2010-19603. 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

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 ranking	Symbol	Security name	Nat'l ranking	Symbol	Security name
199	MBI	MBIA Inc	316	CB	Chubb Corp.
205	MA	Mastercard Inc	320	ADM	Archer-Daniels-Midland Co.
224	ATPG	ATP Oil & Gas Corp/United States	322	HSY	Hershey Co/The.
226	YUM	Yum! Brands Inc	323	TXT	Textron Inc.
232	RCL	Royal Caribbean Cruises Ltd	324	GGP	General Growth Properties Inc.
238	BPOP	Popular Inc	325	NOV	National Oilwell Varco Inc.
248	EK	Eastman Kodak Co	326	TWX	Time Warner Inc.
252	CNX	Consol Energy Inc	327	XOP	SPDR S&P Oil & Gas Exploration & Production ETF.
260	DCTH	Delcath Systems Inc	328	MYL	Mylan Inc/PA.
274	MTG	MGIC Investment Corp	329	TSO	Tesoro Corp.
277	PXP	Plains Exploration & Production Co	330	CI	CIGNA Corp.
278	GPS	Gap Inc/The	331	ESI	ITT Educational Services Inc.
280	TSL	Trina Solar Ltd	332	NKE	NIKE Inc.
282	EWW	iShares MSCI Mexico Investable Market Index Fund	335	FIS	Fidelity National Information Services Inc.
283	CRM	Salesforce.com Inc	336	SUN	Sunoco Inc.
286	SWN	Southwestern Energy Co	338	BBBY	Bed Bath & Beyond Inc.
287	HBAN	Huntington Bancshares Inc/OH	340	APWR	A-Power Energy Generation Systems Ltd.
288	EOG	EOG Resources Inc	341	FWLT	Foster Wheeler AG.
290	APA	Apache Corp	342	LNC	Lincoln National Corp.
291	VVUS	Vivus Inc	343	RSH	RadioShack Corp.
292	JDSU	JDS Uniphase Corp	344	TYC	Tyco International Ltd.
293	ACI	Arch Coal Inc	345	CL	Colgate-Palmolive Co.
294	NE	Noble Corp	346	FXP	ProShares UltraShort FTSE/Xinhua China 25.
296	BAX	Baxter International Inc	347	NTAP	NetApp Inc.
297	ADSK	Autodesk Inc	348	SO	Southern Co.
299	KRE	SPDR KBW Regional Banking ETF	349	PHM	Pulte Group Inc.
300	XL	XL Group Plc	350	HOT	Starwood Hotels & Resorts Worldwide Inc.
302	WLT	Walter Energy Inc	351	QLD	ProShares Ultra QQQ.
303	IBN	ICICI Bank Ltd	352	VRSN	VeriSign Inc.
305	EWY	iShares MSCI South Korea Index Fund	353	PCL	Plum Creek Timber Co Inc.
306	WHR	Whirlpool Corp	354	NBR	Nabors Industries Ltd.
307	BHI	Baker Hughes Inc	355	ESRX	Express Scripts Inc.
308	KMP	Kinder Morgan Energy Partners LP	356	ACAS	American Capital Ltd.
309	MRO	Marathon Oil Corp	357	XLNX	Xilinx Inc.
310	AGO	Assured Guaranty Ltd	358	DO	Diamond Offshore Drilling Inc.
311	GIS	General Mills Inc	359	CMA	Comerica Inc.
312	ANR	Alpha Natural Resources Inc	360	KEY	KeyCorp.
314	GENZ	Genzyme 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

• Use the Commission's Internet comment form (http://www.sec.gov/​rules/​sro.shtml); or
• Send an e-mail to [e-mail]. Please include File Number SR-NYSEArca-2010-70 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-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.

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

Florence E. Harmon,

Deputy Secretary.

Footnotes

1.  15 U.S.C. 78s(b)(1).

2.  17 CFR 240.19b-4.

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

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

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

6.  15 U.S.C. 78s(b)(3)(A)(i).

7.  17 CFR 240.19b-4(f)(1).

8.  17 CFR 200.30-3(a)(12).