Document ID: SEC-2010-0193-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX, Inc.
Posted Date: 2010-02-08T05:00Z

[Federal Register: February 8, 2010 (Volume 75, Number 25)]
[Notices]               
[Page 6233-6235]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe10-95]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61454; File No. SR-Phlx-2010-12]

 
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Add 
Seventy-Five Options Classes to the Penny Pilot Program

February 1, 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 January 25, 2010 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. 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 is filing with the Commission a proposal to designate 
seventy-five options classes to be added to the Penny Pilot Program 
(``Penny Pilot'' or ``Pilot'') on February 1, 2010.\3\ The Exchange is 
not proposing to amend any rule text, but simply administering or 
enforcing an existing rule.\4\
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    \3\ 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); 60873 (October 23, 
2009) (SR-Phlx-2009-91) (notice of filing and immediate 
effectiveness expanding and extending Penny Pilot); and 60966 
(November 9, 2009) (SR-Phlx-2009-094) (notice of filing and 
immediate effectiveness adding seventy-five classes to Penny Pilot).
    \4\ 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/NASDAQOMXPHLX/
Filings, 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 February 1, 
2010.
    In the Exchange's immediately effective filing to extend and expand 
the Penny Pilot through December 31, 2010,\5\ the Exchange proposed 
expanding the Pilot four times on a

[[Page 6234]]

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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    \5\ See Securities Exchange Act Release No. 60873 (October 23, 
2009), 74 FR 56675 (November 2, 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 February 1, 
2010, based on ADVs for the six months ending December 31, 2009.

----------------------------------------------------------------------------------------------------------------
    Nat'l ranking          Symbol          Company name      Nat'l ranking        Symbol         Company name
----------------------------------------------------------------------------------------------------------------
131.................  ABT............  Abbott               192............  LEAP...........  Leap Wireless
                                        Laboratories.                                          International
                                                                                               Inc.
169.................  AEM............  Agnico-Eagle Mines   205............  LLY............  Eli Lilly & Co.
                                        Ltd.
151.................  AET............  Aetna Inc.           162............  LO.............  Lorillard Inc.
156.................  AFL............  Aflac Inc.           152............  LOW............  Lowe's Cos Inc.
181.................  AKAM...........  Akamai Technologies  176............  M..............  Macy's Inc.
                                        Inc.
178.................  AMAT...........  Applied Materials    155............  MCO............  Moody's Corp.
                                        Inc.
117.................  AMR............  AMR Corp.            217............  MET............  MetLife Inc.
166.................  ANF............  Abercrombie & Fitch  187............  MMM............  3M Co.
                                        Co.
172.................  APC............  Anadarko Petroleum   140............  MU.............  Micron Technology
                                        Corp.                                                  Inc.
209.................  ATVI...........  Activision Blizzard  177............  NUE............  Nucor Corp.
                                        Inc.
145.................  BBD............  Banco Bradesco SA.   157............  OXY............  Occidental
                                                                                               Petroleum Corp.
190.................  BCRX...........  BioCryst             158............  PARD...........  Poniard
                                        Pharmaceuticals                                        Pharmaceuticals
                                        Inc.                                                   Inc.
218.................  BK.............  Bank of New York     150............  PEP............  PepsiCo Inc/NC.
                                        Mellon Corp/The.
194.................  BRCM...........  Broadcom Corp.       141............  PM.............  Philip Morris
                                                                                               International
                                                                                               Inc.
184.................  BTU............  Peabody Energy       185............  PNC............  PNC Financial
                                        Corp.                                                  Services Group
                                                                                               Inc.
144.................  BX.............  Blackstone Group     216............  QID............  ProShares
                                        LP.                                                    UltraShort QQQ.
200.................  CAL............  Continental          149............  SHLD...........  Sears Holdings
                                        Airlines Inc.                                          Corp.
211.................  CF.............  CF Industries        175............  SLM............  SLM Corp.
                                        Holdings Inc.
142.................  CMCSA..........  Comcast Corp.        212............  SLW............  Silver Wheaton
                                                                                               Corp.
203.................  CSX............  CSX Corp.            215............  SQNM...........  Sequenom Inc.
143.................  CVS............  CVS Caremark Corp.   153............  STEC...........  STEC Inc.
174.................  CX.............  Cemex SAB de CV.     219............  STX............  Seagate
                                                                                               Technology.
183.................  DD.............  EI du Pont de        202............  SU.............  Suncor Energy Inc.
                                        Nemours & Co.
146.................  ERTS...........  Electronic Arts      207............  TCK............  Teck Resources
                                        Inc.                                                   Ltd.
121.................  EWJ............  iShares MSCI Japan   196............  TEVA...........  Teva
                                        Index Fund.                                            Pharmaceutical
                                                                                               Industries Ltd.
186.................  FDX............  FedEx Corp.          135............  TLT............  iShares Barclays
                                                                                               20+ Year Treasury
                                                                                               Bond Fund.
118.................  FNM............  Federal National     214............  TZA............  Direxion Daily
                                        Mortgage                                               Small Cap Bear 3X
                                        Association.                                           Shares.
182.................  FRE............  Federal Home Loan    168............  UAUA...........  UAL Corp.
                                        Mortgage Corp.
179.................  GILD...........  Gilead Sciences      154............  URE............  ProShares Ultra
                                        Inc.                                                   Real Estate.
198.................  GLW............  Corning Inc.         180............  UTX............  United
                                                                                               Technologies
                                                                                               Corp.
170.................  HBC............  HSBC Holdings PLC.   204............  WFR............  MEMC Electronic
                                                                                               Materials Inc.
197.................  HES............  Hess Corp.           115............  WFT............  Weatherford
                                                                                               International
                                                                                               Ltd.
161.................  HL.............  Hecla Mining Co.     165............  WLP............  WellPoint Inc.
193.................  HOG............  Harley-Davidson      191............  XLB............  Materials Select
                                        Inc.                                                   Sector SPDR Fund.
206.................  HON............  Honeywell            173............  XRX............  Xerox Corp.
                                        International Inc.
210.................  JOYG...........  Joy Global Inc.      148............  XTO............  XTO Energy Inc.
213.................  JWN............  Nordstrom Inc.       130............  YRCW...........  YRC Worldwide Inc.
137.................  KFT............  Kraft Foods Inc.     ...............  ...............  ..................
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \7\ 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 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 \8\ and Rule 19b-
4(f)(1) thereunder,\9\ 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(i).
    \9\ 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

[[Page 6235]]

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-2010-12 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-2010-12. 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-2010-12 and should be 
submitted on or before March 1, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2583 Filed 2-5-10; 8:45 am]
BILLING CODE 8011-01-P