[Federal Register Volume 86, Number 102 (Friday, May 28, 2021)]
[Proposed Rules]
[Pages 28722-28724]
[FR Doc No: 2021-11233]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2021-0413; Airspace Docket No. 21-ASW-9]
RIN 2120-AA66

Proposed Amendment of Class D and Class E Airspace and
Establishment of Class E Airspace; Waco, TX

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to amend the Class D and Class E airspace
and establish Class E airspace at airports in Waco, TX. The FAA is
proposing this action as the result of biennial airspace reviews. The
name and geographic coordinates of various airports and navigational
aids would also be updated to coincide with the FAA's aeronautical
database.

DATES: Comments must be received on or before July 12, 2021.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590; telephone
(202) 366-9826, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2021-0413/Airspace Docket No. 21-ASW-9, at the beginning of your
comments. You may also submit comments through the internet at https://www.regulations.gov. You may review the public docket containing the
proposal, any comments received, and any final disposition in person in
the Dockets Office between 9:00 a.m. and 5:00 p.m., Monday through
Friday, except federal holidays.
    FAA Order 7400.11E, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11E at NARA, email<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Jeffrey Claypool, Federal Aviation
Administration, Operations Support Group, Central Service Center, 10101
Hillwood Parkway, Fort Worth, TX 76177; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would amend the Class D airspace and Class E surface area
airspace at Waco Regional Airport, Waco, TX; establish Class E surface
area airspace at TSTC Waco Airport, Waco, TX; establish Class E
airspace extending upward from 700 feet above the surface at Marlin
Airport, Waco, TX; and amend the Class E airspace extending upward from
700 feet above the surface at Waco Regional Airport, TSTC Waco Airport,
and McGregor Executive Airport, Waco, to support instrument flight rule
operations at this airport.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,

environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2021-0413/
Airspace Docket No. 21-ASW-9.'' The postcard will be date/time stamped
and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at https://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at https://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the Federal Aviation Administration, Air Traffic
Organization, Central Service Center, Operations Support Group, 10101
Hillwood Parkway, Fort Worth, TX 76177.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11E, Airspace
Designations and Reporting Points, dated July 21, 2020, and effective
September 15, 2020. FAA Order 7400.11E is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11E lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is proposing an amendment to 14 CFR part 71 by:
    Amending the Class D airspace to within a 4.2-mile (decreased from
a 4.5-mile) radius of Waco Regional Airport, Waco, TX; adding an
extension 1 mile each side of the 149[deg] bearing from the airport
extending from the 4.2-mile radius to 4.3 miles southeast of the
airport; removing the city associated with the airport to comply with
changes to FAA Order 7400.2M, Procedures for Handling Airspace Matters;
and replacing the outdated term ``Airport/Facility Directory'' with
``Chart Supplement'';
    Amending the Class D airspace legal description at TSTC Waco
Airport, Waco, TX, by removing the airport name from the airspace legal
description header to comply with changes to FAA Order 7400.2M;
removing the city associated with the airport in the airspace legal
description to comply with changes to FAA Order 7400.2M; updating the
name of the airport (previously TSTC-Waco Airport) to coincide with the
FAA's aeronautical database; and replacing the outdated term
``Airfield/Facility Directory'' with ``Chart Supplement'';
    Amending the Class E surface area airspace to within a 4.2-mile
(decreased from a 4.5-mile) radius of Waco Regional Airport; adding an
extension 1 mile each side of the 149[deg] bearing from the airport
extending from the 4.2-mile radius to 4.3 miles southeast of the
airport; removing the TSTI-Waco Airport, Waco, TX, and the associated
airspace from the airspace legal description (A separate airspace legal
description is being created to reduce confusion regarding Class D and
E service availability at the two airports.); and replacing the
outdated term ``Airport/Facility Directory'' with ``Chart Supplement'';
    Establishing Class E surface area airspace within a 4.4-mile radius
of TSTC Waco Airport;
    Establishing Class E airspace extending upward from 700 feet above
the surface within a 6.3-mile radius of Marlin Airport, Waco, TX; and
within 1.8 miles each side of the 123[deg] radial from the Waco VORTAC
extending from the 6.3-mile radius from Marlin Airport to 13.1 miles
northwest of the airport;
    And amending the Class E airspace extending upward from 700 feet
above the surface to within a 6.7-mile (decreased from a 11.5-mile)
radius of Waco Regional Airport; removing the extension north of the
VORTAC as it is no longer needed; adding an extension 3.7 miles each
side of the 014[deg] bearing from the Waco RGNL: RWY 19-LOC extending
from the 6.7-mile radius from Waco Regional Airport to 15.3 miles north
of the Waco Regional Airport; adding an extension 2.5 miles each side
of the 328[deg] radial from the Waco VORTAC extending from the 6.7-mile
radius from Waco Regional Airport to 10 miles northwest of the Waco
VORTAC; within a 6.9-mile (decreased from a 7.9-mile) radius of TSTC
Waco Airport; removing the Leroi NDB and the associated extension as
they are no longer needed; adding an extension 1 mile each side of the
179[deg] bearing from the McGregor Executive Airport, Waco, TX,
extending from the 6.6-mile radius from McGregor Executive Airport to
6.7-miles south of McGregor Executive Airport; adding an extension 6
miles each side of the 005[deg] radial from the Waco VORTAC extending
from the Waco VORTAC to 10 miles north of the Waco VORTAC; and adding
an extension 6 miles each side of the 185[deg] radial from the Waco
VORTAC extending from the 6.6 mile radius from the McGregor Executive
Airport to the Waco VORTAC; removing the Marlin Airport and associated
airspace from the airspace legal description as it no longer adjoins
this airspace and separate airspace has been established for this
airport; and updating the names of Waco Regional Airport (previously
Regional Airport), TSTC Waco Airport (previously TSTC-Waco Airport) and
McGregor Executive Airport (previously McGregor Municipal Airport) and
the geographic coordinates of Waco Regional Airport and the Waco VORTAC
to coincide with the FAA's aeronautical database.
    These actions are the result of biennial airspace reviews.
    Class D and E airspace designations are published in paragraph
5000, 6002, and 6005 of FAA Order 7400.11E, dated July 21, 2020, and
effective September 15, 2020, which is incorporated by reference in 14
CFR 71.1. The Class D and E airspace designations listed in this
document will be published subsequently in the Order.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore: (1) Is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3)

does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, would not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11D,
Airspace Designations and Reporting Points, dated August 8, 2019, and
effective September 15, 2019, is amended as follows:

Paragraph 5000 Class D Airspace.

* * * * *

ASW TX D Waco, TX [Amended]

Waco Regional Airport, TX
    (Lat. 31[deg]36'44'' N, long. 97[deg]13'49'' W)

    That airspace extending upward from the surface to and including
3,000 feet MSL within a 4.2-mile radius of Waco Regional Airport,
and within 1 mile each side of the 149[deg] bearing from the airport
extending from the 4.2-mile radius from the airport to 4.3 miles
southeast of the airport. This Class D airspace area is effective
during the specific dates in advance by a Notice to Airmen. The
effective date and time will thereafter be published in the Chart
Supplement.

ASW TX D Waco, TX [Amended]

TSTC Waco Airport, TX
    (Lat. 31[deg]38'16'' N, long. 97[deg]04'27'' W)

    That airspace extending upward from the surface to and including
3,000 feet MSL within a 4.4-mile radius of TSTC Waco Airport,
excluding that airspace within the Waco Regional Airport Class D
airspace and Class E surface area airspace. This Class D airspace
area is effective during the specific dates and times established in
advance by a Notice to Airmen. The effective date and time will
thereafter be published in the Chart Supplement.

Paragraph 6002 Class E Airspace Areas Designated as Surface Areas.

* * * * *

ASW TX E2 Waco, TX [Amended]

Waco Regional Airport, TX
    (Lat. 31[deg]36'44'' N, long. 97[deg]13'49'' W)

    That airspace extending upward from the surface within a 4.2-
mile radius of Waco Regional Airport, and within 1 mile each side of
the 149[deg] bearing from the airport extending from the 4.2-mile
radius from the airport to 4.3 miles southeast of the airport. This
Class E airspace area is effective during the specific dates in
advance by a Notice to Airmen. The effective date and time will
thereafter be published in the Chart Supplement.

ASW TX E2 Waco, TX [Established]

TSTC Waco Airport, TX
    (Lat. 31[deg]38'16'' N, long. 97[deg]04'27'' W)

    That airspace extending upward from the surface within a 4.4-
mile radius of TSTC Waco Airport, excluding that airspace within the
Waco Regional Airport Class D airspace and Class E surface area
airspace. This Class E airspace area is effective during the
specific dates and times established in advance by a Notice to
Airmen. The effective date and time will thereafter be published in
the Chart Supplement.

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

ASW TX E5 Waco, TX [Established]

Marlin Airport, TX
    (Lat. 31[deg]20'26'' N, long. 96[deg]51'07'' W)

    That airspace extending upward from 700 feet above the surface
within a 6.3-mile radius of Marlin Airport, and within 1.8 miles
each side of the 123[deg] radial of the Waco VORTAC extending from
the 6.3-mile radius to 13.1 miles northwest of the airport.

ASW TX E5 Waco, TX [Amended]

Waco Regional Airport, TX
    (Lat. 31[deg]36'44'' N, long. 97[deg]13'49'' W)
Waco RGNL: RWY 19-LOC
    (Lat. 31[deg]36'07'' N, long. 97[deg]13'49'' W)
Waco VORTAC
    (Lat. 31[deg]39'44'' N, long. 97[deg]16'08'' W)
TSTC Waco Airport, TX
    (Lat. 31[deg]38'16'' N, long. 97[deg]04'27'' W)
McGregor Executive Airport, TX
    (Lat. 31[deg]29'06'' N, long. 97[deg]19'00'' W)

    That airspace extending upward from 700 feet above the surface
within a 6.7-mile radius of Waco Regional Airport, and within 3.7
miles each side of the 014[deg] bearing from the Waco RGNL: RWY 19-
LOC extending from the 6.7-mile radius of Waco Regional Airport to
15.3 miles north of Waco Regional Airport, and within 2.5 miles each
side of the 328[deg] radial from the Waco VORTAC extending from the
6.7-mile radius of Waco Regional Airport to 10 miles northwest of
the Waco VORTAC, and within a 6.9-mile radius of TSTC Waco Airport,
and within a 6.6-mile radius of McGregor Executive Airport, and
within 1 mile each side of the 179[deg] bearing from the McGregor
Executive Airport extending from the 6.6-mile radius of McGregor
Executive Airport to 6.7 miles south of McGregor Executive Airport,
and within 6 miles each side of the 005[deg] radial from the Waco
VORTAC extending from the Waco VORTAC to 10 miles north of the Waco
VORTAC, and within 6 miles each side of the 185[deg] radial from the
Waco VORTAC extending from the 6.6-mile radius of McGregor Executive
Airport to the Waco VORTAC.

    Issued in Fort Worth, Texas, on May 24, 2021.
Martin A. Skinner,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2021-11233 Filed 5-27-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Notices]
[Pages 20764-20767]
[FR Doc No: 2011-8856]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64258; File No. SR-ISE-2011-23]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Expand the $2.50 Strike Price Program

April 8, 2011.
    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 April 6, 2011, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and

Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Exchange has filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend ISE Rule 504 to expand the $2.50
Strike Price program. The text of the proposed rule change is available
on the Exchange's Web site http://www.ise.com, at the principal office
of the Exchange, 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 Exchange 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

1. Purpose
    The purpose of this proposed rule change is to expand the current
$2.50 Strike Price Program (``Program'') \5\ to permit the listing of
options with $2.50 strike price intervals for options with strike
prices between $50 and $100, provided the $2.50 strike price intervals
are no more than $10 from the closing price of the underlying stock in
the primary market.\6\ Additionally, ISE proposes to specify that it
may select up to sixty (60) option classes on individual stocks for
which the intervals of strike prices will be $2.50. Currently, ISE Rule
504(g) permits the listing of options with $2.50 strike price intervals
with strike prices between $50 and $75. Specifically, ISE proposes to
amend the current text of ISE Rule 504(g) to expand the Program.
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    \5\ The $2.50 Strike Price Program existed among the options
exchanges when ISE began operations in 2000. Initially adopted in
1995 as a pilot program, the pilot $2.50 Strike Price Program
allowed options exchanges to list options with $2.50 strike price
intervals for options trading at strike prices greater than $25 but
less than $50 on a total of up to 100 option classes. See Securities
Exchange Act Release No. 35993 (July 19, 1995), 60 FR 38073 (July
25, 1995) (approving File Nos. SR-Phlx-95-08, SR-Amex-95-12, SR-PSE-
95-07, SR-CBOE-95-19, and SR-NYSE-95-12). In 1998, the pilot program
was permanently approved and expanded to allow the options exchanges
to select up to 200 option classes for the $2.50 Strike Price
Program. See Securities Exchange Act Release No. 40662 (November 12,
1998), 63 FR 64297 (November 19, 1998) (approving File Nos. SR-Amex-
98-21, SR-CBOE-98-29, SR-PCX-98-31, and SR-Phlx-98-26). The Exchange
lists options with $2.50 strike price intervals on those classes
selected by the other options exchanges and does not select any
class for inclusion in the $2.50 Strike Price Program. See
Securities Exchange Act Release No. 52960 (December 15, 2005), 70 FR
76090 (December 22, 2005) (SR-ISE-2005-59).
    \6\ The term ``primary market'' is defined in ISE Rule
100(a)(37) as the principal market in which an underlying security
is traded.
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    For example, consider a hypothetical where Caterpillar, Inc.
(``CAT'') was trading at $81. With approximately one month remaining
until expiration, and with a front month at-the-money put option (the
80 strike) trading at approximately $1.30, the investor would be able
to purchase a $77.50 strike put at an estimated $0.60 per contract.
Today, the next available strike of a one month put option is the 75
strike. While the 75 strike put would certainly trade at a lesser price
than the 80 strike put,\7\ the protection offered would only take
effect with a 7.40% decline in the market as oppose to a 4.30% decline
in the market. The $77.50 strike put would provide the investor an
additional choice to hedge exposure (the opportunity to hedge with a
reduced outlay) and thereby minimize risk if there were a decline in
the stock price of CAT.
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    \7\ The 75 strike put would trade at $0.30 in this example.
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    Another example would be if an investor desired to sell call
options to hedge the exposure of an underlying stock position and
enhance yield. Consider a hypothetical where CAT was trading at $81 and
the second month (two months remaining) of a recently out of-the-money
call option (the 85 strike) was trading at approximately $2.35. If the
investor were to sell the 85 strike call against an existing stock
position, the investor could yield a return of approximately 2.90% over
a two month period or an annualized return of 17.4%. By providing an
additional $2.50 strike interval above $75, the investor would have the
opportunity to sell the 82.50 strike instead of the 85 strike. If the
85 strike call were trading at $2.35, the 82.50 strike call would trade
at approximately $3.30. By selling the 82.50 strike call at $3.30
against an existing stock position, the investor could yield a 4.07%
return over a two month period or an annualized 24.40% return.
Therefore, an additional choice of a $2.50 strike interval could afford
varying yields to the investor.
    ISE believes that the Program has to date created additional
trading opportunities for investors, thereby benefiting the
marketplace. The existence of $2.50 strike prices with strike intervals
above $75 affords investors the ability to more closely tailor
investment strategies to the precise movement of the underlying
security and meet their investment, trading and risk management
requirements.
    ISE is also proposing to specify that it may select up to 60 option
classes on individual stocks for which the intervals of strike prices
will be $2.50. ISE has participated in the industry wide $2.50 Strike
Price Program since ISE's inception in 2000. Currently, the options
exchanges may collectively select up to 200 options classes on
individual stocks for which the intervals of strike prices will be
$2.50. In addition, each options exchange is permitted to list options
with $2.50 strike price intervals on any option class that another
options exchange selects under its program.
    The industry wide collection of 200 options classes has not been
expanded since 1998, although increasingly more companies have
completed initial public offerings from 1998 through 2010.
Additionally, significantly more options classes are trading in 2011 as
compared to 1998. The Exchange proposes to specify that ISE may select
up to 60 options classes to remain competitive with other exchanges and
to offer investors additional investment choices. ISE believes that
offering additional options classes would benefit investors.
    Furthermore, ISE does not believe that this proposal would have a
negative impact on the marketplace. ISE would compare this proposal
with the $1 Strike Price expansion, wherein ISE, among several options
exchanges, expanded its $1 Strike Price Program from 55 individual
stocks to 150 individual stocks on which an option series may be listed
at $1 strike price

intervals.\8\ ISE believes that this proposed rule change that would,
in part, result in an increase to the 200 options classes in the
industry wide Program, is less than the $1 Strike Price Program
increase among several exchanges and therefore would have less impact
than that program, which has not had any negative impact on the market
in terms of proliferation of quote volume or fragmentation. ISE
believes that the effect of the proposed expansion on the marketplace
would not result in a material proliferation of quote volume or
concerns with fragmentation.
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    \8\ See Exchange Act Release No. 62442 (July 2, 2010), 75 FR
39597 (July 9, 2010) (SR-ISE-2010-64).
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    With regard to the impact of this proposal on system capacity, ISE
has analyzed its capacity and represents that it and the Options Price
Reporting Authority have the necessary system capacity to handle the
potential additional traffic associated with the listing and trading of
additional classes on individual stocks in the $2.50 Strike Price
Program.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \9\ in general, and furthers the objectives of Section
6(b)(5) of the Act \10\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest. ISE believes that the effect of the proposed expansion on the
marketplace would not result in a material proliferation of quote
volume or concerns with fragmentation. In addition, ISE believes that
it has the necessary system capacity to handle the potential additional
traffic associated with listing and trading of the additional classes.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    Rather, ISE believes the $2.50 Strike Price Program proposal would
provide the investing public and other market participants increased
opportunities to better manage their risk exposure. Accordingly, ISE
believes that the proposal to expand the Program to allow the listing
of options with $2.50 strike price intervals for options with strike
prices between $50 and $100 should further benefit investors and the
market by providing greater trading opportunities for those underlying
stocks that have low volatility and thus trade in a narrow range. While
expansion of the $2.50 Strike Price Program will generate additional
quote traffic, ISE does not believe that this increased traffic will
become unmanageable since the proposal is limited to a fixed number of
classes. Further, ISE does not believe that the proposal will result in
a material proliferation of additional series because it is limited to
a fixed number of classes and ISE does not believe that the additional
price points will result in fractured liquidity.

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 unsolicited written comments from members or other interested
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not become operative for 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4 (f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of 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. The
Commission has waived the five-day prefiling requirement in this
case.
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    The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that waiver of the operative
delay is consistent with the protection of investors and the public
interest because the proposal is substantially similar to that of
another exchange that has been approved by the Commission.\13\
Therefore, the Commission designates the proposal operative upon
filing.\14\
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    \13\ See Securities Exchange Act Release No. 64157 (March 31,
2011), 76 FR 18817 (April 5, 2011) (SR-Phlx-2011-15) (order
approving expansion of $2.50 Strike Price Program).
    \14\ 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 summarily may temporarily suspend 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_ADDRESS>Please include
File Number SR-ISE-2011-23 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-ISE-2011-23. 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 site 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 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-ISE-
2011-23 and should be submitted on or before May 4, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8856 Filed 4-12-11; 8:45 am]
BILLING CODE 8011-01-P