[Federal Register Volume 75, Number 149 (Wednesday, August 4, 2010)]
[Notices]
[Pages 47043-47045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19221]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62595; File No. SR-BATS-2010-019]
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
July 29, 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 July 26, 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 and
II 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 August 2, 2010. The Exchange is not proposing to amend any
rule text, but simply administering or enforcing an existing rule.\3\
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\3\ 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 August 2,
2010. In the Exchange's filing to adopt rules to govern BATS
Options,\4\ 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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\4\ 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 August 2, 2010,
based on ADVs for the six months ending June 30, 2010.
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Nat'l ranking Symbol Security name Nat'l ranking Symbol Security name
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199............................... MBI................. MBIA Inc................. 316................. CB Chubb Corp
205............................... MA.................. Mastercard Inc........... 320................. ADM Archer-Daniels-Midland Co
224............................... ATPG................ ATP Oil & Gas Corp/United 322................. HSY Hershey Co/The
States.
226............................... YUM................. Yum! Brands Inc.......... 323................. TXT Textron Inc
232............................... RCL................. Royal Caribbean Cruises 324................. GGP General Growth Properties
Ltd. Inc
[[Page 47044]]
238............................... BPOP................ Popular Inc.............. 325................. NOV National Oilwell Varco
Inc
248............................... EK.................. Eastman Kodak Co......... 326................. TWX Time Warner Inc
252............................... CNX................. Consol Energy Inc........ 327................. XOP SPDR S&P Oil & Gas
Exploration & Production
ETF
260............................... DCTH................ Delcath Systems Inc...... 328................. MYL Mylan Inc/PA
274............................... MTG................. MGIC Investment Corp..... 329................. TSO Tesoro Corp
277............................... PXP................. Plains Exploration & 330................. CI CIGNA Corp
Production Co.
278............................... GPS................. Gap Inc/The.............. 331................. ESI ITT Educational Services
Inc
280............................... TSL................. Trina Solar Ltd.......... 332................. NKE NIKE Inc
282............................... EWW................. iShares MSCI Mexico 335................. FIS Fidelity National
Investable Market Index Information Services Inc
Fund.
283............................... CRM................. Salesforce.com Inc....... 336................. SUN Sunoco Inc
286............................... SWN................. Southwestern Energy Co... 338................. BBBY Bed Bath & Beyond Inc
287............................... HBAN................ Huntington Bancshares Inc/ 340................. APWR A-Power Energy Generation
OH. Systems Ltd
288............................... EOG................. EOG Resources Inc........ 341................. FWLT Foster Wheeler AG
290............................... APA................. Apache Corp.............. 342................. LNC Lincoln National Corp
291............................... VVUS................ Vivus Inc................ 343................. RSH RadioShack Corp
292............................... JDSU................ JDS Uniphase Corp........ 344................. TYC Tyco International Ltd
293............................... ACI................. Arch Coal Inc............ 345................. CL Colgate-Palmolive Co
294............................... NE.................. Noble Corp............... 346................. FXP ProShares UltraShort FTSE/
Xinhua China 25
296............................... BAX................. Baxter International Inc. 347................. NTAP NetApp Inc
297............................... ADSK................ Autodesk Inc............. 348................. SO Southern Co
299............................... KRE................. SPDR KBW Regional Banking 349................. PHM Pulte Group Inc
ETF.
300............................... XL.................. XL Group Plc............. 350................. HOT Starwood Hotels & Resorts
Worldwide Inc
302............................... WLT................. Walter Energy Inc........ 351................. QLD ProShares Ultra QQQ
303............................... IBN................. ICICI Bank Ltd........... 352................. VRSN VeriSign Inc
305............................... EWY................. iShares MSCI South Korea 353................. PCL Plum Creek Timber Co Inc
Index Fund.
306............................... WHR................. Whirlpool Corp........... 354................. NBR Nabors Industries Ltd
307............................... BHI................. Baker Hughes Inc......... 355................. ESRX Express Scripts Inc
308............................... KMP................. Kinder Morgan Energy 356................. ACAS American Capital Ltd
Partners LP.
309............................... MRO................. Marathon Oil Corp........ 357................. XLNX Xilinx Inc
310............................... AGO................. Assured Guaranty Ltd..... 358................. DO Diamond Offshore Drilling
Inc
311............................... GIS................. General Mills Inc........ 359................. CMA Comerica Inc
312............................... ANR................. Alpha Natural Resources 360................. KEY KeyCorp
Inc.
314............................... GENZ................ Genzyme Corp............. .................... .................. .........................
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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.\5\ In particular, the
Exchange believes that the proposal is consistent with Section 6(b)(5)
of the Act,\6\ 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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\5\ 15 U.S.C. 78f(b).
\6\ 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 \7\ and paragraph
(f)(1) of Rule 19b-4 thereunder,\8\ 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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\7\ 15 U.S.C. 78s(b)(3)(A)(i).
\8\ 17 CFR 240.19b-4(f)(1).
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At any time within the 60-day period beginning on the date of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend 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-2010-019 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-2010-019. This file
number should be included on the subject line if e-mail is used. To
help the
[[Page 47045]]
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 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 available publicly. All submissions
should refer to File No. SR-BATS-2010-019 and should be submitted on or
before August 25, 2010.
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\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19221 Filed 8-3-10; 8:45 am]
BILLING CODE 8010-01-P