[Federal Register Volume 75, Number 152 (Monday, August 9, 2010)]
[Notices]
[Pages 47875-47877]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19519]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62615; File No. SR-BX-2010-052]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Add 75
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 21, 2010, NASDAQ OMX BX, Inc. (the ``Exchange'') 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 self-regulatory organization. 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
NASDAQ OMX BX, Inc. (the ``Exchange'') proposes to designate 75
options classes to be added to the Penny Pilot Program, as referenced
in Chapter V, Section 33 of the Rules of the Boston Options Exchange
Group, LLC (``BOX''). The Exchange intends to notify BOX Options
Participants of the classes to be added to the Penny Pilot Program via
Regulatory Circular.
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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of 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
On October 19, 2009 the Exchange submitted a proposed rule change
\3\ with the Securities and Exchange Commission (``Commission'') to,
among other things, expand the number of classes included in the Penny
Pilot Program over four successive quarters, with 75 classes added in
each of November 2009, February 2010, May 2010, and August 2010.\4\
Options classes with high premiums will be excluded for the quarterly
additions.\5\
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\3\ See Securities and Exchange Act Release No. 60886 (Oct. 27,
2009), 74 FR 56897 (Nov. 3, 2009) (SR-BX-2009-067). This proposal
was effective immediately upon filing.
\4\ The quarterly additions will be effective on November 2,
2009, February 1, 2010, May 3, 2010 and August 2, 2010,
respectively. For purposes of identifying the classes to be added
per quarter, the Exchange shall use data from the prior six calendar
months preceding the implementation month, except that the month
immediately preceding their addition to the Pilot would not be
utilized for purposes of the six month analysis. For example, the
quarterly additions to be added on May 3, 2010 shall be determined
using data from the six month period ending March 31, 2010. The
Exchange has filed three (3) previous proposals similar to the
present proposal, for the November 2, 2009, February 1, 2010 and May
3, 2010 expansions of 75 classes, respectively. See Securities and
Exchange Act Release No. 60950 (Nov. 6, 2009), 74 FR 58666 (Nov. 6,
2009) [sic] (SR-BX-2009-069); Securities and Exchange Act Release
No. 61456 (Feb. 1, 2010), 75 FR 6235 (Feb. 8, 2010) (SR-BX-2010-
011); and 62039 (May 5, 2010), 75 FR 26313 (May 11, 2010) (SR-BX-
2010-032). These proposals were effective immediately upon filing.
\5\ The threshold for designation as ``high priced'' at the time
of selection of new classes to be included in the Penny Pilot
Program is $200 per share or a calculated index value of 200. The
determination of whether a security is trading above $200 or above a
calculated index value of 200 shall be based on the price at the
close of trading on the Expiration Friday prior to being added to
the Penny Pilot Program.
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[[Page 47876]]
Based on trading activity for the six months ending June 30, 2010,
the Exchange proposes to add the following 75 classes to the Penny
Pilot Program on August 2, 2010:
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Symbol Company Name Symbol Company Name
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MBI........... MBIA Inc. KMP........... Kinder Morgan
Energy Partners
LP
MA............ Mastercard Inc. MRO........... Marathon Oil Corp.
ATPG.......... ATP Oil & Gas Corp/ AGO........... Assured Guaranty
United States Ltd.
YUM........... Yum! Brands Inc. GIS........... General Mills Inc.
RCL........... Royal Caribbean ANR........... Alpha Natural
Cruises Ltd. Resources Inc.
BPOP.......... Popular Inc. GENZ.......... Genzyme Corp.
EK............ Eastman Kodak Co. CB............ Chubb Corp.
CNX........... Consol Energy Inc. ADM........... Archer-Daniels-
Midland Co.
DCTH*......... Delcath Systems Inc. HSY........... Hershey Co./The
MTG........... MGIC Investment TXT........... Textron Inc.
Corp.
PXP........... Plains Exploration & GGP*.......... General Growth
Production Co. Properties Inc.
GPS........... Gap Inc./The NOV........... National Oilwell
Varco Inc.
TSL........... Trina Solar Ltd. TWX........... Time Warner Inc.
EWW........... iShares MSCI Mexico XOP........... SPDR S&P Oil & Gas
Investable Market Exploration &
Index Fund Production ETF
CRM........... Salesforce.com Inc. MYL........... Mylan Inc./PA
SWN........... Southwestern Energy TSO........... Tesoro Corp.
Co.
HBAN.......... Huntington CI............ CIGNA Corp.
Bancshares Inc./OH
EOG........... EOG Resources Inc. ESI........... ITT Educational
Services Inc.
APA........... Apache Corp. NKE........... NIKE Inc.
VVUS.......... Vivus Inc. FIS*.......... Fidelity National
Information
Services Inc.
JDSU.......... JDS Uniphase Corp. SUN........... Sunoco Inc.
ACI........... Arch Coal Inc. BBBY.......... Bed Bath & Beyond
Inc.
NE............ Noble Corp. APWR.......... A-Power Energy
Generation
Systems Ltd.
BAX........... Baxter International FWLT.......... Foster Wheeler AG
Inc.
ADSK.......... Autodesk Inc. LNC........... Lincoln National
Corp.
KRE........... SPDR KBW Regional RSH........... RadioShack Corp.
Banking ETF
XL............ XL Group Plc. TYC........... Tyco International
Ltd.
WLT........... Walter Energy Inc. CL............ Colgate-Palmolive
Co.
IBN........... ICICI Bank Ltd. FXP........... ProShares
UltraShort FTSE/
Xinhua China 25
EWY........... iShares MSCI South NTAP.......... NetApp Inc.
Korea Index Fund
WHR........... Whirlpool Corp. SO............ Southern Co.
BHI........... Baker Huges Inc. PHM........... Pulte Group Inc.
HOT........... Starwood Hotels & ACAS.......... American Capital
Resorts Ltd.
QLD........... ProShares Ultra QQQ XLNX.......... Xilinx Inc.
VRSN.......... VeriSighn Inc. DO............ Diamond Offshore
Drilling Inc.
PCL........... Plum Creek Timber CMA........... Comerica Inc.
Co. Inc.
NBR........... Nabors Industries KEY........... KeyCorp
Ltd.
ESRX.......... Express Scripts Inc. .............. ..................
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* Please note that the class is presently not listed for trading on BOX.
If the class is listed for trading on BOX at a later date it will be
subject to the applicable minimum trading increments as set forth in
Chapter V, Section 6(b) of the BOX Rules.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism for a free and open market and a national market
system and, in general, to protect investors and the public interest,
by identifying the options classes added to the Penny Pilot Program in
a manner consistent with prior rule changes.
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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 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
The Exchange has neither solicited nor received comments on 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(6)(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
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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.196-4(f)(1).
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[[Page 47877]]
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-BX-2010-052 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-BX-2010-052. 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-BX-2010-052 and should be
submitted on or before August 30, 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. 2010-19519 Filed 8-6-10; 8:45 am]
BILLING CODE 8010-01-P