[Federal Register Volume 75, Number 89 (Monday, May 10, 2010)]
[Notices]
[Pages 25895-25896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10965]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62029; File No. SR-NASDAQ-2010-053]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change by the NASDAQ Stock Market LLC
to Add Seventy-Five Options Classes to the Penny Pilot Program
May 4, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given
that on April 27, 2010, The NASDAQ Stock Market LLC (``Nasdaq'') 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 Nasdaq. 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
Nasdaq is filing with the Securities and Exchange Commission
(``SEC'' or ``Commission'') a proposal for the NASDAQ Options Market
(``NOM'' or ``Exchange'') to designate seventy-five options classes to
be added to the Penny Pilot Program (``Penny Pilot'' or ``Pilot'') on
May 3, 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 March 2008 and in October
2009 was expanded and extended through December 31, 2010. See
Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR
18587 (April 4, 2008)(SR-NASDAQ-2008-026)(notice of filing and
immediate effectiveness establishing Penny Pilot); 60874 (October
23, 2009), 74 FR 56682 (November 2, 2009)(SR-NASDAQ-2009-091)(notice
of filing and immediate effectiveness expanding and extending Penny
Pilot); 60965 (November 9, 2009), 74 FR 59292 (November 17,
2009)(SR-NASDAQ-2009-097)(notice of filing and immediate
effectiveness adding seventy-five classes to Penny Pilot); and 61455
(February 1, 2010), 75 FR 6239 (February 8, 2010)(SR-NASDAQ-2010-
013)(notice of filing and immediate effectiveness adding seventy-
five classes to Penny Pilot).
\4\ See Chapter VI, Section 5 regarding the Penny Pilot.
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The text of the proposed rule change is available from Nasdaq's
website at http://nasdaq.cchwallstreet.com/Filings/, at Nasdaq'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, Nasdaq 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. Nasdaq 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 May 3, 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 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. 60874 (October 23,
2009), 74 FR 56682 (November 2, 2009) (SR-NASDAQ-2009-091) (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 May 3, 2010,
based on ADVs for the six months ending March 31, 2010.
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Nat'l ranking Symbol Security name Nat'l ranking Symbol Security name
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153............................... XLV Health Care Select Sector 247................. JCP JC Penney Co Inc.
SPDR Fund.
155............................... CIEN Ciena Corp................ 248................. ACL Alcon Inc.
157............................... AMLN Amylin Pharmaceuticals Inc 249................. STP Suntech Power Holdings Co
Ltd.
158............................... CTIC Cell Therapeutics Inc..... 250................. TLB Talbots 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 Inc.... 258................. ENER Energy Conversion Devices
Inc.
178............................... APOL Apollo Group Inc.......... 259................. STT State Street Corp.
181............................... BSX Boston Scientific Corp.... 260................. BHP BHP Billiton Ltd.
185............................... XLY Consumer Discretionary 261................. NFLX NetFlix Inc.
Sel. Sec. SPDR Fund.
188............................... CLF Cliffs Natural Resources 262................. LDK LDK Solar Co Ltd.
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.
204............................... GME GameStop Corp............. 266................. WAG Walgreen Co.
209............................... XLK Technology Select Sector 268................. IP International Paper Co.
SPDR Fund.
210............................... AKS AK Steel Holding Corp..... 271................. XME SPDR S&P Metals & Mining
ETF.
212............................... GRMN Garmin Ltd................ 272................. KGC Kinross Gold Corp.
[[Page 25896]]
213............................... MRVL Marvell Technology Group 273................. EP El Paso Corp.
Ltd.
215............................... XLP Consumer Staples Select 274................. SEED Origin Agritech Ltd.
Sector SPDR 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 Inc.
Roasters 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 Trust. 287................. EWT iShares MSCI Taiwan Index
Fund.
237............................... COST Costco Wholesale Corp..... 288................. KBH KB Home.
239............................... MJN Mead Johnson Nutrition Co. 289................. CREE Cree Inc.
240............................... ALL Allstate Corp/The......... 290................. SIRI Sirius XM Radio Inc.
241............................... SII Smith International Inc... 291................. MMR McMoRan Exploration 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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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
Nasdaq does not believe that the proposed rule change will result
in 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
Written comments were neither solicited nor 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\ Nasdaq 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 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 [email protected]. Please include
File Number SR-NASDAQ-2010-053 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-NASDAQ-2010-053.
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 Nasdaq.
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-NASDAQ-2010-
053 and should be submitted on or before June 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. 2010-10965 Filed 5-7-10; 8:45 am]
BILLING CODE 8010-01-P