Document ID: SEC-2010-0689-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2010-05-10T04:00Z

[Federal Register: May 10, 2010 (Volume 75, Number 89)]
[Notices]               
[Page 25895-25896]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10my10-93]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62029; File No. SR-NASDAQ-2010-053]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by the NASDAQ Stock Market LLC 
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, The NASDAQ Stock Market LLC (``Nasdaq'') 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 Nasdaq. 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 is filing with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') a proposal for the NASDAQ Options Market 
(``NOM'' or ``Exchange'') 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 March 2008 and in October 
2009 was expanded and extended through December 31, 2010. See 
Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR 
18587 (April 4, 2008)(SR-NASDAQ-2008-026)(notice of filing and 
immediate effectiveness establishing Penny Pilot); 60874 (October 
23, 2009), 74 FR 56682 (November 2, 2009)(SR-NASDAQ-2009-091)(notice 
of filing and immediate effectiveness expanding and extending Penny 
Pilot); 60965 (November 9, 2009), 74 FR 59292 (November 17, 
2009)(SR-NASDAQ-2009-097)(notice of filing and immediate 
effectiveness adding seventy-five classes to Penny Pilot); and 61455 
(February 1, 2010), 75 FR 6239 (February 8, 2010)(SR-NASDAQ-2010-
013)(notice of filing and immediate effectiveness adding seventy-
five classes to Penny Pilot).
    \4\ See Chapter VI, Section 5 regarding the Penny Pilot.
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    The text of the proposed rule change is available from Nasdaq's 
website at http://nasdaq.cchwallstreet.com/Filings/, at Nasdaq'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, Nasdaq 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. Nasdaq 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. 60874 (October 23, 
2009), 74 FR 56682 (November 2, 2009) (SR-NASDAQ-2009-091) (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
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153...............................  XLV                  Health Care Select Sector   247.................  JCP                 JC Penney Co Inc.
                                                          SPDR Fund.
155...............................  CIEN                 Ciena Corp................  248.................  ACL                 Alcon Inc.
157...............................  AMLN                 Amylin Pharmaceuticals Inc  249.................  STP                 Suntech Power Holdings Co
                                                                                                                                Ltd.
158...............................  CTIC                 Cell Therapeutics Inc.....  250.................  TLB                 Talbots 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 Hathaway Inc....  258.................  ENER                Energy Conversion Devices
                                                                                                                                Inc.
178...............................  APOL                 Apollo Group Inc..........  259.................  STT                 State Street Corp.
181...............................  BSX                  Boston Scientific Corp....  260.................  BHP                 BHP Billiton Ltd.
185...............................  XLY                  Consumer Discretionary      261.................  NFLX                NetFlix Inc.
                                                          Sel. Sec. SPDR Fund.
188...............................  CLF                  Cliffs Natural Resources    262.................  LDK                 LDK Solar Co Ltd.
                                                          Inc.
190...............................  ZION                 Zions Bancorporation......  263.................  SPG                 Simon Property 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 Select Sector    268.................  IP                  International Paper Co.
                                                          SPDR Fund.
210...............................  AKS                  AK Steel Holding Corp.....  271.................  XME                 SPDR S&P Metals & Mining
                                                                                                                                ETF.
212...............................  GRMN                 Garmin Ltd................  272.................  KGC                 Kinross Gold Corp.

[[Page 25896]]

213...............................  MRVL                 Marvell Technology Group    273.................  EP                  El Paso Corp.
                                                          Ltd.
215...............................  XLP                  Consumer Staples Select     274.................  SEED                Origin Agritech Ltd.
                                                          Sector SPDR Fund.
216...............................  UNP                  Union Pacific Corp........  275.................  WIN                 Windstream Corp.
220...............................  DTV                  DIRECTV...................  279.................  DHI                 DR Horton Inc.
223...............................  WMB                  Williams Cos Inc./The.....  280.................  ADBE                Adobe Systems Inc.
225...............................  MEE                  Massey Energy Co..........  281.................  PCX                 Patriot Coal Corp.
227...............................  CELG                 Celgene Corp..............  282.................  SPWRA               SunPower Corp.
229...............................  GMCR                 Green Mountain Coffee       284.................  LCC                 US Airways Group Inc.
                                                          Roasters Inc.
231...............................  WDC                  Western Digital Corp......  285.................  PRU                 Prudential Financial Inc.
234...............................  DAL                  Delta Air Lines Inc.......  286.................  LEN                 Lennar Corp.
235...............................  FXE                  CurrencyShares Euro Trust.  287.................  EWT                 iShares MSCI Taiwan Index
                                                                                                                                Fund.
237...............................  COST                 Costco Wholesale Corp.....  288.................  KBH                 KB Home.
239...............................  MJN                  Mead Johnson Nutrition Co.  289.................  CREE                Cree Inc.
240...............................  ALL                  Allstate Corp/The.........  290.................  SIRI                Sirius XM Radio Inc.
241...............................  SII                  Smith International Inc...  291.................  MMR                 McMoRan Exploration Co.
242...............................  RTN                  Raytheon Co...............  292.................  CENX                Century Aluminum Co.
243...............................  DVN                  Devon Energy Corp.........  293.................  GFI                 Gold Fields Ltd.
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

    Nasdaq does not believe that the proposed rule change will result 
in 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

    Written comments were neither solicited nor 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\ Nasdaq 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-NASDAQ-2010-053 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-NASDAQ-2010-053. 
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 Nasdaq. 
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-NASDAQ-2010-
053 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. 2010-10965 Filed 5-7-10; 8:45 am]
BILLING CODE 8010-01-P