Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Modify the Halt Cross Process, 51693-51695 [E7-17720]

Download as PDF Federal Register / Vol. 72, No. 174 / Monday, September 10, 2007 / Notices 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 rulecomments@sec.gov. Please include File Number SR–ISE–2007–78 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56348; File No. SR– NASDAQ–2007–073] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Modify the Halt Cross Process August 31, 2007. ebenthall on PRODPC61 with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 Paper Comments (‘‘Act’’),1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on August to Nancy M. Morris, Secretary, 20, 2007, The NASDAQ Stock Market Securities and Exchange Commission, LLC (‘‘Nasdaq’’), filed with the 100 F Street, NE., Washington, DC Securities and Exchange Commission 20549–1090. (‘‘Commission’’) the proposed rule change as described in Items I and II All submissions should refer to File below, which Items have been Number SR–ISE–2007–78. This file substantially prepared by Nasdaq. On number should be included on the subject line if e-mail is used. To help the August 31, 2007, the Exchange filed Amendment No. 1 to the proposed rule Commission process and review your change.3 The Exchange filed the comments more efficiently, please use only one method. The Commission will proposal as a ‘‘non-controversial’’ post all comments on the Commission’s proposed rule change pursuant to Section 19(b)(3)(A) of the Act 4 and Rule Internet Web site (http://www.sec.gov/ 19b–4(f)(6) thereunder,5 which rendered rules/sro.shtml). Copies of the the proposal effective upon filing with submission, all subsequent the Commission. The Commission is amendments, all written statements publishing this notice to solicit with respect to the proposed rule comments on the proposed rule change, change that are filed with the as amended, from interested persons. Commission, and all written communications relating to the I. Self-Regulatory Organization’s proposed rule change between the Statement of the Terms of Substance of Commission and any person, other than the Proposed Rule Change those that may be withheld from the Nasdaq proposes to make minor public in accordance with the modifications to the manner in which provisions of 5 U.S.C. 552, will be Nasdaq resumes trading of securities available for inspection and copying in that are the subject of the Nasdaq Halt the Commission’s Public Reference Cross as well as the potential duration Room, 100 F Street, NE., Washington, of the Display Only Period, as set forth DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. in Nasdaq Rule 4120. The text of the proposed rule change is available at Copies of such filing also will be Nasdaq, the Commission’s Public available for inspection and copying at Reference Room, and http:// the principal office of ISE. All www.complinet.com/nasdaq. comments received will be posted without change; the Commission does II. Self-Regulatory Organization’s not edit personal identifying Statement of the Purpose of, and information from submissions. You Statutory Basis for, the Proposed Rule should submit only information that Change you wish to make available publicly. All In its filing with the Commission, submissions should refer to File Nasdaq included statements concerning Number SR–ISE–2007–78 and should be the purpose of and basis for the submitted on or before October 1, 2007. proposed rule change and discussed any For the Commission, by the Division of comments it received on the proposed Market Regulation, pursuant to delegated rule change. The text of these statements authority.14 may be examined at the places specified Florence E. Harmon, Deputy Secretary. [FR Doc. E7–17721 Filed 9–7–07; 8:45 am] BILLING CODE 8010–01–P 14 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:27 Sep 07, 2007 Jkt 211001 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 replaced the original filing in its entirety. 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 240.19b–4(f)(6). 2 17 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 51693 in Item IV below. Nasdaq 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 Nasdaq’s Halt Cross has been in production for one year and in that time it has proven to be a highly successful process to begin trading Nasdaq-listed securities. With the transition of Nasdaq-listed trading to a single platform in October 2006, Nasdaq implemented a similar process for resuming trading in halted stocks referred to as the Halt cross, providing greater transparency as issues begin trading again after a halt. NASDAQ has determined that by amending certain rules governing the Halt Cross, NASDAQ can provide more accurate price discovery to market participants. First, Nasdaq is proposing to extend the period of time those securities may be subject to Display Only status prior to the operation of the Halt Cross. Currently, after the initial 15-minute Display Only period, Nasdaq may extend the Display Only period for up to three additional 5-minute intervals, for a total of 15 additional minutes. Nasdaq believes that the price discovery capability of the Halt Cross will be improved by permitting additional Display Only periods. Therefore, Nasdaq is proposing to authorize up to three additional 5minute extensions of the Display Only Period for a total of 30 minutes. This proposal will not alter how Nasdaq extends the Display Only period or how Nasdaq operates the Halt Cross. Second, Nasdaq is proposing to change the existing mechanism for extending the duration of the ‘‘Display Only’’ period that occurs prior to the Halt Cross during which time members enter quotes and orders they expect to participate in the Halt Cross. The current rule states that the Display Only period for Halt Crosses will be extended by 5 minutes in the event that the Current Reference Price moves more than 10% between the imbalance dissemination 15 seconds prior to the cross and the cross time. Nasdaq has reviewed data from Halt Crosses and found that the 10% threshold is wider than necessary. For example, in reviewing a series of 13 IPOs from the beginning of 2007, 1 moved 4% in the last 15 seconds, 1 moved 1.5%, while 11 did not move at all. Therefore Nasdaq E:\FR\FM\10SEN1.SGM 10SEN1 51694 Federal Register / Vol. 72, No. 174 / Monday, September 10, 2007 / Notices proposes to tighten the systematic trigger to 5% from the current 10%. Finally, Nasdaq also proposes to change the provision of the rule dealing with the re-opening timeline for the Halt Cross. Currently, the Halt Cross initiates in a ‘‘randomization’’ period of between 0 and 15 seconds after the Display Only period. The randomization period was designed to deter market participants from timing their participation in a way that harmed other participants. This provision, however, occasionally results in other markets trading after the issue has re-opened but prior to Nasdaq restarting trading using the Halt Cross. Nasdaq Staff believe that it is potentially disruptive for Nasdaq, as the listing market and venue for the majority of electronic trading, to continue a halt after other market centers have resumed trading and, therefore proposes to eliminate the random period prior to the execution of the Halt Cross. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,6 in general and with Section 6(b)(5) of the Act,7 in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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. The proposal will promote orderly trading with respect to IPOs and re-openings of halted stocks. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq 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. 8 15 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others ebenthall on PRODPC61 with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has become effective pursuant to Section 19(b)(3)(A) 7 15 U.S.C. 78f. U.S.C. 78f(b)(5). VerDate Aug<31>2005 15:27 Sep 07, 2007 Jkt 211001 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 10 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on August 31, 2007, the date on which the Exchange submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 19b–4(f)(6)(iii) requires the self-regulatory organization to give the Commission notice of its 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. Nasdaq has complied with this requirement. 12 17 CFR 240.19b–4(f)(6)(iii). 9 17 Written comments were neither solicited nor received. 6 15 of the Act 8 and Rule 19b–4(f)(6) thereunder 9 because it: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) 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 if consistent with the protection of investors and the public interest.10 A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of the filing.11 However, Rule 19b–4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest.12 The Exchange has requested that the Commission waive the 30-day operative delay. In support of this request, Nasdaq has represented that the ‘‘randomization’’ period of between 0 and 15 seconds prior to the execution of the cross currently provided for in Rule 4120 has led to confusion in the marketplace because it causes Nasdaq, the listing market, to remain in a halted state after other trading venues resume trading. Nasdaq believes that this delay has the potential to promote ‘‘gaming’’ behavior by some market participants that is harmful to other market participants and also to investors. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it believes that the proposed modifications to the operation of Nasdaq’s Halt Cross should have a positive impact market quality and enhance the orderliness of trading by removing a potential method for gaming the re-opening following the Halt Cross. Accordingly, the Commission designates the proposal to be effective PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 and operative upon filing with the Commission.13 At any time within 60 days of the filing of a rule change pursuant to Section 19(b)(3)(A) of the Act,14 the Commission may summarily abrogate the 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, as amended, 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 rulecomments@sec.gov. Please include File Number SR–NASDAQ–2007–073 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2007–073. 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 13 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. 15 U.S.C. 78c(f). 14 15 U.S.C. 78s(b)(3)(A). E:\FR\FM\10SEN1.SGM 10SEN1 Federal Register / Vol. 72, No. 174 / Monday, September 10, 2007 / Notices available for inspection and copying at the principal office of the Nasdaq. 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–NASDAQ–2007–073 and should be submitted on or before October 1, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–17720 Filed 9–7–07; 8:45 am] BILLING CODE 8010–01–P SMALL BUSINESS ADMINISTRATION Data Collection Available for Public Comments and Recommendations Notice and request for comments. ACTION: SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this notice announces the Small Business Administration’s intentions to request approval on a new and/or currently approved information collection. DATES: Submit comments on or before November 9, 2007. ADDRESSES: Send all comments regarding whether this information collection is necessary for the proper performance of the function of the agency, whether the burden estimates are accurate, and if there are ways to minimize the estimated burden and enhance the quality of the collection, to ebenthall on PRODPC61 with NOTICES 15 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:27 Sep 07, 2007 Jkt 211001 Gail Hepler, Chief 7a Loan Policy Branch, Office of Financial Assistance, Small Business Administration, 409 3rd Street, SW., Suite 8300, Washington, DC 20416. FOR FURTHER INFORMATION CONTACT: Gail Hepler, Chief 7a Loan Policy Branch, Office of Financial Assistance, 202– 205–7530, gail.hepler@sba.gov or Curtis B. Rich, Management Analyst, 202–205– 7030, curtis.rich@sba.gov. SUPPLEMENTARY INFORMATION: The SBA has continued to hear from many lenders, particularly rural/small lenders, that despite recent efforts to streamline its loan processes through such initiatives as guaranteed loans. This is supported by the limited number of SBA loans produced by small lenders. As a result, SBA is moving forward to redesign its standard 7(a) loan application form and re-engineer its standard 7(a) loan process for loans of $350,000 or less, which will be processed through a centralized and highly automated and streamlined loan facility. The proposed information collection thus represents the first phase of the redesign of an existing SBA loan form (SBA Form 4 and Form 4–1), initially for loans of $350,000, with the redesign intended to reduce the time and paperwork of lenders and the public to prepare an SBA loan application. This redesign of the SBA loan application process for loans of $350,000 or less will be the first phase of what ultimately will become a tiered loan application process that will require less information for smaller loans but appropriately more information from a borrower or lender as the size and/or complexity of a loan increases. Title: Application for Community Lender Initiative and Instructions PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 51695 Community Lender Initiative Eligibility Questionnaire. Description of Respondents: SBA lenders and loan applicants. Annual Responses: 4,000. Annual Burden: 24,000. Jacqueline White, Chief, Administrative Information Branch. [FR Doc. E7–17753 Filed 9–7–07; 8:45 am] BILLING CODE 8025–01–P UNITED STATES INSTITUTE OF PEACE Notice of Meeting Date/Time: Thursday, September 20, 2007, 9:30 a.m.–3:30 p.m. Location: 1200 17th Street, NW., Suite 200, Washington, DC 20036–3011. Status: Open Session—Portions may be closed pursuant to Subsection (c) of Section 552(b) of Title 5, United States Code, as provided in subsection 1706(h)(3) of the United States Institute of Peace Act, Public Law 98–525. Agenda: September 20, 2007 Board Meeting; Approval of Minutes of the One Hundred Twenty-Seventh Meeting (June 13–14, 2007) of the Board of Director; Chairman’s Report; President’s Report; Budget Discussion; Consideration of Grant Recommendations; Other General Issues. Contact: Tessie F. Higgs, Executive Office, Telephone: (202) 429–3836. Dated: September 5, 2007. Patricia P. Thomson, Executive Vice President, United States Institute of Peace. [FR Doc. 07–4449 Filed 9–6–07; 3:49 pm] BILLING CODE 6820–AR–M E:\FR\FM\10SEN1.SGM 10SEN1

Agencies

[Federal Register Volume 72, Number 174 (Monday, September 10, 2007)]
[Notices]
[Pages 51693-51695]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17720]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56348; File No. SR-NASDAQ-2007-073]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Modify the Halt Cross Process

August 31, 2007.
    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 August 20, 2007, The NASDAQ Stock Market LLC (``Nasdaq''), filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been substantially prepared by Nasdaq. On August 31, 2007, the 
Exchange filed Amendment No. 1 to the proposed rule change.\3\ The 
Exchange filed the proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \4\ and Rule 19b-
4(f)(6) thereunder,\5\ which rendered the proposal effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 replaced the original filing in its 
entirety.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 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

    Nasdaq proposes to make minor modifications to the manner in which 
Nasdaq resumes trading of securities that are the subject of the Nasdaq 
Halt Cross as well as the potential duration of the Display Only 
Period, as set forth in Nasdaq Rule 4120. The text of the proposed rule 
change is available at Nasdaq, the Commission's Public Reference Room, 
and http://www.complinet.com/nasdaq.

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

    In its filing with the Commission, Nasdaq 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. Nasdaq 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
    Nasdaq's Halt Cross has been in production for one year and in that 
time it has proven to be a highly successful process to begin trading 
Nasdaq-listed securities. With the transition of Nasdaq-listed trading 
to a single platform in October 2006, Nasdaq implemented a similar 
process for resuming trading in halted stocks referred to as the Halt 
cross, providing greater transparency as issues begin trading again 
after a halt.
    NASDAQ has determined that by amending certain rules governing the 
Halt Cross, NASDAQ can provide more accurate price discovery to market 
participants. First, Nasdaq is proposing to extend the period of time 
those securities may be subject to Display Only status prior to the 
operation of the Halt Cross. Currently, after the initial 15-minute 
Display Only period, Nasdaq may extend the Display Only period for up 
to three additional 5-minute intervals, for a total of 15 additional 
minutes. Nasdaq believes that the price discovery capability of the 
Halt Cross will be improved by permitting additional Display Only 
periods. Therefore, Nasdaq is proposing to authorize up to three 
additional 5-minute extensions of the Display Only Period for a total 
of 30 minutes. This proposal will not alter how Nasdaq extends the 
Display Only period or how Nasdaq operates the Halt Cross.
    Second, Nasdaq is proposing to change the existing mechanism for 
extending the duration of the ``Display Only'' period that occurs prior 
to the Halt Cross during which time members enter quotes and orders 
they expect to participate in the Halt Cross. The current rule states 
that the Display Only period for Halt Crosses will be extended by 5 
minutes in the event that the Current Reference Price moves more than 
10% between the imbalance dissemination 15 seconds prior to the cross 
and the cross time. Nasdaq has reviewed data from Halt Crosses and 
found that the 10% threshold is wider than necessary. For example, in 
reviewing a series of 13 IPOs from the beginning of 2007, 1 moved 4% in 
the last 15 seconds, 1 moved 1.5%, while 11 did not move at all. 
Therefore Nasdaq

[[Page 51694]]

proposes to tighten the systematic trigger to 5% from the current 10%.
    Finally, Nasdaq also proposes to change the provision of the rule 
dealing with the re-opening timeline for the Halt Cross. Currently, the 
Halt Cross initiates in a ``randomization'' period of between 0 and 15 
seconds after the Display Only period. The randomization period was 
designed to deter market participants from timing their participation 
in a way that harmed other participants. This provision, however, 
occasionally results in other markets trading after the issue has re-
opened but prior to Nasdaq restarting trading using the Halt Cross. 
Nasdaq Staff believe that it is potentially disruptive for Nasdaq, as 
the listing market and venue for the majority of electronic trading, to 
continue a halt after other market centers have resumed trading and, 
therefore proposes to eliminate the random period prior to the 
execution of the Halt Cross.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\6\ in general and with Section 
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, 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. The proposal will promote 
orderly trading with respect to IPOs and re-openings of halted stocks.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    Nasdaq 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 proposed rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder \9\ because 
it: (i) Does not significantly affect the protection of investors or 
the public interest; (ii) does not impose any significant burden on 
competition; and (iii) 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 if consistent with the protection of investors 
and the public interest.\10\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on August 31, 2007, the date on which the Exchange 
submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally may 
not become operative prior to 30 days after the date of the filing.\11\ 
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest.\12\ The Exchange has requested that 
the Commission waive the 30-day operative delay. In support of this 
request, Nasdaq has represented that the ``randomization'' period of 
between 0 and 15 seconds prior to the execution of the cross currently 
provided for in Rule 4120 has led to confusion in the marketplace 
because it causes Nasdaq, the listing market, to remain in a halted 
state after other trading venues resume trading. Nasdaq believes that 
this delay has the potential to promote ``gaming'' behavior by some 
market participants that is harmful to other market participants and 
also to investors.
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the 
Commission notice of its 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. Nasdaq has complied with this requirement.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it believes that the proposed modifications to the operation of 
Nasdaq's Halt Cross should have a positive impact market quality and 
enhance the orderliness of trading by removing a potential method for 
gaming the re-opening following the Halt Cross. Accordingly, the 
Commission designates the proposal to be effective and operative upon 
filing with the Commission.\13\
---------------------------------------------------------------------------

    \13\ 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. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of a rule change pursuant 
to Section 19(b)(3)(A) of the Act,\14\ the Commission may summarily 
abrogate the 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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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 rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2007-073 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NASDAQ-2007-073. 
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

[[Page 51695]]

available for inspection and copying at the principal office of the 
Nasdaq. 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-
NASDAQ-2007-073 and should be submitted on or before October 1, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-17720 Filed 9-7-07; 8:45 am]
BILLING CODE 8010-01-P