[Federal Register Volume 74, Number 136 (Friday, July 17, 2009)]
[Notices]
[Pages 34834-34836]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17012]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60286; File No. SR-NYSEAmex-2009-43]


 Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NYSE Amex LLC to Extend the 
Short Term Option Series Pilot Program

July 10, 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 July 9, 2009, NYSE Amex LLC (``NYSE Amex'' or the ``Exchange'') 
filed with the Securities and Exchange Commission the proposed rule 
change as described in Items I and II 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the Short Term Option Series Pilot 
Program (``Pilot Program'') for an additional one-year period. The text 
of the proposed rule change is attached as Exhibit 5 to the 19b-4 form. 
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 these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in

[[Page 34835]]

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
    On July 12, 2005 the Commission approved the Pilot Program \3\ that 
allows NYSE Amex to list and trade Short Term Options Series. Under the 
terms of the Pilot Program, the Exchange can select up to five options 
classes on which Short Term Option Series may be opened on any Short 
Term Option Opening Date. The Exchange is also allowed to list Short 
Term Option Series on any option class that is selected by other 
securities exchanges that employ a similar Pilot Program under their 
respective rules.
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    \3\ See Securities Exchange Act Release No.34-52014 (July 12, 
2005), 70 FR 41244 (July 18, 2005) (approval order for SR-Amex-2005-
035).
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    The purpose of this proposal is to extend the Pilot Program for a 
one year period ending on July 12, 2010. The current Pilot Program 
expires on July 12, 2009.\4\ The Exchange believes that Short Term 
Option Series can provide investors with a flexible and valuable tool 
to manage risk exposure, minimize capital outlays, and be more 
responsive to the timing of events affecting the securities that 
underlie option contracts. While NYSE Amex has not listed any Short 
Term Option Series during the Pilot Program there has been continued 
investor interest in trading short-term options at the Chicago Board 
Options Exchange (``CBOE''). In order to have the ability respond to 
customer interests if warranted, the Exchange proposes the continuation 
of the Pilot Program at NYSE Amex.
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    \4\ See Securities Exchange Act Release No. 34-58084 (July 2, 
2008), 73 FR 39743 (July 10, 2008), SR-Amex-2008-55 (Pilot Program 
extension).
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    In the original proposal to establish the Pilot Program the 
Exchange stated that if it were to propose an extension or an expansion 
of the program, the Exchange would submit, along with any filing 
proposing such amendments to the program, a Pilot Program report 
(``Report''). The Report would provide an analysis of the Pilot Program 
covering the entire period during which the Pilot Program was in 
effect. Since the Exchange does not have any Short Term Options Series 
listed as part of the Pilot Program, there is no data available to 
compile such a report at this time. Therefore there is no Report 
associated with the program included with this proposal to extend the 
pilot Program.
    The Exchange represents that it has the necessary system capacity 
needed to support any additional option series listed under the Pilot 
Program.
2. Statutory Basis
    The Exchange believes that Short Term Option Series can stimulate 
customer interest in options and provide a flexible and valuable tool 
to manage risk exposure, minimize capital outlays, and be more 
responsive to the timing of events affecting the securities that 
underlie option contracts. For these reasons, the Exchange believes the 
proposed rule change is consistent with the Act and the rules and 
regulations thereunder and, in particular, the requirements of section 
6(b) of the Act. Specifically, the Exchange believes the proposed rule 
change is consistent with the section 6(b)(5) \5\ requirements that the 
rules of an exchange be designed to promote just and equitable 
principles of trade, to prevent fraudulent and manipulative acts, to 
remove impediments to and perfect the mechanism for a free and open 
market and a national market system, and, in general, to protect 
investors and the public interest.
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    \5\ 15 U.S.C. 78(f)(b)(5).
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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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate, if consistent with the 
protection of investors and the public interest, it has become 
effective pursuant to 19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) 
thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
ISE has satisfied this requirement.
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    The Exchange has asked the Commission to waive the operative delay 
to permit the proposed rule change to become operative prior to the 
30th day after filing. The Commission has determined that waiving the 
30-day operative delay of the Exchange's proposal is consistent with 
the protection of investors and the public interest and will promote 
competition because such waiver will allow the Exchange to continue the 
existing Pilot Program without interruption.\8\ Therefore, the 
Commission designates the proposal operative upon filing.
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    \8\ For purposes only of waiving the 30-day operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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    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 [email protected]. Please include 
File Number SR-NYSEAmex-2009-43 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-NYSEAmex-2009-43. 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

[[Page 34836]]

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 the 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 Number SR-NYSEAmex-2009-43 and should be submitted 
on or before August 7, 2009.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-17012 Filed 7-16-09; 8:45 am]
BILLING CODE 8010-01-P