Document ID: SEC-2011-1977-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2011-12-21T05:00Z

[Federal Register Volume 76, Number 245 (Wednesday, December 21, 2011)]
[Notices]
[Pages 79246-79247]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32671]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65978; File No. SR-NYSEAmex-2011-98]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Commentary 
.02 to NYSE Amex Options Rule 960NY in Order To Extend the Penny Pilot 
in Options Classes in Certain Issues Through June 30, 2012

December 15, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 2, 2011, NYSE Amex LLC (the ``Exchange'' or ``NYSE Amex'') 
filed with the Securities and Exchange Commission (``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 proposes to amend Commentary .02 to NYSE Amex Options 
Rule 960NY in order to extend the Penny Pilot in options classes in 
certain issues (``Pilot Program''), previously approved by the 
Securities and Exchange Commission (``Commission''), through June 30, 
2012. The text of the proposed rule change is available at the 
Exchange, the Commission's Public Reference Room, and www.nyse.com.

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 parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange hereby proposes to amend Commentary .02 to NYSE Amex 
Options Rule 960NY to extend the time period of the Pilot Program,\3\ 
which is currently scheduled to expire on December 31, 2011, through 
June 30, 2012. The Exchange also proposes that the date to replace 
issues in the Pilot Program that have been delisted be revised to the 
second trading day following January 1, 2012 \4\ and that the 
replacement issues will be selected based on trading activity for the 
six month period beginning June 1, 2011 and ending November 30, 
2011.\5\
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    \3\ See Securities Exchange Act Release No. 63393 (November 30, 
2010), 75 FR 75715 (December 6, 2010) (SR-NYSEAmex-2010-107).
    \4\ The Exchange is proposing to extend the Pilot Program only 
for an additional six months. Therefore, a date for adding 
replacement issues to the Pilot Program during the second half of 
the calendar year, i.e., after June 30, 2012, is not applicable, as 
reflected in the proposed change to Commentary .02.
    \5\ The Exchange will announce the replacement issues to the 
Exchange's membership through a Trader Update.
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    This filing does not propose any substantive changes to the Pilot 
Program: all classes currently participating will remain the same and 
all minimum increments will remain unchanged. The Exchange believes the 
benefits to public customers and other market participants who will be 
able to express their true prices to buy and sell options have been 
demonstrated to outweigh the increase in quote traffic.
    The Exchange agrees to reports that will analyze the impact of the 
Pilot Program on market quality and options systems capacity. These 
reports will include, but are not limited to: (1) Data and written 
analysis on the number of quotations generated for options selected for 
the Pilot Program; (2) an assessment of the quotation spreads for the 
options selected for the Pilot Program; (3) an assessment of the impact 
of the Pilot Program on the capacity of the Exchange's automated 
systems; (4) any capacity problems or other problems that arose related 
to the operation of the Pilot Program and how the Exchange addressed 
them; and (5) an assessment of trade through complaints that were sent 
by the Exchange during the operation of the Pilot Program and how they 
were addressed.
    The Exchange also proposes a technical change to NYSE Amex Options 
Rule 960NY(a)(3)(A) to reflect that QQQQ is now referred to as 
``PowerShares QQQ Trust\SM\, Series 1'' and is traded under the symbol 
``QQQ.'' \6\
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    \6\ NASDAQ, Nasdaq-100 Index, Nasdaq-100 Index Tracking Stock 
and QQQ are trade/service marks of The Nasdaq Stock Market, Inc. and 
have been licensed for use by Invesco PowerShares Capital Management 
LLC.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \7\ of the 
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers 
the objectives of Section 6(b)(5),\8\ 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. The Exchange 
believes that the Pilot Program promotes just and equitable principles 
of trade by enabling public customers and other market participants to 
express their true prices to buy and sell options.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 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.

[[Page 79247]]

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6)(iii) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Commission notes that the Exchange has satisfied this 
requirement.
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    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.

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 email to rule-comments@sec.gov. Please include 
File No. SR-NYSEAmex-2011-98 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 No. SR-NYSEAmex-2011-98. This file 
number should be included on the subject line if email 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-NYSEAmex-2011-98 and should be 
submitted on or before January 11, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-32671 Filed 12-20-11; 8:45 am]
BILLING CODE 8011-01-P