Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Federal Register: February 8, 2010 (Volume 75, Number 25)
Notices
Page 6239-6241
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr08fe10-98
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-61455; File No. SR-NASDAQ-2010-013
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
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, The NASDAQ Stock Market LLC (``Nasdaq'') 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 Nasdaq. 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
Nasdaq is filing with the Securities and Exchange Commission
(``SEC'' or ``Commission'') a proposal for the NASDAQ Options Market
(``NOM'' or ``Exchange'') 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 March 2008 and in October 2009 was expanded and extended through December 31, 2010. See
Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR 18587 (April 4, 2008)(SR-NASDAQ-2008-026)(notice of filing and immediate effectiveness establishing Penny Pilot); 60874 (October 23, 2009)(SR-NASDAQ-2009-091)(notice of filing and immediate effectiveness expanding and extending Penny Pilot); and 60965
(November 9, 2009)(SR-NASDAQ-2009-097)(notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot).
\4\ See Chapter VI, Section 5 regarding the Penny Pilot.
The text of the proposed rule change is available from Nasdaq's Web site at http://nasdaq.cchwallstreet.com/Filings/, at Nasdaq's principal office, 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, Nasdaq 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. Nasdaq 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 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. 60874 (October 23, 2009), 74 FR 56682 (November 2, 2009)(SR-NASDAQ-2009-091)(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
205............. LLY
Eli Lilly & Co.
Mines Ltd 151........................... AET
Aetna Inc
162............. LO
Lorillard Inc.
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156........................... AFL
Aflac Inc
152............. LOW
Lowe's Cos Inc. 181........................... AKAM
Akamai
176............. M
Macy's Inc.
Technologies Inc 178........................... AMAT
Applied Materials 155............. MCO
Moody's Corp.
Inc 117........................... AMR
AMR Corp
217............. MET
MetLife Inc. 166........................... ANF
Abercrombie &
187............. MMM
3M Co.
Fitch Co 172........................... APC
Anadarko
140............. MU
Micron Technology
Petroleum Corp
Inc. 209........................... ATVI
Activision
177............. NUE
Nucor Corp.
Blizzard 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
Nemours & Co
Inc. 146........................... ERTS
Electronic Arts 207............. TCK
Teck Resources
Inc
Ltd. 121........................... EWJ
iShares MSCI
196............. TEVA
Teva
Japan 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
Association
3X 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
Nasdaq does not believe that the proposed rule change will result in 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
Written comments were neither solicited nor 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\ Nasdaq 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 interest, for the protection of investors,
Page 6241
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-NASDAQ-2010-013 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-NASDAQ-2010-013. 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-NASDAQ-2010-013 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. 2010-2584 Filed 2-5-10; 8:45 am
BILLING CODE 8011-01-P
