Federal Register: April 2, 2009 (Volume 74, Number 62)
DOCID: fr02ap09-97 FR Doc E9-7370
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
NOTICE: NOTICES
DOCID: fr02ap09-97
ACTION: Self-Regulatory Organizations; Proposed Rule Changes:
SUBJECT CATEGORY:
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Option Trading Rules in Order To Extend the Penny Pilot Program
DOCUMENT SUMMARY:
March 26, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b4 thereunder,\3\ notice is hereby
given that, on March 25, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the selfregulatory organization. The Exchange filed the proposal as a ``non
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \4\ and Rule 19b4(f)(6) thereunder.\5\ 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b4.
\4\ 15 U.S.C. 78s(b)(3)(A)(iii).
\5\ 17 CFR 240.19b4(f)(6).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange proposes to amend its option trading rules in order to
extend the Penny Pilot in options classes in certain issues (``Pilot
Program'') previously approved by the Securities and Exchange
Commission (``Commission''), through July 3, 2009. The text of the
proposed rule change is attached as Exhibit 5 to the 19b4 form. A copy
of this filing is available on the Exchange's Web site at http://
www.nyse.com, at the Exchange's principal office and at the Commission's Public Reference Room.
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the selfregulatory 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 those 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 parts of such statements.
A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange hereby proposes to extend the time period of the Pilot
Program \6\ which is currently scheduled to expire on March 27, 2009
through July 3, 2009. This filing does not propose any substantive
changes to the Pilot Program: All classes currently participating will
remain the same and all minimum increments will remain unchanged. The
Exchange believes the benefits to public customers and other market
participants who will be able to express their true prices to buy and
sell options have been demonstrated to outweigh the increase in quote traffic.
\6\ See Securities Exchange Act Release No. 55156 (January 23,
2007), 72 FR 4759 (February 21, 2007); Securities Exchange Act
Release No. 56568 (September 27, 2007), 72 FR 56422 (October 3, 2007).
The Exchange agrees to submit a report to the Commission that
includes data and written analysis of information collected from February 1, 2009 through
[[Page 15026]]
April 30, 2009 and will be submitted by the close of May 2009. The
report will analyze the impact of the Pilot Program on market quality
and options systems capacity. This report will include, but is not
limited to: (1) Data and written analysis on the number of quotations
generated for options selected for the Pilot Program; (2) an assessment
of the quotation spreads for the options selected for the Pilot
Program; (3) an assessment of the impact of the Pilot Program on the
capacity of the NYSE Arca's automated systems; (4) any capacity
problems or other problems that arose related to the operation of the
Pilot Program and how the Exchange addressed them; and (5) an
assessment of trade through complaints that were sent by the Exchange
during the operation of the Pilot Program and how they were addressed. 2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers
the objectives of Section 6(b)(5) \8\ 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. The Exchange
believes that the Pilot Program promotes just and equitable principles
of trade by enabling public customers and other market participants to express their true prices to buy and sell options.
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
B. SelfRegulatory 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. SelfRegulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing rule 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 proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b4(f)(6) thereunder.\10\
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b4(f)(6). In addition, Rule 19b4(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 Exchange has satisfied the prefiling requirement.
The Exchange has requested that the Commission waive the 30day
operative delay so that the proposed rule change may become operative
upon filing with the Commission pursuant to Section 19(b)(3)(A) of the
Act \11\ and Rule 19b4(f)(6) \12\ thereunder. The Commission believes
that waiving the 30day operative delay is consistent with the
protection of investors and the public interest because such waiver
will allow the Penny Pilot Program to continue without interruption
through July 3, 2009.\13\ Accordingly, the Commission designates the
proposed rule change operative upon filing with the Commission. \11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b4.
\13\ For the purposes only of waiving the 30day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C. 78(c)(f).
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
Paper Comments
All submissions should refer to File Number SRNYSEArca200926. This file number should be included on the subject line if email 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 Section, 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 will also be available for inspection and copying at NYSE Arca's principal office and on its Internet Web site at http://www.nyse.com. 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 SRNYSEArca200926 and should be submitted on or before April 23, 2009.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\
\14\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E97370 Filed 4109; 8:45 am]
BILLING CODE 801001P
SUMMARY:
NYSE Arca, Inc.,
DOCUMENT BODY 2:
March 26, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b4 thereunder,\3\ notice is hereby
given that, on March 25, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the selfregulatory organization. The Exchange filed the proposal as a ``non
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \4\ and Rule 19b4(f)(6) thereunder.\5\ 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b4.
\4\ 15 U.S.C. 78s(b)(3)(A)(iii).
\5\ 17 CFR 240.19b4(f)(6).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange proposes to amend its option trading rules in order to
extend the Penny Pilot in options classes in certain issues (``Pilot
Program'') previously approved by the Securities and Exchange
Commission (``Commission''), through July 3, 2009. The text of the
proposed rule change is attached as Exhibit 5 to the 19b4 form. A copy
of this filing is available on the Exchange's Web site at http://
www.nyse.com, at the Exchange's principal office and at the Commission's Public Reference Room.
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the selfregulatory 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 those 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 parts of such statements.
A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange hereby proposes to extend the time period of the Pilot
Program \6\ which is currently scheduled to expire on March 27, 2009
through July 3, 2009. This filing does not propose any substantive
changes to the Pilot Program: All classes currently participating will
remain the same and all minimum increments will remain unchanged. The
Exchange believes the benefits to public customers and other market
participants who will be able to express their true prices to buy and
sell options have been demonstrated to outweigh the increase in quote traffic.
\6\ See Securities Exchange Act Release No. 55156 (January 23,
2007), 72 FR 4759 (February 21, 2007); Securities Exchange Act
Release No. 56568 (September 27, 2007), 72 FR 56422 (October 3, 2007).
The Exchange agrees to submit a report to the Commission that
includes data and written analysis of information collected from February 1, 2009 through
[[Page 15026]]
April 30, 2009 and will be submitted by the close of May 2009. The
report will analyze the impact of the Pilot Program on market quality
and options systems capacity. This report will include, but is not
limited to: (1) Data and written analysis on the number of quotations
generated for options selected for the Pilot Program; (2) an assessment
of the quotation spreads for the options selected for the Pilot
Program; (3) an assessment of the impact of the Pilot Program on the
capacity of the NYSE Arca's automated systems; (4) any capacity
problems or other problems that arose related to the operation of the
Pilot Program and how the Exchange addressed them; and (5) an
assessment of trade through complaints that were sent by the Exchange
during the operation of the Pilot Program and how they were addressed. 2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers
the objectives of Section 6(b)(5) \8\ 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. The Exchange
believes that the Pilot Program promotes just and equitable principles
of trade by enabling public customers and other market participants to express their true prices to buy and sell options.
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
B. SelfRegulatory 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. SelfRegulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing rule 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 proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b4(f)(6) thereunder.\10\
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b4(f)(6). In addition, Rule 19b4(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 Exchange has satisfied the prefiling requirement.
The Exchange has requested that the Commission waive the 30day
operative delay so that the proposed rule change may become operative
upon filing with the Commission pursuant to Section 19(b)(3)(A) of the
Act \11\ and Rule 19b4(f)(6) \12\ thereunder. The Commission believes
that waiving the 30day operative delay is consistent with the
protection of investors and the public interest because such waiver
will allow the Penny Pilot Program to continue without interruption
through July 3, 2009.\13\ Accordingly, the Commission designates the
proposed rule change operative upon filing with the Commission. \11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b4.
\13\ For the purposes only of waiving the 30day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C. 78(c)(f).
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
Paper Comments
All submissions should refer to File Number SRNYSEArca200926. This file number should be included on the subject line if email 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 Section, 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 will also be available for inspection and copying at NYSE Arca's principal office and on its Internet Web site at http://www.nyse.com. 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 SRNYSEArca200926 and should be submitted on or before April 23, 2009.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\
\14\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E97370 Filed 4109; 8:45 am]
BILLING CODE 801001P