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]
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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 (https://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 (https://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 https://
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 (https://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 (https://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
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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
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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
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]]>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]
-----------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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 https://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\
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\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).
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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.
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\14\ 15 U.S.C. 78s(b)(3)(A).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, 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 (https://
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 (https://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\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-17720 Filed 9-7-07; 8:45 am]
BILLING CODE 8010-01-P
