Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Rules Governing the Operation of The NASDAQ Options Market, 17393-17395 [E8-6611]
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Federal Register / Vol. 73, No. 63 / Tuesday, April 1, 2008 / Notices
issues on March 28, 2008 (‘‘Phase II’’).6
The Exchange hereby proposes to
implement Phase II of the Pilot Program
on March 28, 2008, by adding twentyeight additional issues, bringing the
total number of issues included in the
Pilot Program to sixty-three. These
twenty-eight new options classes are
among the most actively traded,
multiply-listed options classes. A
Regulatory Bulletin, attached to the
proposed rule change as Exhibit 3 and
disseminated to NYSE Arca’s members,
identifies these additional twenty-eight
underlying securities. Pursuant to NYSE
Arca Rule 6.72, this Regulatory Bulletin
will also be published by the Exchange
on its Web site. The thirty-five classes
currently in the Pilot Program will
continue to be quoted as they are today.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with and
furthers the objectives of Section 6(b)(5)
of the Act,7 in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will 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
No written comments were solicited
or received with respect to the proposed
rule change.
mstockstill on PROD1PC66 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)(i) of the Act8 and Rule 19b–
4(f)(1) thereunder,9 because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule of the
Exchange.
At any time within 60 days of the
filing of the proposed rule change, the
6 See Securities Exchange Act Release No. 56568
(September 27, 2007), 72 FR 56422 (October 3,
2007) (SR–NYSEArca–2007–88).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A)(i).
9 17 CFR 240.19b–4(f)(1).
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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.10
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:
17393
submissions should refer to File
Number SR–NYSEArca–2008–34 and
should be submitted on or before April
22, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6656 Filed 3–31–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–NYSEArca–2008–34 on the
subject line.
[Release No. 34–57564; File No. SR–
NASDAQ–2008–022]
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2008–34. 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 the filing also will be available
for inspection and copying at the
principal office of the NYSE Arca. 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
March 26, 2008.
10 See
PO 00000
15 U.S.C. 78s(b)(3)(C).
Frm 00100
Fmt 4703
Sfmt 4703
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Modify the
Rules Governing the Operation of The
NASDAQ Options Market
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 March 19,
2008, 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 prepared substantially by
Nasdaq. Nasdaq has filed this proposal
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to make five
modifications to the rules governing its
recently-approved NASDAQ Options
Market (‘‘NOM’’).5 Specifically, Nasdaq
proposes to: (1) Revise Chapter VI,
Section 1(a)(2) of the NOM Rules to
clarify that all options trades will be
reported to the Options Price Regulatory
Authority (‘‘OPRA’’); (2) modify Chapter
VI, Section 8 of the NOM Rules to
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 57478
(March 12, 2008), 73 FR 14521 (March 18, 2008)
(order approving File Nos. SR–NASDAQ–2007–004
and SR–NASDAQ–2007–080) (‘‘NOM Approval
Order’’).
1 15
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17394
Federal Register / Vol. 73, No. 63 / Tuesday, April 1, 2008 / Notices
change the final tie-breakers for the
Order Imbalance Indicator and the
execution algorithm of the Opening and
Closing Crosses; (3) replace improper
references to the Nasdaq Market Center
with proper references to NOM; (4)
revise Chapter VII, Section 6(c)(ii)(2) of
the NOM Rules to replace an inaccurate
reference to a subsection of Rule 602 of
Regulation NMS under the Act; 6 and (5)
revise Chapter VI, Sections 7 and 10 of
the NOM Rules to eliminate erroneous
references to Displayed Orders, which is
not a defined term in the NOM Rules.
The text of the proposed rule change
is available at Nasdaq, in the
Commission’s Public Reference Room,
and at https://www.nasdaq.com.
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.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On March 12, 2008, the Commission
approved the Nasdaq proposals
establishing NOM.7 Nasdaq has
identified the following five minor
modifications to the operation and rules
governing NOM that Nasdaq believes
will improve the fair and orderly
operation of NOM.
(1) Nasdaq proposes to modify
Chapter VI, Section 1(a)(2) of the NOM
Rules to clarify that all options trades
will be reported to OPRA. In its initial
filing, Nasdaq inadvertently implied
that it has discretion to withhold
transaction reports when, in fact, no
such discretion exists. All transaction
reports by NOM will be reported to
OPRA.
(2) Nasdaq proposes to modify
Chapter VI, Section 8 of the NOM Rules
to change the final tie-breakers for the
Order Imbalance Indicator and the
execution algorithm of the Opening and
Closing Crosses. With respect to the
Closing Cross, Nasdaq proposes to
clarify that the Closing Cross execution
6 17
CFR 242.602.
NOM Approval Order, supra note 5.
7 See
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price will be the price that maximizes
the number of paired contracts of
available interest within NOM at the
time of the Closing Cross. This
formulation is the same as the
formulation that Nasdaq uses in its
Closing Cross for equities.
With respect to the Opening Cross,
Nasdaq proposes to use as the final tiebreaker for the Order Imbalance
Indicator and for the Opening Cross
execution algorithm the midpoint price
of the available trading interest within
NOM at 9:30 a.m., rather than the
Nasdaq Official Closing price from the
previous trading day. After further
discussion with industry
representatives, Nasdaq has determined
that using the prior day’s closing price
would introduce unnecessary
uncertainty due to price changes that
can and often do occur overnight.
Nasdaq believes that using the midpoint
price of trading interest available within
NOM at 9:30 a.m. will be beneficial
because it is the same tiebreaker that
Nasdaq applies for its equities Opening
Cross. In addition, Nasdaq believes that
this price is more likely to produce a
relevant market price because trading
interest within NOM is more likely to
reflect current market conditions than is
the prior day’s closing price.
(3) Nasdaq proposes to replace
improper references to the Nasdaq
Market Center with proper references to
NOM. Throughout Chapter VI, Sections
8 and 9 of the NOM Rules, Nasdaq
improperly referred to the Nasdaq
Market Center rather than to NOM.
Nasdaq believes that this technical
correction will reduce confusion about
Nasdaq’s options rules.
(4) Nasdaq proposes to modify
Chapter VII, Section 6(c)(ii)(2) of the
NOM Rules to add one reference and to
replace an inaccurate reference to
subsections of Rule 602 of Regulation
NMS under the Act.
(5) Nasdaq proposes to modify
Chapter VI, Sections 7 and 10 of the
NOM Rules to eliminate erroneous
references to Displayed Orders, which is
not a defined term within the NOM
Rules. The rules will refer instead to
orders that are displayed within the
System.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,8 in
general, and with Section 6(b)(5) of the
Act,9 in particular, in that it is designed
to promote just and equitable principles
of trade, to foster cooperation with
8 15
9 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(5).
Frm 00101
Fmt 4703
Sfmt 4703
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; and
are not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers, or to
regulate by virtue of the authority
conferred by this title matters not
related to the purposes of this title or
the administration of the exchange.
Nasdaq notes that, with the exception
of the changes proposed for the Nasdaq
Opening and Closing Crosses, none of
the proposed changes will impact the
manner in which executions occur on
NOM. According to Nasdaq, the
proposed changes to the Opening and
Closing Crosses are designed to improve
both the quality and the predictability of
executions during these two critical
periods of the day. In addition, Nasdaq
states that the proposed changes will
more closely conform Nasdaq’s options
and equities trading platform, thereby
facilitating improved trading by Nasdaq
members.
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. Nasdaq
notes, to the contrary, that the proposed
rules are designed to effectuate the
orderly launch of NOM, the seventh
U.S. options market, which, Nasdaq
believes, will increase competition for
the quotation and trading of
standardized equity and index options.
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
Nasdaq has designated the proposed
rule change as one that: (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative for 30 days from the date of
filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest. In addition, as required
E:\FR\FM\01APN1.SGM
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Federal Register / Vol. 73, No. 63 / Tuesday, April 1, 2008 / Notices
under Rule 19b–4(f)(6)(iii),10 Nasdaq
provided the Commission with written
notice of its intention to file the
proposed rule change, along with a brief
description and the text of the proposed
rule change, at least five business days
prior to filing the proposal with the
Commission. Therefore, the foregoing
rule change has become effective
pursuant to Section 19(b)(3)(A) of the
Act 11 and Rule 19b–4(f)(6)
thereunder.12
Pursuant to Rule 19b–4(f)(6)(iii) under
the Act, a proposal does not become
operative for 30 days after the date of its
filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest. Nasdaq has asked the
Commission to waive the 30-day
operative delay to allow the proposal to
be operative on March 31, 2008, the day
Nasdaq plans to launch NOM. Nasdaq
states that it has carefully planned a
detailed and thorough testing and rollout schedule for the NOM market, and
has coordinated this schedule with
numerous industry participants. Nasdaq
believes that disrupting this schedule
for the proposed modifications would
cause disproportionate inconvenience
and delay the launch of a process that
will benefit investors. The Commission
notes that waiving the 30-day operative
delay will allow Nasdaq to launch NOM
pursuant to its planned schedule.
Further, the proposal will clarify NOM’s
rules, correct technical errors, and
provide greater consistency between
NOM’s opening and closing procedures
and the opening and closing procedures
Nasdaq uses in its equity market. For
these reasons, the Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest and
therefore designates that the proposal
become operative immediately.
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.
mstockstill on PROD1PC66 with NOTICES
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.
10 17
CFR 240.19b–4(f)(6)(iii).
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6).
11 15
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16:40 Mar 31, 2008
Jkt 214001
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–2008–022 on the
subject line.
17395
DEPARTMENT OF STATE
[Public Notice: 6163]
30-Day Notice of Proposed Information
Collection: DS–3035, J–1 Visa Waiver
Recommendation Application, OMB
Control Number 1405–0135
Notice of request for public
comment and submission to OMB of
proposed collection of information.
ACTION:
SUMMARY: The Department of State has
submitted the following information
collection request to the Office of
• Send paper comments in triplicate
Management and Budget (OMB) for
to Nancy M. Morris, Secretary,
approval in accordance with the
Securities and Exchange Commission,
Paperwork Reduction Act of 1995.
100 F Street, NE, Washington, DC
• Title of Information Collection: J–1
20549–1090.
Visa Waiver Recommendation
All submissions should refer to File No. Application.
• OMB Control Number: 1405–0135.
SR–NASDAQ–2008–022. This file
• Type of Request: Extension of a
number should be included on the
subject line if e-mail is used. To help the Currently Approved Collection.
• Originating Office: Bureau Of
Commission process and review your
Consular Affairs, Department of State
comments more efficiently, please use
only one method. The Commission will (CA/VO).
• Form Number: DS–3035.
post all comments on the Commission’s
• Respondents: J–1 visa holders
Internet Web site (https://www.sec.gov/
applying for a waiver of the two-year
rules/sro.shtml). Copies of the
foreign residence requirement.
submission, all subsequent
• Estimated Number of Respondents:
amendments, all written statements
10,000.
with respect to the proposed rule
• Estimated Number of Responses:
change that are filed with the
10,000.
Commission, and all written
• Average Hours Per Response: 1
communications relating to the
hour.
proposed rule change between the
• Total Estimated Burden: 10,000
Commission and any person, other than hours.
those that may be withheld from the
• Frequency: On occasion.
public in accordance with the
• Obligation to Respond: Required to
provisions of 5 U.S.C. 552, will be
obtain or retain a benefit.
available for inspection and copying in
DATE(S): Submit comments to the Office
the Commission’s Public Reference
of Management and Budget (OMB) for
Room on official business days between up to 30 days from April 1, 2008.
the hours of 10 a.m. and 3 p.m. Copies
ADDRESSES: Direct comments and
of the filing also will be available for
questions to Katherine Astrich, the
inspection and copying at the principal
Department of State Desk Officer in the
office of Nasdaq. All comments received Office of Information and Regulatory
will be posted without change; the
Affairs at the Office of Management and
Commission does not edit personal
Budget (OMB), who may be reached at
identifying information from
202–395–4718. You may submit
submissions. You should submit only
comments by any of the following
information that you wish to make
methods:
• E-mail: kastrich@omb.eop.gov. You
available publicly. All submissions
must include the DS form number,
should refer to File No. SR–NASDAQ–
information collection title, and OMB
2008–022 and should be submitted on
control number in the subject line of
or before April 22, 2008.
your message.
For the Commission, by the Division of
• Mail (paper, disk, or CD–ROM
Trading and Markets, pursuant to delegated
submissions): Office of Information and
authority.13
Regulatory Affairs, Office of
Florence E. Harmon,
Management and Budget, 725 17th
Deputy Secretary.
Street, NW., Washington, DC 20503.
[FR Doc. E8–6611 Filed 3–31–08; 8:45 am]
• Fax: 202–395–6974.
BILLING CODE 8011–01–P
FOR FURTHER INFORMATION CONTACT: You
may obtain copies of the proposed
13 17 CFR 200.30–3(a)(12).
information collection and supporting
Paper Comments
PO 00000
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]]>Agencies
[Federal Register Volume 73, Number 63 (Tuesday, April 1, 2008)]
[Notices]
[Pages 17393-17395]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-6611]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57564; File No. SR-NASDAQ-2008-022]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Modify the Rules Governing the Operation of The NASDAQ Options
Market
March 26, 2008.
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 March 19, 2008, 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
prepared substantially by Nasdaq. Nasdaq has filed this proposal
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 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 five modifications to the rules governing
its recently-approved NASDAQ Options Market (``NOM'').\5\ Specifically,
Nasdaq proposes to: (1) Revise Chapter VI, Section 1(a)(2) of the NOM
Rules to clarify that all options trades will be reported to the
Options Price Regulatory Authority (``OPRA''); (2) modify Chapter VI,
Section 8 of the NOM Rules to
[[Page 17394]]
change the final tie-breakers for the Order Imbalance Indicator and the
execution algorithm of the Opening and Closing Crosses; (3) replace
improper references to the Nasdaq Market Center with proper references
to NOM; (4) revise Chapter VII, Section 6(c)(ii)(2) of the NOM Rules to
replace an inaccurate reference to a subsection of Rule 602 of
Regulation NMS under the Act; \6\ and (5) revise Chapter VI, Sections 7
and 10 of the NOM Rules to eliminate erroneous references to Displayed
Orders, which is not a defined term in the NOM Rules.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 57478 (March 12,
2008), 73 FR 14521 (March 18, 2008) (order approving File Nos. SR-
NASDAQ-2007-004 and SR-NASDAQ-2007-080) (``NOM Approval Order'').
\6\ 17 CFR 242.602.
---------------------------------------------------------------------------
The text of the proposed rule change is available at Nasdaq, in the
Commission's Public Reference Room, and at https://www.nasdaq.com.
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
On March 12, 2008, the Commission approved the Nasdaq proposals
establishing NOM.\7\ Nasdaq has identified the following five minor
modifications to the operation and rules governing NOM that Nasdaq
believes will improve the fair and orderly operation of NOM.
---------------------------------------------------------------------------
\7\ See NOM Approval Order, supra note 5.
---------------------------------------------------------------------------
(1) Nasdaq proposes to modify Chapter VI, Section 1(a)(2) of the
NOM Rules to clarify that all options trades will be reported to OPRA.
In its initial filing, Nasdaq inadvertently implied that it has
discretion to withhold transaction reports when, in fact, no such
discretion exists. All transaction reports by NOM will be reported to
OPRA.
(2) Nasdaq proposes to modify Chapter VI, Section 8 of the NOM
Rules to change the final tie-breakers for the Order Imbalance
Indicator and the execution algorithm of the Opening and Closing
Crosses. With respect to the Closing Cross, Nasdaq proposes to clarify
that the Closing Cross execution price will be the price that maximizes
the number of paired contracts of available interest within NOM at the
time of the Closing Cross. This formulation is the same as the
formulation that Nasdaq uses in its Closing Cross for equities.
With respect to the Opening Cross, Nasdaq proposes to use as the
final tie-breaker for the Order Imbalance Indicator and for the Opening
Cross execution algorithm the midpoint price of the available trading
interest within NOM at 9:30 a.m., rather than the Nasdaq Official
Closing price from the previous trading day. After further discussion
with industry representatives, Nasdaq has determined that using the
prior day's closing price would introduce unnecessary uncertainty due
to price changes that can and often do occur overnight. Nasdaq believes
that using the midpoint price of trading interest available within NOM
at 9:30 a.m. will be beneficial because it is the same tiebreaker that
Nasdaq applies for its equities Opening Cross. In addition, Nasdaq
believes that this price is more likely to produce a relevant market
price because trading interest within NOM is more likely to reflect
current market conditions than is the prior day's closing price.
(3) Nasdaq proposes to replace improper references to the Nasdaq
Market Center with proper references to NOM. Throughout Chapter VI,
Sections 8 and 9 of the NOM Rules, Nasdaq improperly referred to the
Nasdaq Market Center rather than to NOM. Nasdaq believes that this
technical correction will reduce confusion about Nasdaq's options
rules.
(4) Nasdaq proposes to modify Chapter VII, Section 6(c)(ii)(2) of
the NOM Rules to add one reference and to replace an inaccurate
reference to subsections of Rule 602 of Regulation NMS under the Act.
(5) Nasdaq proposes to modify Chapter VI, Sections 7 and 10 of the
NOM Rules to eliminate erroneous references to Displayed Orders, which
is not a defined term within the NOM Rules. The rules will refer
instead to orders that are displayed within the System.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\8\ in general, and with Section
6(b)(5) of the Act,\9\ in particular, in that it is designed to promote
just and equitable principles of trade, to foster cooperation 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; and are not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers, or to regulate by virtue of the authority conferred by this
title matters not related to the purposes of this title or the
administration of the exchange.
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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
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Nasdaq notes that, with the exception of the changes proposed for
the Nasdaq Opening and Closing Crosses, none of the proposed changes
will impact the manner in which executions occur on NOM. According to
Nasdaq, the proposed changes to the Opening and Closing Crosses are
designed to improve both the quality and the predictability of
executions during these two critical periods of the day. In addition,
Nasdaq states that the proposed changes will more closely conform
Nasdaq's options and equities trading platform, thereby facilitating
improved trading by Nasdaq members.
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. Nasdaq notes, to the contrary,
that the proposed rules are designed to effectuate the orderly launch
of NOM, the seventh U.S. options market, which, Nasdaq believes, will
increase competition for the quotation and trading of standardized
equity and index options.
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
Nasdaq has designated the proposed rule change as one that: (i)
Does not significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) does not become operative for 30 days from the date of
filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest. In
addition, as required
[[Page 17395]]
under Rule 19b-4(f)(6)(iii),\10\ Nasdaq provided the Commission with
written notice of its intention to file the proposed rule change, along
with a brief description and the text of the proposed rule change, at
least five business days prior to filing the proposal with the
Commission. Therefore, the foregoing rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6)
thereunder.\12\
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\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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Pursuant to Rule 19b-4(f)(6)(iii) under the Act, a proposal does
not become operative for 30 days after the date of its filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest. Nasdaq has asked the
Commission to waive the 30-day operative delay to allow the proposal to
be operative on March 31, 2008, the day Nasdaq plans to launch NOM.
Nasdaq states that it has carefully planned a detailed and thorough
testing and roll-out schedule for the NOM market, and has coordinated
this schedule with numerous industry participants. Nasdaq believes that
disrupting this schedule for the proposed modifications would cause
disproportionate inconvenience and delay the launch of a process that
will benefit investors. The Commission notes that waiving the 30-day
operative delay will allow Nasdaq to launch NOM pursuant to its planned
schedule. Further, the proposal will clarify NOM's rules, correct
technical errors, and provide greater consistency between NOM's opening
and closing procedures and the opening and closing procedures Nasdaq
uses in its equity market. For these reasons, the Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest and therefore
designates that the proposal become operative immediately.
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2008-022 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-NASDAQ-2008-022. 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 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
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 No. SR-NASDAQ-
2008-022 and should be submitted on or before April 22, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-6611 Filed 3-31-08; 8:45 am]
BILLING CODE 8011-01-P
