
[Federal Register: October 21, 2009 (Volume 74, Number 202)]
[Notices]               
[Page 54112-54113]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21oc09-111]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60823; File No. SR-NYSEAmex-2009-59]

 
Self-Regulatory Organizations; NYSE Amex LLC; Order Granting 
Approval of Proposed Rule Change Amending NYSE Amex Options Rule 915

October 14, 2009.

    On August 19, 2009, NYSE Amex, Inc. (``NYSE Amex'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') a 
proposed rule change pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 \2\ thereunder to 
amend the definition of Futures Reference Asset in Commentary .11(5) to 
NYSE Amex Rule 915 to permit options on Futures-Linked Securities to be 
based on products

[[Page 54113]]

linked to CBOE Volatility Index Futures (``VIX Futures''). The proposed 
rule change was published for comment in the Federal Register on 
September 11, 2009 for a 21-day comment period.\3\ The Commission 
received no comment letters regarding the proposal. This order approves 
the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60622 (September 3, 
2009), 74 FR 46826.
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    Commentary .11 to NYSE Amex Rule 915 designates the listing and 
trading of options on Equity Index-Linked Securities, Commodity-Linked 
Securities, Currency-Linked Securities, Fixed Income Index-Linked 
Securities, Futures-Linked Securities, and Multifactor Index-Linked 
Securities, collectively known as Index-Linked Securities (as defined 
in NYSE Amex Company Guide Section 107(H)) that are principally traded 
on a national securities exchange and an ``NMS Stock'' (as defined in 
Rule 600 of Regulation NMS under the Act). Futures-Linked Securities 
pay at maturity an amount of cash based on the performance of a 
``Futures Reference Asset,'' currently defined as an index of futures 
on Treasury Securities, GSE Securities, supranational debt and debt of 
a foreign country or a subdivision thereof, or interest rate futures, 
or options or derivatives on any of the foregoing. The Exchange 
proposes to include VIX Futures in this definition.
    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange \4\ and, in particular, the requirements of Section 6 of the 
Act.\5\ Specifically, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\6\ which 
requires, among other things, that the rules of a national securities 
exchange be 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 mechanisms of a free and open market and a national market system, 
and, in general, to protect investors and the public interest.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    Currently, the Exchange will consider listing and trading options 
on Index-Linked Securities, including options on Futures-Linked 
Securities, provided the Index-Linked Securities meet the criteria for 
underlying securities set forth in Commentary .01 to NYSE Amex Rule 
915. Underlying Index-Linked Securities must meet the criteria and 
guidelines for underlying securities set forth in Commentary .01 to 
NYSE Amex Rule 915; or the Index-Linked Securities must be redeemable 
at the option of the holder at least on a weekly basis through the 
issuer at a price related to the applicable underlying Reference 
Asset.\7\ After the addition of VIX Futures to the definition of a 
Futures Reference Asset in Commentary .11(5) to NYSE Amex Rule 915, 
options on Index-Linked Securities, including options on Futures Linked 
Securities, would continue to be subject to all Exchange rules 
governing the trading of equity options \8\ and the current continuing 
or maintenance listing standards applicable to the trading of options 
on Index-Linked Securities on NYSE Amex. The Commission also notes that 
it has previously approved an amendment to Section 107H of the Amex 
Company Guide to add the VIX Futures to the definition of ``Futures 
Reference Asset'' for the listing and trading of Futures-Linked 
Securities.\9\
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    \7\ For purposes of Commentary .11 to NYSE Amex Rule 915, 
Reference Assets collectively refers to Equity Reference Assets, 
Commodity Reference Assets, Currency Reference Assets, Fixed Income 
Reference Assets, Futures Reference Assets, and Multifactor 
Reference Assets.
    \8\ Despite the fact that Index-Linked Securities are linked to 
an underlying index, each trade as a single, exchange-listed 
security. Accordingly, rules pertaining to the listing and trading 
of standard equity options apply to options on Index-Linked 
Securities.
    \9\ See Securities Exchange Act Release No. 60535 (August 19, 
2009), 74 FR 46826 (August 26, 2009) (NYSEAmex-2009-55); see also 
Securities Exchange Act Release No. 58968 (November 17, 2008), 73 FR 
71082 (November 24, 2008) (SR-NYSEArca-2008-111).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-NYSEAmex-2009-59) is hereby 
approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25205 Filed 10-20-09; 8:45 am]

BILLING CODE 8010-01-P
