[Federal Register Volume 75, Number 40 (Tuesday, March 2, 2010)]
[Notices]
[Pages 9466-9468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4234]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61579: File No. SR-BX-2010-015]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Codify
Certain Provisions of the Options Listing Procedures Plan Into the
Rules of the Boston Options Exchange Facility
February 24, 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 February 10, 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 Exchange
filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of
the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the
proposal effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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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 the Rules of the Boston Options
Exchange Group, LLC (``BOX'') to codify certain provisions of the
Options Listing Procedures Plan (``OLPP'') into the BOX Rules. The text
of the proposed rule change is available from the principal office of
the Exchange, at the Commission's Public Reference Room, on the
Exchange's Internet Web site at http://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings/, and on the Commission's Web site at http://www.sec.gov.
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
[[Page 9467]]
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The OLPP was approved by the Securities and Exchange Commission
(the ``Commission'') on July 6, 2001 and has been amended several
times.\5\ The OLPP provides procedures for: (i) Listing and trading new
option classes; (ii) selecting new options series; (iii) petitioning
The Options Clearing Corporation (``OCC'') to review the eligibility,
pursuant to the exchanges' listing standards, of a selected option
class without delaying the trading of that option class; (iv)
determining operational details for option contracts adjusted pursuant
to OCC By-Laws; (v) admitting new sponsors; and (vi) losing eligibility
to participate in the OLPP.
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\5\ See e.g., Securities Exchange Act Release Nos. 44521 (July
6, 2001), 66 FR 36809 (July 13, 2001) (Order Approving a Proposed
Options Listing Procedures Plan); 58205 (July 22, 2008), 73 FR 43798
(July 28, 2008) (Order Granting Permanent Approval to Amendment No.
1 to the Plan for the Purpose of Developing and Implementing
Procedures Designed To Facilitate the Listing and Trading of
Standardized Options); 58630 (September 24, 2008), 73 FR 57166
(October 1, 2008) (Order Granting Permanent Approval to Amendment
No. 2 to the Plan for the Purpose of Developing and Implementing
Procedures Designed To Facilitate the Listing and Trading of
Standardized Options); and 60531 (August 19, 2009), 74 FR 43173
(August 26, 2009) (Order Approving Amendment No. 3 to the Plan for
the Purpose of Developing and Implementing Procedures Designed To
Facilitate the Listing and Trading of Standardized Options).
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This current filing is primarily concerned with codifying certain
provisions of the OLPP pertaining to selecting new option series and
certain strike setting parameters that have been adopted under the
OLPP. The Exchange believes that it is helpful to codify select
provisions into the BOX Rules so that all applicable rules governing
series selection and applicable strike setting parameters are located
in a single place. In addition, the Exchange understands that other
Sponsor Exchanges to the OLPP have submitted, or will be submitting,
similar filings to codify portions of the OLPP in their respective
rulebooks. Below the Exchange briefly describes the provisions of the
OLPP that the Exchange is proposing to codify into the BOX Rules.
OLPP Amendments Pertaining to LEAPS
Amendments 1 and 2 to the OLPP adopted provisions governing the
listing of Long-Term Equity Options Series (``LEAPS''). Amendment 1
provided for a uniform time frame for the introduction of new LEAPS on
equity option classes, options on Exchange Traded Fund Shares
(``ETFs''), or options on Trust Issued Receipts (``TIRs''). The
Exchange is proposing to codify the changes made to the OLPP by
Amendment 1 as new subparagraph (c) to Chapter IV, Section 8 (Long-Term
Options Contracts) of the BOX Rules. Amendment 2 provided for a uniform
minimum volume threshold per underlying class to qualify for the
introduction of a new expiration year of LEAPs on equity, ETF and TIR
classes. The Exchange is proposing to codify the changes made to the
OLPP by Amendment 2 as new subparagraph (d) to Chapter IV, Section 8 of
the BOX Rules.
Strike Setting Parameters
Amendment 3 to the OLPP adopted uniform objective standards to the
range of options series exercise (or strike) prices available for
trading on the OLPP's Sponsor Exchanges as a quote mitigation strategy.
The Exchange is proposing to codify the changes made to the OLPP by
Amendment 3 by adding certain new rule text to Chapter IV, 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.
In particular, the Exchange believes that codifying certain provisions
of the OLPP, as amended, serves to foster investor protection.
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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
This proposed rule change codifies certain provisions of the OLPP
that were previously approved by the Commission \8\ and does not; (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition and; (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest. The Exchange
requests that the Commission waive the 30-day operative delay period
for ``non-controversial'' proposals and make the proposed rule change
effective and operative upon filing.\9\
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\8\ See supra note 5.
\9\ 17 CFR 240.19b-4(f)(6). In addition, as required under Rule
19b-4(f)(6)(iii), the Exchange has submitted to the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and the 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.
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily 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.
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-2010-015 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary,
[[Page 9468]]
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-1090.
All submissions should refer to File Number SR-BX-2010-015. 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 self-regulatory
organization. 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-BX-
2010-015 and should be submitted on or before March 23, 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. 2010-4234 Filed 3-1-10; 8:45 am]
BILLING CODE 8011-01-P