary or appropriate in the public interest, 
for the protection of investors, or otherwise in furtherance of the 
purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-ISE-2010-79 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-2010-79. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and

[[Page 47056]]

printing in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of the ISE. 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-2010-79 and should be 
submitted on or before August 25, 2010.
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    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19220 Filed 8-3-10; 8:45 am]
BILLING CODE 8010-01-P