E9-27499. Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change, as Modified by Amendment No.1, to Add Seventy-Five Options Classes to the Penny Pilot Program
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Start Preamble
November 9, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),[1] and Rule 19b-4 thereunder,[2] notice is hereby given that on October 28, 2009, The NASDAQ Stock Market LLC (“Nasdaq”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I, II and III below, which Items have been prepared by Nasdaq. Nasdaq filed Amendment No. 1 to the proposal on November 5, 2009.[3] 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
Nasdaq is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposal for the NASDAQ Options Market (“NOM” or “Exchange”) to designate seventy-five options classes to be added to the Penny Pilot in options classes in certain issues (“Penny Pilot” or “Pilot”) on November 2, 2009.[4] The Exchange is not proposing to amend any rule text, but simply administering or enforcing an existing rule.[5]
The text of the proposed rule change is available from Nasdaq's Web site at http://nasdaq.cchwallstreet.com,, at Nasdaq'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, Nasdaq 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. Nasdaq 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
1. Purpose
The purpose of this filing is to identify the next seventy-five options classes to be added to the Penny Pilot effective November 2, 2009.
In the Exchange's immediately effective filing to extend and expand the Penny Pilot through December 31, 2010,[6] the Exchange proposed expanding the Pilot four times on a Start Printed Page 59293quarterly basis. Each such quarterly expansion would be of the next seventy-five most actively traded multiply listed options classes based on the national average daily volume (“ADV”) for the six months prior to selection, closing under $200 per share on the Expiration Friday prior to expansion; however, the month immediately preceding the addition of options to the Penny Pilot will not be used for the purpose of the six month analysis. Index option products would be included in the quarterly expansions if the underlying index levels were under 200.
The Exchange is identifying, in the chart below, seventy-five options classes that it will add to the Penny Pilot on November 2, 2009, based on ADVs from April 1, 2009, through September 30, 2009.
Nat'l ranking Symbol Company name 118 ABX Barrick Gold Corp 48 AXP American Express Co 134 AUY Yamana Gold Inc 93 BA Boeing Co/The 115 BBT BB&T Corp 111 BBY Best Buy Co Inc 94 BP BP PLC 67 CHK Chesapeake Energy Corp 58 CIT CIT Group Inc 78 COF Capital One Financial Corp 68 CVX Chevron Corp 130 DE Deere & Co 104 DOW Dow Chemical Co/The 49 DRYS DryShips Inc 88 EFA iShares MSCI EAFE Index Fund 64 ETFC E*Trade Financial Corp 32 EWZ iShares MSCI Brazil Index Fund 25 FAS Direxion Daily Financial Bull 3X Shares 33 FAZ Direxion Daily Financial Bear 3X Shares 112 FITB Fifth Third Bancorp 70 FSLR First Solar Inc 26 FXI iShares FTSE/Xinhua China 25 Index Fund 82 GDX Market Vectors—Gold Miners ETF 127 GG Goldcorp Inc 18 GLD SPDR Gold Trust 129 HGSI Human Genome Sciences Inc 62 HIG Hartford Financial Services Group Inc 72 HPQ Hewlett-Packard Co 59 IBM International Business Machines Corp 45 IYR iShares Dow Jones US Real Estate Index Fund 105 JNJ Johnson & Johnson 131 JNPR Juniper Networks Inc 98 KO Coca-Cola Co/The 39 LVS Las Vegas Sands Corp 87 MCD McDonald's Corp 71 MGM MGM Mirage 113 MON Monsanto Co 63 MOS Mosaic Co/The 120 MRK Merck & Co Inc/NJ 35 MS Morgan Stanley 73 NLY Annaly Capital Management Inc 99 NOK Nokia OYJ 121 NVDA Nvidia Corp 80 ORCL Oracle Corp 61 PALM Palm Inc 37 PBR Petroleo Brasileiro SA 85 PG Procter & Gamble Co/The 41 POT Potash Corp of Saskatchewan Inc 74 RF Regions Financial Corp 124 RIG Transocean Ltd 132 RMBS Rambus Inc 103 S Sprint Nextel Corp 83 SDS ProShares UltraShort S&P500 122 SKF ProShares UltraShort Financials 107 SLB Schlumberger Ltd 91 SLV iShares Silver Trust 84 SRS ProShares UltraShort Real Estate 119 SSO ProShares Ultra S&P500 101 STI SunTrust Banks Inc 125 SVNT Savient Pharmaceuticals Inc 92 TBT ProShares UltraShort 20+ Year Treasury 14 UNG United States Natural Gas Fund LP 117 UNH UnitedHealth Group Inc 110 UPS United Parcel Service Inc Start Printed Page 59294 81 USB US Bancorp 44 USO United States Oil Fund LP 60 UYG ProShares Ultra Financials 96 V Visa Inc 10 WFC Wells Fargo & Co 133 WYNN Wynn Resorts Ltd 52 X United States Steel Corp 114 XHB SPDR S&P Homebuilders ETF 86 XLI Industrial Select Sector SPDR Fund 79 XLU Utilities Select Sector SPDR Fund 54 XRT SPDR S&P Retail ETF 2. Statutory Basis
The Exchange believes that its proposal is consistent with Section 6(b) of the Act [7] in general, and furthers the objectives of Section 6(b)(5) of the Act [8] 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, by identifying the options classes to be added to the Penny Pilot in a manner consistent with prior approvals and filings.
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq 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
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Pursuant to Section 19(b)(3)(A)(i) of the Act [9] and Rule 19b-4(f)(1) thereunder,[10] NASDAQ has designated this proposal as one constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule.
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
- 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-NASDAQ-2009-097 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-NASDAQ-2009-097. 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-NASDAQ-2009-097 and should be submitted on or before December 8, 2009.
Start SignatureFor the Commission, by the Division of Trading and Markets, pursuant to delegated authority.[11]
Florence E. Harmon,
Deputy Secretary.
Footnotes
3. In Amendment No. 1, Nasdaq proposed to correct a technical error in Section III. The change has no effect on the substance of the proposed rule change.
Back to Citation4. The Penny Pilot was established in March 2008 and in October 2009 was expanded and extended through December 31, 2010. See Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR 18587 (April 4, 2008) (SR-NASDAQ-2008-026) (notice of filing and immediate effectiveness establishing Penny Pilot); and 60874 (October 23, 2009) (SR-NASDAQ-2009-091) (notice of filing and immediate effectiveness expanding and extending Penny Pilot).
Back to Citation5. See Chapter VI, Section 5 regarding the Penny Pilot.
Back to Citation6. See Securities Exchange Act Release No. 60874 (October 23, 2009) (SR-NASDAQ-2009-091) (notice of filing and immediate effectiveness).
Back to Citation[FR Doc. E9-27499 Filed 11-16-09; 8:45 am]
BILLING CODE 8011-01-P
Document Information
- Comments Received:
- 0 Comments
- Published:
- 11/17/2009
- Department:
- Securities and Exchange Commission
- Entry Type:
- Notice
- Document Number:
- E9-27499
- Pages:
- 59292-59294 (3 pages)
- Docket Numbers:
- Release No. 34-60965, File No. SR-NASDAQ-2009-097
- EOCitation:
- of 2009-11-09
- PDF File:
- e9-27499.pdf