Document ID: SEC-2010-1200-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX, Inc.
Posted Date: 2010-08-06T04:00Z

[Federal Register: August 6, 2010 (Volume 75, Number 151)]
[Notices]               
[Page 47664-47666]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06au10-145]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62616; File No. SR-Phlx-2010-103]

 
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Add 
Seventy-Five Options 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 22, 2010, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``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 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

    The Exchange is filing with the Commission a proposal to designate 
seventy-five options classes to be added to the Penny Pilot Program 
(``Penny Pilot'' or ``Pilot'') on August 2, 2010.\3\ The Exchange is 
not proposing to amend any rule text, but simply administering or 
enforcing an existing rule.\4\
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    \3\ The Penny Pilot was established in January 2007 and in 
October 2009 was expanded and extended through December 31, 2010. 
See Securities Exchange Act Release Nos. 55153 (January 23, 2007), 
72 FR 4553 (January 31, 2007) (SR-Phlx-2006-74) (notice of filing 
and approval order establishing Penny Pilot); 60873 (October 23, 
2009), 74 FR 56675 (November 2, 2009) (SR-Phlx-2009-91) (notice of 
filing and immediate effectiveness expanding and extending Penny 
Pilot); 60966 (November 9, 2009), 74 FR 59331 (November 17, 2009) 
(SR-Phlx-2009-94) (notice of filing and immediate effectiveness 
adding seventy-five classes to Penny Pilot); 60966 (November 9, 
2009), 75 FR 61454 (February 1, 2010), 75 FR 6233 (February 8, 2010) 
(SR-Phlx-2010-12) (notice of filing and immediate effectiveness 
adding seventy-five classes to Penny Pilot); and 62028 (May 4, 
2010), 75 FR 25890 (May 10, 2010) (SR-Phlx-2010-65) (notice of 
filing and immediate effectiveness adding seventy-five classes to 
Penny Pilot).
    \4\ See Rule 1034 regarding the Penny Pilot.
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    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/
Filings/, 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 Exchange 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 Exchange has prepared summaries, set forth in 
sections A, B, and C below, of

[[Page 47665]]

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 purpose of this filing is to identify the next seventy-five 
options classes to be added to the Penny Pilot effective August 2, 
2010.
    In the Exchange's immediately effective filing to extend and expand 
the Penny Pilot through December 31, 2010,\5\ the Exchange proposed 
expanding the Pilot four times on a quarterly basis. Each such 
quarterly expansion would be of the next seventy-five most actively 
traded multiply listed options classes based on the national average 
daily volume (``ADV'') for the six months prior to selection, closing 
under $200 per share on the Expiration Friday prior to expansion; 
however, the month immediately preceding the addition of options to the 
Penny Pilot will not be used for the purpose of the six-month analysis. 
Index option products would be included in the quarterly expansions if 
the underlying index levels were under 200.
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    \5\ See Securities Exchange Act Release No. 60873 (October 23, 
2009), 74 FR 56675 (November 2, 2009) (SR-Phlx-2009-91) (notice of 
filing and immediate effectiveness).
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    The Exchange is identifying, in the chart below, seventy-five 
options classes that it will add to the Penny Pilot on August 2, 2010, 
based on ADVs for the six months ending 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      322..............  HSY                Hershey Co./The
                                        Corp/United
                                        States.
226...............  YUM                Yum! Brands Inc.   323..............  TXT                Textron Inc.
232...............  RCL                Royal Caribbean    324..............  GGP                General Growth
                                        Cruises Ltd.                                             Properties Inc.
238...............  BPOP               Popular Inc.       325..............  NOV                National Oilwell
                                                                                                 Varco Inc.
248...............  EK                 Eastman Kodak Co.  326..............  TWX                Time Warner Inc.
252...............  CNX                Co.nsol Energy     327..............  XOP                SPDR S&P Oil &
                                        Inc.                                                     Gas Exploration
                                                                                                 & Production
                                                                                                 ETF.
260...............  DCTH               Delcath Systems    328..............  MYL                Mylan Inc./PA/
                                        Inc.
274...............  MTG                MGIC Investment    329..............  TSO                Tesoro Corp.
                                        Corp.
277...............  PXP                Plains             330..............  CI                 CIGNA Corp.
                                        Exploration &
                                        Production Co.
278...............  GPS                Gap Inc./The       331..............  ESI                ITT Educational
                                                                                                 Services Inc.
280...............  TSL                Trina Solar Ltd.   332..............  NKE                NIKE Inc.
282...............  EWW                iShares MSCI       335..............  FIS                Fidelity
                                        Mexico                                                   National
                                        Investable                                               Information
                                        Market Index                                             Services Inc.
                                        Fund
283...............  CRM                Salesforce.com     336..............  SUN                Sunoco Inc.
                                        Inc.
286...............  SWN                Southwestern       338..............  BBBY               Bed Bath &
                                        Energy Co.                                               Beyond Inc.
287...............  HBAN               Huntington         340..............  APWR               A-Power Energy
                                        Bancshares Inc./                                         Generation
                                        OH                                                       Systems Ltd.
288...............  EOG                EOG Resources      341..............  FWLT               Foster Wheeler
                                        Inc.                                                     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             347..............  NTAP               NetApp Inc.
                                        International
                                        Inc.
297...............  ADSK               Autodesk Inc.      348..............  SO                 Southern Co.
299...............  KRE                SPDR KBW Regional  349..............  PHM                Pulte Group Inc.
                                        Banking ETF
300...............  XL                 XL Group Plc       350..............  HOT                Starwood Hotels
                                                                                                 & Resorts
                                                                                                 Worldwide Inc.
302...............  WLT                Walter Energy      351..............  QLD                ProShares Ultra
                                        Inc.                                                     QQQ.
303...............  IBN                ICICI Bank Ltd.    352..............  VRSN               VeriSign Inc.
305...............  EWY                iShares MSCI       353..............  PCL                Plum Creek
                                        South Korea                                              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      356..............  ACAS               American Capital
                                        Energy Partners                                          Ltd.
                                        LP.
309...............  MRO                Marathon Oil       357..............  XLNX               Xilinx Inc.
                                        Corp.
310...............  AGO                Assured Guaranty   358..............  DO                 Diamond Offshore
                                        Ltd.                                                     Drilling Inc.
311...............  GIS                General Mills      359..............  CMA                Comerica Inc.
                                        Inc.
312...............  ANR                Alpha Natural      360..............  KEY                KeyCorp.
                                        Resources Inc.
314...............  GENZ               Genzyme Corp.      .................  .................  ................
----------------------------------------------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \7\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanisms of a free and open 
market and a national market system, by identifying the options classes 
to be added to the Penny Pilot in a manner consistent with prior 
approvals and filings.
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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

[[Page 47666]]

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
    No written comments were either solicited or received.

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(b)(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 
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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(1).
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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-Phlx-2010-103 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-Phlx-2010-103. 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-Phlx-2010-103 and should be 
submitted on or before August 27, 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. 2010-19371 Filed 8-5-10; 8:45 am]
BILLING CODE 8010-01-P