[Federal Register Volume 75, Number 149 (Wednesday, August 4, 2010)]
[Notices]
[Pages 47041-47043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19222]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62596; File No. SR-CBOE-2010-070]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating 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, 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 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
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 and at the Commission.
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
CBOE proposes to identify the 75 option classes that will be added
to the Penny Pilot Program on August 2, 2010, consistent with CBOE's
rule filing to extend and expand the Program that was granted immediate
effectiveness 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.
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\3\ See Securities Exchange Act Release No. 60864 (October 22,
2009), granting immediate effectiveness to SR-CBOE-2009-76.
\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.
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The following 75 option classes will be added to the Pilot Program
beginning on August 2, 2010:
[[Page 47042]]
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Symbol Security name Symbol Security name
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MBI........... MBIA Inc........... CB............ Chubb Corp.
ATPG.......... ATP Oil & Gas Corp/ ADM........... Archer-Daniels-
United States. Midland Co.
YUM........... Yum! Brands Inc.... HSY........... Hershey Co/The.
RCL........... Royal Caribbean TXT........... Textron Inc.
Cruises Ltd.
BPOP.......... Popular Inc........ GGP........... General Growth
Properties Inc.
EK............ Eastman Kodak Co... NOV........... National Oilwell
Varco Inc.
CNX........... Consol Energy Inc.. TWX........... Time Warner Inc.
MA............ Mastercard Inc..... XOP........... SPDR S&P Oil & Gas
Exploration &
Production ETF.
DCTH.......... Delcath Systems Inc MYL........... Mylan Inc/PA.
MTG........... MGIC Investment TSO........... Tesoro Corp.
Corp.
PXP........... Plains Exploration CI............ CIGNA Corp.
& Production Co.
GPS........... Gap Inc/The........ ESI........... ITT Educational
Services Inc.
TSL........... Trina Solar Ltd.... NKE........... NIKE Inc.
EWW........... iShares MSCI Mexico FIS........... Fidelity National
Investable Market Information
Index Fund. Services Inc.
CRM........... Salesforce.com Inc. SUN........... Sunoco Inc.
SWN........... Southwestern Energy BBBY.......... Bed Bath & Beyond
Co. Inc.
HBAN.......... Huntington APWR.......... A-Power Energy
Bancshares Inc/OH. Generation Systems
Ltd.
EOG........... EOG Resources Inc.. FWLT.......... Foster Wheeler AG.
APA........... Apache Corp........ LNC........... Lincoln National
Corp.
VVUS.......... Vivus Inc.......... RSH........... RadioShack Corp.
JDSU.......... JDS Uniphase Corp.. TYC........... Tyco International
Ltd.
ACI........... Arch Coal Inc...... CL............ Colgate-Palmolive
Co.
NE............ Noble Corp......... FXP........... ProShares
UltraShort FTSE/
Xinhua China 25.
BAX........... Baxter NTAP.......... NetApp Inc.
International Inc.
ADSK.......... Autodesk Inc....... SO............ Southern Co.
KRE........... SPDR KBW Regional PHM........... Pulte Group Inc.
Banking ETF.
XL............ XL Group Plc....... HOT........... Starwood Hotels &
Resorts Worldwide
Inc.
WLT........... Walter Energy Inc.. QLD........... ProShares Ultra
QQQ.
IBN........... ICICI Bank Ltd..... VRSN.......... VeriSign Inc.
EWY........... iShares MSCI South PCL........... Plum Creek Timber
Korea Index Fund. Co Inc.
WHR........... Whirlpool Corp..... NBR........... Nabors Industries
Ltd.
BHI........... Baker Hughes Inc... ESRX.......... Express Scripts
Inc.
KMP........... Kinder Morgan ACAS.......... American Capital
Energy Partners LP. Ltd.
MRO........... Marathon Oil Corp.. XLNX.......... Xilinx Inc.
AGO........... Assured Guaranty DO............ Diamond Offshore
Ltd. Drilling Inc.
GIS........... General Mills Inc.. CMA........... Comerica Inc.
ANR........... Alpha Natural KEY........... KeyCorp.
Resources Inc.
GENZ.......... Genzyme Corp.......
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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
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.
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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
CBOE does not believe that the proposed rule change will impose any
burden on competition 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
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.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(1).
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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:
[[Page 47043]]
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-2010-070 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-2010-070. 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 the CBOE. 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-CBOE-2010-070 and should be
submitted on or before August 25, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
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\9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-19222 Filed 8-3-10; 8:45 am]
BILLING CODE 8010-01-P