Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Processing of Price To Comply Orders, 32776-32778 [E8-12901]
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Federal Register / Vol. 73, No. 112 / Tuesday, June 10, 2008 / Notices
sided cross orders.8 The Exchange is
now proposing to amend its Rule 2105
to allow for two-sided cross orders to be
entered and executed in odd-lot and
mixed-lot sizes. Additionally, the
Exchange proposes to allow the stock
leg(s) of complex orders to be entered
and executed in odd-lot and mixed-lot
sizes to accommodate the execution of
complex orders.
2. Statutory Basis
The basis for this proposed rule
change is found in Section 6(b)(5) 9 of
the Act. Specifically, the Exchange
believes the proposed rule change is
consistent with the requirements under
Section 6(b)(5) that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
remove impediments to and perfect the
mechanism for 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 believes that the
proposed rule change does not 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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
dwashington3 on PRODPC61 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the
proposed rule change as one that: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) 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. Therefore, the foregoing rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 10 and
subparagraph (f)(6) of Rule 19b–4
8 See Securities and Exchange Commission
Release No. 57484 (March 12, 2008), 73 FR (14861)
(March 19, 2008) (SR–ISE–2008–11).
9 15 U.S.C. 78(f)(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
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thereunder.11 The Exchange has asked
the Commission to waive the operative
delay to permit the proposed rule
change to become operative prior to the
30th day after filing.
The Commission has determined that
waiving the 30-day operative delay of
the Exchange’s proposal is consistent
with the protection of investors and the
public interest and will promote
competition because such waiver will
allow the Exchange immediately to
begin accepting and processing certain
orders in odd-lot and mixed-lot sizes.12
Therefore, the Commission designates
the proposal operative upon filing.
At any time within 60 days of the
filing of the proposed rule change, 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 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
No. SR–ISE–2008–41 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISE–2008–41. 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
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written 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. The
Exchange has fulfilled this requirement.
12 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. See 15 U.S.C. 78c(f).
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Frm 00102
Fmt 4703
Sfmt 4703
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
available for inspection and copying at
the principal office of the Exchange. 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–ISE–2008–41 and should be
submitted on or before July 1, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–12900 Filed 6–9–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57910; File No. SR–
NASDAQ–2008–049]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Modify the
Processing of Price To Comply Orders
June 3, 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 May 30,
2008, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) 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 the Exchange.
The Exchange has designated the
proposed rule change as a ‘‘noncontroversial’’ rule change pursuant to
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 73, No. 112 / Tuesday, June 10, 2008 / Notices
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposed rule change 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
The Exchange proposes to modify the
processing of Price to Comply orders
contained in Nasdaq Rule 4751(f)(7).
The Exchange proposes to implement
the proposed rule change on June 2,
2008. The text of the proposed rule
change is available at Nasdaq, the
Commission’s Public Reference Room,
and 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, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange 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
dwashington3 on PRODPC61 with NOTICES
The Exchange proposes to modify the
rule language pertaining to ‘‘Price to
Comply Order’’ as set forth in Rule
4751(f)(7) of the Nasdaq Rules. Price to
Comply Orders were originally
conceived and approved when Nasdaq
integrated its three execution systems
into the Nasdaq Single Book in 2007.5
Price to Comply Orders were designed
to allow members to quote aggressively
and still comply with the locked and
crossed markets provisions of
Regulation NMS.6 Specifically, Price to
Comply Orders are orders that, if, at the
time of entry, would create a violation
of Rule 610(d) of Regulation NMS by
locking or crossing the protected quote
of an external market or would cause an
Order Protection Rule violation,7 the
order will be converted by the System
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 54155
(July 14, 2006), 71 FR 41291 (July 20, 2006) (SR–
NASDAQ–2006–001).
6 See 17 CFR 242.610(d).
7 See 17 CFR 242.611.
4 17
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15:35 Jun 09, 2008
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to a Non-Displayed Order and re-priced
to the current low offer (for bids) or to
the current best bid (for offers). Such
Non-Displayed Orders are cancelled by
the System if the market moves through
the price of the order after the order is
accepted.
In order to increase transparency and
efficiency, Nasdaq is proposing to
modify the display of Price to Comply
Orders, while maintaining the current
processing logic. Nasdaq will continue
the current practice of posting Price to
Comply orders using the current logic,
buy orders are priced at the inside offer
and sell orders are priced at the inside
bid. Rather than convert a locking or
crossing order to Non-Displayed,
Nasdaq will display the order at the
most aggressive price possible, one
minimum price increment worse than
the locking price. With the change,
orders will now be displayed at a price
which is either alone or will join the
National Best Bid and Offer (‘‘NBBO’’).
An example of how this will apply to
orders is below: The National market is
$9.97 × $10.00. A firm enters a Price to
Comply order to buy at $10.01.
• Today, the order will reside on the
Nasdaq book as non-displayed for
$10.00.
• With the proposed rule change, the
order will reside on the Nasdaq book
non-displayed for $10.00 and will also
be displayed at $9.99. If a seller comes
to Nasdaq at $9.99, the order will
execute at $10.00.
As noted in the proposed rule, Price
to Comply Orders that would lock or
cross the market will be displayed at the
best price possible consistent with the
provisions of Regulation NMS. The
displayed and undisplayed price of an
individual order may be priced one or
more times depending upon the manner
of order entry into the System.
Specifically, if a member chooses to
enter a Price to Comply Order via
Nasdaq’s RASH protocol, the order is
priced upon entry and may be adjusted
multiple times in response to changes in
the prevailing NBBO to move the
displayed price closer to the original
entered price and display the best
possible price consistent with the
provisions of Regulation NMS. Each
time the displayed price is adjusted, the
order will receive a new timestamp for
purposes of determining its price/time
priority according to Nasdaq’s existing
processing rules. If a Price to Comply
Order is entered via Nasdaq’s OUCH
protocol, the order will be repriced only
upon entry. The order is not repriced in
the event the prevailing NBBO changes.
Nasdaq believes that the
implementation of the aforementioned
rule change modifying Nasdaq order
PO 00000
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Fmt 4703
Sfmt 4703
32777
display will enhance transparency and
order execution opportunities on
Nasdaq. Currently, all Price to Comply
orders are non-displayed. In the new
environment, since the order is
displayed, it will be more transparent
and better able to promote order
interaction.
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 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. Nasdaq believes this
proposal is consistent with the Act and
specifically Rule 610 of Regulation
NMS.
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.
To the contrary, Nasdaq believes that its
processing of Price to Comply Orders is
designed to compete with orders already
approved and in use at other national
securities exchanges, enhancing
competition between the exchanges.
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
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
8 15
9 15
E:\FR\FM\10JNN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(5).
10JNN1
32778
Federal Register / Vol. 73, No. 112 / Tuesday, June 10, 2008 / Notices
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.12 However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Commission designates the proposed
rule change to be operative upon filing
with the Commission.14
At any time within 60 days of the
filing of such 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 rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2008–049 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR-NASDAQ–2008–049. This
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule
19b-4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written
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. The Exchange has satisfied this notice
requirement.
13 Id.
14 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
dwashington3 on PRODPC61 with NOTICES
11 17
VerDate Aug<31>2005
15:35 Jun 09, 2008
Jkt 211001
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 am and 3 pm. Copies of
the filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–2008–049 and should be
submitted on or before July 1, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–12901 Filed 6–9–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57912; File No. SR–
NYSEArca–2008–53]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Schedule
of Fees and Charges for Exchange
Services
June 3, 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 May 30,
2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’), through its wholly-owned
subsidiary NYSE Arca Equities, Inc.
(‘‘NYSE Arca Equities’’), 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
substantially prepared by the Exchange.
NYSE Arca has filed the proposal
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(2) 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
The Exchange proposes to amend the
section of its Schedule of Fees and
Charges for Exchange Services (‘‘Fee
Schedule’’) that applies to orders
submitted by ETP Holders.5 The
Exchange will introduce a new pricing
tier for Tape B securities of $0.0028 per
share (applicable to inbound orders
executed against orders residing in the
Book) and a new routing pricing tier of
$0.0029 if the ETP Holder (i) transacts
an average daily share volume per
month greater than 20 million shares
(including transactions that take
liquidity, provide liquidity, or route to
away market centers) and (ii) provides
liquidity an average daily share volume
per month greater than 5 million shares.
While changes to the Fee Schedule
pursuant to this proposal will be
effective upon filing, the changes will
become operative on June 1, 2008. The
text of the proposed rule change is
available at NYSE Arca, the
Commission’s Public Reference Room,
and https://www.nyse.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, the
Exchange 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. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
15 17
3 15
1 15
4 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
5 See NYSE Arca Equities Rule 1.1(n).
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]]>Agencies
[Federal Register Volume 73, Number 112 (Tuesday, June 10, 2008)]
[Notices]
[Pages 32776-32778]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12901]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57910; File No. SR-NASDAQ-2008-049]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Modify the Processing of Price To Comply Orders
June 3, 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 May 30, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') 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 the Exchange.
The Exchange has designated the proposed rule change as a ``non-
controversial'' rule change pursuant to
[[Page 32777]]
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders the proposed rule change 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to modify the processing of Price to Comply
orders contained in Nasdaq Rule 4751(f)(7). The Exchange proposes to
implement the proposed rule change on June 2, 2008. The text of the
proposed rule change is available at Nasdaq, the Commission's Public
Reference Room, and 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, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange 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
The Exchange proposes to modify the rule language pertaining to
``Price to Comply Order'' as set forth in Rule 4751(f)(7) of the Nasdaq
Rules. Price to Comply Orders were originally conceived and approved
when Nasdaq integrated its three execution systems into the Nasdaq
Single Book in 2007.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54155 (July 14,
2006), 71 FR 41291 (July 20, 2006) (SR-NASDAQ-2006-001).
---------------------------------------------------------------------------
Price to Comply Orders were designed to allow members to quote
aggressively and still comply with the locked and crossed markets
provisions of Regulation NMS.\6\ Specifically, Price to Comply Orders
are orders that, if, at the time of entry, would create a violation of
Rule 610(d) of Regulation NMS by locking or crossing the protected
quote of an external market or would cause an Order Protection Rule
violation,\7\ the order will be converted by the System to a Non-
Displayed Order and re-priced to the current low offer (for bids) or to
the current best bid (for offers). Such Non-Displayed Orders are
cancelled by the System if the market moves through the price of the
order after the order is accepted.
---------------------------------------------------------------------------
\6\ See 17 CFR 242.610(d).
\7\ See 17 CFR 242.611.
---------------------------------------------------------------------------
In order to increase transparency and efficiency, Nasdaq is
proposing to modify the display of Price to Comply Orders, while
maintaining the current processing logic. Nasdaq will continue the
current practice of posting Price to Comply orders using the current
logic, buy orders are priced at the inside offer and sell orders are
priced at the inside bid. Rather than convert a locking or crossing
order to Non-Displayed, Nasdaq will display the order at the most
aggressive price possible, one minimum price increment worse than the
locking price. With the change, orders will now be displayed at a price
which is either alone or will join the National Best Bid and Offer
(``NBBO'').
An example of how this will apply to orders is below: The National
market is $9.97 x $10.00. A firm enters a Price to Comply order to buy
at $10.01.
Today, the order will reside on the Nasdaq book as non-
displayed for $10.00.
With the proposed rule change, the order will reside on
the Nasdaq book non-displayed for $10.00 and will also be displayed at
$9.99. If a seller comes to Nasdaq at $9.99, the order will execute at
$10.00.
As noted in the proposed rule, Price to Comply Orders that would
lock or cross the market will be displayed at the best price possible
consistent with the provisions of Regulation NMS. The displayed and
undisplayed price of an individual order may be priced one or more
times depending upon the manner of order entry into the System.
Specifically, if a member chooses to enter a Price to Comply Order via
Nasdaq's RASH protocol, the order is priced upon entry and may be
adjusted multiple times in response to changes in the prevailing NBBO
to move the displayed price closer to the original entered price and
display the best possible price consistent with the provisions of
Regulation NMS. Each time the displayed price is adjusted, the order
will receive a new timestamp for purposes of determining its price/time
priority according to Nasdaq's existing processing rules. If a Price to
Comply Order is entered via Nasdaq's OUCH protocol, the order will be
repriced only upon entry. The order is not repriced in the event the
prevailing NBBO changes.
Nasdaq believes that the implementation of the aforementioned rule
change modifying Nasdaq order display will enhance transparency and
order execution opportunities on Nasdaq. Currently, all Price to Comply
orders are non-displayed. In the new environment, since the order is
displayed, it will be more transparent and better able to promote order
interaction.
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 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. Nasdaq believes this
proposal is consistent with the Act and specifically Rule 610 of
Regulation NMS.
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\8\ 15 U.S.C. 78f.
\9\ 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. To the contrary,
Nasdaq believes that its processing of Price to Comply Orders is
designed to compete with orders already approved and in use at other
national securities exchanges, enhancing competition between the
exchanges.
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
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
[[Page 32778]]
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The Commission
designates the proposed rule change to be operative upon filing with
the Commission.\14\
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\12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written 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. The Exchange has satisfied this notice requirement.
\13\ Id.
\14\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such 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-2008-049 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2008-049.
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 am and 3 pm. Copies of the filing
also will be available for inspection and copying at the principal
office of the Exchange. 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-2008-049 and should be submitted on or before July 1, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-12901 Filed 6-9-08; 8:45 am]
BILLING CODE 8010-01-P
