Federal Register: April 2, 2009 (Volume 74, Number 62)
DOCID: fr02ap09-95 FR Doc E9-7371
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
NOTICE: NOTICES
DOCID: fr02ap09-95
ACTION: Self-Regulatory Organizations; Proposed Rule Changes:
SUBJECT CATEGORY:
Self-Regulatory Organizations; NASDAQ OMX PHLX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Extension of the Penny Pilot Program
DOCUMENT SUMMARY:
March 26, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given
that on March 25, 2009, 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 and II below, which Items have been prepared by the Exchange.
The Exchange filed the proposal as a ``noncontroversial'' proposed
rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and
Rule 19b4(f)(6) thereunder.\4\ 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 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 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 extend a pilot (the ``pilot'') that
permits certain options series to be quoted and traded in increments of
$0.01. The Exchange proposes to extend the pilot through July 3, 2009.
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.
II. SelfRegulatory 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to continue to permit specified options series to be quoted and traded in increments of $0.01 by extending the pilot through July 3, 2009.
The pilot began on January 26, 2007.\5\ All series in options
included in the pilot (``pilot options'') trading at a price of less
than $3.00 are currently quoted and traded in minimum increments of
$0.01, and pilot options with a price of $3.00 or higher are currently
quoted and traded in minimum increments of $0.05, except that options
overlying the PowerShares QQQ Trust (``QQQQ'') are quoted and traded in
minimum increments of $0.01 for all series regardless of the price. A
list of all pilot options was communicated to membership via Exchange circular.\6\
\5\ See Securities Exchange Act Release No. 55153 (January 23,
2007), 72 FR 4553 (January 31, 2007) (SRPhlx200674). In that
filing, the Exchange also made conforming amendments to various
Exchange rules in order to be consistent with the pilot. These
conforming changes were also approved on a pilot basis. Therefore,
the Exchange is proposing to extend the effective date for these rules through July 3, 2009.
\6\ Any additions to or deletions from the list will be
published in an Options Trader Alert, which will be available on the Exchange's Web site.
Report to the Commission
Throughout the pilot, the Exchange has prepared and submitted
periodic analytical reports (``reports'') to the Commission that address the impact of
[[Page 15023]]
the pilot on the quality of the Exchange's markets and option quote
traffic and capacity. The Exchange will submit another such report not
later than the last business day of May, 2009, covering the period from
February 1, 2009 through April 30, 2009, and will submit further
reports as requested by the Commission as the pilot continues. The Exchange will amend its rules accordingly.
Technical Changes to Rule 1034
In addition to the above, the Exchange proposes two technical amendments to Rule 1034. First, Rule 1034(a)(i)(B) would be amended to reflect that the former Nasdaq100 Index Tracking Stock is now known as the PowerShares QQQ Trust (``QQQQ'').[supreg] Second, the proposed rule would be amended to reflect the manner in which it notifies its members of changes in the Exchange's rules or systems that might affect such members' business. Specifically, Rule 1034(a)(i)(B) would be amended to reflect that such notification is no longer made via an Exchange Circular and is instead made via an ``Options Trader Alert'' which is posted on the Exchange's Web site.
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 ensuring the orderly continuity of the pilot.
\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 either solicited or received. 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. Phlx 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(f)(6).
\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 SRPhlx200925. 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 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. SRPhlx200925 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\
Florence E. Harmon,
Deputy Secretary.
\14\ 17 CFR 200.303(a)(12).
[FR Doc. E97371 Filed 4109; 8:45 am]
BILLING CODE 801001P
SUMMARY:
NASDAQ OMX PHLX, Inc.,
DOCUMENT BODY 2:
March 26, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given
that on March 25, 2009, 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 and II below, which Items have been prepared by the Exchange.
The Exchange filed the proposal as a ``noncontroversial'' proposed
rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and
Rule 19b4(f)(6) thereunder.\4\ 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 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 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 extend a pilot (the ``pilot'') that
permits certain options series to be quoted and traded in increments of
$0.01. The Exchange proposes to extend the pilot through July 3, 2009.
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.
II. SelfRegulatory 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to continue to permit specified options series to be quoted and traded in increments of $0.01 by extending the pilot through July 3, 2009.
The pilot began on January 26, 2007.\5\ All series in options
included in the pilot (``pilot options'') trading at a price of less
than $3.00 are currently quoted and traded in minimum increments of
$0.01, and pilot options with a price of $3.00 or higher are currently
quoted and traded in minimum increments of $0.05, except that options
overlying the PowerShares QQQ Trust (``QQQQ'') are quoted and traded in
minimum increments of $0.01 for all series regardless of the price. A
list of all pilot options was communicated to membership via Exchange circular.\6\
\5\ See Securities Exchange Act Release No. 55153 (January 23,
2007), 72 FR 4553 (January 31, 2007) (SRPhlx200674). In that
filing, the Exchange also made conforming amendments to various
Exchange rules in order to be consistent with the pilot. These
conforming changes were also approved on a pilot basis. Therefore,
the Exchange is proposing to extend the effective date for these rules through July 3, 2009.
\6\ Any additions to or deletions from the list will be
published in an Options Trader Alert, which will be available on the Exchange's Web site.
Report to the Commission
Throughout the pilot, the Exchange has prepared and submitted
periodic analytical reports (``reports'') to the Commission that address the impact of
[[Page 15023]]
the pilot on the quality of the Exchange's markets and option quote
traffic and capacity. The Exchange will submit another such report not
later than the last business day of May, 2009, covering the period from
February 1, 2009 through April 30, 2009, and will submit further
reports as requested by the Commission as the pilot continues. The Exchange will amend its rules accordingly.
Technical Changes to Rule 1034
In addition to the above, the Exchange proposes two technical amendments to Rule 1034. First, Rule 1034(a)(i)(B) would be amended to reflect that the former Nasdaq100 Index Tracking Stock is now known as the PowerShares QQQ Trust (``QQQQ'').[supreg] Second, the proposed rule would be amended to reflect the manner in which it notifies its members of changes in the Exchange's rules or systems that might affect such members' business. Specifically, Rule 1034(a)(i)(B) would be amended to reflect that such notification is no longer made via an Exchange Circular and is instead made via an ``Options Trader Alert'' which is posted on the Exchange's Web site.
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 ensuring the orderly continuity of the pilot.
\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 either solicited or received. 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. Phlx 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(f)(6).
\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 SRPhlx200925. 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 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. SRPhlx200925 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\
Florence E. Harmon,
Deputy Secretary.
\14\ 17 CFR 200.303(a)(12).
[FR Doc. E97371 Filed 4109; 8:45 am]
BILLING CODE 801001P