[Federal Register Volume 75, Number 91 (Wednesday, May 12, 2010)]
[Notices]
[Pages 26828-26830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11257]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62040; File No. SR-CBOE-2010-040]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Adding 75 Options Classes to the Penny Pilot Program
May 5, 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 29, 2010, the Chicago Board Options Exchange,
Incorporated (``Exchange'' or ``CBOE'') 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 Exchange. 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\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend proposes to amend [sic] its rules relating
to the Penny Pilot Program. The text of the rule proposal is available
on the Exchange's Web site (http://www.cboe.org/legal), at the
Exchange's Office of the Secretary, at the Commission's Public
Reference Room and on the Commission's Web site at http://www.sec.gov.
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,
[[Page 26829]]
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
CBOE proposes to identify the 75 option classes that will be added
to the Penny Pilot Program on May 3, 2010, consistent with CBOE's rule
filing to extend and expand the Program that was approved on October
22, 2010.\3\ As described in SR-CBOE-2009-76, the Pilot Program will be
expanded by adding 300 option classes, in groups of 75 classes each
quarter on the following dates: November 2, 2009, February 1, 2010, May
3, 2010, and August 2, 2010.\4\ The option classes will be identified
based on national average daily volume in the six calendar months
preceding their addition to the Pilot Program using data compiled by
The Options Clearing Corporation, except that the month immediately
preceding their addition to the Pilot Program will not be utilized for
purposes of the six month analysis.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 60864 (October 22,
2009), granting immediate effectiveness to SR-CBOE-2009-76. The
Commission notes that this proposed rule change was submitted
pursuant to Section 19(b)(3)(A)(iii) of the Act and was, therefore,
effective upon filing. The Commission does not approve proposed rule
changes submitted pursuant to this section of the Act.
\4\ The classes to be added are among the most actively-traded,
multiply-listed option classes that are not currently in the Pilot
Program, excluding option classes with high premiums. An option
class would be designated as ``high premium'' if, at the time of
selection, the underlying security was priced at $200 per share or
above, or the underlying index level was at 200 or above.
---------------------------------------------------------------------------
The following 75 option classes will be added to the Pilot Program
beginning on May 3, 2010:
----------------------------------------------------------------------------------------------------------------
Symbol Security name Symbol Security name
----------------------------------------------------------------------------------------------------------------
GFI.......................... Gold Fields Ltd......... JCP.......................... JC Penney Co Inc.
XLV.......................... Health Care Select ACL.......................... Alcon IncCo Inc.
Sector SPDR Fund.
CIEN......................... Ciena Corp.............. STP.......................... Suntech Power Holdings
Co Ltd.
AMLN......................... Amylin Pharmaceuticals TLB.......................... Talbots Inc.
Inc.
CTIC......................... Cell Therapeutics Inc... SYMC......................... Symantec Corp.
MDT.......................... Medtronic Inc........... AMED......................... Amedisys Inc.
TIVO......................... TiVo Inc................ TM........................... Toyota Motor Corp.
MNKD......................... MannKind Corp........... HK........................... Petrohawk Energy Corp.
MDVN......................... Medivation Inc.......... ENER......................... Energy Conversion
Devices Inc.
BRKB......................... Berkshire Hathaway Inc.. STT.......................... State Street Corp.
APOL......................... Apollo Group Inc........ BHP.......................... BHP Billiton Ltd.
BSX.......................... Boston Scientific Corp.. NFLX......................... NetFlix Inc.
XLY.......................... Consumer Discretionary LDK.......................... LDK Solar Co Ltd.
Sel. Sec. SPDR Fund.
CLF.......................... Cliffs Natural Resources SPG.......................... Simon Property Group
Inc. Inc.
ZION......................... Zions Bancorporation.... TIF.......................... Tiffany & Co.
IOC.......................... InterOil Corp........... BUCY......................... Bucyrus International
Inc.
ITMN......................... InterMune Inc........... WAG.......................... Walgreen Co.
GME.......................... GameStop Corp........... IP........................... International Paper Co.
XLK.......................... Technology Select Sector XME.......................... SPDR S&P Metals & Mining
SPDR Fund. ETF.
AKS.......................... AK Steel Holding Corp... KGC.......................... Kinross Gold Corp.
GRMN......................... Garmin Ltd.............. EP........................... El Paso Corp.
MRVL......................... Marvell Technology Group SEED......................... Origin Agritech Ltd.
Ltd.
XLP.......................... Consumer Staples Select WIN.......................... Windstream Corp.
Sector SPDR Fund.
UNP.......................... Union Pacific Corp...... DHI.......................... DR Horton Inc.
DTV.......................... DIRECTV................. ADBE......................... Adobe Systems Inc.
WMB.......................... Williams Cos Inc/The.... PCX.......................... Patriot Coal Corp.
MEE.......................... Massey Energy Co........ SPWRA........................ SunPower Corp.
CELG......................... Celgene Corp............ LCC.......................... US Airways Group Inc.
GMCR......................... Green Mountain Coffee PRU.......................... Prudential Financial
Roasters Inc. Inc.
WDC.......................... Western Digital Corp.... LEN.......................... Lennar Corp.
DAL.......................... Delta Air Lines Inc..... EWT.......................... iShares MSCI Taiwan
Index Fund.
FXE.......................... CurrencyShares Euro KBH.......................... KB Home.
Trust.
COST......................... Costco Wholesale Corp... CREE......................... Cree Inc.
MJN.......................... Mead Johnson Nutrition SIRI......................... Sirius XM Radio Inc.
Co.
ALL.......................... Allstate Corp/The....... MMR.......................... McMoRan Exploration Co.
SII.......................... Smith International Inc. CENX......................... Century Aluminum Co.
RTN.......................... Raytheon Co............. MT........................... ArcelorMittal.
DVN.......................... Devon Energy Corp....... ........................
----------------------------------------------------------------------------------------------------------------
The minimum increments for all classes in the Penny Pilot (except
for the QQQQs, IWM and SPY) are: $0.01 for all option series below $3
(including LEAPS), and $0.05 for all option series $3 and above
(including LEAPS). The minimum increment for all option series in QQQQ,
IWM and SPY is $.01.
2. Statutory Basis
The Exchange believes the rule proposal is consistent with the
Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations under the Act applicable to a national securities exchange
and, in particular, the requirements of Section 6(b) of the Act.\5\
Specifically, the Exchange believes that the proposed rule change is
consistent with the Section 6(b)(5) Act \6\ requirements that the rules
of an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts and, in general, to
protect investors and the public interest. In particular, the proposed
rule change allows for an expansion of the Penny Pilot Program for the
benefit of market participants and identifies the option classes to be
[[Page 26830]]
added to the Pilot Program in a manner consistent with CBOE's rule
filing SR-CBOE-2009-76 to extend and expand the Pilot Program.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE 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 proposed rule change is filed for immediate effectiveness
pursuant to Section 19(b)(3)(A) \7\ of the Securities Exchange Act of
1934 and Rule 19b-4(f)(1) \8\ thereunder as it constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule. 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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-CBOE-2010-040 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-CBOE-2010-040. 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 CBOE's principal office and on its Web site
at http://www.cboe.com. 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. SR-
CBOE-2010-040 and should be submitted on or before June 2, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-11257 Filed 5-11-10; 8:45 am]
BILLING CODE 8010-01-P