Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX PHLX, Inc.
Federal Register: February 8, 2010 (Volume 75, Number 25)
Notices
Page 6233-6235
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr08fe10-95
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-61454; File No. SR-Phlx-2010-12
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Add
Seventy-Five Options Classes to the Penny Pilot Program
February 1, 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 January 25, 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, II and III 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.
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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 February 1, 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) (SR-Phlx-2009-91) (notice of filing and immediate effectiveness expanding and extending Penny Pilot); and 60966
(November 9, 2009) (SR-Phlx-2009-094) (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.
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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.
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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 February 1, 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
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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 February 1, 2010, based on ADVs for the six months ending December 31, 2009.
Nat'l ranking
Symbol
Company name
Nat'l ranking
Symbol
Company name
131................. ABT............ Abbott
192............ LEAP........... Leap Wireless
Laboratories.
International
Inc. 169................. AEM............ Agnico-Eagle Mines 205............ LLY............ Eli Lilly & Co.
Ltd. 151................. AET............ Aetna Inc.
162............ LO............. Lorillard Inc. 156................. AFL............ Aflac Inc.
152............ LOW............ Lowe's Cos Inc. 181................. AKAM........... Akamai Technologies 176............ M.............. Macy's Inc.
Inc. 178................. AMAT........... Applied Materials 155............ MCO............ Moody's Corp.
Inc. 117................. AMR............ AMR Corp.
217............ MET............ MetLife Inc. 166................. ANF............ Abercrombie & Fitch 187............ MMM............ 3M Co.
Co. 172................. APC............ Anadarko Petroleum 140............ MU............. Micron Technology
Corp.
Inc. 209................. ATVI........... Activision Blizzard 177............ NUE............ Nucor Corp.
Inc. 145................. BBD............ Banco Bradesco SA. 157............ OXY............ Occidental
Petroleum Corp. 190................. BCRX........... BioCryst
158............ PARD........... Poniard
Pharmaceuticals
Pharmaceuticals
Inc.
Inc. 218................. BK............. Bank of New York
150............ PEP............ PepsiCo Inc/NC.
Mellon Corp/The. 194................. BRCM........... Broadcom Corp.
141............ PM............. Philip Morris
International
Inc. 184................. BTU............ Peabody Energy
185............ PNC............ PNC Financial
Corp.
Services Group
Inc. 144................. BX............. Blackstone Group
216............ QID............ ProShares
LP.
UltraShort QQQ. 200................. CAL............ Continental
149............ SHLD........... Sears Holdings
Airlines Inc.
Corp. 211................. CF............. CF Industries
175............ SLM............ SLM Corp.
Holdings Inc. 142................. CMCSA.......... Comcast Corp.
212............ SLW............ Silver Wheaton
Corp. 203................. CSX............ CSX Corp.
215............ SQNM........... Sequenom Inc. 143................. CVS............ CVS Caremark Corp. 153............ STEC........... STEC Inc. 174................. CX............. Cemex SAB de CV.
219............ STX............ Seagate
Technology. 183................. DD............. EI du Pont de
202............ SU............. Suncor Energy Inc.
Nemours & Co. 146................. ERTS........... Electronic Arts
207............ TCK............ Teck Resources
Inc.
Ltd. 121................. EWJ............ iShares MSCI Japan 196............ TEVA........... Teva
Index Fund.
Pharmaceutical
Industries Ltd. 186................. FDX............ FedEx Corp.
135............ TLT............ iShares Barclays 20+ Year Treasury
Bond Fund. 118................. FNM............ Federal National
214............ TZA............ Direxion Daily
Mortgage
Small Cap Bear 3X
Association.
Shares. 182................. FRE............ Federal Home Loan 168............ UAUA........... UAL Corp.
Mortgage Corp. 179................. GILD........... Gilead Sciences
154............ URE............ ProShares Ultra
Inc.
Real Estate. 198................. GLW............ Corning Inc.
180............ UTX............ United
Technologies
Corp. 170................. HBC............ HSBC Holdings PLC. 204............ WFR............ MEMC Electronic
Materials Inc. 197................. HES............ Hess Corp.
115............ WFT............ Weatherford
International
Ltd. 161................. HL............. Hecla Mining Co.
165............ WLP............ WellPoint Inc. 193................. HOG............ Harley-Davidson
191............ XLB............ Materials Select
Inc.
Sector SPDR Fund. 206................. HON............ Honeywell
173............ XRX............ Xerox Corp.
International Inc. 210................. JOYG........... Joy Global Inc.
148............ XTO............ XTO Energy Inc. 213................. JWN............ Nordstrom Inc.
130............ YRCW........... YRC Worldwide Inc. 137................. KFT............ Kraft Foods Inc.
............... ............... ..................
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).
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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.
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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.
-
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Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A)(i) of the Act \8\ and Rule 19b- 4(f)(1) thereunder,\9\ the Exchange has designated this proposal as one constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule.
\8\ 15 U.S.C. 78s(b)(3)(A)(i).
\9\ 17 CFR 240.19b-4(f)(1).
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
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interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.
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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 rule-comments@sec.gov. Please include
File Number SR-Phlx-2010-12 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-2010-12. 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 inspection and copying 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-2010-12 and should be submitted on or before March 1, 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. 2010-2583 Filed 2-5-10; 8:45 am
BILLING CODE 8011-01-P
