Document ID: SEC-2010-0693-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2010-05-11T04:00Z

[Federal Register: May 11, 2010 (Volume 75, Number 90)]
[Notices]               
[Page 26310-26311]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11my10-140]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62042; File No. SR-ISE-2010-42]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Add 75 Options Classes to the Penny Pilot Program

May 5, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on April 29, 2010, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') filed with the Securities and Exchange 
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 ISE proposes to designate 75 options classes to be added to the 
pilot program to quote and to trade certain options in pennies (the 
``Penny Pilot'') on May 3, 2010.

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 these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
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

    Purpose--ISE proposes to identify the next 75 options classes to be 
added to the Penny Pilot effective May 3, 2010. The Exchange recently 
received approval to extend and expand the Penny Pilot through December 
31, 2010.\3\ In that filing, the Exchange had proposed expanding the 
Penny Pilot on a quarterly basis to add the next 75 most actively 
traded multiply listed options classes based on national average daily 
volume for the six months prior to selection, closing under $200 per 
share on the Expiration Friday prior to expansion, except that the 
month immediately preceding their addition to the Penny Pilot will not 
be used for the purpose of the six month analysis.\4\
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    \3\ See Securities Exchange Act Release No. 60865 (October 22, 
2009), 74 FR 55880 (October 29, 2009) (SR-ISE-2009-82). The 
Commission notes that this proposed rule change was submitted 
pursuant to Section 19(b)(3)(A)(iii) of the Act and was, therefore, 
effective upon filing. The Commission does not approve proposed rule 
changes submitted pursuant to this section of the Act.
    \4\ Index products would be included in the expansion if the 
underlying index level was under 200.
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    ISE proposes to add the following 75 options classes to the Penny 
Pilot on May 3, 2010, based on national average daily volume for the 
six months ending March 31, 2010:

----------------------------------------------------------------------------------------------------------------
 Nat'l ranking         Symbol           Security name       Nat'l ranking       Symbol          Security name
----------------------------------------------------------------------------------------------------------------
153............  XLV                Health Care Select     247...........  JCP               JC Penney Co Inc.
                                     Sector SPDR Fund.
155............  CIEN               Ciena Corp.            248...........  ACL               Alcon Inc.
157............  AMLN               Amylin                 249...........  STP               Suntech Power
                                     Pharmaceuticals Inc.                                     Holdings Co Ltd.
158............  CTIC               Cell Therapeutics      250...........  TLB               Talbots Inc.
                                     Inc.
159............  MDT                Medtronic Inc.         251...........  SYMC              Symantec Corp.
162............  TIVO               TiVo Inc.              253...........  AMED              Amedisys Inc.
163............  MNKD               MannKind Corp.         255...........  TM                Toyota Motor Corp.
171............  MDVN               Medivation Inc.        257...........  HK                Petrohawk Energy
                                                                                              Corp.
176............  BRKB               Berkshire Hathaway     258...........  ENER              Energy Conversion
                                     Inc.                                                     Devices Inc.
178............  APOL               Apollo Group Inc.      259...........  STT               State Street Corp.
181............  BSX                Boston Scientific      260...........  BHP               BHP Billiton Ltd.
                                     Corp.
185............  XLY                Consumer               261...........  NFLX              NetFlix Inc.
                                     Discretionary Sel.
                                     Sec. SPDR Fund.
188............  CLF                Cliffs Natural         262...........  LDK               LDK Solar Co Ltd.
                                     Resources Inc.
190............  ZION               Zions Bancorporation.  263...........  SPG               Simon Property
                                                                                              Group Inc.
194............  IOC                InterOil Corp.         264...........  TIF               Tiffany & Co.
197............  ITMN               InterMune Inc.         265...........  BUCY              Bucyrus
                                                                                              International Inc.

[[Page 26311]]

204............  GME                GameStop Corp.         266...........  WAG               Walgreen Co.
209............  XLK                Technology Select      268...........  IP                International Paper
                                     Sector SPDR Fund.                                        Co.
210............  AKS                AK Steel Holding       271...........  XME               SPDR S&P Metals &
                                     Corp.                                                    Mining ETF.
212............  GRMN               Garmin Ltd.            272...........  KGC               Kinross Gold Corp.
213............  MRVL               Marvell Technology     273...........  EP                El Paso Corp.
                                     Group Ltd.
215............  XLP                Consumer Staples       274...........  SEED              Origin Agritech
                                     Select Sector SPDR                                       Ltd.
                                     Fund.
216............  UNP                Union Pacific Corp.    275...........  WIN               Windstream Corp.
220............  DTV                DIRECTV.               279...........  DHI               DR Horton Inc.
223............  WMB                Williams Cos Inc/The.  280...........  ADBE              Adobe Systems Inc.
225............  MEE                Massey Energy Co.      281...........  PCX               Patriot Coal Corp.
227............  CELG               Celgene Corp.          282...........  SPWRA             SunPower Corp.
229............  GMCR               Green Mountain Coffee  284...........  LCC               US Airways Group
                                     Roasters Inc.                                            Inc.
231............  WDC                Western Digital Corp.  285...........  PRU               Prudential
                                                                                              Financial Inc.
234............  DAL                Delta Air Lines Inc.   286...........  LEN               Lennar Corp.
235............  FXE                CurrencyShares Euro    287...........  EWT               iShares MSCI Taiwan
                                     Trust.                                                   Index Fund.
237............  COST               Costco Wholesale       288...........  KBH               KB Home.
                                     Corp.
239............  MJN                Mead Johnson           289...........  CREE              Cree Inc.
                                     Nutrition Co.
240............  ALL                Allstate Corp/The.     290...........  SIRI              Sirius XM Radio
                                                                                              Inc.
241............  SII                Smith International    291...........  MMR               McMoRan Exploration
                                     Inc.                                                     Co.
242............  RTN                Raytheon Co.           292...........  CENX              Century Aluminum
                                                                                              Co.
243............  DVN                Devon Energy Corp.     293...........  GFI               Gold Fields Ltd.
244............  MT                 ArcelorMittal.
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     (b) Basis--The basis under the Securities Exchange Act of 1934 
(the ``Exchange Act'') for this proposed rule change is found in 
Section 6(b)(5), in that the proposed rule change is designed to 
promote just and equitable principles of trade, remove impediments to 
and perfect the mechanisms of a free and open market and a national 
market system and, in general, to protect investors and the public 
interest. In particular, the proposed rule change identifies the 
options classes to be added to the Penny Pilot in a manner consistent 
with prior approvals and filings.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not 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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

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

    The proposed rule change is effective upon filing pursuant to 
Section 19(b)(3)(A)(i) \5\ of the Exchange Act and Rule 19b-4(f)(1) \6\ 
thereunder, in that it constitutes a stated policy, practice or 
interpretation with respect to the meaning, administration or 
enforcement of an existing rule of the Exchange.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(i).
    \6\ 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 No. SR-ISE-2010-42 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-ISE-2010-42. 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 Commissions 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 copying in 
the Commission's Public Reference Room. Copies of such filing also will 
be available for inspection and copying at the principal office of the 
ISE. 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-ISE-
2010-42 and should be submitted by June 1, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-11135 Filed 5-10-10; 8:45 am]
BILLING CODE 8010-01-P