Document ID: SEC-2010-0643-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Amex LLC
Posted Date: 2010-04-30T04:00Z

[Federal Register: April 30, 2010 (Volume 75, Number 83)]
[Notices]               
[Page 22886-22887]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ap10-152]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61978; File No. SR-NYSEAmex-2010-39]

 
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Rule 903 
and Adopting Rule 903A

April 23, 2010.
    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 April 16, 2010, NYSE Amex LLC (``NYSE Amex'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III, below, which Items have been prepared by the self-regulatory 
organization. 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 Rule 903 and adopt Rule 903A to 
apply uniform objective standards to the range of options series 
exercise (or strike) prices available for trading on the Exchange, and 
to amend Rule 903 Commentary .03 to delineate the timing for adding new 
Long Term Equity Option Series. The text of the proposed rule change is 
attached as Exhibit 5 to the 19b-4 form. A copy of this filing is 
available on the Exchange's Web site at http://www.nyse.com, at the 
Exchange's principal office, at the Commission's Public Reference Room, 
and on the Commission's Web site at http://www.sec.gov.

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 self-regulatory organization 
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 those 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 purpose of this filing is to amend Rule 903 and adopt Rule 903A 
to apply uniform objective standards to the range of options series 
exercise (or strike) prices available for trading on the Exchange, and 
to amend Rule 903 Commentary .03 to delineate the timing for adding new 
Long Term Equity Option Series. The Exchange is also proposing to 
remove provisions in Commentary .03 related to Short Term Option Series 
and place those provisions in new Commentary .10. Commentary .10 will 
only contain provisions previously approved by the Commission.\3\
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    \3\ See Securities Exchange Act Release No. 52014 (July 12, 
2005) 70 FR 41244 (July 18, 2005).
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    The Options Listing Procedures Plan (``OLPP'') was approved by the 
Securities and Exchange Commission (the ``Commission'') on July 6, 2001 
and has been amended several times.\4\ The OLPP provides procedures 
for: (i) Listing and trading new option classes; (ii) selecting new 
options series; (iii) petitioning The Options Clearing Corporation 
(``OCC'') to review the eligibility, pursuant to the exchanges' listing 
standards, of a selected option class without delaying the trading of 
that option class; (iv) determining operational details for option 
contracts adjusted pursuant to OCC By-Laws; (v) admitting new sponsors; 
and (vi) losing eligibility to participate in the OLPP.
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    \4\ See e.g., Securities Exchange Act Release Nos. 44521 (July 
6, 2001), 66 FR 36809 (July 13, 2001) (order approving OLPP); 58205 
(July 22, 2008), 73 FR 43798 (July 28, 2008) (order granting 
permanent approval to amendment no. 1 to the OLPP); 58630 (September 
24, 2008) 73 FR 57166 (October 1, 2008) (order granting permanent 
approval to amendment no. 2 to the OLPP); and 60531 (August 19, 
2009), 74 FR 43173 (August 26, 2009) (order approving amendment no. 
3 to the OLPP).
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    This current filing is primarily concerned with codifying certain 
provisions of the OLPP pertaining to selecting new option series and 
certain strike setting parameters that have been adopted under the 
OLPP. The Exchange believes that it is helpful to codify select 
provisions into NYSE Amex's rules so that all applicable rules 
governing series selection and applicable strike setting parameters are 
located in a single place. In addition, the Exchange understands that 
other Sponsor Exchanges to the OLPP will be submitting similar filings 
to codify portions of the OLPP in their respective rulebooks. Below the 
Exchange briefly describes the provisions of the OLPP that the Exchange 
is proposing to codify into NYSE Amex's rules.
OLPP Amendments Pertaining to LEAPS
    Amendments 1 and 2 to the OLPP adopted provisions governing the 
listing of Long-Term Equity Option Series (``LEAPS''). Amendment 1 
provided for a uniform time frame for the introduction of new LEAPS on 
equity option classes, options on exchange traded funds (``ETFs''), or 
options on Trust Issued Receipts (``TIRs''). Amendment 2 provided for a 
uniform minimum volume threshold per underlying class to qualify for 
the introduction of a new expiration year of LEAPs on equity, ETF and 
TIR classes. The Exchange is proposing to codify the changes made to 
the OLPP by Amendments 1 and 2 by amending Rule 903 Commentary .03.
Strike Setting Parameters
    Amendment 3 to the OLPP adopted uniform objective standards to the 
range of options series exercise (or strike) prices available for 
trading on Sponsor Exchanges to the OLPP as a quote mitigation 
strategy. The Exchange is proposing to codify the changes made to the 
OLPP by Amendment 3 by inserting a reference in Rule 903 and by 
adopting new Rule 903A, Select Provisions of Options Listing Procedures 
Plan. The Exchange is proposing to create a new rule that can be easily 
amended in the future if other amendments to the OLPP are made which 
similarly warrant being codified into NYSE Amex's rules.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) \5\ of the Securities Exchange Act of 1934 (the ``Act''), 
in general, and furthers the objectives of Section 6(b)(5) \6\ in 
particular in that it is designed to promote just and equitable 
principles of trade, to prevent fraudulent and manipulative acts, to 
remove impediments to and to perfect the mechanism for a free and open 
market and a national market system and, in general, to protect 
investors and the

[[Page 22887]]

public interest. The Exchange believes that codifying certain 
provisions of the OLPP, as amended, serves to foster investor 
protection.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 solicited or received with respect to the 
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\ 
Because the 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 prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate if consistent with the protection of 
investors and the public interest, the proposed rule change 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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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6).
    \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)(iii) requires the Exchange to give the Commission written 
notice of the Exchange's intent to file the proposed rule change 
along with a brief description and the text of 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 Exchange has satisfied the pre-filing requirement.
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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-NYSEAmex-2010-39 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-NYSEAmex-2010-39. 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 the 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-
NYSEAmex-2010-39 and should be submitted on or before May 21, 2010.

    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. 2010-10081 Filed 4-29-10; 8:45 am]
BILLING CODE 8011-01-P