Document ID: SEC-2012-0209-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX LLC
Posted Date: 2012-02-07T05:00Z

[Federal Register Volume 77, Number 25 (Tuesday, February 7, 2012)]
[Notices]
[Pages 6160-6161]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2668]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66285; File No. SR-Phlx-2011-175]

 Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order 
Granting Approval of Proposed Rule Change Regarding Strike Price 
Intervals for SLV and USO Options

February 1, 2012.

I. Introduction

    On December 7, 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 
regarding strike price intervals for options on iShares[reg] Silver 
Trust (``SLV'' or ``SLV Trust'') and United States Oil Fund (``USO'' or 
``USO Fund''). The proposed rule change was published for comment in 
the Federal Register on December 22, 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. 65986 (December 16, 
2011), 76 FR 79748 (December 22, 2011) (``Notice'').
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II. Description of the Proposal

    The proposed rule change seeks to amend Commentary .05 of Rule 1012 
to allow trading of SLV and USO options at $0.50 strike price intervals 
where the strike price is less than $75.\4\ The Exchange proposed no 
other changes to SLV and USO strike price intervals.
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    \4\ The Exchange also proposed certain non-substantive changes 
to Commentary .06 of Rule 1009.
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    The Exchange stated that the proposed rule change is designed to 
address customer demand to hedge the SLV and USO options in smaller 
intervals and would, in part, allow better tailored investment and 
hedging opportunities.\5\
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    \5\ See Notice at 79749.
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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.\6\ 
Specifically, the Commission finds that the proposal is consistent with 
Section 6(b)(5) of the

[[Page 6161]]

Act,\7\ 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 believes that the proposal strikes a 
reasonable balance between the Exchange's desire to offer a wider array 
of strike prices in SLV and USO options while minimizing the 
unnecessary proliferation of strike prices in such options. The 
Commission expects the Exchange to monitor the trading volume 
associated with the additional strike prices listed as a result of this 
proposal and the effect of these additional strike prices on market 
fragmentation and on the capacity of the Exchange's, OPRA's, and 
vendors' automated systems.
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    \6\ 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).
    \7\ 15 U.S.C. 78f(b)(5).
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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-2011-175) 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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-2668 Filed 2-6-12; 8:45 am]
BILLING CODE 8011-01-P