Document ID: SEC-2010-0687-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX, Inc.
Posted Date: 2010-05-10T04:00Z

[Federal Register: May 10, 2010 (Volume 75, Number 89)]
[Notices]               
[Page 25890-25891]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10my10-91]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62028; File No. SR-Phlx-2010-65]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. To Add 
Seventy-Five Options Classes to the Penny Pilot Program

May 4, 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 April 27, 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, II, and III, 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 May 3, 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); and 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); and 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).
    \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 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 May 3, 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 May 3, 2010, 
based on ADVs for the six months ending March 31, 2010.

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   Nat'l ranking          Symbol          Security name     Nat'l ranking          Symbol         Security name
----------------------------------------------------------------------------------------------------------------
153...............  XLV...............  Health Care       247..............  JCP..............  JC Penney Co
                                         Select Sector                                           Inc.
                                         SPDR Fund.
155...............  CIEN..............  Ciena Corp......  248..............  ACL..............  Alcon Inc.
157...............  AMLN..............  Amylin            249..............  STP..............  Suntech Power
                                         Pharmaceuticals                                         Holdings Co
                                         Inc.                                                    Ltd.
158...............  CTIC..............  Cell              250..............  TLB..............  Talbots Inc.
                                         Therapeutics
                                         Inc.
159...............  MDT...............  Medtronic Inc...  251..............  SYMC.............  Symantec Corp.
162...............  TIVO..............  TiVo Inc........  253..............  AMED.............  Amedisys Inc.
163...............  MNKD..............  MannKind Corp...  255..............  TM...............  Toyota Motor
                                                                                                 Corp.
171...............  MDVN..............  Medivation Inc..  257..............  HK...............  Petrohawk Energy
                                                                                                 Corp.
176...............  BRKB..............  Berkshire         258..............  ENER.............  Energy
                                         Hathaway Inc.                                           Conversion
                                                                                                 Devices Inc.
178...............  APOL..............  Apollo Group Inc  259..............  STT..............  State Street
                                                                                                 Corp.
181...............  BSX...............  Boston            260..............  BHP..............  BHP Billiton
                                         Scientific Corp.                                        Ltd.
185...............  XLY...............  Consumer          261..............  NFLX.............  NetFlix Inc.
                                         Discretionary
                                         Sel. Sec. SPDR
                                         Fund.
188...............  CLF...............  Cliffs Natural    262..............  LDK..............  LDK Solar Co
                                         Resources Inc.                                          Ltd.
190...............  ZION..............  Zions             263..............  SPG..............  Simon Property
                                         Bancorporation.                                         Group Inc.
194...............  IOC...............  InterOil Corp...  264..............  TIF..............  Tiffany & Co.
197...............  ITMN..............  InterMune Inc...  265..............  BUCY.............  Bucyrus
                                                                                                 International
                                                                                                 Inc.
204...............  GME...............  GameStop Corp...  266..............  WAG..............  Walgreen Co.
209...............  XLK...............  Technology        268..............  IP...............  International
                                         Select Sector                                           Paper Co.
                                         SPDR Fund.
210...............  AKS...............  AK Steel Holding  271..............  XME..............  SPDR S&P Metals
                                         Corp.                                                   & Mining ETF.
212...............  GRMN..............  Garmin Ltd......  272..............  KGC..............  Kinross Gold
                                                                                                 Corp.
213...............  MRVL..............  Marvell           273..............  EP...............  El Paso Corp.
                                         Technology
                                         Group Ltd.
215...............  XLP...............  Consumer Staples  274..............  SEED.............  Origin Agritech
                                         Select Sector                                           Ltd.
                                         SPDR Fund.

[[Page 25891]]

216...............  UNP...............  Union Pacific     275..............  WIN..............  Windstream Corp.
                                         Corp.
220...............  DTV...............  DIRECTV.........  279..............  DHI..............  DR Horton Inc.
223...............  WMB...............  Williams Cos Inc/ 280..............  ADBE.............  Adobe Systems
                                         The.                                                    Inc.
225...............  MEE...............  Massey Energy Co  281..............  PCX..............  Patriot Coal
                                                                                                 Corp.
227...............  CELG..............  Celgene Corp....  282..............  SPWRA............  SunPower Corp.
229...............  GMCR..............  Green Mountain    284..............  LCC..............  US Airways Group
                                         Coffee Roasters                                         Inc.
                                         Inc.
231...............  WDC...............  Western Digital   285..............  PRU..............  Prudential
                                         Corp.                                                   Financial Inc.
234...............  DAL...............  Delta Air Lines   286..............  LEN..............  Lennar Corp.
                                         Inc.
235...............  FXE...............  CurrencyShares    287..............  EWT..............  iShares MSCI
                                         Euro Trust.                                             Taiwan Index
                                                                                                 Fund.
237...............  COST..............  Costco Wholesale  288..............  KBH..............  KB Home.
                                         Corp.
239...............  MJN...............  Mead Johnson      289..............  CREE.............  Cree Inc.
                                         Nutrition Co.
240...............  ALL...............  Allstate Corp/    290..............  SIRI.............  Sirius XM Radio
                                         The.                                                    Inc.
241...............  SII...............  Smith             291..............  MMR..............  McMoRan
                                         International                                           Exploration Co.
                                         Inc.
242...............  RTN...............  Raytheon Co.....  292..............  CENX.............  Century Aluminum
                                                                                                 Co.
243...............  DVN...............  Devon Energy      293..............  GFI..............  Gold Fields Ltd.
                                         Corp.
244...............  MT................  ArcelorMittal...
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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 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

    Pursuant to Section 19(b)(3)(A)(i) of the Act \8\ and Rule 19b-
4(f)(1) thereunder,\9\ the Exchange has designated this proposal as one 
constituting a stated policy, practice, or interpretation with respect 
to the meaning, administration, or enforcement of an existing rule.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(i).
    \9\ 17 CFR 240.19b-4(f)(1).
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    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 rule-comments@sec.gov. Please include 
File Number SR-Phlx-2010-65 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-2010-65. 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 Number SR-Phlx-2010-65 and should be 
submitted on or before June 1, 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. 2010-10964 Filed 5-7-10; 8:45 am]
BILLING CODE 8010-01-P