Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of a Proposed Rule Change To Establish an Imbalance Cross, 19118-19120 [E8-7271]
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19118
Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Notices
Rohn Brown, at 301–492–2279, TDD:
301–415–2100, or by e-mail at
REB3@nrc.gov. Determinations on
requests for reasonable accommodation
will be made on a case-by-case basis.
*
*
*
*
*
This notice is distributed by mail to
several hundred subscribers; if you no
longer wish to receive it, or would like
to be added to the distribution, please
contact the Office of the Secretary,
Washington, DC 20555 (301–415–1969).
In addition, distribution of this meeting
notice over the Internet system is
available. If you are interested in
receiving this Commission meeting
schedule electronically, please send an
electronic message to dkw@nrc.gov.
Dated: April 3, 2008.
R. Michelle Schroll,
Office of the Secretary.
[FR Doc. 08–1112 Filed 4–4–08; 10:27 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
Office of New Reactors; Interim Staff
Guidance; Limited Work
Authorizations; Solicitation of Public
Comment
Nuclear Regulatory
Commission (NRC).
ACTION: Solicitation of public comment.
pwalker on PROD1PC71 with NOTICES
AGENCY:
SUMMARY: The NRC is soliciting public
comment on its Proposed Interim Staff
Guidance (ISG) COL/ESP–ISG–004. This
ISG would replace the previous
guidance issued in June 2007 in
Regulatory Guide (RG) 1.206,
‘‘Combined License Applications for
Nuclear Power Plants (LWR Edition),’’
concerning requests for limited work
authorizations submitted as part of an
early site permit or combined license
application. Upon receiving public
comments, the NRC staff will evaluate
and disposition the comments, as
appropriate. Once the NRC staff
completes the COL/ESP–ISG, the staff
will issue it for use. The NRC staff will
also incorporate the approved COL/
ESP–ISG–004 into the next revisions of
the RG 1.206 and NUREG–0800,
‘‘Standard Review Plan for the Review
of Safety Analysis Reports for Nuclear
Power Plants,’’ and related guidance
documents.
Several sections of NUREG–1555,
‘‘Environmental Standard Review Plan,’’
(ESRP) are currently being revised; the
public and industry have already
commented on these revised sections.
The NRC staff also plans to revise the
rest of the ESRP sections over the next
several months. The NRC staff plans to
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16:09 Apr 07, 2008
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include any changes in the ESRP
sections necessary for consistency with
the revised LWA rule as part of that
overall revision process. The NRC staff
also plans to update Regulatory Guide
4.2, ‘‘Preparation of Environmental
Reports for Nuclear Power Stations,’’
over the next several months. This
update will also include any revisions
necessary for consistency with the
revised LWA rule.
DATES: Comments must be filed no later
than 30 days from the date of
publication of this notice in the Federal
Register. Comments received after this
date will be considered, if it is practical
to do so, but the NRC staff is able to
ensure consideration only for comments
received on or before this date.
ADDRESSES: Comments may be
submitted to: Chief, Rules and
Directives Branch, Office of
Administration, U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001. Comments should be delivered to:
11545 Rockville Pike, Rockville,
Maryland, Room T–6D59, between 7:30
a.m. and 4:15 p.m. on Federal workdays.
Persons may also provide comments via
e-mail to nrcrep.resource@nrc.gov. The
NRC maintains an Agencywide
Documents Access and Management
System (ADAMS), which provides text
and image files of NRC’s public
documents. These documents may be
accessed through the NRC’s Public
Electronic Reading Room on the Internet
at https://www.nrc.gov/reading-rm/
adams.html. Persons who do not have
access to ADAMS or who encounter
problems in accessing the documents
located in ADAMS should contact the
NRC Public Document Room (PDR)
reference staff at 1–800–397–4209, 301–
415–4737, or by e-mail at pdr@nrc.gov.
FOR FURTHER INFORMATION CONTACT: Ms.
Nanette V. Gilles, Division of New
Reactor Licensing, Office of the New
Reactors, U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001; telephone 301–415–1180 or e-mail
at Nanette.Gilles@nrc.gov or Mr.
Richard Emch, Division of Site and
Environmental Reviews, Office of the
New Reactors, U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001; telephone 301–415–1590 or e-mail
at Richard.Emch@nrc.gov.
SUPPLEMENTARY INFORMATION: The NRC
posts its issued staff guidance on the
NRC external Web page (https://
www.nrc.gov/reading-rm/doccollections/isg/).
The NRC staff is issuing this notice to
solicit public comments on the
proposed COL/ESP–ISG–004. After the
NRC staff considers any public
comments, it will make a determination
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regarding the proposed COL/ESP–ISG–
004.
Dated at Rockville, Maryland, this 31st day
of March, 2008.
For the Nuclear Regulatory Commission.
David B. Matthews,
Director, Division of New Reactor Licensing,
Office of New Reactors.
[FR Doc. E8–7296 Filed 4–7–08; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57595; File No. SR–
NASDAQ–2007–067]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of a Proposed Rule Change To
Establish an Imbalance Cross
April 1, 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 July 18,
2007 The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by Nasdaq. 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 the Substance
of the Proposed Rule Change
Nasdaq has submitted a proposed rule
change to establish a continuous
crossing system. The text of the
proposed rule change is available on
Nasdaq’s Web site (https://
www.nasdaq.com), at Nasdaq’s
principal office and at the Commission’s
Public Reference Room.
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.
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
08APN1
Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
pwalker on PROD1PC71 with NOTICES
1. Purpose
Nasdaq’s efficient market structure
allows the price of a security to change
quickly in response to information and
market demand. Allowing trading to
react quickly is generally beneficial to
investors. In some circumstances,
however, abrupt and significant
movements in the price at which a
security is traded can be harmful to
investors. In order to protect the
integrity of the market, NASDAQ Rule
4120 authorizes Nasdaq Regulation to
halt trading in a security based upon
news or an emergency in the market.
Nasdaq Regulation also has the ability
under NASDAQ Rule 11890 to break
trades in order to protect the integrity of
the market.
In order to offer additional protection
for investors, Nasdaq proposes to create
the ‘‘Imbalance Cross’’ that will
systematically suspend trading in
Nasdaq-listed securities that are the
subject of abrupt and significant intraday price movements. The Imbalance
Cross shares characteristics in common
with trading halts initiated pursuant to
Rule 4120 3 as well as with the
evaluation of potential clearly erroneous
trades pursuant to Rule 11890.4 It differs
from and supplements these two
processes in one material respect: The
Imbalance Cross will be fully automated
and will be based entirely on objective,
quantitative criteria.
The Imbalance Cross will be triggered
automatically when the execution price
of a Nasdaq-listed security moves more
than a fixed amount away from a preestablished ‘‘reference price’’ for that
security. The Reference Price for each
security will be the price of any
execution by the System in that security
within the prior 30 seconds. For each
Nasdaq security, the System will
continually compare the price of each
execution against the prices of all
executions in that security over the
prior minute.
As the System compares current
executions against executions occurring
within the prior 30 seconds, it will
determine whether the current
execution price is outside a ‘‘threshold
range’’ for that security. The Threshold
3 For a detailed description of the Nasdaq Halt
Cross, see Securities Exchange Act Release No.
53488, 71 FR 14272 (March 16, 2006) (notice of
filing of SR–NASD–2006–015).
4 For a detailed description of the adjudication of
potential clearly erroneous trades, see Securities
Exchange Act Release No. 54854, 71 FR 71208 (Dec.
8, 2006) (notice of SR–NASDAQ–2006–046).
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Range for each security will be based
upon the current execution price for
that security and will vary by price.
Specifically, for per-share execution
prices of $1.75 or under, the Threshold
Range will be 15 percent; for execution
prices over $1.75 and up to $25, the
Threshold Range will be 10 percent; for
execution prices over $25 and up to $50,
the threshold Range will be five percent;
and for execution prices over $50, the
Threshold Range will be three percent.
These Threshold Ranges, generally
correspond to the thresholds established
for clearly erroneous trades under
NASDAQ IM 11890–4 with the
exception of executions priced under
$1.75 which will be subject to a
straightforward 15 percent threshold.
If the System determines that the
execution price of a trade in a Nasdaq
security exceeds the Threshold Range
from the Reference Price, the System
will automatically trigger the Imbalance
Cross. When that occurs, the System
will automatically cease executing
trades in that security for a 60-second
‘‘Display Only Period’’ similar to the
Display Only Period provided prior to
the opening of a security subject to a
trading halt initiated pursuant to Rule
4120. During that 60-second Display
Only Period, the System will maintain
all current quotes and orders and
continue to accept new quotes and
orders in that System Security. In order
to provide transparency for the
Imbalance Cross, the System will
disseminate an Order Imbalance
Indicator every 5 seconds as it does for
the re-opening of securities that are the
subject of a trading halt.
The Display Only Period for the
Imbalance Cross will differ from the
Display Only Periods for trading halts
initiated pursuant to Rule 4120. Unlike
a trading halt, the Imbalance Cross will
not be considered a regulatory halt and,
therefore, it will not trigger a
marketwide trading halt under Section
X of the Nasdaq UTP Plan. As a result,
other markets will be permitted to
continue trading a Nasdaq stock that is
undergoing a Market Re-Opening on
Nasdaq. During the Imbalance Cross,
Nasdaq’s quotations will be marked
‘‘closed,’’ signaling to other markets that
quotes and orders routed to Nasdaq will
not be executed. Nasdaq’s Imbalance
Cross trade will be reported to the
network processor as a single-price reopening that is exempt from trade
through restrictions pursuant to Rule
611(b)(3)
At the conclusion of the 60-second
Display Only Period, the System will
automatically re-open the market by
executing the Nasdaq Halt Cross as set
forth in Rule 4753(b)(2)–(4) precisely as
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19119
it does today for securities subject to a
trading halt pursuant to Rule 4120.
Unlike securities subject to a Rule 4120
trading halt, securities subject to an
Imbalance Cross will automatically reopen at the end of the 60-second
Display Only Period and that period
will not be subject to further extensions.
The Imbalance Cross price will be set
by the Nasdaq Halt Cross which, with
one exception, will operate in the same
manner as the Halt Cross operates when
trading resumes following a trading halt
initiated pursuant to Rule 4120. In other
words, quotes and orders residing on
the Nasdaq book during the Imbalance
Cross will be subject to the same
priorities and same execution algorithm
that applies during the standard Halt
Cross. Unlike the standard Halt Cross,
Nasdaq proposes to ‘‘bound’’ the
Imbalance Cross price as it does the
Nasdaq Closing Cross (see Rule
4754(b)(2)(E)). As already exists for the
Nasdaq Closing Cross, Nasdaq will
establish a benchmark price and a
threshold range beyond which the
Imbalance Cross price cannot move.
Nasdaq believes that the proposed
Imbalance Cross combines the best
elements of its highly-effective Nasdaq
Halt Cross, with the experience gathered
in administering trading halts under
Rule 4120 and the adjudication of
potential clearly erroneous trades
pursuant to Rule 11890. The Imbalance
Cross will promote the protection of
investors by providing a meaningful
pause in the midst of abrupt and
significant price movements while
permitting trading to move freely in
rapid and stable markets.
Nasdaq is proposing to establish the
Imbalance Cross as a one-year pilot in
order to ensure that it has sufficient
flexibility to implement the proposal in
a prudent manner. Nasdaq plans to
implement the pilot with 100
representative securities which will be
published on the nasdaqtrader.com Web
site. Nasdaq will monitor the operation
of the Imbalance Cross and, upon
determining that circumstances warrant,
Nasdaq will expand the pilot to cover
additional securities. Should Nasdaq
determine to modify the pilot to add
additional securities to the initial list of
100, Nasdaq will post a notice on
nasdaqtrader.com and provide sufficient
time for members to prepare for such
change. Nasdaq will attempt to
determine within one year whether to
expand the pilot permanently and to all
securities traded on Nasdaq, in which
case Nasdaq will file an additional
proposed rule change seeking such
approval.
b. Statutory Basis
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19120
Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Notices
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,5 in
general, and with Section 6(b)(5) of the
Act,6 in particular, in that the proposal
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
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.
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
pwalker on PROD1PC71 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. In
particular, the Commission is interested
in commenters’ views with respect to
whether Nasdaq’s Imbalance Cross trade
qualifies for the single-priced reopening
exception under Rule 611(b)(3) of Reg.
NMS. Comments may be submitted by
any of the following methods:
5 15
6 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
VerDate Aug<31>2005
16:09 Apr 07, 2008
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–2007–067 on the
subject line.
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
Paper Comments
on Thursday, April 10, 2008 at 2 p.m.
Commissioners, Counsel to the
• Send paper comments in triplicate
Commissioners, the Secretary to the
to Nancy M. Morris, Secretary,
Commission, and recording secretaries
Securities and Exchange Commission,
will attend the Closed Meeting. Certain
100 F Street, NE., Washington, DC
staff members who have an interest in
20549–1090.
the matters may also be present.
All submissions should refer to File
The General Counsel of the
Number SR–NASDAQ–2007–067. This
Commission, or his designee, has
file number should be included on the
subject line if e-mail is used. To help the certified that, in his opinion, one or
more of the exemptions set forth in 5
Commission process and review your
U.S.C. 552b(c)(3) (5), (7), (8), (9)(B), and
comments more efficiently, please use
only one method. The Commission will (10) and 17 CFR 200.402(a)(3), (5), (7),
post all comments on the Commission’s (8), 9(ii) and (10), permit consideration
of the scheduled matters at the Closed
Internet Web site (https://www.sec.gov/
Meeting.
rules/sro.shtml). Copies of the
submission, all subsequent
Commissioner Casey, as duty officer,
amendments, all written statements
voted to consider the items listed for the
with respect to the proposed rule
Closed Meeting in closed session.
change that are filed with the
The subject matter of the Closed
Commission, and all written
Meeting scheduled for April 10, 2008
communications relating to the
will be:
proposed rule change between the
Formal orders of investigation;
Commission and any person, other than
Institution and settlement of
those that may be withheld from the
injunctive actions;
public in accordance with the
provisions of 5 U.S.C. 552, will be
Institution and settlement of
available for inspection and copying in
administrative proceedings of an
the Commission’s Public Reference
enforcement nature;
Room, on official business days between
Regulatory matters regarding financial
the hours of 10 a.m. and 3 p.m. Copies
institutions;
of the filing also will be available for
Resolution of litigation claims; and an
inspection and copying at the principal
Adjudicatory matter.
office of Nasdaq. All comments received
will be posted without change; the
At times, changes in Commission
Commission does not edit personal
priorities require alterations in the
identifying information from
scheduling of meeting items.
submissions. You should submit only
For further information and to
information that you wish to make
ascertain what, if any, matters have been
available publicly.
added, deleted or postponed, please
All submissions should refer to File
contact:
Number SR–NASDAQ–2007–067 and
The Office of the Secretary at (202)
should be submitted on or before April
551–5400.
29, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–7271 Filed 4–7–08; 8:45 am]
Dated: April 3, 2008.
Nancy M. Morris,
Secretary.
[FR Doc. E8–7438 Filed 4–7–08; 8:45 am]
BILLING CODE 8011–01–P
BILLING CODE 8011–01–P
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COMMISSION
PO 00000
CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 73, Number 68 (Tuesday, April 8, 2008)]
[Notices]
[Pages 19118-19120]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7271]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57595; File No. SR-NASDAQ-2007-067]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of a Proposed Rule Change To Establish an Imbalance
Cross
April 1, 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 July 18, 2007 The NASDAQ Stock Market LLC (``Nasdaq'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by Nasdaq. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
Nasdaq has submitted a proposed rule change to establish a
continuous crossing system. The text of the proposed rule change is
available on Nasdaq's Web site (https://www.nasdaq.com), at Nasdaq's
principal office and at the Commission's Public Reference Room.
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.
[[Page 19119]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Nasdaq's efficient market structure allows the price of a security
to change quickly in response to information and market demand.
Allowing trading to react quickly is generally beneficial to investors.
In some circumstances, however, abrupt and significant movements in the
price at which a security is traded can be harmful to investors. In
order to protect the integrity of the market, NASDAQ Rule 4120
authorizes Nasdaq Regulation to halt trading in a security based upon
news or an emergency in the market. Nasdaq Regulation also has the
ability under NASDAQ Rule 11890 to break trades in order to protect the
integrity of the market.
In order to offer additional protection for investors, Nasdaq
proposes to create the ``Imbalance Cross'' that will systematically
suspend trading in Nasdaq-listed securities that are the subject of
abrupt and significant intra-day price movements. The Imbalance Cross
shares characteristics in common with trading halts initiated pursuant
to Rule 4120 \3\ as well as with the evaluation of potential clearly
erroneous trades pursuant to Rule 11890.\4\ It differs from and
supplements these two processes in one material respect: The Imbalance
Cross will be fully automated and will be based entirely on objective,
quantitative criteria.
---------------------------------------------------------------------------
\3\ For a detailed description of the Nasdaq Halt Cross, see
Securities Exchange Act Release No. 53488, 71 FR 14272 (March 16,
2006) (notice of filing of SR-NASD-2006-015).
\4\ For a detailed description of the adjudication of potential
clearly erroneous trades, see Securities Exchange Act Release No.
54854, 71 FR 71208 (Dec. 8, 2006) (notice of SR-NASDAQ-2006-046).
---------------------------------------------------------------------------
The Imbalance Cross will be triggered automatically when the
execution price of a Nasdaq-listed security moves more than a fixed
amount away from a pre-established ``reference price'' for that
security. The Reference Price for each security will be the price of
any execution by the System in that security within the prior 30
seconds. For each Nasdaq security, the System will continually compare
the price of each execution against the prices of all executions in
that security over the prior minute.
As the System compares current executions against executions
occurring within the prior 30 seconds, it will determine whether the
current execution price is outside a ``threshold range'' for that
security. The Threshold Range for each security will be based upon the
current execution price for that security and will vary by price.
Specifically, for per-share execution prices of $1.75 or under, the
Threshold Range will be 15 percent; for execution prices over $1.75 and
up to $25, the Threshold Range will be 10 percent; for execution prices
over $25 and up to $50, the threshold Range will be five percent; and
for execution prices over $50, the Threshold Range will be three
percent. These Threshold Ranges, generally correspond to the thresholds
established for clearly erroneous trades under NASDAQ IM 11890-4 with
the exception of executions priced under $1.75 which will be subject to
a straightforward 15 percent threshold.
If the System determines that the execution price of a trade in a
Nasdaq security exceeds the Threshold Range from the Reference Price,
the System will automatically trigger the Imbalance Cross. When that
occurs, the System will automatically cease executing trades in that
security for a 60-second ``Display Only Period'' similar to the Display
Only Period provided prior to the opening of a security subject to a
trading halt initiated pursuant to Rule 4120. During that 60-second
Display Only Period, the System will maintain all current quotes and
orders and continue to accept new quotes and orders in that System
Security. In order to provide transparency for the Imbalance Cross, the
System will disseminate an Order Imbalance Indicator every 5 seconds as
it does for the re-opening of securities that are the subject of a
trading halt.
The Display Only Period for the Imbalance Cross will differ from
the Display Only Periods for trading halts initiated pursuant to Rule
4120. Unlike a trading halt, the Imbalance Cross will not be considered
a regulatory halt and, therefore, it will not trigger a marketwide
trading halt under Section X of the Nasdaq UTP Plan. As a result, other
markets will be permitted to continue trading a Nasdaq stock that is
undergoing a Market Re-Opening on Nasdaq. During the Imbalance Cross,
Nasdaq's quotations will be marked ``closed,'' signaling to other
markets that quotes and orders routed to Nasdaq will not be executed.
Nasdaq's Imbalance Cross trade will be reported to the network
processor as a single-price re-opening that is exempt from trade
through restrictions pursuant to Rule 611(b)(3)
At the conclusion of the 60-second Display Only Period, the System
will automatically re-open the market by executing the Nasdaq Halt
Cross as set forth in Rule 4753(b)(2)-(4) precisely as it does today
for securities subject to a trading halt pursuant to Rule 4120. Unlike
securities subject to a Rule 4120 trading halt, securities subject to
an Imbalance Cross will automatically re-open at the end of the 60-
second Display Only Period and that period will not be subject to
further extensions.
The Imbalance Cross price will be set by the Nasdaq Halt Cross
which, with one exception, will operate in the same manner as the Halt
Cross operates when trading resumes following a trading halt initiated
pursuant to Rule 4120. In other words, quotes and orders residing on
the Nasdaq book during the Imbalance Cross will be subject to the same
priorities and same execution algorithm that applies during the
standard Halt Cross. Unlike the standard Halt Cross, Nasdaq proposes to
``bound'' the Imbalance Cross price as it does the Nasdaq Closing Cross
(see Rule 4754(b)(2)(E)). As already exists for the Nasdaq Closing
Cross, Nasdaq will establish a benchmark price and a threshold range
beyond which the Imbalance Cross price cannot move.
Nasdaq believes that the proposed Imbalance Cross combines the best
elements of its highly-effective Nasdaq Halt Cross, with the experience
gathered in administering trading halts under Rule 4120 and the
adjudication of potential clearly erroneous trades pursuant to Rule
11890. The Imbalance Cross will promote the protection of investors by
providing a meaningful pause in the midst of abrupt and significant
price movements while permitting trading to move freely in rapid and
stable markets.
Nasdaq is proposing to establish the Imbalance Cross as a one-year
pilot in order to ensure that it has sufficient flexibility to
implement the proposal in a prudent manner. Nasdaq plans to implement
the pilot with 100 representative securities which will be published on
the nasdaqtrader.com Web site. Nasdaq will monitor the operation of the
Imbalance Cross and, upon determining that circumstances warrant,
Nasdaq will expand the pilot to cover additional securities. Should
Nasdaq determine to modify the pilot to add additional securities to
the initial list of 100, Nasdaq will post a notice on nasdaqtrader.com
and provide sufficient time for members to prepare for such change.
Nasdaq will attempt to determine within one year whether to expand the
pilot permanently and to all securities traded on Nasdaq, in which case
Nasdaq will file an additional proposed rule change seeking such
approval.
b. Statutory Basis
[[Page 19120]]
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\5\ in general, and with Section
6(b)(5) of the Act,\6\ in particular, in that the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in 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.
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
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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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
A. By order approve such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
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. In particular, the Commission is
interested in commenters' views with respect to whether Nasdaq's
Imbalance Cross trade qualifies for the single-priced reopening
exception under Rule 611(b)(3) of Reg. NMS. 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-2007-067 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 Number SR-NASDAQ-2007-067. 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 Number SR-NASDAQ-2007-067 and
should be submitted on or before April 29, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-7271 Filed 4-7-08; 8:45 am]
BILLING CODE 8011-01-P
