[Federal Register Volume 76, Number 230 (Wednesday, November 30, 2011)]
[Notices]
[Pages 74113-74115]
[FR Doc No: 2011-30808]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65813; File No. SR-Phlx-2011-158]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Exclude
All Rights and Warrants From the Pilot Rule for Trading Pauses Due to
Extraordinary Market Volatility

November 23, 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 November 18, 2011, NASDAQ OMX PHLX LLC (``PHLX''), 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 PHLX. 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

    PHLX proposes to exclude all rights and warrants from the pilot
trading pause process under Rule 3100(a)(4).
    The text of the proposed rule change is below. Proposed new
language is italicized.
* * * * *

Rule 3100. Trading Halts on PSX

(a) Authority to Initiate Trading Halts or Pauses

    In circumstances in which the Exchange deems it necessary to
protect investors and the public interest, and pursuant to the
procedures set forth in paragraph (c):
    (1)-(3) No change.
    (4) If a primary listing market issues an individual stock
trading pause in any of the Circuit Breaker Securities, as defined
herein, the Exchange will pause trading in that security until
trading has resumed on the primary listing market. If, however,
trading has not resumed on the primary listing market and ten
minutes have passed since the individual stock trading pause message
has been received from the responsible single plan processor, the
Exchange may resume trading in such stock. The provisions of this
paragraph (a)(4) shall be in effect during a pilot set to end on
January 31, 2012. During the pilot, the term ``Circuit Breaker
Securities'' shall mean any NMS stock except rights and warrants.
    (b)-(c) No change.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, PHLX 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. PHLX 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    PHLX proposes to exclude all rights and warrants from the single
stock circuit breaker under Rule 3100(a)(4). On June 10, 2010, the
Commission approved the proposed rules of the other equity exchanges
and FINRA to provide for trading pauses in individual securities due to
extraordinary market volatility in all securities included within the
S&P 500 Index (``S&P 500'') (the ``Pause Pilot'').\3\ The other equity
exchanges and FINRA subsequently received approval to add to the Pause
Pilot the securities included in the Russell 1000 Index (``Russell
1000'') and a specified list of Exchange Traded Products (``ETPs'').\4\
In connection with its resumption of trading of NMS Stocks through the
NASDAQ OMX PSX system, PHLX adopted Rule 3100(a)(4) so that it could
participate in the pilot program.\5\ On September 29, 2010, PHLX
amended Rule 3100(a)(4) to include stocks comprising the Russell 1000
and specified ETPs.\6\
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    \3\ The Commission approved the Pause Pilot for all equities
exchanges and FINRA. See Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (File Nos. SR-BATS-
2010-014; SR-EDGA-2010-01; SR-EDGX-2010-01; SR-BX-2010-037; SR-ISE-
2010-48; SR-NYSE-2010-39; SR-NYSEAmex-2010-46; SR-NYSEArca-2010-41;
SR-NASDAQ-2010-061; SR-CHX-2010-10; SR-NSX-2010-05; and SR-CBOE-
2010-047), and Securities Exchange Act Release No. 62251 (June 10,
2010), 75 FR 34183 (June 16, 2010) (SR-FINRA-2010-025).
    \4\ The Commission approved the addition to the Pause Pilot of
the securities included in the Russell 1000 and ETPs, where
applicable, for all equities exchanges and FINRA. See Securities
Exchange Act Release No. 62884 (September 10, 2010), 75 FR 56618
(September 16, 2010) (File Nos. SR-BATS-2010-018; SR-BX-2010-044;
SR-CBOE-2010-065; SR-CHX-2010-14; SR-EDGA-2010-05; SR-EDGX-2010-05;
SR-ISE-2010-66; SR-NASDAQ-2010-079; SR-NYSE-2010-49; SR-NYSEAmex-
2010-63; SR-NYSEArca-2010-61; and SR-NSX-2010-08, and Securities
Exchange Act Release No. 62883 (September 10, 2010), 75 FR 56608
(September 16, 2010) (SR-FINRA-2010-033).
    \5\ See Securities Exchange Act Release No. 62877 (September 9,
2010), 75 FR 56633 (September 16, 2010) (SR-Phlx-2010-79).
    \6\ Securities Exchange Act Release No. 63004 (September 29,
2010), 75 FR 61547 (October 5, 2010) (SR-Phlx-2010-126). PHLX
submitted a proposed rule change shortly after the addition of the
Russell 1000 securities and ETPs to extend the operation of the
Pause Pilot, which was set to expire on December 10, 2010, until
April 11, 2011. See Securities Exchange Act Release No. 63504
(December 9, 2010), 75 FR 78304 (December 15, 2010) (SR-Phlx-2010-
174). On March 31, 2011, PHLX submitted a proposed rule change to
further extend the Pause Pilot until the earlier of August 11, 2011
or the date on which a limit up/limit down mechanism to address
extraordinary market volatility, if adopted, applies. See Securities
Exchange Act Release No. 64175 (April 4, 2011), 76 FR 19823 (April
8, 2011) (SR-Phlx-2011-44). On August 8, 2011, PHLX submitted a
proposed rule change to further extend the Pause Pilot until January
31, 2012. See Securities Exchange Act Release No. 65083 (August 10,
2011), 76 FR 50801 (August 16, 2011) (SR-Phlx-2011-113).
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    On June 23, 2011, the Commission approved proposed rule changes of
PHLX and the other equity exchanges (collectively, the ``Exchanges''),
and FINRA to amend their respective rules to expand the Pause Pilot to
include all remaining NMS stocks (``Phase III Securities''), which
includes rights and warrants.\7\ Unlike the original Pause Pilot
securities, the amended Pause Pilot applies wider percentage price
moves to the Phase III Securities before

a trading pause is triggered.\8\ The changes to the Pause Pilot became
effective on August 8, 2011.
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    \7\ See Securities Exchange Act Release No. 64735 (June 23,
2011), 76 FR 38243 (June 29, 2011) (SR-Phlx-2011-64, et al.).
    \8\ Under the amended Pause Pilot, a pause is triggered by a 30%
or more price move in a Phase III Security priced at $1 or higher,
and by a 50% or more price move to such a security priced less than
$1. The price of a security is based on the closing price on the
previous trading day, or, if no closing price exists, the last sale
reported to the Consolidated Tape on the previous trading day.
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    The Exchanges and FINRA have analyzed the nature of trading pauses
triggered since adoption of the Pause Pilot and found that over 25% of
such pauses have occurred in rights and warrants. Further, the
Exchanges and FINRA have experienced a significant increase in trading
pauses involving rights and warrants since the implementation of the
Phase III Securities, with such pauses representing approximately 52%
[sic] all trading pauses occurring through the end of August 2011.
Rights and warrants trade on equity exchanges, but are closely related
to call options. Rights and warrants entitle owners to purchase shares
of stock at predetermined prices subject to various timing and other
conditions. Like options, the price of rights and warrants are affected
by the price of the underlying stock as well as other factors,
particularly the volatility of the stock. As a consequence, the prices
of rights and warrants may move more dramatically than the prices of
the underlying stocks even when the rights and warrants (and the
underlying stock) are trading in an orderly manner. This difference in
trading behavior may result in rights and warrants triggering the
circuit breaker under the Pause Pilot and being subject to a trading
pause, even while the underlying stock continues to trade. This can be
particularly true of rights and warrants that have low prices. As such,
the Exchanges and FINRA have determined to exclude rights and warrants
from the Pause Pilot, and accordingly, PHLX is proposing to amend Rule
3100(a)(4) to exclude rights and warrants from the Pause Pilot.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Act,\9\ in general, and furthers the objectives of Section 6(b)(5),\10\
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 mechanism of a free and open
market and a national market system. The proposed rule change also is
designed to support the principles of Section 11A(a)(1) \11\ of the Act
in that it seeks to ensure fair competition among brokers and dealers
and among exchange markets. PHLX believes that the proposed rule meets
these requirements because it excludes certain securities from the
rule's coverage that are prone to triggering pauses because of their
unique characteristics. These securities are unique in that they may
move more dramatically than the prices of the underlying stocks to
which they are related even when both securities are trading in an
orderly manner. As such, the securities that are subject to this
proposal may trigger a Pause Pilot circuit breaker and be subject to a
trading pause, even while the underlying security continues to trade.
Although there is little benefit in pausing trading in these
securities, such pauses sequester regulatory resources that are better
applied to the review of trading pauses in other securities that have a
greater impact on the national market system.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ 15 U.S.C. 78k-1(a)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    PHLX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6)(iii) thereunder.\15\
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    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 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
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6)\16\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii)\17\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Including rights and warrants in the pilot program which may trigger a
circuit breaker and be subject to a trading pause, even while the
underlying security continues to trade, provides little benefit and has
the potential to create confusion among investors. Excluding rights and
warrants from the pilot program should minimize investor confusion that
could result from temporary trading pauses in these securities. For
this reason, the Commission designates the proposed rule change as
operative upon the date of this Notice.\18\
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    \18\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 email to<EMAIL_ADDRESS>Please include
File No. SR-Phlx-2011-158 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 No. SR-Phlx-2011-158. This file
number should be included on the subject line if email 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 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-Phlx-2011-158 and should be
submitted on or before December 21, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30808 Filed 11-29-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 186 (Wednesday, September 27, 2023)]
[Notices]
[Page 66487]
[FR Doc No: 2023-21024]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4725-DR; Docket ID FEMA-2023-0001]

New Jersey; Major Disaster and Related Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This is a notice of the Presidential declaration of a major
disaster for the State of New Jersey (FEMA-4725-DR), dated August 11,
2023, and related determinations.

DATES: The declaration was issued August 11, 2023.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Notice is hereby given that, in a letter
dated August 11, 2023, the President issued a major disaster
declaration under the authority of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the
``Stafford Act''), as follows:

    I have determined that the damage in certain areas of the State
of New Jersey resulting from a severe storm and flooding during the
period of July 14 to July 15, 2023, is of sufficient severity and
magnitude to warrant a major disaster declaration under the Robert
T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C.
5121 et seq. (the ``Stafford Act''). Therefore, I declare that such
a major disaster exists in the State of New Jersey.
    In order to provide Federal assistance, you are hereby
authorized to allocate from funds available for these purposes such
amounts as you find necessary for Federal disaster assistance and
administrative expenses.
    You are authorized to provide Public Assistance in the
designated area and Hazard Mitigation throughout the State.
Consistent with the requirement that Federal assistance be
supplemental, any Federal funds provided under the Stafford Act for
Public Assistance and Hazard Mitigation will be limited to 75
percent of the total eligible costs.
    Further, you are authorized to make changes to this declaration
for the approved assistance to the extent allowable under the
Stafford Act.

    The Federal Emergency Management Agency (FEMA) hereby gives notice
that pursuant to the authority vested in the Administrator, under
Executive Order 12148, as amended, Robert Little III, of FEMA is
appointed to act as the Federal Coordinating Officer for this major
disaster.
    The following areas of the State of New Jersey have been designated
as adversely affected by this major disaster:

    Warren County for Public Assistance.

    All areas within the State of New Jersey are eligible for
assistance under the Hazard Mitigation Grant Program.

    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

Deanne Criswell,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2023-21024 Filed 9-26-23; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register: July 17, 2009 (Volume 74, Number 136)]
[Notices]
[Page 34809-34811]
[DOCID:fr17jy09-117]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60275; File No. SR-ISE-2009-50]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Permanently Establish the Quarterly Options Series Pilot
Program

July 9, 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 8, 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 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 ISE is proposing to make permanent its quarterly options series
pilot program and make minor changes to conform the program to that of
other exchanges. The text of the proposed rule change is available on
the Exchange's Web site http://www.ise.com, at the Exchange's Office of
the Secretary, and at the Commission.

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

1. Purpose
    The Exchange is proposing to make permanent an ISE pilot program to
list options series that would expire at the close of business on the
last business day of a calendar quarter (``Quarterly Options Series
Program''). On May 2, 2006, the Exchange filed with the Securities and
Exchange Commission (``Commission'') SR-ISE-2006-24 to establish the
Quarterly Options Series Program that was subsequently approved by the
Commission on July 7, 2006.\3\ Under the Quarterly Options Series Pilot
Program, the Exchange is allowed to open up to five (5) currently
listed options classes that are either index options or options on
exchange traded funds (``ETFs''). The Exchange is also allowed to list
Quarterly Options Series on any options 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. 54113 (July 7,
2006); 71 FR 39694 (July 13, 2006) (SR-ISE-2006-24) (the ``Quarterly
Options Series Pilot Program Approval Order''). The Quarterly
Options Series Program has since been extended and is currently
scheduled to expire on July 10, 2009. See Securities Exchange Act
Release Nos. 56031 (July 9, 2007), 72 FR 38637 (July 13, 2007) (SR-
ISE-2007-53); 58019 (June 25, 2008), 73 FR 38014 (July 2, 2008) (SR-
ISE-2008-49).
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    The Exchange may list series that expire at the end of the next
consecutive four (4) calendar quarters, as well as the fourth quarter
of the next calendar year. For example, if the Exchange is trading
Quarterly Options Series in the month of May 2009, it may list series
that expire at the end of the second, third, and fourth quarters of
2009, as well as the first and fourth quarters of 2010. Following the
second quarter 2009 expiration, the Exchange could add series that
expire at the end of the second quarter of 2010.

Quarterly Option Series in ETF Options

    If an ETF option is selected for participation in the Quarterly
Options Series Program, the strike price of each Quarterly Option
Series is fixed at a price per share, with at least two strike prices
above and two strike prices below the approximate value of the
underlying security at about the time the Quarterly Options Series is
opened for trading on the Exchange. ISE shall list strikes prices for a
Quarterly Option series that are within $5 from the closing price of
the underlying on the preceding day.
    The Exchange may open for trading additional Quarterly Options
Series of the same class when the Exchange deems is necessary to
maintain an orderly market, to meet customer demand or when the market
price of the underlying security moves substantially from the initial
exercise price or prices. To the extent that any additional strike
prices are listed by the Exchange, such additional strike prices shall
be within thirty percent (30%) above or below the closing price of the
underlying ETF (or ``Exchange-Traded Fund Shares'') as defined in Rule
502(h) on the preceding day.\4\ The Exchange may also open additional
strike prices of Quarterly Option Series in ETF options that are more
than 30% above or below the current price of the underlying ETF
provided that demonstrated customer interest exists for such series, as
expressed by institutional, corporate or individual customers or their
brokers. Market-Makers trading for their own account shall not be
considered when determining customer interest under this provision. The
opening of the new Quarterly Options Series shall not affect the series
of options of the same class previously opened. In addition to the
initial listed series, the Exchange may list up to sixty (60)
additional series per expiration month for each Quarterly Options
Series in ETF options.
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    \4\ See Securities Exchange Act Release No. 57425 (March 4,
2008), 73 FR 12783 (March 10, 2008) (SR-ISE-2008-19).
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    The interval between strike prices on Quarterly Options Series
shall be the same as the interval for strike prices for series in that
same options class that expire in accordance with the normal monthly
expiration cycle.
    The Exchange has adopted a delisting policy with respect to
Quarterly Options Series in ETF options.\5\ On a monthly basis, the
Exchange reviews series that are outside a range of five (5) strikes
above and five (5) strikes below the current price of the underlying
ETF, and delists series with no open interest in both the put and the
call series having

a: (i) strike higher than the highest strike price with open interest
in the put and/or call series for a given expiration month; and (ii)
strike lower than the lowest strike price with open interest in the put
and/or call series for a given expiration month.
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    \5\ Id.
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    Notwithstanding the delisting policy, customer requests to add
strikes and/or maintain strikes in Quarterly Options Series in ETF
options in series eligible for delisting shall be granted.
    Further, in connection with the delisting policy, if the Exchange
identifies series for delisting, the Exchange shall notify other
options exchanges with similar delisting policies regarding eligible
series for listing, and shall work with such other exchanges to develop
a uniform list of series to be delisted, so as to ensure uniform series
delisting of multiply listed options classes.
    During the last quarter of 2008 (and for the new expiration month
added after December Quarterly Option Series expiration), the Exchange
was permitted to list up to one hundred (100) additional series per
expiration month for each Quarterly Options Series in ETF options.\6\
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    \6\ See Securities Exchange Act Release No. 58926 (November 10,
2008), 73 FR 69701 (November 19, 2008) (SR-ISE-2008-82).
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Quarterly Option Series in Index Options

    If an index option is selected for participation in the Quarterly
Options Series Program, the strike price of each Quarterly Option
Series will be fixed at a price per share, with at least two, but no
more than five, strike prices above and at least two, but no more than
five, strike prices below the value of the underlying index at about
the time that a Quarterly Options Series is opened for trading on the
Exchange. The Exchange shall list strike prices for Quarterly Options
Series that are reasonably related to the current index value of the
underlying index to which such series relates at about the time such
series of options is first opened for trading on the Exchange. The term
``reasonably related to the current index value of the underlying
index'' means that the exercise price is within thirty percent (30%) of
the current index value.
    The Exchange may open for trading additional Quarterly Options
Series of the same class when the Exchange deems it necessary to
maintain an orderly market, to meet customer demand or when the market
price of the underlying security moves substantially from the initial
exercise price or prices. The Exchange may also open for trading
additional Quarterly Options Series that are more than thirty percent
(30%) of the current index value, provided that demonstrated customer
interest exists for such series, as expressed by institutional,
corporate, or individual customers or their brokers. Market-Makers
trading for their own account shall not be considered when determining
customer interest under this provision.
    The Exchange may open additional strike prices of a Quarterly
Option Series that are above the value of the underlying index provided
that the total number of strike prices above the value of the
underlying index is no greater than five. The Exchange may open
additional strike prices of a Quarterly Option Series that are below
the value of the underlying index provided that the total number of
strike prices below the value of the underlying index is no greater
than five. The opening of any new Quarterly Option Series shall not
affect the series of options of the same class previously opened.
    By definition, Quarterly Option Series on an option class can never
expire in the same week in which monthly option series on the same
class expires. The same, however, is not the case with regards to Short
Term Option Series. Quarterly Option Series and Short Term Option
Series on the same options class may expire concurrently. However, to
avoid any confusion in the market place, the Exchange will not list a
Short Term Option Series on an options class whose expiration coincides
with that of a Quarterly Option Series on the same options class. In
other words, the Exchange will not list a Short Term Options Series on
an ETF or an index if a Quarterly Option Series on that ETF or index
were to expire on a Friday, the only day of the week during which both
Quarterly Option Series and a P.M.-settled Short Term Option Series can
potentially expire concurrently.
    There being one exception to this rule. The Exchange may list a
P.M.-settled Quarterly Option Series on an options class concurrent
with an A.M.-settled Short Term Options Series on that same options
class, both of which may expire on a Friday. In other words, the
Exchange may list a P.M.-settled Quarterly Option Series on an ETF on
an index concurrent with an A.M.-settled Short Term Option Series on
that ETF or index and both of which expire on a Friday. The Exchange
believes that the concurrent listing of an A.M.-settled Short Term
Option Series and a P.M.-settled Quarterly Option Series on the same
underlying ETF or index will provide investors with yet another hedging
mechanism. Finally, the interval between strike prices on Quarterly
Option Series shall be the same as the interval for strike prices for
series in the same options class that expires in accordance with the
normal monthly expiration cycles.
    The Exchange has selected the following five options classes to
participate in the Quarterly Options Series Pilot Program: The Standard
& Poor's Depositary Receipts[supreg] (SPY), Nasdaq-100[supreg] Shares
(QQQQ), Diamonds[supreg] Trust Series 1 (DIA), iShares Russell
2000[supreg] Index Fund (IWM), and Select Sector SPDR[supreg]--Energy
(XLE). ISE believes the Quarterly Options Series Program has been
successful and well received by its members and the investing public
for the nearly three years that it has been in operation as a pilot.
    ISE is now proposing to make the Quarterly Options Series Program
permanent. In support of this proposed rule change, and as required by
the Quarterly Options Series Pilot Program Approval Order, the Exchange
has submitted to the Commission a report (the ``Quarterly Options
Series Program Report'') detailing the Exchange's experience with the
Quarterly Options Series Program. Specifically, the Quarterly Options
Series Pilot Program Report contains data and written analysis
regarding the five options classes included in the Quarterly Options
Series Program. The Report was submitted under separate cover and seeks
confidential treatment under the Freedom of Information Act.
    The Exchange believes there is sufficient investor interest and
demand in the Quarterly Options Series Program to warrant its permanent
approval. The Exchange further believes that the Quarterly Options
Series Program has provided investors with a flexible and valuable tool
to manage risk exposure, minimize capital outlays, and the ability to
more closely tailor their investment strategies and decisions to the
movement of the underlying security. Furthermore, the Exchange notes
that it has not detected any material proliferation of illiquid options
series resulting from the introduction of the Quarterly Options Series
Program nor has it experienced any capacity-related problems with
respect to Quarterly Options Series. The Exchange also represents that
it has the necessary systems capacity to continue to support the
options series listed under Quarterly Options Series Program.
2. Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (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 Section 6(b)(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. The Exchange
believes that permanent approval of the Quarterly Options Series
Program will result in a continuing benefit to investors, by allowing
them to more closely tailor their investment decisions.

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: (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 \7\ and Rule 19b-4(f)(6)
thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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 requests that the Commission waive the 30-day
operative delay so that the Exchange can permanently establish a
Quarterly Options Series Program that is consistent with those of other
options exchanges.\9\ In addition, the Commission notes that the
Exchange's QOS Program currently is scheduled to expire on July 10,
2009. The Commission therefore 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 because such waiver
will enable the Exchange to permanently establish the QOS program
without disruption.\10\ Therefore, the Commission designates the
proposal operative upon filing.
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    \9\ See Securities Exchange Act Release No. 60164 (June 23,
2009), 74 FR 31333 (June 30, 2009) (SR-CBOE-2009-029) (approving the
quarterly options series program on a permanent basis).
    \10\ 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_ADDRESS>Please include
File Number SR-ISE-2009-50 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-2009-50. 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 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-2009-50 and should be
submitted on or before August 7, 2009.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-17004 Filed 7-16-09; 8:45 am]

BILLING CODE 8010-01-P