Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), and Rule 19b-4 thereunder, notice is hereby given that on October 27, 2009, NASDAQ OMX BX, Inc. (the “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.Start Printed Page 58667
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
NASDAQ OMX BX, Inc. (the “Exchange”) proposes to designate 75 options classes to be added to the Penny Pilot Program, as referenced in Chapter V, Section 33 of the Rules of the Boston Options Exchange Group, LLC (“BOX”). The Exchange intends to notify Participants of the classes to be added to the Penny Pilot Program via Regulatory Circular. The text of the proposed Regulatory Circular is attached as Exhibit 2.
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 these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
On Monday, October 19, 2009 the Exchange submitted a proposed rule change with the Securities and Exchange Commission (“Commission”) to (i) extend the Penny Pilot Program in options classes (“Penny Pilot Program”) previously approved by the Commission through December 31, 2010; (ii) expand the number of classes included in the Penny Pilot Program; and (iii) replace on a semi-annual basis any Penny Pilot Program classes that have been delisted.
The top 300 most actively traded multiply listed options classes in the prior six calendar months  preceding their addition to the Penny Pilot Program that are not yet included in the Penny Pilot Program will be phased-in to the Penny Pilot Program over four successive quarters with 75 classes added in each of November 2009, February 2010, May 2010, and August 2010. Options classes with high premiums will be excluded for the quarterly additions.
Based on trading activity for the six months ending September 30, 2009, the Exchange proposes to add the following 75 classes to the Penny Pilot Program on November 2, 2009:
|Nat'l ranking||Symbol||Company name||Nat'l ranking||Symbol||Company name|
|118||ABX||Barrick Gold Corp||120||MRK||Merck & Co Inc/NJ.|
|134||AUY||Yamana Gold Inc||35||MS||Morgan Stanley.|
|48||AXP||American Express Co||73||NLY||Annaly Capital Management Inc.|
|93||BA||Boeing Co/The||99||NOK||Nokia OYJ.|
|115||BBT||BB&T Corp||121||NVDA||Nvidia Corp.|
|111||BBY||Best Buy Co Inc||80||ORCL||Oracle Corp.|
|94||BP||BP PLC||61||PALM||Palm Inc.|
|67||CHK||Chesapeake Energy Corp||37||PBR||Petroleo Brasileiro SA.|
|58||CIT||CIT Group Inc||85||PG||Procter & Gamble Co/The.|
|78||COF||Capital One Financial Corp||41||POT||Potash Corp of Saskatchewan Inc.|
|68||CVX||Chevron Corp||74||RF||Regions Financial Corp.|
|130||DE||Deere & Co||124||RIG||Transocean Ltd.|
|104||DOW||Dow Chemical Co/The||132||RMBS||Rambus Inc.|
|49||DRYS||DryShips Inc||103||S||Sprint Nextel Corp.|
|88||EFA||iShares MSCI EAFE Index Fund||83||SDS||ProShares UltraShort S&P500.|
|64||ETFC||E*Trade Financial Corp||122||SKF||ProShares UltraShort Financials.|
|32||EWZ||iShares MSCI Brazil Index Fund||107||SLB||Schlumberger Ltd.|
|25||FAS||Direxion Daily Financial Bull 3X Shares||91||SLV||iShares Silver Trust.|
|33||FAZ||Direxion Daily Financial Bear 3X Shares||84||SRS||ProShares UltraShort Real Estate.|
|112||FITB||Fifth Third Bancorp||119||SSO||ProShares Ultra S&P500.|
|70||FSLR||First Solar Inc||101||STI||SunTrust Banks Inc.|
|26||FXI||iShares FTSE/Xinhua China 25 Index Fund||125||SVNT||Savient Pharmaceuticals Inc.|
|82||GDX||Market Vectors—Gold Miners ETF||92||TBT||ProShares UltraShort 20+ Year Treasury.|
|127||GG||Goldcorp Inc||14||UNG||United States Natural Gas Fund LP.|
|18||GLD||SPDR Gold Trust||117||UNH||UnitedHealth Group Inc.|
|129||HGSI||Human Genome Sciences Inc||110||UPS||United Parcel Service Inc.|
|62||HIG||Hartford Financial Services Group Inc||81||USB||US Bancorp.|
|72||HPQ||Hewlett-Packard Co||44||USO||United States Oil Fund LP.|
|59||IBM||International Business Machines Corp||60||UYG||ProShares Ultra Financials.|
|45||IYR||iShares Dow Jones US Real Estate Index Fund||96||V||Visa Inc.|
|105||JNJ||Johnson & Johnson||10||WFC||Wells Fargo & Co.|
|131||JNPR||Juniper Networks Inc||133||WYNN||Wynn Resorts Ltd.|
|Start Printed Page 58668|
|98||KO||Coca-Cola Co/The||52||X||United States Steel Corp.|
|39||LVS||Las Vegas Sands Corp||114||XHB||SPDR S&P Homebuilders ETF.|
|87||MCD||McDonald's Corp||86||XLI||Industrial Select Sector SPDR Fund.|
|71||MGM||MGM Mirage||79||XLU||Utilities Select Sector SPDR Fund.|
|113||MON||Monsanto Co||54||XRT||SPDR S&P Retail ETF.|
2. Statutory Basis
The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act, in general, and Section 6(b)(5) of the Act, in particular, in that it is designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism for a free and open market and a national market system and, in general, to protect investors and the public interest, by identifying the options classes added to the Pilot in a manner consistent with prior rule changes.
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 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
The Exchange has neither solicited nor received comments on the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(i) of the Exchange Act  and Rule 19b-4(f)(1) thereunder, because it constitutes a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing BOX rule. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate the rule change if it appears to the Commission that the action is necessary or appropriate in the public interest, for the protection of investors, or would otherwise further 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:
- Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
- Send an e-mail to email@example.com. Please include File Number SR-BX-2009-069 on the subject line.
- 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-BX-2009-069. 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-BX-2009-069 and should be submitted on or before December 4, 2009.Start Signature
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Florence E. Harmon,
3. The Commission notes that the text of the proposed Regulatory Circular is attached at Exhibit 2 to the Form 19b-4, but is not attached to this Notice.Back to Citation
4. See Securities and Exchange Act Release No. 60886 (October 27, 2009) (SR-BX-2009-067). This proposal was effective immediately upon filing.Back to Citation
5. For purposes of assessing national average daily volume the Exchange will use data compiled and disseminated by the Options Clearing Corporation.Back to Citation
6. The quarterly additions will be effective on November 2, 2009, February 1, 2010, May 3, 2010 and August 2, 2010, respectively. For purposes of identifying the classes to be added per quarter, the Exchange shall use data from the prior six calendar months preceding the implementation month, except that the month immediately preceding their addition to the Pilot would not be utilized for purposes of the six month analysis. For example, the quarterly additions to be added on November 2, 2009 shall be determined using data from the six month period ending September 30, 2009.Back to Citation
7. The threshold for designation as “high priced” at the time of selection of new classes to be included in the Penny Pilot Program is $200 per share or a calculated index value of 200. The determination of whether a security is trading above $200 or above a calculated index value of 200 shall be based on the price at the close of trading on the Expiration Friday prior to being added to the Penny Pilot Program.Back to Citation
[FR Doc. E9-27256 Filed 11-12-09; 8:45 am]
BILLING CODE 8011-01-P