Document ID: SEC-2009-1617-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change, as Modified by Amendment No.1
Posted Date: 2009-11-17T05:00Z

[Federal Register: November 17, 2009 (Volume 74, Number 220)]
[Notices]               
[Page 59331-59333]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17no09-127]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60966; File No. SR-Phlx-2009-94]

 
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change, as 
Modified by Amendment No.1, To Add Seventy-Five Options Classes to the 
Penny Pilot Program

November 9, 2009.
    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 October 28, 2009, 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. Phlx 
filed Amendment No. 1 to the proposal on November 5, 2009.\3\ 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.
    \3\ In Amendment No. 1, Phlx proposed to correct a technical 
error in Section III. The change has no effect on the substance of 
the proposed rule change.
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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 in options 
classes in certain issues (``Penny Pilot'' or ``Pilot'') on November 2, 
2009.\4\ The Exchange is not proposing to amend any rule text, but 
simply administering or enforcing an existing rule.\5\
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    \4\ 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); and 60873 (October 23, 
2009) (SR-Phlx-2009-91) (notice of filing and immediate 
effectiveness expanding and extending Penny Pilot).
    \5\ 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, 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 November 2, 
2009.
    In the Exchange's immediately effective filing to extend and expand 
the Penny Pilot through December 31,

[[Page 59332]]

2010,\6\ 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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    \6\ See Securities Exchange Act Release No. 60873 (October 23, 
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 November 2, 
2009, based on ADVs from April 1, 2009, through September 30, 2009.

----------------------------------------------------------------------------------------------------------------
         Nat'l ranking                Symbol                                Company name
----------------------------------------------------------------------------------------------------------------
118...........................  ABX..............  Barrick Gold Corp.
48............................  AXP..............  American Express Co.
134...........................  AUY..............  Yamana Gold Inc.
93............................  BA...............  Boeing Co/The.
115...........................  BBT..............  BB&T Corp.
111...........................  BBY..............  Best Buy Co Inc.
94............................  BP...............  BP PLC.
67............................  CHK..............  Chesapeake Energy Corp.
58............................  CIT..............  CIT Group Inc.
78............................  COF..............  Capital One Financial Corp.
68............................  CVX..............  Chevron Corp.
130...........................  DE...............  Deere & Co.
104...........................  DOW..............  Dow Chemical Co/The.
49............................  DRYS.............  DryShips Inc.
88............................  EFA..............  iShares MSCI EAFE Index Fund.
64............................  ETFC.............  E*Trade Financial Corp.
32............................  EWZ..............  iShares MSCI Brazil Index Fund.
25............................  FAS..............  Direxion Daily Financial Bull 3X Shares.
33............................  FAZ..............  Direxion Daily Financial Bear 3X Shares.
120...........................  MRK..............  Merck & Co Inc/NJ.
35............................  MS...............  Morgan Stanley.
73............................  NLY..............  Annaly Capital Management Inc.
99............................  NOK..............  Nokia OYJ.
121...........................  NVDA.............  Nvidia Corp.
80............................  ORCL.............  Oracle Corp.
61............................  PALM.............  Palm Inc.
37............................  PBR..............  Petroleo Brasileiro SA.
85............................  PG...............  Procter & Gamble Co/The.
41............................  POT..............  Potash Corp of Saskatchewan Inc.
74............................  RF...............  Regions Financial Corp.
124...........................  RIG..............  Transocean Ltd.
132...........................  RMBS.............  Rambus Inc.
103...........................  S................  Sprint Nextel Corp.
83............................  SDS..............  ProShares UltraShort S&P500.
122...........................  SKF..............  ProShares UltraShort Financials.
107...........................  SLB..............  Schlumberger Ltd.
91............................  SLV..............  iShares Silver Trust.
84............................  SRS..............  Pro Shares Ultra Short Real Estate.
112...........................  FITB.............  Fifth Third Bancorp.
70............................  FSLR.............  First Solar Inc.
26............................  FXI..............  iShares FTSE/Xinhua China 25 Index Fund.
82............................  GDX..............  Market Vectors--Gold Miners ETF.
127...........................  GG...............  Goldcorp Inc.
18............................  GLD..............  SPDR Gold Trust.
129...........................  HGSI.............  Human Genome Sciences Inc.
62............................  HIG..............  Hartford Financial Services Group Inc.
72............................  HPQ..............  Hewlett-Packard Co.
59............................  IBM..............  International Business Machines Corp.
45............................  IYR..............  iShares Dow Jones U.S. Real Estate Index Fund.
105...........................  JNJ..............  Johnson & Johnson.
131...........................  JNPR.............  Juniper Networks Inc.
98............................  KO...............  Coca-Cola Co/The.
39............................  LVS..............  Las Vegas Sands Corp.
87............................  MCD..............  McDonald's Corp.
71............................  MGM..............  MGM Mirage.
113...........................  MON..............  Monsanto Co.
63............................  MOS..............  Mosaic Co/The.
119...........................  SSO..............  ProShares Ultra S&P500.
101...........................  STI..............  SunTrust Banks Inc.
125...........................  SVNT.............  Savient Pharmaceuticals Inc.

[[Page 59333]]

92............................  TBT..............  ProShares UltraShort 20+ Year Treasury.
14............................  UNG..............  United States Natural Gas Fund LP.
117...........................  UNH..............  UnitedHealth Group Inc.
110...........................  UPS..............  United Parcel Service Inc.
81............................  USB..............  US Bancorp.
44............................  USO..............  United States Oil Fund LP.
60............................  UYG..............  ProShares Ultra Financials.
96............................  V................  Visa Inc.
10............................  WFC..............  Wells Fargo & Co.
133...........................  WYNN.............  Wynn Resorts Ltd.
52............................  X................  United States Steel Corp.
114...........................  XHB..............  SPDR S&P Homebuilders ETF.
86............................  XLI..............  Industrial Select Sector SPDR Fund.
79............................  XLU..............  Utilities Select Sector SPDR Fund.
54............................  XRT..............  SPDR S&P Retail ETF.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \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, 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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    \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

    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 \9\ and Rule 19b-
4(f)(1) thereunder,\10\ 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(i).
    \10\ 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-2009-94 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-2009-94. 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 inspection and 
copying 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-2009-94 and should be 
submitted on or before December 8, 2009.

    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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-27470 Filed 11-16-09; 8:45 am]

BILLING CODE 8011-01-P