Document ID: SEC-2006-0940-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc.
Posted Date: 2006-07-25T04:00Z

[Federal Register: July 25, 2006 (Volume 71, Number 142)]
[Notices]               
[Page 42151-42155]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25jy06-120]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54166; File No. SR-NYSE Arca-2006-45]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 
Thereto To Permit the Listing and Trading of Quarterly Options Series

July 18, 2006.
    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 July 12, 2006, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been substantially prepared by the Exchange. The Exchange has 
designated this proposal as non-controversial under Section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ 
which renders the proposed rule change effective upon filing with the 
Commission. The Exchange filed Amendment No. 1 to the proposed rule 
change on July 18, 2006.\5\ The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ In Amendment No. 1, a partial amendment, the Exchange made 
minor modifications to the proposed rule text.
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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 its rules to permit the listing and 
trading of quarterly options series.\6\ The text of the proposed rule 
change, as amended, is set forth below. Proposed new language is in 
italics; language proposed to be deleted is in [brackets].
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    \6\ This proposal is substantially identical to a recently 
approved proposal by the International Securities Exchange (``ISE'') 
to list Quarterly Options Series on a pilot basis. See Securities 
Exchange Act Releases No. 53857 (May 24, 2006), 71 FR 31246 (June 1, 
2006) (notice of filing); and 54113 (July 7, 2006), 71 FR 39694 
(July 13, 2006) (approval order).
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* * * * *
Rules of NYSE Arca, Inc.
Rule 5. Option Contracts Traded on the Exchange
* * * * *

[[Page 42152]]

Rule 5.10. Applicability, Definitions and References

    (a) No change.
    (b) Definitions. Unless the context indicates otherwise, the 
following terms as used in this Section 3 shall have the meanings 
specified below.
    (1)-(25) No change.
    (26) The term ``Quarterly Options Series'' means, for the purposes 
of this Rule 5, a series in an index options class that is approved for 
listing and trading on the Exchange in which the series is opened for 
trading on any business day and that expires at the close of business 
on the last business day of a calendar quarter.
* * * * *

Rule 5.15. Position Limits for Broad-Based Index Options

    (a)-(d) No change.
    (e) Positions in One Week Option[s] Series and Quarterly Options 
Series shall be aggregated with positions in options contracts on the 
same index.

Rule 5.16. Position Limits for Industry (Narrow-Based) Index Options

    (a)-(c) No change.
    (d) Positions in One Week Option Series and Quarterly Options 
Series shall be aggregated with positions in options contracts on the 
same index.
    (e)-(g) No change.
* * * * *

Rule 5.19. Terms of Index Option Contracts

    (a) General
    (1)-(2) No change.
    (3) Expiration Months. Index Option contracts may expire at three 
(3) month intervals or in consecutive months. The Exchange may list up 
to six (6) months at any one time, but will not list index options that 
expire more than twelve (12) months out.
    One Week Option Series Pilot Program. Notwithstanding the preceding 
restriction, after an index option class has been approved for listing 
and trading on the Exchange, the Exchange may open for trading on any 
Friday that is a business day (``One Week Option Opening Date'') series 
of options on that class that expire at the close of business on the 
next Friday that is a business day (``One Week Option Expiration 
Date''). If the Exchange is not open for business on a Friday, the One 
Week Option Opening Date will be the first business day immediately 
prior to that Friday. Similarly, if the Exchange is not open for 
business on a Friday, the One Week Option Expiration Date will be the 
first business day immediately prior to that Friday. One Week Option 
Series shall be P.M. settled, except for One Week Option Series on 
indexes. One Week Option Series on indexes shall be A.M. settled.
    The Exchange may select up to five currently listed option classes 
on which One Week Option Series may be opened on any One Week Option 
Opening Date. In addition, to the five-option class restriction, the 
Exchange also may list One Week Option Series on any option classes 
that are selected by other securities exchanges that employ a similar 
Pilot Program under their respective rules. For each index option class 
eligible for participation in the One Week Option Series Pilot Program, 
the Exchange may open up to five One Week Option Series index options 
for each expiration date in that class. The strike price of each One 
Week Option Series will be fixed at a price per share, with at least 
two strike prices above and two strike prices below the calculated 
value of the underlying index value at about the time the One Week 
Option Series is opened for trading on the Exchange. No One Week Option 
Series on an index option class may expire in the same week during 
which any A.M. settled monthly option series on the same index class 
expire.
    The Exchange may continue to list One Week Option Series until the 
One Week Option Series Pilot Program expires on July 12, 2007.
    Quarterly Options Series Pilot Program. Notwithstanding the 
restriction in this Rule 5.19(a)(3) above, for a pilot period, the 
Exchange may list and trade options series that expire at the close of 
business on the last business day of a calendar quarter (``Quarterly 
Options Series''). The Exchange may list Quarterly Options Series for 
up to five (5) currently listed options classes that are either index 
options or options on exchange traded funds. In addition, the Exchange 
may also list Quarterly Options Series on any options classes that are 
selected by other securities exchanges that employ a similar pilot 
program under their respective rules. The pilot will commence the day 
the Exchange first initiates trading in a Quarterly Options Series or 
July 24, 2006, whichever is earlier. The Pilot Program will expire on 
July 10, 2007.
    The Exchange will list series that expire at the end of the next 
consecutive four (4) calendar quarters, as well as the fourth quarter 
of the next calendar year. For example, if the Exchange is trading 
Quarterly Options Series in the month of May 2006, it will list series 
that expire at the end of the second, third and fourth quarters of 
2006, as well as the first and fourth quarters of 2007. Following the 
second quarter 2006 expiration, the Exchange will add series that 
expire at the end of the second quarter of 2007.
    The Exchange will not list a One Week Option Series on an options 
class whose expiration coincides with that of a Quarterly Options 
Series on that same options class.
    Quarterly Options Series shall be P.M. settled.
    The strike price of each Quarterly Options Series will be fixed at 
a price per share, with at least two strike prices above and two strike 
prices below the value of the underlying security at about the time 
that a Quarterly Options Series is opened for trading on the Exchange. 
The Exchange shall list strike prices for a Quarterly Options Series 
that are within $5 from the closing price of the underlying security on 
the preceding day. The Exchange may open for trading additional 
Quarterly Options Series of the same class if the current index value 
of the underlying index moves substantially from the exercise price of 
those Quarterly Options Series that already have been opened for 
trading on the Exchange. The exercise price of each Quarterly Options 
Series opened for trading on the Exchange shall be reasonably related 
to the current index value of the underlying index to which such series 
relates at or about the time such series of options is first opened for 
trading on the Exchange. The term ``reasonably related to the current 
index value of the underlying index'' means that the exercise price is 
within thirty percent (30%) of the current index value. The Exchange 
may also open for trading additional Quarterly Options Series that are 
more than thirty percent (30%) away from the current index value, 
provided that demonstrated customer interest exists for such series, as 
expressed by institutional, corporate, or individual customers or their 
brokers. Market Makers trading for their own account shall not be 
considered when determining customer interest under this provision.
    The interval between strike prices on Quarterly Options Series 
shall be the same as the interval for strike prices for series in that 
same options class that expire in accordance with the normal monthly 
expiration cycle.
    (4)-(7) No change.
    (b)-(e) No change.
* * * * *

Rule 6. Options Trading

Rule 6.1. Applicability, Definitions and References

    (a) No change.
    (b) Definitions. The following terms as used in Rule 6 shall, 
unless the context

[[Page 42153]]

otherwise indicates, have the meanings herein specified:
    (1)-(16) No change.
    (17) Expiration Date. The term ``expiration date'' in respect of an 
option contract or Exchange-Traded Fund Share means 2:00 p.m. on the 
Saturday immediately following the third Friday of the expiration 
month. For a One Week Option Series the term ``expiration date'' shall 
mean the close of business on the next Friday that is a business day. 
If a Friday is not a business day, the ``expiration date'' shall be the 
close of business on the first business day immediately prior to that 
Friday. For a Quarterly Options Series, the term ``expiration date'' 
shall mean the close of business on the last business day of a calendar 
quarter.
    (18)-(41) No change.
    (42) Quarterly Options Series. The term ``Quarterly Options 
Series'' means a series in an options class that is approved for 
listing and trading on the Exchange in which the series is opened for 
trading on any business day and that expires at the close of business 
on the last business day of a calendar quarter.
    (c)-(e) No change.
* * * * *

Rule 6.4. Series of Options Open for Trading

    (a) After a particular class of options (call option contracts or 
put option contracts relating to a specific underlying stock, Exchange-
Traded Fund Share or calculated index) has been approved for listing 
and trading on the Exchange, the Exchange shall from time to time open 
for trading series of options therein. Prior to the opening of trading 
in any series of options, the Exchange shall fix the expiration month 
and exercise price of option contracts included in each such series. 
For One Week Option Series, the Exchange will fix a specific expiration 
date and exercise price, as provided in Commentary .07 below. For 
Quarterly Options Series, the Exchange will fix a specific expiration 
date and exercise price, as provided in Commentary .08 below. Except 
for One Week Option Series and Quarterly Options Series, at the 
commencement of trading on the Exchange of a particular class of 
options, series of options therein having four different expiration 
months will normally be opened. Additional series of options of the 
same class may be opened for trading on the Exchange at or about the 
time a prior series expires. The exercise price of each series of 
options opened for trading on the Exchange shall be fixed at a price 
per share which is reasonably close to the price per share at which the 
underlying stock or Exchange-Traded Fund Share is traded in the primary 
market at or about the time such series of options is first opened for 
trading on the Exchange. Additional series of options of the same class 
may be opened for trading on the Exchange as the market price of the 
underlying stock or Exchange-Traded Fund Share moves substantially from 
the initial exercise price or prices. The opening of a new series of 
options on the Exchange shall not affect any other series of options of 
the same class previously opened. Commentary .07 will govern the 
procedures for opening One Week Option Series. Commentary .08 will 
govern the procedures for opening Quarterly Options Series.
    (b)-(e) No change.

Commentary

    .01 through .07 No change.
    .08 Quarterly Options Series Pilot Program. For a pilot period, the 
Exchange may list and trade options series that expire at the close of 
business on the last business day of a calendar quarter (``Quarterly 
Options Series''). The Exchange may list Quarterly Options Series for 
up to five (5) currently listed options classes that are either index 
options or options on exchange traded funds. In addition, the Exchange 
may also list Quarterly Options Series on any options classes that are 
selected by other securities exchanges that employ a similar pilot 
program under their respective rules. The pilot will commence the day 
the Exchange first initiates trading in a Quarterly Options Series or 
July 24, 2006, whichever is earlier. The Pilot Program will expire on 
July 10, 2007.
    The Exchange will list series that expire at the end of the next 
consecutive four (4) calendar quarters, as well as the fourth quarter 
of the next calendar year. For example, if the Exchange is trading 
Quarterly Options Series in the month of May 2006, it will list series 
that expire at the end of the second, third and fourth quarters of 
2006, as well as the first and fourth quarters of 2007. Following the 
second quarter 2006 expiration, the Exchange will add series that 
expire at the end of the second quarter of 2007.
    The Exchange will not list a One Week Option Series on an options 
class whose expiration coincides with that of a Quarterly Options 
Series on that same options class.
    The strike price of each Quarterly Options Series will be fixed at 
a price per share, with at least two strike prices above and two strike 
prices below the value of the underlying security at about the time 
that a Quarterly Options Series is opened for trading on the Exchange. 
The Exchange shall list strike prices for a Quarterly Options Series 
that are within $5 from the closing price of the underlying security on 
the preceding day. Additional Quarterly Options Series of the same 
class may be opened for trading on the Exchange when the Exchange deems 
it necessary to maintain an orderly market, to meet customer demand or 
when the market price of the underlying security moves substantially 
from the initial exercise price or prices. To the extent that any 
additional strike prices are listed by the Exchange, such additional 
strike prices shall be within $5 from the closing price of the 
underlying on the preceding day. The opening of new Quarterly Options 
Series shall not affect the series of options of the same class 
previously opened.
    The interval between strike prices on Quarterly Options Series 
shall be the same as the interval for strike prices for series in that 
same options class that expire in accordance with the normal monthly 
expiration cycle.
* * * * *

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 Exchange proposes to amend its rules to accommodate the listing 
of options series that would expire at the close of business on the 
last business day of a calendar quarter (``Quarterly Options Series''). 
Quarterly Options Series could be opened on any approved options class 
\7\ on a business day (``Quarterly Options Opening Date'') and would 
expire at the close of business on the last business day of a calendar 
quarter (``Quarterly Options Expiration Date''). The Exchange would 
list series

[[Page 42154]]

that expire at the end of the next four consecutive calendar quarters, 
as well as the fourth quarter of the next calendar year. For example, 
if the Exchange were trading Quarterly Options Series in the month of 
May 2006, it would list series that expire at the end of the second, 
third, and fourth quarters of 2006, as well as the first and fourth 
quarters of 2007. Following the second quarter 2006 expiration, the 
Exchange would add series that expire at the end of the second quarter 
of 2007.
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    \7\ Quarterly Options Series may be opened in options on indexes 
or options on Exchange Traded Fund (``ETFs'') that satisfy the 
applicable listing criteria under NYSE Arca rules.
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    Quarterly Options Series listed on currently approved options 
classes would be P.M.-settled and, in all other respects, would settle 
in the same manner as do the monthly expiration series in the same 
options class.
    The proposed rule change would allow the Exchange to open Quarterly 
Options Series on up to five currently listed options classes that are 
either index options or options on ETFs. The strike price for each 
series would be fixed at a price per share, with at least two strike 
prices above and two strike prices below the approximate value of the 
underlying security at about the time that a Quarterly Options Series 
is opened for trading on the Exchange. The Exchange may list strike 
prices for a Quarterly Options Series that are within $5 from the 
closing price of the underlying security on the preceding trading day. 
The proposal would permit the Exchange to open for trading additional 
Quarterly Options Series of the same class when the Exchange deems it 
necessary to maintain an orderly market, to meet customer demand, or 
when the current market price of the underlying security moves 
substantially from the exercise prices of those Quarterly Options 
Series that already have been opened for trading on the Exchange. In 
addition, the exercise price of each Quarterly Options Series on an 
underlying index would be required to be reasonably related to the 
current index value of the index at or about the time such series of 
options were first opened for trading on the Exchange. The term 
``reasonably related to the current index value of the underlying 
index'' means that the exercise price is within thirty percent of the 
current index value. The Exchange would also be permitted to open for 
trading additional Quarterly Options Series on an underlying index that 
are more than thirty percent away from the current index value, 
provided that demonstrated customer interest exists for such series, as 
expressed by institutional, corporate, or individual customers or their 
brokers. Market-Makers trading for their own account shall not be 
considered when determining customer interest under this provision.
    Because monthly options series expire on the third Friday of their 
expiration month, a Quarterly Options Series, which would expire on the 
last business day of the quarter, could never expire in the same week 
in which a monthly options series in the same class expires. The same, 
however, is not the case for One Week Option Series. Quarterly Options 
Series and One Week Option Series on the same options class could 
potentially expire concurrently under the proposal.\8\ Therefore, to 
avoid any confusion in the marketplace, the proposal stipulates that 
the Exchange may not list a One Week Option Series that expires at the 
end of the day on the same day as a Quarterly Options Series in the 
same class expires. In other words, the proposed rules would not permit 
the Exchange to list a P.M.-settled One Week Option Series on an ETF or 
an index that would expire on a Friday that is the last business day of 
a calendar quarter if a Quarterly Options Series on that ETF or index 
were scheduled to expire on that day.
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    \8\ The Exchange currently does not have any One Week Option 
Series listed for trading.
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    However, the proposed rules would permit the Exchange to list an 
A.M.-settled One Week Option Series and a P.M.-settled Quarterly 
Options Series in the same options class that both expire on the same 
day (i.e., on a Friday that is the last business day of the calendar 
quarter). The Exchange believes that the concurrent listing of an A.M.-
settled One Week Option Series and a P.M.-settled Quarterly Options 
Series on the same underlying ETF or index that expire on the same day 
would not tend to cause the same confusion as would P.M.-settled short 
term and quarterly series in the same options class, and would provide 
investors with an additional hedging mechanism.
    Finally, the interval between strike prices on Quarterly Options 
Series would be the same as the interval for strike prices for series 
in the same options class that expires in accordance with the normal 
monthly expiration cycles.
    The Exchange believes that Quarterly Options Series would provide 
investors with a flexible and valuable tool to manage risk exposure, 
minimize capital outlays, and be more responsive to the timing of 
events affecting the securities that underlie option contracts. At the 
same time, the Exchange is cognizant of the need to be cautious in 
introducing a product that can increase the number of outstanding 
strike prices. For that reason, the Exchange intends to employ a 
limited pilot program (``Pilot Program'') for Quarterly Options Series. 
Under the terms of the Pilot Program, the Exchange could select up to 
five option classes on which Quarterly Options Series may be opened on 
any Quarterly Options Opening Date. The Exchange would also be allowed 
to list those Quarterly Options Series on any options class that is 
selected by another securities exchange with a similar pilot program 
under its rules. The Exchange believes that limiting the number of 
options classes in which Quarterly Options Series may be opened would 
help to ensure that the addition of the new series through this Pilot 
Program will have only a negligible impact on the Exchange's and the 
Option Price Reporting Authority's (``OPRA'') quoting capacity. Also, 
limiting the term of the Pilot Program to a period of approximately one 
year will allow the Exchange and the Commission to determine whether 
the program should be extended, expanded, and/or made permanent.
    If the Exchange were to propose an extension or an expansion of the 
program, or were the Exchange to propose to make the Pilot Program 
permanent, the Exchange would submit, along with any filing proposing 
such amendments to the Pilot Program, a Pilot Program report 
(``Report'') that will provide an analysis of the Pilot Program 
covering the entire period during which the Pilot Program was in 
effect. The Report would include, at a minimum: (1) Data and written 
analysis on the open interest and trading volume in the classes for 
which Quarterly Option Series were opened; (2) an assessment of the 
appropriateness of the options classes selected for the Pilot Program; 
(3) an assessment of the impact of the Pilot Program on the capacity of 
NYSE Arca, OPRA, and on market data vendors (to the extent data from 
market data vendors is available); (4) any capacity problems or other 
problems that arose during the operation of the Pilot Program and how 
NYSE Arca addressed such problems; (5) any complaints that NYSE Arca 
received during the operation of the Pilot Program and how NYSE Arca 
addressed them; and (6) any additional information that would assist in 
assessing the operation of the Pilot Program. The Report must be 
submitted to the Commission at least sixty days prior to the expiration 
date of the Pilot Program.
    Alternatively, at the end of the Pilot Program, if the Exchange 
determines not to propose an extension or an expansion of the Pilot 
Program, or if the Commission determines not to extend or

[[Page 42155]]

expand the Pilot Program, the Exchange would no longer list any 
additional Quarterly Options Series and would limit all existing open 
interest in Quarterly Options Series to closing transactions only.
    Finally, the Exchange represents that it has the necessary systems 
capacity to support new options series that will result from the 
introduction of Quarterly Options Series.
2. Statutory Basis
    The Exchange believes that the introduction of Quarterly Options 
Series will attract order flow to the Exchange, increase the variety of 
listed options available to investors, and provide investors with a 
valuable hedging tool. For these reasons, the Exchange believes that 
the proposed rule change is consistent with Section 6(b) of the Act \9\ 
in general and furthers the objectives of Section 6(b)(5) of the Act 
\10\ in particular in that it is designed to facilitate transaction in 
securities, to promote just and equitable principles of trade, to 
enhance competition, and, in general, to protect investors and the 
public interest.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 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) of the Act \11\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\12\ Because the foregoing proposed rule change (i) does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) does not become operative for 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 and Rule 19b-4(f)(6)(iii) thereunder.\13\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ Rule 19b-4(f)(6)(iii) requires the Exchange to give written 
notice to the Commission of its intent to file the proposed rule 
change five business days prior to filing. The Commission has 
determined to waive the five-day pre-filing requirement for this 
proposal.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) permits the Commission to waive the operative 
delay if such action is consistent with the protection of investors and 
the public interest. The Exchange has asked the Commission to waive the 
operative delay to permit the Pilot Program extension to become 
effective prior to the 30th day after filing.
    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
The Commission notes that the proposal is substantially identical to 
the ISE's Quarterly Option Series Pilot Program, previously published 
for comment and approved by the Commission,\14\ and thus the Exchange's 
proposal raises no new issues of regulatory concern. Moreover, waiving 
the operative delay will allow the Exchange to immediately compete with 
other exchanges that list and trade quarterly options under similar 
programs, and consequently will benefit the public. Therefore, the 
Commission has determined to waive the 30-day delay and allow the 
proposed rule change to become operative immediately.\15\
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    \14\ See supra note 6.
    \15\ For purposes only of waiving the operative delay of this 
proposal, the Commission notes that it has considered the proposed 
rule's impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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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, as amended, 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-NYSEArca-2006-45 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NYSEArca-2006-45. 
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 inspection 
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 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-NYSEArca-2006-45 and should be submitted on or before 
August 15, 2006.
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    \16\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
Nancy M. Morris,
Secretary.
[FR Doc. E6-11797 Filed 7-24-06; 8:45 am]

BILLING CODE 8010-01-P