Document ID: SEC-2010-1203-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.
Posted Date: 2010-08-09T04:00Z

[Federal Register: August 9, 2010 (Volume 75, Number 152)]
[Notices]               
[Page 47875-47877]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09au10-92]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62615; File No. SR-BX-2010-052]

 
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Add 75 
Classes to the Penny Pilot Program

July 30, 2010.
    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 21, 2010, NASDAQ OMX BX, Inc. (the ``Exchange'') filed 
with the Securities and Exchange Commission (``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.
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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 the Terms of Substance 
of the Proposed Rule Change

    NASDAQ OMX BX, Inc. (the ``Exchange'') proposes to designate 75 
options classes to be added to the Penny Pilot Program, as referenced 
in Chapter V, Section 33 of the Rules of the Boston Options Exchange 
Group, LLC (``BOX''). The Exchange intends to notify BOX Options 
Participants of the classes to be added to the Penny Pilot Program via 
Regulatory Circular.

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 October 19, 2009 the Exchange submitted a proposed rule change 
\3\ with the Securities and Exchange Commission (``Commission'') to, 
among other things, expand the number of classes included in the Penny 
Pilot Program over four successive quarters, with 75 classes added in 
each of November 2009, February 2010, May 2010, and August 2010.\4\ 
Options classes with high premiums will be excluded for the quarterly 
additions.\5\
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    \3\ See Securities and Exchange Act Release No. 60886 (Oct. 27, 
2009), 74 FR 56897 (Nov. 3, 2009) (SR-BX-2009-067). This proposal 
was effective immediately upon filing.
    \4\ The quarterly additions will be effective on November 2, 
2009, February 1, 2010, May 3, 2010 and August 2, 2010, 
respectively. For purposes of identifying the classes to be added 
per quarter, the Exchange shall use data from the prior six calendar 
months preceding the implementation month, except that the month 
immediately preceding their addition to the Pilot would not be 
utilized for purposes of the six month analysis. For example, the 
quarterly additions to be added on May 3, 2010 shall be determined 
using data from the six month period ending March 31, 2010. The 
Exchange has filed three (3) previous proposals similar to the 
present proposal, for the November 2, 2009, February 1, 2010 and May 
3, 2010 expansions of 75 classes, respectively. See Securities and 
Exchange Act Release No. 60950 (Nov. 6, 2009), 74 FR 58666 (Nov. 6, 
2009) [sic] (SR-BX-2009-069); Securities and Exchange Act Release 
No. 61456 (Feb. 1, 2010), 75 FR 6235 (Feb. 8, 2010) (SR-BX-2010-
011); and 62039 (May 5, 2010), 75 FR 26313 (May 11, 2010) (SR-BX-
2010-032). These proposals were effective immediately upon filing.
    \5\ The threshold for designation as ``high priced'' at the time 
of selection of new classes to be included in the Penny Pilot 
Program is $200 per share or a calculated index value of 200. The 
determination of whether a security is trading above $200 or above a 
calculated index value of 200 shall be based on the price at the 
close of trading on the Expiration Friday prior to being added to 
the Penny Pilot Program.

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[[Page 47876]]

    Based on trading activity for the six months ending June 30, 2010, 
the Exchange proposes to add the following 75 classes to the Penny 
Pilot Program on August 2, 2010:

------------------------------------------------------------------------
    Symbol          Company Name          Symbol         Company Name
------------------------------------------------------------------------
MBI...........  MBIA Inc.             KMP...........  Kinder Morgan
                                                       Energy Partners
                                                       LP
MA............  Mastercard Inc.       MRO...........  Marathon Oil Corp.
ATPG..........  ATP Oil & Gas Corp/   AGO...........  Assured Guaranty
                 United States                         Ltd.
YUM...........  Yum! Brands Inc.      GIS...........  General Mills Inc.
RCL...........  Royal Caribbean       ANR...........  Alpha Natural
                 Cruises Ltd.                          Resources Inc.
BPOP..........  Popular Inc.          GENZ..........  Genzyme Corp.
EK............  Eastman Kodak Co.     CB............  Chubb Corp.
CNX...........  Consol Energy Inc.    ADM...........  Archer-Daniels-
                                                       Midland Co.
DCTH*.........  Delcath Systems Inc.  HSY...........  Hershey Co./The
MTG...........  MGIC Investment       TXT...........  Textron Inc.
                 Corp.
PXP...........  Plains Exploration &  GGP*..........  General Growth
                 Production Co.                        Properties Inc.
GPS...........  Gap Inc./The          NOV...........  National Oilwell
                                                       Varco Inc.
TSL...........  Trina Solar Ltd.      TWX...........  Time Warner Inc.
EWW...........  iShares MSCI Mexico   XOP...........  SPDR S&P Oil & Gas
                 Investable Market                     Exploration &
                 Index Fund                            Production ETF
CRM...........  Salesforce.com Inc.   MYL...........  Mylan Inc./PA
SWN...........  Southwestern Energy   TSO...........  Tesoro Corp.
                 Co.
HBAN..........  Huntington            CI............  CIGNA Corp.
                 Bancshares Inc./OH
EOG...........  EOG Resources Inc.    ESI...........  ITT Educational
                                                       Services Inc.
APA...........  Apache Corp.          NKE...........  NIKE Inc.
VVUS..........  Vivus Inc.            FIS*..........  Fidelity National
                                                       Information
                                                       Services Inc.
JDSU..........  JDS Uniphase Corp.    SUN...........  Sunoco Inc.
ACI...........  Arch Coal Inc.        BBBY..........  Bed Bath & Beyond
                                                       Inc.
NE............  Noble Corp.           APWR..........  A-Power Energy
                                                       Generation
                                                       Systems Ltd.
BAX...........  Baxter International  FWLT..........  Foster Wheeler AG
                 Inc.
ADSK..........  Autodesk Inc.         LNC...........  Lincoln National
                                                       Corp.
KRE...........  SPDR KBW Regional     RSH...........  RadioShack Corp.
                 Banking ETF
XL............  XL Group Plc.         TYC...........  Tyco International
                                                       Ltd.
WLT...........  Walter Energy Inc.    CL............  Colgate-Palmolive
                                                       Co.
IBN...........  ICICI Bank Ltd.       FXP...........  ProShares
                                                       UltraShort FTSE/
                                                       Xinhua China 25
EWY...........  iShares MSCI South    NTAP..........  NetApp Inc.
                 Korea Index Fund
WHR...........  Whirlpool Corp.       SO............  Southern Co.
BHI...........  Baker Huges Inc.      PHM...........  Pulte Group Inc.
HOT...........  Starwood Hotels &     ACAS..........  American Capital
                 Resorts                               Ltd.
QLD...........  ProShares Ultra QQQ   XLNX..........  Xilinx Inc.
VRSN..........  VeriSighn Inc.        DO............  Diamond Offshore
                                                       Drilling Inc.
PCL...........  Plum Creek Timber     CMA...........  Comerica Inc.
                 Co. Inc.
NBR...........  Nabors Industries     KEY...........  KeyCorp
                 Ltd.
ESRX..........  Express Scripts Inc.  ..............  ..................
------------------------------------------------------------------------
* Please note that the class is presently not listed for trading on BOX.
  If the class is listed for trading on BOX at a later date it will be
  subject to the applicable minimum trading increments as set forth in
  Chapter V, Section 6(b) of the BOX Rules.

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\6\ in general, and Section 
6(b)(5) of the Act,\7\ 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, 
by identifying the options classes added to the Penny Pilot Program in 
a manner consistent with prior rule changes.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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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 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

    The proposed rule change is filed for immediate effectiveness 
pursuant to Section 19(6)(3)(A) \8\ of the Act and Rule 19b-4(f)(1) \9\ 
thereunder, as it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule. At any time within 60 days of the 
filing of the proposed rule change, the Commission summarily may 
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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.196-4(f)(1).

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[[Page 47877]]

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-BX-2010-052 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-2010-052. 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 
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 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 No. SR-BX-2010-052 and should be 
submitted on or before August 30, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19519 Filed 8-6-10; 8:45 am]
BILLING CODE 8010-01-P