Skip to Content

Notice

Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add 75 Options Classes to the Penny Pilot Program as Modified by Amendment No. 1

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Start Preamble November 6, 2009.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),[1] and Rule 19b-4 thereunder,[2] notice is hereby given that on October 27, 2009, the International Securities Exchange, LLC (the “Exchange” or the “ISE”) filed with the Securities and Exchange Commission the proposed rule change as described in Items I, II, and III below, which items have been prepared by the self-regulatory organization. On November 6, 2009, the Exchange filed Amendment No. 1 to the proposed rule change.[3] The Commission is publishing this notice, as amended, to solicit comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The ISE proposes to designate 75 options classes to be added to the pilot program to quote and to trade certain options in pennies (the “Penny Pilot”) on November 2, 2009.

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

Purpose—ISE proposes to identify the next 75 options classes to be added to the Penny Pilot effective November 2, 2009. The Exchange recently filed to extend and expand the Penny Pilot through December 31, 2010.[4] In that filing, the Exchange had proposed expanding the Penny Pilot on a quarterly basis to add the next 75 most actively traded multiply listed options classes based on national average daily volume for the six months prior to selection, closing under $200 per share on the Expiration Friday prior to expansion, except that the month immediately preceding their addition to the Penny Pilot will not be used for the purpose of the six-month analysis.[5]

ISE proposes adding the following 75 options classes to the Penny Pilot on November 2, 2009, based on national average daily volume from April 1, 2009 through September 30, 2009:

SymbolCompany name
ABXBarrick Gold Corp
AUYYamana Gold Inc
AXPAmerican Express Co
BABoeing Co/The
BBTBB&T Corp
BBYBest Buy Co Inc
BPBP PLC
CHKChesapeake Energy Corp
CITCIT Group Inc
COFCapital One Financial Corp
CVXChevron Corp
DEDeere & Co
DOWDow Chemical Co/The
DRYSDryShips Inc
EFAiShares MSCI EAFE Index Fund
ETFCE*Trade Financial Corp
Start Printed Page 59329
EWZiShares MSCI Brazil Index Fund
FASDirexion Daily Financial Bull 3X Shares
FAZDirexion Daily Financial Bear 3X Shares
FITBFifth Third Bancorp
FSLRFirst Solar Inc
FXIiShares FTSE/Xinhua China 25 Index Fund
GDXMarket Vectors—Gold Miners ETF
GGGoldcorp Inc
GLDSPDR Gold Trust
HGSIHuman Genome Sciences Inc
HIGHartford Financial Services Group Inc
HPQHewlett-Packard Co
IBMInternational Business Machines Corp
IYRiShares Dow Jones US Real Estate Index Fund
JNJJohnson & Johnson
JNPRJuniper Networks Inc
KOCoca-Cola Co/The
LVSLas Vegas Sands Corp
MCDMcDonald's Corp
MGMMGM Mirage
MONMonsanto Co
MOSMosaic Co/The
MRKMerck & Co Inc/NJ
MSMorgan Stanley
NLYAnnaly Capital Management Inc
NOKNokia OYJ
NVDANvidia Corp
ORCLOracle Corp
PALMPalm Inc
PBRPetroleo Brasileiro SA
PGProcter & Gamble Co/The
POTPotash Corp of Saskatchewan Inc
RFRegions Financial Corp
RIGTransocean Ltd
RMBSRambus Inc
SSprint Nextel Corp
SDSProShares UltraShort S&P500
SKFProShares UltraShort Financials
SLBSchlumberger Ltd
SLViShares Silver Trust
SRSProShares UltraShort Real Estate
SSOProShares Ultra S&P500
STISunTrust Banks Inc
SVNTSavient Pharmaceuticals Inc
TBTProShares UltraShort 20+ Year Treasury
UNGUnited States Natural Gas Fund LP
UNHUnitedHealth Group Inc
UPSUnited Parcel Service Inc
USBUS Bancorp
USOUnited States Oil Fund LP
UYGProShares Ultra Financials
VVisa Inc
WFCWells Fargo & Co
WYNNWynn Resorts Ltd
XUnited States Steel Corp
XHBSPDR S&P Homebuilders ETF
XLIIndustrial Select Sector SPDR Fund
XLUUtilities Select Sector SPDR Fund
XRTSPDR S&P Retail ETF

(b) Basis—The basis under the Securities Exchange Act of 1934 (the “Exchange Act”) for this proposed rule change is found in Section 6(b)(5), in that the proposed rule change is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. In particular, the proposed rule change allows for a measured expansion of the Penny Pilot Program for the benefit of market participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

The proposed rule change does not 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

The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action

The proposed rule change is effective upon filing pursuant to Section 19(b)(3)(A)(i) [6] of the Exchange Act and Rule 19b-4(f)(1) [7] thereunder, in that it constitutes a stated policy, practice or interpretation with respect to the meaning, administration or enforcement of an existing rule of the Exchange. 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

  • Send paper comments in triplicate to Elizabeth Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2009-86. 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 ISE. 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-ISE-2009-86 and should be submitted by December 8, 2009.

Start Signature

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.[8]

Florence E. Harmon,

Deputy Secretary.

End Signature End Preamble

Footnotes

3.  In Amendment No. 1, ISE proposed to correct a technical error in Section III. The change does not effect the substance of the proposed rule change.

Back to Citation

4.  See Securities Exchange Act Release No. 60865 (October 22, 2009) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Expand the Penny Pilot Program).

Back to Citation

5.  Index products would be included in the expansion if the underlying index level was under 200.

Back to Citation

6.  15 U.S.C. 78s(b)(3)(A)(i).

Back to Citation

[FR Doc. E9-27468 Filed 11-16-09; 8:45 am]

BILLING CODE 8011-01-P