[Federal Register Volume 75, Number 86 (Wednesday, May 5, 2010)]
[Notices]
[Pages 24769-24771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10458]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61989; File No. SR-NYSEAmex-2010-37]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Proposed Rule Change Amending Commentary to Rule 915 and Rule 916
April 27, 2010.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on April 8, 2010, NYSE Amex LLC (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Commentary .10 to Rule 915 and
Commentary .11 to Rule 916 for the purpose of listing and trading
options on the shares of the ETFS Palladium Trust and the ETFS Platinum
Trust. The text of the proposed rule change is available on the
Commission's Web Site at http://www.sec.gov. A copy of this filing is
available on the Exchange's Web site at 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 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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
Recently, the U.S. Securities and Exchange Commission (``SEC'' or
``Commission'') authorized the Exchange to list and trade options on
the SPDR Gold Trust \4\ (``GLD'') the iShares COMEX Gold Trust
(``IAU'') the iShares Silver Trust (``SLV''),\5\ the ETFS Silver Trust
(``SIVR'') and the ETFS Gold Trust (``SGOL'').\6\ Now, the Exchange
proposes to list and trade options on the ETFS Palladium Trust
(``PALL'') and the ETFS Platinum Trust (``PPLT'').
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 57894 (May 30,
2008), 73 FR 32061 (June 5, 2008) (order approving SR-Amex-2008-15).
\5\ See Securities Exchange Act Release No. 59055 (December 4,
2008), 73 FR 238 [sic] (December 10, 2008) (order approving SR-Amex-
2008-68).
\6\ See Securities Exchange Act Release No. 61483 (February 3,
2010), 75 FR 6753 (February 10, 2010).
---------------------------------------------------------------------------
Currently, Amex Rule 915 deems appropriate for options trading
Exchange-Traded Fund Shares (``ETFs'' or ``Fund Shares'') that are
traded on a national securities exchange and are defined as an ``NMS
stock'' in Rule 600 of Regulation NMS and that represent (i) Interests
in registered investment companies (or series thereof) organized as
open-end management investment companies, unit investment trusts or
similar entities that hold portfolios of securities and/or financial
instruments including, but not limited to, stock index futures
contracts, options on futures, options on securities and indexes,
equity caps, collars and floors, swap agreements, forward contracts,
repurchase agreements and reverse purchase agreements (the ``Financial
Instruments''), and money market instruments, including, but not
limited to, U.S. government securities and repurchase agreements (the
``Money Market Instruments'') comprising or otherwise based on or
representing investments in indexes or portfolios of securities and/or
Financial Instruments and Money Market Instruments (or that hold
securities in one or more other registered investment companies that
themselves hold such portfolios of securities and/or Financial
Instruments and Money Market Instruments); or (ii) interests in a trust
or similar entity that holds a specified non-U.S. currency deposited
with the trust or similar entity when aggregated in some specified
minimum number may be surrendered to the trust by the beneficial owner
to receive the specified non-U.S. currency and pays the beneficial
owner interest and other distributions on deposited non-U.S. currency,
if any, declared and paid by the trust; or (iii) commodity pool
interests principally engaged, directly or indirectly, in holding and/
or managing portfolios or baskets of securities, commodity futures
contracts, options on commodity futures contracts, swaps, forward
contracts and/or options on physical commodities and/or non-U.S.
currency (``Commodity Pool Units''), or (iv) represents an interest in
a registered investment company (``Investment Company'') organized as
an open-end management investment company or similar entity, that
invests in a portfolio of securities selected by the Investment
Company's investment adviser consistent with the Investment Company's
investment objectives and policies, which is issued in a specified
aggregate minimum number in return for a deposit of a specified
portfolio of securities and/or a cash amount with a value equal to the
next determined net asset value (``NAV''), and when aggregated in the
same specified minimum number, may be redeemed at a holder's request,
which holder will be paid a specified portfolio of securities and/or
cash with a value equal to the next determined NAV (``Managed Fund
Share'').\7\ In addition, pursuant to Commentary .10 to Rule 915 the
Exchange may also list options based on shares of GLD, IAU, SLV, SIVR,
and SGOL. This proposed rule change seeks to expand the current
exception set forth in Commentary .10 to Rule 915 for Exchange-Traded
Fund Shares that may be approved for options trading on the Exchange to
include PALL and PPLT.
---------------------------------------------------------------------------
\7\ See Commentary .06 to Rule 915.
---------------------------------------------------------------------------
Apart from allowing PALL and PPLT to be underlyings for options
traded on the Exchange as described above, the listing standards for
Exchange-Traded Fund Shares will remain unchanged from those that apply
under current Exchange rules. Exchange-Traded Fund Shares on which
options may be listed and traded must still be listed and traded on a
national securities exchange and must satisfy the other listing
standards set forth in Commentary .06 to Rule 915. Specifically, in
addition to satisfying the listing requirements set forth above,
Exchange-Traded Fund Shares must meet either (1) the criteria and
guidelines under Commentary .01 to Rule 915; or (2) be available for
creation or redemption each business day from or through the issuer in
cash or in kind at a price related to net asset value, and the issuer
must be obligated to issue Exchange-Traded Fund Shares in a specified
aggregate number even if some or all of the investment assets required
to be deposited have not been
[[Page 24770]]
received by the issuer, subject to the condition that the person
obligated to deposit the investments has undertaken to deliver the
investment assets as soon as possible and such undertaking is secured
by the delivery and maintenance of collateral consisting of cash or
cash equivalents satisfactory to the issuer, as provided in the
respective prospectus.
This proposal is intended to provide appropriate standards for the
listing and trading of options on PALL and PPLT. The proposed revision
to Commentary .11 to Rule 916 specifically provides that shares of PALL
and PPLT be deemed ``Exchange-Traded Fund Shares'' for purposes of
Commentary .07 to Rule 916. Under the applicable continued listing
criteria in Commentary .07 to Amex Rule 916, the Exchange will consider
the suspension of opening transactions in PALL or PPLT in any of the
following circumstances: (1) Following the initial twelve-month period
beginning upon the commencement of trading of PALL or PPLT, there are
fewer than 50 record and/or beneficial holders of PALL or PPLT for 30
or more consecutive trading days; (2) the value of the underlying
silver or underlying gold [sic] is no longer calculated or available;
or (3) such other event occurs or condition exists that in the opinion
of the Exchange makes further dealing on the Exchange inadvisable. In
addition, PALL or PPLT shall not be deemed to meet the requirements for
continued approval, and the Exchange shall not open for trading any
additional series of option contracts of the class covering PALL or
PPLT, respectively, if PALL or PPLT ceases to be an ``NMS Stock'' as
provided for in Commentary .07(2) to Rule 916 or PALL or PPLT is halted
from trading on the primary listing market, or if PALL or PPLT is
delisted.
The Exchange represents that the listing and trading of PALL
options or PPLT options under NYSE Amex rules will not have any effect
on the rules pertaining to position and exercise limits \8\ or
margin.\9\
---------------------------------------------------------------------------
\8\ See NYSE Amex Rules 904 and 905.
\9\ See NYSE Amex Rule 462.
---------------------------------------------------------------------------
The Exchange represents that it has an adequate surveillance
program in place for options on PALL and PPLT. The Exchange may obtain
trading information via the Intermarket Surveillance Group (``ISG'')
from other exchanges who are members or affiliates of the ISG. The
Exchange may also obtain trading information from various commodity
futures exchanges worldwide that have entered into comprehensive
surveillance sharing agreements with the Exchange. In connection with
PALL and PPLT, the Exchange represents that it may obtain information
from the New York Mercantile Exchange, Inc. (``NYMEX''), pursuant to a
comprehensive surveillance sharing agreement, related to any financial
instrument that is based, in whole or in part, upon an interest in or
performance of silver or gold [sic]. Prior to listing and trading
options on PALL or PPLT, the Exchange represents that it will either
have the ability to obtain specific trading information via ISG or
through a comprehensive surveillance sharing agreement with the
marketplace or marketplaces with last sale reporting that represent(s)
the highest volume in derivatives (options or futures) on the
underlying palladium or platinum.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \10\ of
the Securities Exchange Act of 1934 (the ``Act''), in general, and
furthers the objectives of Section 6(b)(5) \11\ 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 [email protected]. Please include
File No. SR-NYSEAmex-2010-37 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 No. SR-NYSEAmex-2010-37. 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 Web site viewing and
printing 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 NYSE Amex. 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.
[[Page 24771]]
SR-NYSEAmex-2010-37 and should be submitted on or before May 26, 2010.
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-10458 Filed 5-4-10; 8:45 am]
BILLING CODE 8010-01-P