[Federal Register Volume 75, Number 90 (Tuesday, May 11, 2010)]
[Notices]
[Pages 26301-26303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11095]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62033; File No. SR-BATS-2010-009]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change 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
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 30, 2010, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') filed with the Securities and Exchange Commission
(``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 for the BATS
Exchange Options Market (``BATS Options'') to designate seventy-five
options classes to be added to the Penny Pilot Program (``Penny
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 rules of BATS Options, including rules applicable to
BATS Options' participation in the Penny Pilot, were approved on
January 26, 2010. See Securities Exchange Act Release No. 61419
(January 26, 2010), 75 FR 5157 (February 1, 2010) (SR-BATS-2009-
031). BATS Options commenced operations on February 26, 2010. This
proposal represents the first expansion of classes subject to the
Penny Pilot since BATS Options commenced operations.
\4\ See Rule 21.5 regarding the Penny Pilot.
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The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.com, 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 parts 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 filing to adopt rules to govern BATS Options,\5\ the
Exchange proposed commencing operations for BATS Options by trading all
options classes that were, as of such date, traded by other options
exchanges pursuant to the Penny Pilot and then expanding the Penny
Pilot on a quarterly basis, 75 classes at a time, through August 2010.
Each such quarterly expansion would be of the 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, except that the month immediately preceding the addition of
options to the Penny Pilot would 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. 61097 (December 2,
2009), 74 FR 64788 (December 8, 2009) (SR-BATS-2009-031) (Notice of
Filing of Proposed Rule Change to Establish Rules Governing the
Trading of Options on the BATS Options Exchange.
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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 249................. STP................. Suntech Power Holdings
Inc. 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.
[[Page 26302]]
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.
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................. SPWR A.............. 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 the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\6\ In particular, the
Exchange believes that the proposal is consistent with Section 6(b)(5)
of the Act,\7\ because it would promote just and equitable principles
of trade, remove impediments to, and perfect the mechanism 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 imposes
any burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
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 paragraph
(f)(1) of Rule 19b-4 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 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 proposal 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-BATS-2010-009 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-BATS-2010-009. 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 changes 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 will also 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
[[Page 26303]]
available publicly. All submissions should refer to File No. SR-BATS-
2010-009 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. 2010-11095 Filed 5-10-10; 8:45 am]
BILLING CODE 8010-01-P