Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change as Modified by Amendment Nos. 1, 2, and 3 Thereto Relating to the Termination of the Intermarket Trading System Plan and to a Technical Change to Rule 8.15, 40411-40412 [E8-15887]
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Federal Register / Vol. 73, No. 135 / Monday, July 14, 2008 / 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:
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2008–019 on the
subject line.
Paper Comments
pwalker on PROD1PC71 with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15818 Filed 7–11–08; 8:45 am]
• 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–2008–019. 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 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–2008–019 and
should be submitted on or before
August 4, 2008.
[Release No. 34–58112; File No. SR–NSX–
2008–11]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change as Modified
by Amendment Nos. 1, 2, and 3
Thereto Relating to the Termination of
the Intermarket Trading System Plan
and to a Technical Change to Rule 8.15
July 7, 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 19,
2008, the National Stock Exchange
(‘‘NSX’’ 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.
On June 27, 2008, the Exchange filed
Amendment Nos. 1 and 2 to the
proposal. On July 2, 2008, the Exchange
filed Amendment No. 3 to the proposal.
The Exchange filed the proposal
pursuant to Section 19(b)(3)(A) of the
Act and Rule 19b–4(f)(6) thereunder,
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Due to the termination of the
Intermarket Trading System (‘‘ITS’’)
Plan, the Exchange is proposing to
eliminate all references to the ITS Plan
in its Rules and Fee Schedules, and to
otherwise make technical and
conforming changes related to the
termination of ITS, as well as a minor
technical change to Rule 8.15
(‘‘Imposition of Fines for Minor
Violation(s) of Rules’’).
The text of the proposed rule change
is available on the Exchange’s Web site
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
17:08 Jul 11, 2008
Jkt 214001
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
40411
at https://www.nsx.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Chapter XIV (‘‘Intermarket Trading
System Plan’’) of the NSX Rules
provides the rules relating to the ITS
Plan under which the Exchange
conducted intermarket trading in
exchange-listed equity securities with
those market centers that were linked
under the ITS Plan.3 In connection with
the implementation of Regulation
NMS,4 the ITS Plan was officially
eliminated.5 Because elimination of ITS
has rendered Chapter XIV obsolete, the
Exchange now proposes to eliminate
Chapter XIV, the Fee Schedule for ITS
Transactions, and all other references to
Chapter XIV and the ITS Plan in the
NSX Rules.
In addition, the Exchange proposes to
make a technical and conforming
change to Interpretation .01 to Rule
8.15, which has been renumbered due to
the deletion of ITS related provisions.
The Exchange also proposes that the
Rule cited in this Interpretation be
changed from Rule 11.9(c) to Rule
11.8(a)(1). This change is required as
Rule 11.9(c), relating to the Exchange’s
legacy trading system, has been
functionally replaced by Rule 11.8(a)(1)
relating to the Exchange’s new trading
system, NSX BLADE.6
Finally, the Exchange proposes to
amend NSX Rule 11.3(a)(ii) to allow
3 See Securities Exchange Act Release No. 19456
(January 27, 1983), 48 FR 4938 (February 3,
1983)(File No. 4–208).
4 17 CFR 242.600 et al.
5 See Securities Exchange Act Release No. 55397
(March 5, 2007), 72 FR 11066 (March 12, 2007)(File
No. 4–208).
6 See Securities Exchange Act Release No. 54391
(August 31, 2006), 71 FR 52836 (September 7, 2006)
(SR–NSX–2006–08).
E:\FR\FM\14JYN1.SGM
14JYN1
40412
Federal Register / Vol. 73, No. 135 / Monday, July 14, 2008 / Notices
sub-penny bids, offers, orders and
indications of interest (hereinafter
‘‘orders’’) in all securities where such
orders are priced less than $1.00 per
share. Due to programming issues
relating to ITS, the rule previously only
permitted sub-penny price increments
for securities priced below $1.00 per
share that were listed on the Nasdaq
Stock Market. Now that the ITS Plan has
terminated, and consistent with
Regulation NMS, the Exchange proposes
to allow sub-penny increments for all
securities traded on the Exchange for
orders priced less than $1.00 per share,
regardless of the listing exchange.7
2. Statutory Basis
The Exchange believes that its
proposed rule change is consistent with
Section 6(b) of the Act 8 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,9 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
pwalker on PROD1PC71 with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received by the Exchange.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 10 and Rule
19b–4(f)(6) thereunder.11 Because the
foregoing proposed rule change does
not:
(i) Significantly affect the protection
of investors or the public interest;
(ii) Impose any significant burden on
competition; and
(iii) Become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, if consistent with the
7 17
CFR 242.612.
U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A)(iii).
11 17 CFR 240.19b–4(f)(6).
8 15
VerDate Aug<31>2005
17:08 Jul 11, 2008
Jkt 214001
protection of investors and the public
interest, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 12 and Rule 19b–4(f)(6)
thereunder.13 As required under Rule
19b–4(f)(6)(iii) under the Act,14 the
Exchange provided 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 the
filing of the proposed rule change.
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.15 However, Rule 19b–
4(f)(6)(iii) 16 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 and render the proposed rule
change operative immediately. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Waiver of the 30-day
operative delay would enable the
Exchange to: eliminate all references to
the ITS Plan in its Rules and Fee
Schedules and to otherwise make
technical and conforming changes
required as a result of the termination of
the ITS Plan as quickly as possible and
eliminate any potential confusion. The
waiver would also allow sub-penny
bids, offers, orders in all securities
where such orders are priced less than
$1.00 per share, which would enable
investors to expand their trading
options. Accordingly, the Commission
designates the proposal to be operative
upon filing with the Commission.17
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
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 Id.
16 Id.
17 For purposes of waiving the operative date of
this proposal only, the Commission has considered
the impact of the proposed rule on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
PO 00000
12 15
13 17
Frm 00130
Fmt 4703
Sfmt 4703
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–NSX–2008–11 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–NSX–2008–11. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of the filing also will be available for
inspection and copying at the principal
office of NSX. 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–NSX–
2008–11 and should be submitted on or
before August 4, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15887 Filed 7–11–08; 8:45 am]
BILLING CODE 8010–01–P
18 17
E:\FR\FM\14JYN1.SGM
CFR 200.30–3(a)(12).
14JYN1
]]>Agencies
[Federal Register Volume 73, Number 135 (Monday, July 14, 2008)]
[Notices]
[Pages 40411-40412]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15887]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58112; File No. SR-NSX-2008-11]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change as
Modified by Amendment Nos. 1, 2, and 3 Thereto Relating to the
Termination of the Intermarket Trading System Plan and to a Technical
Change to Rule 8.15
July 7, 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 19, 2008, the National Stock Exchange (``NSX'' 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. On June 27, 2008, the
Exchange filed Amendment Nos. 1 and 2 to the proposal. On July 2, 2008,
the Exchange filed Amendment No. 3 to the proposal. The Exchange filed
the proposal pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder, which renders the proposal effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Due to the termination of the Intermarket Trading System (``ITS'')
Plan, the Exchange is proposing to eliminate all references to the ITS
Plan in its Rules and Fee Schedules, and to otherwise make technical
and conforming changes related to the termination of ITS, as well as a
minor technical change to Rule 8.15 (``Imposition of Fines for Minor
Violation(s) of Rules'').
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nsx.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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 parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Chapter XIV (``Intermarket Trading System Plan'') of the NSX Rules
provides the rules relating to the ITS Plan under which the Exchange
conducted intermarket trading in exchange-listed equity securities with
those market centers that were linked under the ITS Plan.\3\ In
connection with the implementation of Regulation NMS,\4\ the ITS Plan
was officially eliminated.\5\ Because elimination of ITS has rendered
Chapter XIV obsolete, the Exchange now proposes to eliminate Chapter
XIV, the Fee Schedule for ITS Transactions, and all other references to
Chapter XIV and the ITS Plan in the NSX Rules.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 19456 (January 27,
1983), 48 FR 4938 (February 3, 1983)(File No. 4-208).
\4\ 17 CFR 242.600 et al.
\5\ See Securities Exchange Act Release No. 55397 (March 5,
2007), 72 FR 11066 (March 12, 2007)(File No. 4-208).
---------------------------------------------------------------------------
In addition, the Exchange proposes to make a technical and
conforming change to Interpretation .01 to Rule 8.15, which has been
renumbered due to the deletion of ITS related provisions. The Exchange
also proposes that the Rule cited in this Interpretation be changed
from Rule 11.9(c) to Rule 11.8(a)(1). This change is required as Rule
11.9(c), relating to the Exchange's legacy trading system, has been
functionally replaced by Rule 11.8(a)(1) relating to the Exchange's new
trading system, NSX BLADE.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 54391 (August 31,
2006), 71 FR 52836 (September 7, 2006) (SR-NSX-2006-08).
---------------------------------------------------------------------------
Finally, the Exchange proposes to amend NSX Rule 11.3(a)(ii) to
allow
[[Page 40412]]
sub-penny bids, offers, orders and indications of interest (hereinafter
``orders'') in all securities where such orders are priced less than
$1.00 per share. Due to programming issues relating to ITS, the rule
previously only permitted sub-penny price increments for securities
priced below $1.00 per share that were listed on the Nasdaq Stock
Market. Now that the ITS Plan has terminated, and consistent with
Regulation NMS, the Exchange proposes to allow sub-penny increments for
all securities traded on the Exchange for orders priced less than $1.00
per share, regardless of the listing exchange.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 242.612.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \8\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\9\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received by the
Exchange.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
Because the foregoing proposed rule change does not:
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \12\
and Rule 19b-4(f)(6) thereunder.\13\ As required under Rule 19b-
4(f)(6)(iii) under the Act,\14\ the Exchange provided 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 the filing of the
proposed rule change.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\15\
However, Rule 19b-4(f)(6)(iii) \16\ 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 and render the proposed
rule change operative immediately. The Commission believes that waiving
the 30-day operative delay is consistent with the protection of
investors and the public interest. Waiver of the 30-day operative delay
would enable the Exchange to: eliminate all references to the ITS Plan
in its Rules and Fee Schedules and to otherwise make technical and
conforming changes required as a result of the termination of the ITS
Plan as quickly as possible and eliminate any potential confusion. The
waiver would also allow sub-penny bids, offers, orders in all
securities where such orders are priced less than $1.00 per share,
which would enable investors to expand their trading options.
Accordingly, the Commission designates the proposal to be operative
upon filing with the Commission.\17\
---------------------------------------------------------------------------
\15\ Id.
\16\ Id.
\17\ For purposes of waiving the operative date of this proposal
only, the Commission has considered the impact of the proposed rule
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NSX-2008-11 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-NSX-2008-11. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, on official business
days between the hours of 10 a.m. and 3 p.m. Copies of the filing also
will be available for inspection and copying at the principal office of
NSX. 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-NSX-
2008-11 and should be submitted on or before August 4, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-15887 Filed 7-11-08; 8:45 am]
BILLING CODE 8010-01-P
