[Federal Register Volume 74, Number 220 (Tuesday, November 17, 2009)]
[Notices]
[Pages 59328-59329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27468]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60962; File No. SR-ISE-2009-86]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Add 75 Options Classes to the Penny Pilot Program as Modified 
by Amendment No. 1

November 6, 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 October 27, 2009, the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission the proposed rule change as described in Items I, 
II, and III below, which items have been prepared by the self-
regulatory organization. On November 6, 2009, the Exchange filed 
Amendment No. 1 to the proposed rule change.\3\ The Commission is 
publishing this notice, as amended, 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.
    \3\ In Amendment No. 1, ISE proposed to correct a technical 
error in Section III. The change does not effect the substance of 
the proposed rule change.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE proposes to designate 75 options classes to be added to the 
pilot program to quote and to trade certain options in pennies (the 
``Penny Pilot'') on November 2, 2009.

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 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

    Purpose--ISE proposes to identify the next 75 options classes to be 
added to the Penny Pilot effective November 2, 2009. The Exchange 
recently filed to extend and expand the Penny Pilot through December 
31, 2010.\4\ In that filing, the Exchange had proposed expanding the 
Penny 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\
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    \4\ See Securities Exchange Act Release No. 60865 (October 22, 
2009) (Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change to Expand the Penny Pilot Program).
    \5\ Index products would be included in the expansion if the 
underlying index level was under 200.
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    ISE proposes adding the following 75 options classes to the Penny 
Pilot on November 2, 2009, based on national average daily volume from 
April 1, 2009 through September 30, 2009:

------------------------------------------------------------------------
                 Symbol                            Company name
------------------------------------------------------------------------
ABX....................................  Barrick Gold Corp
AUY....................................  Yamana Gold Inc
AXP....................................  American Express Co
BA.....................................  Boeing Co/The
BBT....................................  BB&T Corp
BBY....................................  Best Buy Co Inc
BP.....................................  BP PLC
CHK....................................  Chesapeake Energy Corp
CIT....................................  CIT Group Inc
COF....................................  Capital One Financial Corp
CVX....................................  Chevron Corp
DE.....................................  Deere & Co
DOW....................................  Dow Chemical Co/The
DRYS...................................  DryShips Inc
EFA....................................  iShares MSCI EAFE Index Fund
ETFC...................................  E*Trade Financial Corp

[[Page 59329]]

 
EWZ....................................  iShares MSCI Brazil Index Fund
FAS....................................  Direxion Daily Financial Bull
                                          3X Shares
FAZ....................................  Direxion Daily Financial Bear
                                          3X Shares
FITB...................................  Fifth Third Bancorp
FSLR...................................  First Solar Inc
FXI....................................  iShares FTSE/Xinhua China 25
                                          Index Fund
GDX....................................  Market Vectors--Gold Miners ETF
GG.....................................  Goldcorp Inc
GLD....................................  SPDR Gold Trust
HGSI...................................  Human Genome Sciences Inc
HIG....................................  Hartford Financial Services
                                          Group Inc
HPQ....................................  Hewlett-Packard Co
IBM....................................  International Business Machines
                                          Corp
IYR....................................  iShares Dow Jones US Real
                                          Estate Index Fund
JNJ....................................  Johnson & Johnson
JNPR...................................  Juniper Networks Inc
KO.....................................  Coca-Cola Co/The
LVS....................................  Las Vegas Sands Corp
MCD....................................  McDonald's Corp
MGM....................................  MGM Mirage
MON....................................  Monsanto Co
MOS....................................  Mosaic Co/The
MRK....................................  Merck & Co Inc/NJ
MS.....................................  Morgan Stanley
NLY....................................  Annaly Capital Management Inc
NOK....................................  Nokia OYJ
NVDA...................................  Nvidia Corp
ORCL...................................  Oracle Corp
PALM...................................  Palm Inc
PBR....................................  Petroleo Brasileiro SA
PG.....................................  Procter & Gamble Co/The
POT....................................  Potash Corp of Saskatchewan Inc
RF.....................................  Regions Financial Corp
RIG....................................  Transocean Ltd
RMBS...................................  Rambus Inc
S......................................  Sprint Nextel Corp
SDS....................................  ProShares UltraShort S&P500
SKF....................................  ProShares UltraShort Financials
SLB....................................  Schlumberger Ltd
SLV....................................  iShares Silver Trust
SRS....................................  ProShares UltraShort Real
                                          Estate
SSO....................................  ProShares Ultra S&P500
STI....................................  SunTrust Banks Inc
SVNT...................................  Savient Pharmaceuticals Inc
TBT....................................  ProShares UltraShort 20+ Year
                                          Treasury
UNG....................................  United States Natural Gas Fund
                                          LP
UNH....................................  UnitedHealth Group Inc
UPS....................................  United Parcel Service Inc
USB....................................  US Bancorp
USO....................................  United States Oil Fund LP
UYG....................................  ProShares Ultra Financials
V......................................  Visa Inc
WFC....................................  Wells Fargo & Co
WYNN...................................  Wynn Resorts Ltd
X......................................  United States Steel Corp
XHB....................................  SPDR S&P Homebuilders ETF
XLI....................................  Industrial Select Sector SPDR
                                          Fund
XLU....................................  Utilities Select Sector SPDR
                                          Fund
XRT....................................  SPDR S&P Retail ETF
------------------------------------------------------------------------

     (b) Basis--The basis under the Securities Exchange Act of 1934 
(the ``Exchange Act'') for this proposed rule change is found in 
Section 6(b)(5), in that the proposed rule change 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. In particular, the proposed rule change allows for a measured 
expansion of the Penny Pilot Program for the benefit of market 
participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not 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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

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 Exchange 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 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(i).
    \7\ 17 CFR 240.19b-4(f)(1).
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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 No. SR-ISE-2009-86 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2009-86. 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 ISE. 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-ISE-2009-86 and should be 
submitted by December 8, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-27468 Filed 11-16-09; 8:45 am]
BILLING CODE 8011-01-P