Skip to Content


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Adding 75 Options Classes to the Penny Pilot Program

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 February 3, 2010.

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 January 28, 2010, 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, 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.

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

The Exchange proposes to designate 75 options classes to be added to the Penny Pilot Program for Options (“Penny Pilot” or “Pilot”) on February 1, 2010. There are no changes to the rule text. A copy of this filing is available on the Exchange's Web site at, at the Exchange's principal office, at the Commission's Public Reference Room and on the Commission's Web site at

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, Start Printed Page 6757set 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 Statutory Basis for, the Proposed Rule Change

1. Purpose

NYSE Arca proposes to identify the next 75 options classes to be added to the Penny Pilot effective February 1, 2010. The Exchange recently received approval to extend and expand the Pilot through December 31, 2010.[3] In that filing, the Exchange had proposed expanding the 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.[4]

NYSE Arca proposes adding the following 75 options classes to the Penny Pilot on February 1, 2010, based on national average daily volume from July 1, 2009 through December 31, 2009:

Nat'l rankingSymbolCompany nameNat'l rankingSymbolCompany name
131ABTAbbott Laboratories192LEAPLeap Wireless International Inc.
169AEMAgnico-Eagle Mines Ltd205LLYEli Lilly & Co.
151AETAetna Inc162LOLorillard Inc.
156AFLAflac Inc152LOWLowe's Cos Inc.
181AKAMAkamai Technologies Inc176MMacy's Inc.
178AMATApplied Materials Inc155MCOMoody's Corp.
117AMRAMR Corp217METMetLife Inc.
166ANFAbercrombie & Fitch Co187MMM3M Co.
172APCAnadarko Petroleum Corp140MUMicron Technology Inc.
209ATVIActivision Blizzard Inc177NUENucor Corp.
145BBDBanco Bradesco SA157OXYOccidental Petroleum Corp.
190BCRXBioCryst Pharmaceuticals Inc158PARDPoniard Pharmaceuticals Inc.
218BKBank of New York Mellon Corp/The150PEPPepsiCo Inc/NC.
194BRCMBroadcom Corp141PMPhilip Morris International Inc.
184BTUPeabody Energy Corp185PNCPNC Financial Services Group Inc.
144BXBlackstone Group LP216QIDProShares UltraShort QQQ.
200CALContinental Airlines Inc149SHLDSears Holdings Corp.
211CFCF Industries Holdings Inc175SLMSLM Corp.
142CMCSAComcast Corp212SLWSilver Wheaton Corp.
203CSXCSX Corp215SQNMSequenom Inc.
143CVSCVS Caremark Corp153STECSTEC Inc.
174CXCemex SAB de CV219STXSeagate Technology.
183DDEI du Pont de Nemours & Co202SUSuncor Energy Inc.
146ERTSElectronic Arts Inc207TCKTeck Resources Ltd.
121EWJiShares MSCI Japan Index Fund196TEVATeva Pharmaceutical Industries Ltd.
186FDXFedEx Corp135TLTiShares Barclays 20+ Year Treasury Bond Fund.
118FNMFederal National Mortgage Association214TZADirexion Daily Small Cap Bear 3X Shares.
182FREFederal Home Loan Mortgage Corp168UAUAUAL Corp.
179GILDGilead Sciences Inc154UREProShares Ultra Real Estate.
198GLWCorning Inc180UTXUnited Technologies Corp.
170HBCHSBC Holdings PLC204WFRMEMC Electronic Materials Inc.
197HESHess Corp115WFTWeatherford International Ltd.
161HLHecla Mining Co165WLPWellPoint Inc.
193HOGHarley-Davidson Inc191XLBMaterials Select Sector SPDR Fund.
206HONHoneywell International Inc173XRXXerox Corp.
210JOYGJoy Global Inc148XTOXTO Energy Inc.
213JWNNordstrom Inc130YRCWYRC Worldwide Inc.
137KFTKraft Foods Inc

2. Statutory Basis

The Exchange believes the proposed rule change is consistent with and furthers the objectives of Section 6(b)(5) of the Act, in that it 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, by identifying the options classes to be added to the Pilot in a manner consistent with prior approvals and filings.

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 Start Printed Page 6758necessary 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 proposed rule change is effective upon filing pursuant to Section 19(b)(3)(A)(i) of the Exchange Act [5] and Rule 19b-4(f)(1) thereunder,[6] 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 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:

Electronic Comments

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-NYSEArca-2010-06. 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 (​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 viewing and printing 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 NYSE Arca's principal office and on its Web site at 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-NYSEArca-2010-06 and should be submitted on or before March 3, 2010.

Start Signature

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.[7]

Florence E. Harmon,

Deputy Secretary.

End Signature End Preamble


3.  See Exchange Act Release No. 60711 (September 23, 2009), 74 FR 49419 (September 28, 2009) (order approving SR-NYSEArca-2009-44).

Back to Citation

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

Back to Citation

5.  15 U.S.C. 78s(b)(3)(A)(i).

Back to Citation

[FR Doc. 2010-2953 Filed 2-9-10; 8:45 am]