Document ID: SEC-2008-0130-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-01-25T05:00Z

[Federal Register: January 25, 2008 (Volume 73, Number 17)]
[
Notices]               
[Page 4655-4656]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ja08-148]                         

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SECURITIES AND EXCHANGE COMMISSION

Release No. 34-57174; File No. SR-NYSEArca-2008-07]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Extending the Pilot 
Program for Expanded Position Limits for Options on the iShares[supreg] 
Russell 2000[supreg] Index Fund

January 18, 2008.
    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 14, 2008, 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 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to amend Rule 6.8 in order to extend the 
pilot program (the ``IWM Pilot Program'') that allows for increased 
position and exercise limits on options overlying the iShares[supreg] 
Russell 2000[supreg] Index Fund (``IWM'') traded on the Exchange. The 
text of the proposed rule change is available on the Exchange's Web 
site (http://www.nyse.com), at the Exchange's principal office, 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 IWM Pilot Program provides for increased position and exercise 
limits for IWM options traded on NYSE Arca.\5\ Specifically, the IWM 
Pilot Program increases the position and exercise limits for IWM 
options from 250,000 contracts to 500,000 contracts.\6\
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    \5\ The proposal that established the IWM Pilot Program was 
designated by the Commission to be effective upon filing. See 
Securities Exchange Act Release No. 55185 (January 29, 2007), 72 FR 
5481 (February 6, 2007) (SR-NYSEArca-2007-10). The IWM Pilot Program 
was subsequently extended and is due to expire on January 18, 2008. 
See Securities Exchange Act Release No. 56021 (July 6, 2007), 72 FR 
38115 (July 12, 2007) (SR-NYSEArca-2007-58).
    \6\ Pursuant to Commentary .03 of NYSE Arca Rule 6.9, the 
exercise limit established under Rule 6.9 for IWM options shall be 
equivalent to the position limit prescribed for IWM options in 
Commentary .06 under Rule 6.8. The increased exercise limits would 
only be in effect during the IWM Pilot Program.

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[[Page 4656]]

    The purpose of this rule change is to extend the IWM Pilot Program 
through March 1, 2008. The Exchange is not proposing any other changes 
to the IWM Pilot Program at this time.
    The Exchange believes that maintaining the increased position and 
exercise limits for IWM options will lead to a more liquid and 
competitive market environment for IWM options that will benefit all 
investors interested in trading this product. As a result, the Exchange 
believes that the above stated reasons justify the IWM Pilot Program 
and requests that the Commission extend the IWM Pilot Program through 
March 1, 2008.
    NYSE Arca represents that it has not encountered any problems or 
difficulties relating to the IWM Pilot Program since its inception.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with and furthers the objectives of Section 6(b)(5) of the Act \7\ in 
that it is designed to promote just and equitable principles of trade, 
to 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.
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    \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 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 designated the proposed rule change as one that: 
(1) Does not significantly affect the protection of investors or the 
public interest; (2) does not impose any significant burden on 
competition; and (3) does not become operative for 30 days from the 
date of filing, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest. 
Therefore, the foregoing rule change has become effective pursuant to 
Section 19(b)(3)(A) of the Act \8\ and subparagraph (f)(6) of Rule 19b-
4 thereunder.\9\ The Exchange has asked the Commission to waive the 
operative delay to permit the IWM Pilot Program extension to become 
effective prior to the 30th day after filing.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to provide the Commission 
with written notice of its intent to file the proposed rule change, 
along with a brief description and 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 fulfilled this requirement.
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    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it will allow the benefits of the IWM Pilot Program to continue 
without interruption.\10\ Therefore, the Commission designates the 
proposal operative upon filing.
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    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 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 the 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-NYSEArca-2008-07 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-2008-07. 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 Number SR-NYSEArca-2008-07 and should 
be submitted on or before February 15, 2008.

    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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Nancy M. Morris,
Secretary.
 [FR Doc. E8-1265 Filed 1-24-08; 8:45 am]

BILLING CODE 8011-01-P