Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Opening of Trading on the NASDAQ Options Market, 35429-35430 [E8-14105]
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Federal Register / Vol. 73, No. 121 / Monday, June 23, 2008 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57977; File No. SR–
NASDAQ–2008–052]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify the
Opening of Trading on the NASDAQ
Options Market
June 17, 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 June 12,
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, II, and
III below, which Items have been
substantially prepared by the Exchange.
Nasdaq has filed the proposal pursuant
to section 19(b)(3)(A) of the Act 3 and
Rule 19b–4(f)(5) 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 modify the
opening of trading on the NASDAQ
Options Market (‘‘NOM’’) as set forth in
Chapter VI, section 8 of the Nasdaq
Rules governing options trading. The
text of the proposed rule change is
available at Nasdaq, the Commission’s
Public Reference Room, and https://
nasdaq.complinet.com.
mmaher on PROD1PC70 with NOTICES
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(5).
1. Purpose
Nasdaq proposes to modify Chapter
VI, section 8 of the rules governing
NOM, and in particular governing the
opening of trading in that market. Since
Nasdaq launched NOM on March 31,
2008, Nasdaq has monitored the
operation of the market to identify
instances where market efficiency can
be enhanced. On May 13, 2008, Nasdaq
filed SR–NASDAQ–2008–045, a rule
change designed to enhance the opening
by delaying the opening until such time
as the execution of the Opening Cross
or, where no Opening Cross will occur,
the opening print is in line with the
overall marketplace.5
Currently, the opening is delayed if
the Nasdaq Best Bid and Offer (‘‘Nasdaq
BBO’’) after execution of the opening
print would be wider than predetermined authorized trading
thresholds as prescribed in the obvious
error guidelines set forth in Chapter V,
Sec. 6 of the NOM rules. This change
has reduced the instances of erroneous
trades occurring at the beginning of the
trading day.
While Nasdaq believes that the
opening of the market is quite effective,
it also believes that it can be further
enhanced in instances where there is
insufficient trading interest to conduct
an Opening Cross. Specifically, Nasdaq
proposes to allow the opening of trading
in those instances where trading interest
at the National Best Bid and Offer
(‘‘NBBO’’), which includes the non-firm
Nasdaq BBO, is within the currently
authorized trading thresholds. Except
for executions arising from the Opening
Cross, executions shall only be
permitted if they will not result in a
trade-through violation of the NBBO as
described in Chapter VI, Sec. 7(b)(3)(C)
of the NOM rules. Nasdaq believes that
this change will allow it to open more
series earlier in the trading day without
risk of additional erroneous trades.
Nasdaq believes that analyzing both
NBBO and Nasdaq BBO when
determining to open trading will
enhance the opportunities for market
participants to execute trades at the
beginning of the trading day and
encourage the addition of additional
potentially executable trading interest.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
2 17
VerDate Aug<31>2005
01:51 Jun 21, 2008
provisions of section 6(b) of the Act,6 in
general, and with section 6(b)(5) of the
Act,7 in particular, in that it is designed
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 that
the proposal is consistent with this
standard because the proposed rule
change is designed to improve
execution quality at the critical opening
of the market.
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. To the
contrary, Nasdaq believes that by
enhancing NOM’s opening of trading,
the proposed rule change will require
competing markets to improve their
opening processes and thereby enhance
competition between the markets.
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 proposed rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) have the
effect of limiting the access to or
availability of an existing order entry or
trading system of the Exchange, the
foregoing rule change has become
effective immediately pursuant to
section 19(b)(3)(A)(iii) of the Act 8 and
Rule 19b–4(f)(5) thereunder.9 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,
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(5).
7 15
5 See Securities Exchange Act Release No. 57822
(May 15, 2008), 73 FR 29800 (May 22, 2008).
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35429
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35430
Federal Register / Vol. 73, No. 121 / Monday, June 23, 2008 / Notices
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–2008–052 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57973; File No. SR–
NASDAQ–2008–050]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change and
Amendment No. 1 Thereto Regarding
Nasdaq Last Sale Data Feeds
June 16, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that on June 2,
to Secretary, Securities and Exchange
2008, The NASDAQ Stock Market LLC
Commission, 100 F Street, NE.,
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Washington, DC 20549–1090.
Securities and Exchange Commission
All submissions should refer to File
(‘‘Commission’’) the proposed rule
Number SR–NASDAQ–2008–052. This
change as described in Items I and II
file number should be included on the
below, which Items have been
subject line if e-mail is used. To help the substantially prepared by the Exchange.
Commission process and review your
On June 12, 2008, Nasdaq submitted
comments more efficiently, please use
Amendment No. 1 to the proposed rule
only one method. The Commission will change. The Exchange has designated
post all comments on the Commission’s the proposed rule change as a ‘‘noncontroversial’’ rule change pursuant to
Internet Web site (https://www.sec.gov/
Section 19(b)(3)(A) of the Act 3 and Rule
rules/sro.shtml). Copies of the
19b–4(f)(6) thereunder,4 which renders
submission, all subsequent
the proposed rule change effective upon
amendments, all written statements
filing with the Commission. The
with respect to the proposed rule
Commission is publishing this notice to
change that are filed with the
solicit comments on the proposed rule
Commission, and all written
change, as amended, from interested
communications relating to the
persons.
proposed rule change between the
Commission and any person, other than I. Self-Regulatory Organization’s
those that may be withheld from the
Statement of the Terms of Substance of
public in accordance with the
the Proposed Rule Change
provisions of 5 U.S.C. 552, will be
Nasdaq proposes to establish a oneavailable for inspection and copying in
month free service for those data feeds
the Commission’s Public Reference
for which Nasdaq has separately
Room, 100 F Street, NE., Washington,
proposed fees on a four-month pilot
DC 20549, on official business days
No.
between the hours of 10 a.m. and 3 p.m. basis in Amendment 5 2 to SR–
Copies of the filing also will be available NASDAQ–2006–060. Specifically,
Nasdaq is proposing to offer the
for inspection and copying at the
‘‘Nasdaq Last Sale for Nasdaq’’ and
principal office of Nasdaq. All
‘‘Nasdaq Last Sale for NYSE/Amex’’
comments received will be posted
data feeds (‘‘Nasdaq Last Sale Data
without change; the Commission does
Feeds’’) containing last sale activity in
not edit personal identifying
U.S. equities within the Nasdaq Market
information from submissions. You
Center and reported to the jointlyshould submit only information that
you wish to make available publicly. All operated FINRA/Nasdaq Trade
Reporting Facility (‘‘FINRA/Nasdaq
submissions should refer to File
TRF’’) during the month of June 2008
Number SR–NASDAQ–2008–052 and
without charge to data distributors. The
should be submitted on or before July
availability of the products following
14, 2008.
June 2008 will be subject to Commission
For the Commission, by the Division of
approval of the fees proposed in SR–
Trading and Markets, pursuant to delegated
NASDAQ–2006–060.6 Accordingly, SR–
10
mmaher on PROD1PC70 with NOTICES
Paper Comments
authority.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8–14105 Filed 6–20–08; 8:45 am]
BILLING CODE 8010–01–P
10 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
01:51 Jun 21, 2008
Jkt 214001
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 57965
(June 16, 2008).
6 Id.
2 17
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Frm 00065
Fmt 4703
Sfmt 4703
NASDAQ–2008–050 does not propose
fees or charges and will be operative
only for June 2008. There is no
proposed rule text.
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
Currently, investors that wish to view
market data to monitor their portfolios
generally have two choices: (1) Pay for
real-time market data or (2) use free data
that is 15 to 20 minutes delayed. In SR–
NASDAQ–2006–060, Nasdaq has
proposed to offer access to real-time
market data to data distributors for a
capped fee, enabling those distributors
to disseminate the data via the Internet
and television at no cost to millions of
internet users and television viewers. In
Amendment No. 2 to SR–NASDAQ–
2006–060, Nasdaq proposes to charge
certain fees described in that filing for
a four-month pilot period.7 In SR–
NASDAQ–2008–050, Nasdaq proposes
to offer free of charge during the month
of June 2008 the same data feeds for
which Nasdaq has proposed fees on a
four-month pilot basis in SR–NASDAQ–
2006–060. The availability of the
products following June 2008 will be
subject to Commission approval of the
fees proposed in SR–NASDAQ–2006–
060.
Nasdaq proposes to create two
separate ‘‘Level 1’’ products containing
last sale activity within the Nasdaq
market and reported to the jointlyoperated FINRA/Nasdaq TRF. First, the
Nasdaq Last Sale for Nasdaq data
product is a real-time data feed that
provides real-time last sale information
including execution price, volume, and
time for executions occurring within the
Nasdaq system as well as those reported
to the FINRA/Nasdaq TRF. Second,
Nasdaq will also create the Nasdaq Last
Sale for NYSE/Amex data product that
provides real-time last sale information
7 Id.
E:\FR\FM\23JNN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 121 (Monday, June 23, 2008)]
[Notices]
[Pages 35429-35430]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14105]
[[Page 35429]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57977; File No. SR-NASDAQ-2008-052]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify the Opening of Trading on the NASDAQ Options Market
June 17, 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 June 12, 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, II,
and III below, which Items have been substantially prepared by the
Exchange. Nasdaq has filed the proposal pursuant to section 19(b)(3)(A)
of the Act \3\ and Rule 19b-4(f)(5) 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).
\4\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to modify the opening of trading on the NASDAQ
Options Market (``NOM'') as set forth in Chapter VI, section 8 of the
Nasdaq Rules governing options trading. The text of the proposed rule
change is available at Nasdaq, the Commission's Public Reference Room,
and https://nasdaq.complinet.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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Nasdaq proposes to modify Chapter VI, section 8 of the rules
governing NOM, and in particular governing the opening of trading in
that market. Since Nasdaq launched NOM on March 31, 2008, Nasdaq has
monitored the operation of the market to identify instances where
market efficiency can be enhanced. On May 13, 2008, Nasdaq filed SR-
NASDAQ-2008-045, a rule change designed to enhance the opening by
delaying the opening until such time as the execution of the Opening
Cross or, where no Opening Cross will occur, the opening print is in
line with the overall marketplace.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 57822 (May 15,
2008), 73 FR 29800 (May 22, 2008).
---------------------------------------------------------------------------
Currently, the opening is delayed if the Nasdaq Best Bid and Offer
(``Nasdaq BBO'') after execution of the opening print would be wider
than pre-determined authorized trading thresholds as prescribed in the
obvious error guidelines set forth in Chapter V, Sec. 6 of the NOM
rules. This change has reduced the instances of erroneous trades
occurring at the beginning of the trading day.
While Nasdaq believes that the opening of the market is quite
effective, it also believes that it can be further enhanced in
instances where there is insufficient trading interest to conduct an
Opening Cross. Specifically, Nasdaq proposes to allow the opening of
trading in those instances where trading interest at the National Best
Bid and Offer (``NBBO''), which includes the non-firm Nasdaq BBO, is
within the currently authorized trading thresholds. Except for
executions arising from the Opening Cross, executions shall only be
permitted if they will not result in a trade-through violation of the
NBBO as described in Chapter VI, Sec. 7(b)(3)(C) of the NOM rules.
Nasdaq believes that this change will allow it to open more series
earlier in the trading day without risk of additional erroneous trades.
Nasdaq believes that analyzing both NBBO and Nasdaq BBO when
determining to open trading will enhance the opportunities for market
participants to execute trades at the beginning of the trading day and
encourage the addition of additional potentially executable trading
interest.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of section 6(b) of the Act,\6\ in general, and with
section 6(b)(5) of the Act,\7\ in particular, in that it is designed 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 that the proposal is
consistent with this standard because the proposed rule change is
designed to improve execution quality at the critical opening of the
market.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, Nasdaq
believes that by enhancing NOM's opening of trading, the proposed rule
change will require competing markets to improve their opening
processes and thereby enhance competition between the markets.
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 proposed rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) have the effect of limiting
the access to or availability of an existing order entry or trading
system of the Exchange, the foregoing rule change has become effective
immediately pursuant to section 19(b)(3)(A)(iii) of the Act \8\ and
Rule 19b-4(f)(5) thereunder.\9\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,
[[Page 35430]]
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-2008-052 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-2008-052. 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 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-2008-052 and should
be submitted on or before July 14, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E8-14105 Filed 6-20-08; 8:45 am]
BILLING CODE 8010-01-P
