Document ID: SEC-2011-0913-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2011-06-30T04:00Z

[Federal Register Volume 76, Number 126 (Thursday, June 30, 2011)]
[Notices]
[Page 38444]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16418]

[[Page 38444]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64741; File No. SR-Phlx-2011-65]

[Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order 
Granting Approval of Proposed Rule Change Regarding Opening Index 
Option Months and Series

June 24, 2011.

I. Introduction

    On May 6, 2011, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
regarding opening index option months and series. The proposed rule 
change was published for comment in the Federal Register on May 18, 
2011.\3\ The Commission received no comment letters on the proposal. 
This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 64480 (May 12, 2011), 76 
FR 28836 (``Notice'').
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II. Description of the Proposal

    The proposal seeks to harmonize the Exchange's index option and 
equity option listing rules that govern the opening for trading of 
series and expiration months for approved options classes. The Exchange 
proposes to eliminate prescriptive guidelines stating which expiration 
months may be listed and replace them with simplified rules stating 
that the Exchange shall open a minimum of one expiration month and 
series for each class of approved stock index options, and that the 
Exchange may open additional series as needed (subject to certain 
conditions). The proposed rules are substantially identical to the 
rules in place for the listing of expiration months and series in stock 
or exchange-traded-fund (``ETF'') options.\4\
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    \4\ See Phlx Rule 1012(a)(1)(A); see also Nasdaq Rules Chapter 
IV, Section 6(b) and (e).
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III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\5\ 
Specifically, the Commission finds that the proposal is consistent with 
Section 6(b)(5) of the Act,\6\ which requires, among other things, that 
the rules of a national securities exchange be 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, to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, and, in general, to protect 
investors and the public interest. The Commission notes that it has 
previously approved language in exchange listing rules that provide an 
exchange will open at least one expiration month and one series for 
each class of equity and ETF options listed by the exchange.\7\
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ See Securities Exchange Act Release No. 57478 (March 12, 
2008), 73 FR 14521.
    (March 18, 2008) (SR-Nasdaq-2007-004), at 14538 (approving rules 
for the Nasdaq Options Market, including specifically Chapter IV, 
Section 6(b) and (e)).
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IV. Conclusion

    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-Phlx-2011-65) be, and it 
hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-16418 Filed 6-29-11; 8:45 am]
BILLING CODE 8011-01-P