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Notice

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

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Start Preamble August 2, 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 July 20, 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 August 2, 2010. The text of the proposed rule change is attached as Exhibit 5 to the 19b-4 form.[3] A copy of this filing is available on the Exchange's Web site at http://www.nyse.com, at the Exchange's principal office, and at the Commission's Public Reference Room.

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

NYSE Arca proposes to identify the next 75 options classes to be added to the Penny Pilot effective August 2, 2010. The Exchange recently received approval to extend and expand the Pilot through December 31, 2010.[4] 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.[5]

NYSE Arca proposes adding the following 75 options classes to the Penny Pilot on August 2, 2010, based on national average daily volume from January 1, 2010 through June 30, 2010:

Nat'l rankingSymbolSecurity nameNat'l rankingSymbolSecurity name
199MBIMBIA Inc316CBChubb Corp.
205MAMastercard Inc320ADMArcher-Daniels-Midland Co.
224ATPGATP Oil & Gas Corp/United States322HSYHershey Co/The.
226YUMYum! Brands Inc323TXTTextron Inc.
232RCLRoyal Caribbean Cruises Ltd324GGPGeneral Growth Properties Inc.
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238BPOPPopular Inc325NOVNational Oilwell Varco Inc.
248EKEastman Kodak Co326TWXTime Warner Inc.
252CNXConsol Energy Inc327XOPSPDR S&P Oil & Gas Exploration & Production ETF.
260DCTHDelcath Systems Inc328MYLMylan Inc/PA.
274MTGMGIC Investment Corp329TSOTesoro Corp.
277PXPPlains Exploration & Production Co330CICIGNA Corp.
278GPSGap Inc/The331ESIITT Educational Services Inc.
280TSLTrina Solar Ltd332NKENIKE Inc.
282EWWiShares MSCI Mexico Investable Market Index Fund335FISFidelity National Information Services Inc.
283CRMSalesforce.com Inc336SUNSunoco Inc.
286SWNSouthwestern Energy Co338BBBYBed Bath & Beyond Inc.
287HBANHuntington Bancshares Inc/OH340APWRA-Power Energy Generation Systems Ltd.
288EOGEOG Resources Inc341FWLTFoster Wheeler AG.
290APAApache Corp342LNCLincoln National Corp.
291VVUSVivus Inc343RSHRadioShack Corp.
292JDSUJDS Uniphase Corp344TYCTyco International Ltd.
293ACIArch Coal Inc345CLColgate-Palmolive Co.
294NENoble Corp346FXPProShares UltraShort FTSE/Xinhua China 25.
296BAXBaxter International Inc347NTAPNetApp Inc.
297ADSKAutodesk Inc348SOSouthern Co.
299KRESPDR KBW Regional Banking ETF349PHMPulte Group Inc.
300XLXL Group Plc350HOTStarwood Hotels & Resorts Worldwide Inc.
302WLTWalter Energy Inc351QLDProShares Ultra QQQ.
303IBNICICI Bank Ltd352VRSNVeriSign Inc.
305EWYiShares MSCI South Korea Index Fund353PCLPlum Creek Timber Co Inc.
306WHRWhirlpool Corp354NBRNabors Industries Ltd.
307BHIBaker Hughes Inc355ESRXExpress Scripts Inc.
308KMPKinder Morgan Energy Partners LP356ACASAmerican Capital Ltd.
309MROMarathon Oil Corp357XLNXXilinx Inc.
310AGOAssured Guaranty Ltd358DODiamond Offshore Drilling Inc.
311GISGeneral Mills Inc359CMAComerica Inc.
312ANRAlpha Natural Resources Inc360KEYKeyCorp.
314GENZGenzyme Corp

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 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 proposed rule change is effective upon filing pursuant to Section 19(b)(3)(A)(i) [6] of the 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 the 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 M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2010-70. 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 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 http://www.nyse.com. 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-2010-70 and should be submitted on or before August 31, 2010.

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.  The Commission notes that there are no changes to the rule text and no exhibit 5 was attached to the form 19b-4.

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

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

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6.  15 U.S.C. 78s(b)(3)(A)(i).

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[FR Doc. 2010-19603 Filed 8-9-10; 8:45 am]

BILLING CODE 8010-01-P