[Federal Register Volume 75, Number 206 (Tuesday, October 26, 2010)]
[Notices]
[Pages 65692-65693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-27003]
[[Page 65692]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63134; File No. SR-Phlx-2010-149]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating
to the $0.50 Strike Price Program
October 20, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on October 19, 2010, NASDAQ OMX PHLX LLC (``Phlx'' or the
``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.
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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 proposes to amend Exchange Rule 1012, Series of
Options Open for Trading, to correct a minor error related to a
previous rule change regarding the $0.50 Strike Program.\3\
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\3\ See Securities Exchange Act Release No. 63132 (October 19,
2010) (SR-Phlx-2010-118).
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The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings,
at the principal office of the Exchange, on the Commission's Web site
at http://www.sec.gov, 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 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 Exchange proposes amending Rule 1012, Series of Options Open
for Trading, to add additional language to Rule 1012 related to the
Exchange's ability to list a strike price of $6.00 within $.50 of an
existing strike price for classes selected to participate in the $0.50
Strike Program.\4\ The Exchange filed a rule change to expand the $0.50
Strike Program.\5\ Specifically, the Exchange amended its $0.50 Strike
Program to establish strike price intervals of $.50, beginning at $.50
for certain options classes where the strike price is $5.50 or less and
whose underlying security closed at or below $5.00 in its primary
market on the previous trading day and which have national average
daily volume that equals or exceeds 1000 contracts per day as
determined by The Options Clearing Corporation (``OCC'') during the
preceding three calendar months. The Exchange also amended Exchange
Rule 1012 to increase the number of classes permitted in the $.50
Strike Program from 5 to 20 individual stocks.\6\
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\4\ See Securities Exchange Act Release No. 63132 (October 19,
2010) (SR-Phlx-2010-118).
\5\ See Securities Exchange Act Release Nos. 60694 (September
18, 2009), 74 FR 49048 (September 25, 2009) (SR-Phlx-2009-65) (order
approving); and 61630 (March 2, 2010), 75 FR 11211 (March 10, 2010)
(SR-Phlx-2010-26) (notice of filing and immediate effectiveness
allowing concurrent listing of $3.50 and $4 strikes for classes that
participate in both the $0.50 Strike Program and the $1 Strike
Program).
\6\ See Securities Exchange Act Release No. 63132 (October 19,
2010) (SR-Phlx-2010-118).
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At that time, the Exchange made an additional amendment to
Commentary .05(a)(i)(B) of Exchange Rule 1012 to add language to the $1
Strike Program that addresses listing series with $1 intervals within
$.50 of an existing strike price in the same series. Specifically, the
Exchange added $5 to the listed strike prices of $2, $3 and $4 to
account for the overlap with the $0.50 Strike Program amendments.
The Exchange proposes to add $6 to that list to account for
existing amendments to the $0.50 Strike Program to allow for a strike
price of $5.50. The Exchange intended to expand this language
originally to account for all possible strike prices as a result of its
recent filing. This minor amendment was not made at that time as a
result of an oversight. The Exchange proposes this language to correct
that oversight.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest,
by correcting a minor error in a previous rule change to account for
recent amendments to the $0.50 Strike Program. This amendment will
clarify Exchange Rule 1012 by adding $6 to the list of strike prices
permitted within $.50 of an existing strike price for classes selected
to participate in the $0.50 Strike Program. This amendment will clarify
Exchange Rule 1012 to correct the minor error.
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\7\ 15 U.S.C. 78f(b).
\8\ 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 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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not become operative for 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Commission has waived the five-day pre-filing requirement in this
case.
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that
[[Page 65693]]
waiver of the operative delay is consistent with the protection of
investors and the public interest because doing so will permit
immediate correction of the Exchange's error in their prior filing
revising the terms of the $0.50 Strike Price Program. Therefore, the
Commission designates the proposal operative upon filing.\11\
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\11\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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.
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-Phlx-2010-149 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-2010-149. 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 the 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 Number SR-Phlx-2010-149 and should be
submitted on or before November 16, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-27003 Filed 10-25-10; 8:45 am]
BILLING CODE 8011-01-P