Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Regarding Technical and Conforming Changes to NASDAQ Rules Governing Options Trading, 39756-39758 [E8-15651]

Download as PDF 39756 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices Nasdaq and electing to trade options is entirely voluntary. Under these circumstances, Nasdaq’s fees must be competitive and low in order for Nasdaq to attract order flow, execute orders, and grow as a market. The various exchanges have filed these fees with the Commission and it is reasonable for Nasdaq to pass those fees through to its members. As such, Nasdaq believes that its fees are fair and reasonable and consistent with the Act. 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 has designed its fees to compete effectively for the execution and routing of options contracts and to reduce the overall cost to investors of options trading. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 7 and Rule 19b–4(f)(2) 8 thereunder, because it establishes or changes a due, fee, or other charge imposed on members by Nasdaq. Accordingly, the proposal is effective upon filing with the Commission. 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. jlentini on PROD1PC65 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. Comments may be submitted by any of the following methods: 7 15 8 17 Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2008–058 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. 16:58 Jul 09, 2008 Florence E. Harmon, Acting Secretary. [FR Doc. E8–15624 Filed 7–9–08; 8:45 am] BILLING CODE 8010–01–P 9 17 Jkt 214001 [Release No. 34–58093; File No. SR– NASDAQ–2008–057] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Regarding Technical and Conforming Changes to NASDAQ Rules Governing Options Trading July 3, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 All submissions should refer to File notice is hereby given that on June 24, Number SR–NASDAQ–2008–058. This 2008, The NASDAQ Stock Market LLC file number should be included on the (‘‘Nasdaq’’) filed with the Securities and subject line if e-mail is used. To help the Exchange Commission (‘‘Commission’’) Commission process and review your the proposed rule change as described comments more efficiently, please use in Items I, II, and III below, which Items only one method. The Commission will have been prepared substantially by post all comments on the Commission’s Nasdaq. Nasdaq has designated the Internet Web site (http://www.sec.gov/ proposed rule change as a ‘‘nonrules/sro.shtml). Copies of the controversial’’ proposed rule change submission, all subsequent pursuant to Section 19(b)(3)(A) of the amendments, all written statements Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposal effective with respect to the proposed rule upon filing with the Commission. The change that are filed with the Commission is publishing this notice to Commission, and all written solicit comments on the proposed rule communications relating to the change from interested 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 make minor available for inspection and copying in and technical corrections to its rules for the Commission’s Public Reference the NASDAQ Options Market Room, 100 F Street, NE., Washington, (‘‘NOM’’).5 The text of the proposed rule DC 20549, on official business days change is available at Nasdaq, the between the hours of 10 a.m. and 3 p.m. Commission’s Public Reference Room, Copies of such filing also will be and http://www.complinet.com/nasdaq. available for inspection and copying at the principal office of the Exchange. All II. Self-Regulatory Organization’s Statement of the Purpose of, and comments received will be posted Statutory Basis for, the Proposed Rule without change; the Commission does Change not edit personal identifying In its filing with the Commission, information from submissions. You Nasdaq included statements concerning should submit only information that you wish to make publicly available. All the purpose of and basis for the proposed rule change and discussed any submissions should refer to File comments it received on the proposed Number SR–NASDAQ–2008–058 and rule change. The text of these statements should be submitted on or before July may be examined at the places specified 31, 2008. in Item IV below. Nasdaq has prepared For the Commission, by the Division of summaries, set forth in Sections A, B, Trading and Markets, pursuant to delegated and C below, of the most significant authority.9 aspects of such statements. U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). VerDate Aug<31>2005 SECURITIES AND EXCHANGE COMMISSION PO 00000 CFR 200.30–3(a)(12). Frm 00111 Fmt 4703 Sfmt 4703 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. 57478 (March 12, 2008), 73 FR 14521 (March 18, 2008) (order approving SR–NASDAQ–2007–004 and 2007–080). 2 17 E:\FR\FM\10JYN1.SGM 10JYN1 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices jlentini on PROD1PC65 with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On March 12, 2008, the Commission approved SR–NASDAQ–2007–004 and SR–NASDAQ–2007–080, proposals to create NOM. Nasdaq has identified six minor and technical modifications to the rules governing NOM. (1) Nasdaq is proposing to modify the Table of Contents for the options rules to conform it to the titles of the previously approved rules. (2) Nasdaq is proposing to modify Chapter IV, Section 3(i) to eliminate the limitation of underlying Fund Shares securities to those based on ‘‘broad based’’ indexes. Nasdaq is proposing to conform its rule to the rules of other options exchanges that permit them to trade Fund Shares (including exchange traded funds) based on any index.6 The four conditions for listing underlying Fund Shares set forth in Section 3(i) will remain unchanged. Nasdaq represents that it has the necessary systems capacity to support the additional trading of Fund Shares that could potentially be listed pursuant to this provision. In addition, Nasdaq believes that the capacity required is well within the projections that Nasdaq has provided to the Options Price Reporting Authority (‘‘OPRA’’) and for which OPRA has provisioned. To the extent that Nasdaq has incorporated by reference the rules of the Chicago Board Options Exchange, Incorporated pertaining to margin, position limits, and exercise limits, this proposal is not designed to change the application of those requirements. Members should be cognizant of the need to comply with those requirements and any amendments thereto as applied to different options classes (including options on Fund Shares). (3) Nasdaq is proposing to modify Chapter IV, Section 6, Commentary.01 and Commentary.02, which describe the ‘‘$1 Strikes’’ Pilot Program, to conform these provisions to the rules of other options exchanges. Specifically, Nasdaq proposes to expand and make permanent the $1 Strikes Pilot Program to allow it to select a total of 10, instead of the current 5, individual stocks on which option series may be listed at $1 strike price intervals. Additionally, Nasdaq proposes to expand the price range on which it may list $1 strikes to $3–$50, instead of the current $3–$20. The proposed expanded and permanent 6 See, e.g., Philadelphia Stock Exchange Rule 1009.06. VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 $1 Strikes Price Program would be known as the ‘‘$1 Strike Price Program.’’ The existing restrictions on listing $1 strikes would continue to apply (i.e., no $1 strike price may be listed that is greater than $5 from the underlying stock’s closing price in its primary market on the previous day or that would result in strike prices being $0.50 apart). This proposal is designed to respond to the requests of market participants for broader participation in the $1 Strikes Price Program on Nasdaq. Nasdaq represents that it has the necessary systems capacity to support the potential additional trading that might arise from the proposed modification of the $1 Strikes Price Program. In addition, Nasdaq believes that the capacity required is well within the projections that Nasdaq has provided to OPRA and for which OPRA has provisioned. (4) Nasdaq is proposing to modify Chapter V, Section 1(b)(vi) to eliminate cross-references to non-existent rule provisions. The cross-references were improperly included because Nasdaq modeled its rules upon the rules of another exchange but did not copy the specific rules that were cross-referenced in Section 1(b)(vi). The specific provisions that were cited are not included in the Nasdaq rule manual because they pertain to a price improvement mechanism that exists on another market that does not exist on Nasdaq. Nasdaq is proposing instead to cross-reference approved Nasdaq rules proscribing similar fraudulent misconduct that could occur on NOM. (5) Nasdaq is proposing to modify Chapter XI, Sections 23 (Brokers’ Blanket Bond) and 25 (Telephone Solicitation) to cross-reference existing Nasdaq member conduct rules rather than maintain two separate rules governing the same conduct. Specifically, Nasdaq proposes to replace Section 23 by instead cross-referencing to NASDAQ Rule 3020, which currently requires Nasdaq members to post Fidelity Bonds. Nasdaq also proposes to replace Section 25 by cross-referencing current NASDAQ Rule 2212 which prescribes members’ conduct for telephone solicitation. (6) Finally, Nasdaq is proposing to modify Chapter XIV, Section 10 to clarify that when a halt involving an index option is lifted, trading resumes as specified in Chapter V, Section 4 (Resumption of Trading After A Halt) rather than as specified in Chapter VI, Section 8. When Nasdaq first proposed its options trading rules, it planned to resume trading by operating a ‘‘Halt Cross,’’ which it originally described in PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 39757 Chapter VI, Section 8. Nasdaq later amended the proposed rules to remove the Halt Cross and to make clear that trading after a halt would ‘‘resume’’ rather than ‘‘open.’’ The cross-reference to the Halt Cross in Chapter XIV, Section 10 should have been removed, but was overlooked. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,7 in general and with Section 6(b)(5) of the Act,8 in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest; and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers, or to regulate by virtue of any authority conferred by this title matters not related to the purposes of this title or the administration of the exchange. The proposed changes are either technical in nature or are designed to conform the rules of Nasdaq’s options market to the rules of other options markets or to conform Nasdaq’s rules for options trading to its rules for equities trading. None of the proposed changes will impact the manner in which executions occur on NOM. 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. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b–4(f)(6) 7 15 U.S.C. 78f. U.S.C. 78f(b)(5). 9 15 U.S.C. 78s(b)(3)(A). 8 15 E:\FR\FM\10JYN1.SGM 10JYN1 39758 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices thereunder 10 because the foregoing proposed rule: (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 after the date of filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest.11 The Commission expects Nasdaq to continue to monitor for options with little or no open interest and trading activity and to act promptly to delist such options. In addition, the Commission expects that Nasdaq will continue to monitor the trading volume associated with the additional options series listed as a result of this proposal and the effect of these additional series on market fragmentation and on the capacity of Nasdaq’s, OPRA’s, and vendors’ automated systems. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2008–057 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–2008–057. This file number should be included on the subject line if e-mail is used. To help the 10 17 CFR 240.19b–4(f)(6). addition, Rule 19b–4(f)(6)(iii) requires the self-regulatory organization to give the Commission notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. Nasdaq has satisfied the five-day prefiling requirement. jlentini on PROD1PC65 with NOTICES 11 In VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 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 (http://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 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 publicly available. All submissions should refer to File Number SR–NASDAQ–2008–057 and should be submitted on or before July 31, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Acting Secretary. [FR Doc. E8–15651 Filed 7–9–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58104; File No. SR–NSCC– 2008–05] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Lower Fees for Certain NSCC Services July 7, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on June 26, 2008, National Securities Clearing Corporation (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which items have PO 00000 12 17 1 15 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). Frm 00113 Fmt 4703 Sfmt 4703 been prepared primarily by NSCC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The purpose of the proposed rule change is to revise NSCC’s fee schedule to lower fees for certain NSCC services. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.2 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The purpose of the proposed rule change is to lower fees for certain services provided by NSCC to align them with the costs of delivering the services. These changes are:3 (1) A decrease in the unit-based equity trade recording fee from $.001436 per side to $.000402 per side. (2) A decrease in the unit-based equity netting fee from $.000916 per side to $.000256 per side. (3) A decrease in both the trade comparison fee and the trade recording fee for corporate bonds, municipal bonds, and unit investment trusts from $1.00 per side to $0.65 per side. The effective date for these fee adjustments was July 1, 2008. NSCC believes that the proposed rule change is consistent with the requirements of Section 17A(b)(3)(D) of the Act4 and the rules and regulations thereunder applicable to NSCC because it provides for the equitable allocation of reasonable dues, fees, and other charges among NSCC’s participants. (B) Self-Regulatory Organization’s Statement on Burden on Competition NSCC does not believe that the proposed rule change will have any 2 The Commission has modified the text of the summaries prepared by NSCC. 3 The specific changes to NSCC’s fee schedule are attached as an exhibit to the filing. 4 15 U.S.C. 78q–1. E:\FR\FM\10JYN1.SGM 10JYN1

Agencies

[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Notices]
[Pages 39756-39758]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15651]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58093; File No. SR-NASDAQ-2008-057]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Regarding Technical and Conforming Changes to NASDAQ Rules Governing 
Options Trading

July 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 June 24, 2008, 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 substantially by Nasdaq. Nasdaq has designated the 
proposed rule change as a ``non-controversial'' proposed rule change 
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) 
thereunder,\4\ which renders the proposal effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASDAQ proposes to make minor and technical corrections to its 
rules for the NASDAQ Options Market (``NOM'').\5\ The text of the 
proposed rule change is available at Nasdaq, the Commission's Public 
Reference Room, and http://www.complinet.com/nasdaq.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 57478 (March 12, 
2008), 73 FR 14521 (March 18, 2008) (order approving SR-NASDAQ-2007-
004 and 2007-080).
---------------------------------------------------------------------------

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 39757]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On March 12, 2008, the Commission approved SR-NASDAQ-2007-004 and 
SR-NASDAQ-2007-080, proposals to create NOM. Nasdaq has identified six 
minor and technical modifications to the rules governing NOM.
    (1) Nasdaq is proposing to modify the Table of Contents for the 
options rules to conform it to the titles of the previously approved 
rules.
    (2) Nasdaq is proposing to modify Chapter IV, Section 3(i) to 
eliminate the limitation of underlying Fund Shares securities to those 
based on ``broad based'' indexes. Nasdaq is proposing to conform its 
rule to the rules of other options exchanges that permit them to trade 
Fund Shares (including exchange traded funds) based on any index.\6\ 
The four conditions for listing underlying Fund Shares set forth in 
Section 3(i) will remain unchanged. Nasdaq represents that it has the 
necessary systems capacity to support the additional trading of Fund 
Shares that could potentially be listed pursuant to this provision. In 
addition, Nasdaq believes that the capacity required is well within the 
projections that Nasdaq has provided to the Options Price Reporting 
Authority (``OPRA'') and for which OPRA has provisioned.
---------------------------------------------------------------------------

    \6\ See, e.g., Philadelphia Stock Exchange Rule 1009.06.
---------------------------------------------------------------------------

    To the extent that Nasdaq has incorporated by reference the rules 
of the Chicago Board Options Exchange, Incorporated pertaining to 
margin, position limits, and exercise limits, this proposal is not 
designed to change the application of those requirements. Members 
should be cognizant of the need to comply with those requirements and 
any amendments thereto as applied to different options classes 
(including options on Fund Shares).
    (3) Nasdaq is proposing to modify Chapter IV, Section 6, 
Commentary.01 and Commentary.02, which describe the ``$1 Strikes'' 
Pilot Program, to conform these provisions to the rules of other 
options exchanges. Specifically, Nasdaq proposes to expand and make 
permanent the $1 Strikes Pilot Program to allow it to select a total of 
10, instead of the current 5, individual stocks on which option series 
may be listed at $1 strike price intervals. Additionally, Nasdaq 
proposes to expand the price range on which it may list $1 strikes to 
$3-$50, instead of the current $3-$20. The proposed expanded and 
permanent $1 Strikes Price Program would be known as the ``$1 Strike 
Price Program.'' The existing restrictions on listing $1 strikes would 
continue to apply (i.e., no $1 strike price may be listed that is 
greater than $5 from the underlying stock's closing price in its 
primary market on the previous day or that would result in strike 
prices being $0.50 apart).
    This proposal is designed to respond to the requests of market 
participants for broader participation in the $1 Strikes Price Program 
on Nasdaq. Nasdaq represents that it has the necessary systems capacity 
to support the potential additional trading that might arise from the 
proposed modification of the $1 Strikes Price Program. In addition, 
Nasdaq believes that the capacity required is well within the 
projections that Nasdaq has provided to OPRA and for which OPRA has 
provisioned.
    (4) Nasdaq is proposing to modify Chapter V, Section 1(b)(vi) to 
eliminate cross-references to non-existent rule provisions. The cross-
references were improperly included because Nasdaq modeled its rules 
upon the rules of another exchange but did not copy the specific rules 
that were cross-referenced in Section 1(b)(vi). The specific provisions 
that were cited are not included in the Nasdaq rule manual because they 
pertain to a price improvement mechanism that exists on another market 
that does not exist on Nasdaq. Nasdaq is proposing instead to cross-
reference approved Nasdaq rules proscribing similar fraudulent 
misconduct that could occur on NOM.
    (5) Nasdaq is proposing to modify Chapter XI, Sections 23 (Brokers' 
Blanket Bond) and 25 (Telephone Solicitation) to cross-reference 
existing Nasdaq member conduct rules rather than maintain two separate 
rules governing the same conduct. Specifically, Nasdaq proposes to 
replace Section 23 by instead cross-referencing to NASDAQ Rule 3020, 
which currently requires Nasdaq members to post Fidelity Bonds. Nasdaq 
also proposes to replace Section 25 by cross-referencing current NASDAQ 
Rule 2212 which prescribes members' conduct for telephone solicitation.
    (6) Finally, Nasdaq is proposing to modify Chapter XIV, Section 10 
to clarify that when a halt involving an index option is lifted, 
trading resumes as specified in Chapter V, Section 4 (Resumption of 
Trading After A Halt) rather than as specified in Chapter VI, Section 
8. When Nasdaq first proposed its options trading rules, it planned to 
resume trading by operating a ``Halt Cross,'' which it originally 
described in Chapter VI, Section 8. Nasdaq later amended the proposed 
rules to remove the Halt Cross and to make clear that trading after a 
halt would ``resume'' rather than ``open.'' The cross-reference to the 
Halt Cross in Chapter XIV, Section 10 should have been removed, but was 
overlooked.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\7\ in general and with Section 
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest; and are not designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers, or to regulate by virtue of any authority conferred by this 
title matters not related to the purposes of this title or the 
administration of the exchange.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposed changes are either technical in nature or are designed 
to conform the rules of Nasdaq's options market to the rules of other 
options markets or to conform Nasdaq's rules for options trading to its 
rules for equities trading. None of the proposed changes will impact 
the manner in which executions occur on NOM.

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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6)

[[Page 39758]]

thereunder \10\ because the foregoing proposed rule: (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 after the date of filing, 
or such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest.\11\ The Commission 
expects Nasdaq to continue to monitor for options with little or no 
open interest and trading activity and to act promptly to delist such 
options. In addition, the Commission expects that Nasdaq will continue 
to monitor the trading volume associated with the additional options 
series listed as a result of this proposal and the effect of these 
additional series on market fragmentation and on the capacity of 
Nasdaq's, OPRA's, and vendors' automated systems.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ In addition, Rule 19b-4(f)(6)(iii) requires the self-
regulatory organization to give the Commission notice of its intent 
to file the proposed rule change, along with a brief description and 
text of the proposed rule change, at least five business days prior 
to the date of filing of the proposed rule change, or such shorter 
time as designated by the Commission. Nasdaq has satisfied the five-
day pre-filing requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2008-057 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-2008-057. 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 (http://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 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 publicly available. All 
submissions should refer to File Number SR-NASDAQ-2008-057 and should 
be submitted on or before July 31, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15651 Filed 7-9-08; 8:45 am]
BILLING CODE 8010-01-P