[Federal Register Volume 75, Number 233 (Monday, December 6, 2010)]
[Notices]
[Pages 75715-75716]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-30431]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63393; File No. SR-NYSEAmex-2010-107]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending Option
Trading Rules in Order To Extend the Penny Pilot in Options Classes in
Certain Issues Through December 31, 2011
November 30, 2010.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on November 24, 2010, NYSE Amex LLC (the ``Exchange'' or
``NYSE Amex'') 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 substantially prepared by the self-
regulatory organization. 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 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory 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 December 31, 2011. The text of the
proposed rule change is available at the Exchange, http://www.nyse.com,
the Commission's Public Reference Room, 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 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. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange hereby proposes to extend the time period of the Pilot
Program \4\ which is currently scheduled to expire on December 31,
2010, through December 31, 2011, and to provide revised dates for
adding replacement issues to the Pilot. The Exchange proposes that the
semi-annual dates to replace issues that have been delisted be revised
to the second trading day following January 1, 2011 and July 1, 2011.
The Exchange also wishes to clarify that the replacement issues will be
selected based on trading activity for the six month period beginning
June 1, 2010 and ending November 30, 2010 for the January 2011
replacement, and the six month period beginning December 1, 2010 and
ending May 31, 2011 for the July 2011 replacements. 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.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 34-61106 (December
3, 2009), 74 FR 65193 (December 9, 2009); Securities Exchange Act
Release No. 34-61479 (February 3, 2010), 75 FR 6772 (February 10,
2010).
---------------------------------------------------------------------------
The Exchange agrees to [sic] reports that will analyze the impact
of the Pilot Program on market quality and options systems capacity.
The reports will analyze the impact of the Pilot Program on market
quality and options systems capacity. These reports will include, but
are 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 Amex'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) \5\ of the
Act, in general, and furthers the objectives of Section 6(b)(5) \6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 that is 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
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which
[[Page 75716]]
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 and Rule 19b-4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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 rule-comments@sec.gov. Please include
File Number SR-NYSEAmex-2010-107 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-NYSEAmex-2010-107. 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 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 Number SR-NYSEAmex-2010-107 and should
be submitted on or before December 27, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-30431 Filed 12-3-10; 8:45 am]
BILLING CODE 8011-01-P