[Federal Register Volume 75, Number 151 (Friday, August 6, 2010)] [Notices] [Pages 47664-47666] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2010-19371] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-62616; File No. SR-Phlx-2010-103] Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add Seventy-Five Options Classes to the Penny Pilot Program July 30, 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 July 22, 2010, NASDAQ OMX PHLX, Inc. (``Phlx'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``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. --------------------------------------------------------------------------- \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 The Exchange is filing with the Commission a proposal to designate seventy-five options classes to be added to the Penny Pilot Program (``Penny Pilot'' or ``Pilot'') on August 2, 2010.\3\ The Exchange is not proposing to amend any rule text, but simply administering or enforcing an existing rule.\4\ --------------------------------------------------------------------------- \3\ The Penny Pilot was established in January 2007 and in October 2009 was expanded and extended through December 31, 2010. See Securities Exchange Act Release Nos. 55153 (January 23, 2007), 72 FR 4553 (January 31, 2007) (SR-Phlx-2006-74) (notice of filing and approval order establishing Penny Pilot); 60873 (October 23, 2009), 74 FR 56675 (November 2, 2009) (SR-Phlx-2009-91) (notice of filing and immediate effectiveness expanding and extending Penny Pilot); 60966 (November 9, 2009), 74 FR 59331 (November 17, 2009) (SR-Phlx-2009-94) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); 60966 (November 9, 2009), 75 FR 61454 (February 1, 2010), 75 FR 6233 (February 8, 2010) (SR-Phlx-2010-12) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); and 62028 (May 4, 2010), 75 FR 25890 (May 10, 2010) (SR-Phlx-2010-65) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot). \4\ See Rule 1034 regarding the Penny Pilot. --------------------------------------------------------------------------- The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqomxphlx.cchwallstreet.com/NASDAQOMXPHLX/Filings/, 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 [[Page 47665]] 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 August 2, 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. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 60873 (October 23, 2009), 74 FR 56675 (November 2, 2009) (SR-Phlx-2009-91) (notice of filing and immediate effectiveness). --------------------------------------------------------------------------- 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. ---------------------------------------------------------------------------------------------------------------- Nat'l ranking Symbol Security name Nat'l ranking Symbol Security name ---------------------------------------------------------------------------------------------------------------- 199............... MBI MBIA Inc. 316.............. CB Chubb Corp. 205............... MA Mastercard Inc. 320.............. ADM Archer-Daniels- Midland Co. 224............... ATPG ATP Oil & Gas 322.............. HSY Hershey Co./The Corp/United States. 226............... YUM Yum! Brands Inc. 323.............. TXT Textron Inc. 232............... RCL Royal Caribbean 324.............. GGP General Growth Cruises Ltd. Properties Inc. 238............... BPOP Popular Inc. 325.............. NOV National Oilwell Varco Inc. 248............... EK Eastman Kodak Co. 326.............. TWX Time Warner Inc. 252............... CNX Co.nsol Energy 327.............. XOP SPDR S&P Oil & Inc. Gas Exploration & Production ETF. 260............... DCTH Delcath Systems 328.............. MYL Mylan Inc./PA/ Inc. 274............... MTG MGIC Investment 329.............. TSO Tesoro Corp. Corp. 277............... PXP Plains 330.............. CI CIGNA Corp. Exploration & 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 335.............. FIS Fidelity Mexico National Investable Information Market Index Services Inc. Fund 283............... CRM Salesforce.com 336.............. SUN Sunoco Inc. Inc. 286............... SWN Southwestern 338.............. BBBY Bed Bath & Energy Co. Beyond Inc. 287............... HBAN Huntington 340.............. APWR A-Power Energy Bancshares Inc./ Generation OH Systems Ltd. 288............... EOG EOG Resources 341.............. FWLT Foster Wheeler Inc. 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 347.............. NTAP NetApp Inc. International Inc. 297............... ADSK Autodesk Inc. 348.............. SO Southern Co. 299............... KRE SPDR KBW Regional 349.............. PHM Pulte Group Inc. Banking ETF 300............... XL XL Group Plc 350.............. HOT Starwood Hotels & Resorts Worldwide Inc. 302............... WLT Walter Energy 351.............. QLD ProShares Ultra Inc. QQQ. 303............... IBN ICICI Bank Ltd. 352.............. VRSN VeriSign Inc. 305............... EWY iShares MSCI 353.............. PCL Plum Creek South Korea 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 356.............. ACAS American Capital Energy Partners Ltd. LP. 309............... MRO Marathon Oil 357.............. XLNX Xilinx Inc. Corp. 310............... AGO Assured Guaranty 358.............. DO Diamond Offshore Ltd. Drilling Inc. 311............... GIS General Mills 359.............. CMA Comerica Inc. Inc. 312............... ANR Alpha Natural 360.............. KEY KeyCorp. Resources Inc. 314............... GENZ Genzyme Corp. ................. ................. ................ ---------------------------------------------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose [[Page 47666]] 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 either solicited or received. 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) \8\ of the Act and Rule 19b-4(f)(1) \9\ 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 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 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 CommentsUse 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-Phlx-2010-103 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-Phlx-2010-103. 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 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-Phlx-2010-103 and should be submitted on or before August 27, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Florence E. Harmon, Deputy Secretary. [FR Doc. 2010-19371 Filed 8-5-10; 8:45 am] BILLING CODE 8010-01-P