Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a Post-Only Order, 7943-7945 [E9-3574]
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Federal Register / Vol. 74, No. 33 / Friday, February 20, 2009 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Section 17A(b)(3)(D) of the Act
requires that the rules of a clearing
agency provide for the equitable
allocation of reasonable dues, fees, and
other charges among its participants.
The Commission finds that DTC’s
proposed rule change is consistent with
DTC’s obligation under the Act because
it clarifies and updates DTC’s fee
schedule.
The Commission finds good cause for
approving the proposed rule change
prior to the thirtieth day after the date
of publication of notice of filing in the
Federal Register because the proposed
rule change originally was filed
previously but had to be refiled due to
a technical issue.
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–DTC–2009–03 on the
subject line.
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–DTC–2009–03. 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
17:55 Feb 19, 2009
V. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 4
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,5 that the
proposed rule change (File No. SR–
DTC–2009–03) be, and hereby is,
approved.6
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.7
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–3576 Filed 2–19–09; 8:45 am]
BILLING CODE 8011–01–P
Paper Comments
VerDate Nov<24>2008
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 filings also will be
available for inspection and copying at
the principal office of DTC and on
DTC’s Web site at https://www.dtcc.com/
downloads/legal/rule_filings/2009/dtc/
2009–03.pdf . 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–DTC–
2009–03 and should be submitted on or
before March 13, 2009.
Jkt 217001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59392; File No. SR–
NASDAQ–2009–006]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Establish a
Post-Only Order
February 11, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
28, 2009, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
4 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
6 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
7 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
5 15
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7943
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by Nasdaq. Nasdaq filed
the proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
it 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 establish a PostOnly Order. The text of the proposed
rule change is below. Proposed new
language is italicized.5
*
*
*
*
*
4751. Definitions
(a)–(e) No change.
(f) No change.
(1)–(9) No change.
(10) ‘‘Post-Only Orders’’ are orders
that if, at the time of entry, would lock
an order on the System, the order will
be re-priced and displayed by the
System to one minimum price
increment (i.e., $0.01 or $0.0001) below
the current low offer (for bids) or above
the current best bid (for offers).
(g)–(i) No change.
*
*
*
*
*
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In order to provide enhanced
functionality, Nasdaq proposes to adopt
an additional order type known as the
Post-Only Order. A Post-Only Order is
an order that does not remove liquidity
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at
https://nasdaq.cchwallstreet.com.
4 17
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7944
Federal Register / Vol. 74, No. 33 / Friday, February 20, 2009 / Notices
from the System upon entry if it would
lock an order on Nasdaq’s system for
trading cash equities (the ‘‘System’’). If,
at the time of entry, a Post-Only Order
would lock an order on the System it
will be re-priced and displayed by the
System to one minimum price
increment (i.e., $0.01 or $0.0001) below
the current low offer (for bids) or above
the current best bid (for offers). In the
case of a Post-Only Order locking an
order, the Post-Only Order will be
repriced only once upon entry into the
System. Post-Only Orders will not be
routed away to other trading centers.
An example of how the price sliding
mechanism will work if the Post-Only
Order locks an order on the System is
as follows:
• The System is displaying a $10.15
offer.
• A firm enters a Post-Only Order to
buy at $10.15.
• The incoming Post-Only Order will
go on the book and display at $10.14.
If the Post-Only Order would lock or
cross a protected quote of another
market center the post-only logic is not
applicable and the order will be
processed in the same manner as a Price
to Comply Post Order.
• Another market center is displaying
a $10.15 offer.
• A firm enters a Post-Only Order to
buy at $10.15.
• The incoming Post-Only Order will
be accepted and display at $10.14.
If the Post-Only Order would cross
another order already on the System and
the price improvement for executing the
order is greater than the liquidity taker
fee and higher than the rebate for being
a liquidity provider, then the post-only
logic is not applicable and the order will
be processed and execute in the same
manner as an order with a time-in-force
of Immediate or Cancel (IOC).
• The System is displaying a $10.15
offer.
• A firm enters a Post-Only Order to
buy at $10.16.
• The incoming Post-Only Order will
execute at $10.15.
Nasdaq believes that the Post-Only
Order type will increase the ability of
market participants to control their
provision or taking of market liquidity
and thus better anticipate their trading
costs. Nasdaq notes that orders similar
to the proposed Post-Only Order type
are already in use by other market
centers.6 In addition, the process for re6 See Rule 4751(f)(9) of NASDAQ OMX BX, Rule
11.9(c)(5) of the BATS Exchange and Rule 7.31 of
NYSE Arca. The proposed Post-Only Order would
operate in the same manner as the Post-Only Order
adopted by NASDAQ OMX BX and have
functionalities similar to the NYSE Arca Adding
Liquidity Only Order and the BATS Post Only
Order.
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17:55 Feb 19, 2009
Jkt 217001
pricing Post-Only Orders is comparable
to the existing re-pricing mechanism
approved for use for Price to Comply
Post Orders.7
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with Section
6(b) of the Act,8 in general, and furthers
the objectives of Section 6(b)(5),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 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 mechanisms of a free
and open market and a national market
system, and, in general, to protect
investors and the public interest.
Specifically, the Post-Only Order is
designed to encourage displayed
liquidity and to offer Nasdaq users
greater discretion and flexibility to post
liquidity on Nasdaq.
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
the Post-Only Order is designed to
compete with orders already approved
and in use at other national securities
exchanges, thereby 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 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 protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
7 See
Rule 4751(f)(8).
U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
8 15
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Frm 00095
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of the Act 10 and subparagraph (f)(6) of
Rule 19b–4 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 and designate the proposed rule
change operative upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. The Commission notes
that other self-regulatory organizations
have similar order types 14 and that this
filing raises no new regulatory issues.
Therefore, the Commission designates
the proposal operative upon filing.15
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 rulecomments@sec.gov. Please include File
No. SR-NASDAQ–2009–006 on the
subject line.
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file 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 complied with this
requirement.
13 Id.
14 See BATS Exchange, Inc. Rule 11.9(c)(5) and
NASDAQ OMX BX, Inc. Rule 4751(f)(9).
15 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
11 17
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Federal Register / Vol. 74, No. 33 / Friday, February 20, 2009 / Notices
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59400; File No. SR–NYSE–
2009–12]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
New York Stock Exchange LLC
All submissions should refer to File
Amending Its Limited Liability
Number SR–NASDAQ–2009–006. This
Company Operating Agreement and
file number should be included on the
subject line if e-mail is used. To help the the Bylaws of Its Wholly-Owned
Subsidiary NYSE Market, Inc. To
Commission process and review your
Eliminate, in Each Case, a
comments more efficiently, please use
only one method. The Commission will Requirement That Not Less Than Two
Members of the Board of Directors
post all comments on the Commission’s
Must Qualify as ‘‘Non-Affiliated
Internet Web site (https://www.sec.gov/
Directors’’ and a Related Requirement
rules/sro.shtml). Copies of the
That Not Less Than Two Members of
submission, all subsequent
the Board of Directors Must Qualify as
amendments, all written statements
‘‘Fair Representation Candidates’’
with respect to the proposed rule
February 12, 2009.
change that are filed with the
Pursuant to Section 19(b)(1) 1 of the
Commission, and all written
Securities Exchange Act of 1934
communications relating to the
(‘‘Act’’) 2 and Rule 19b-4 thereunder,3
proposed rule change between the
notice is hereby given that on February
Commission and any person, other than
2, 2009, New York Stock Exchange LLC
those that may be withheld from the
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
public in accordance with the
the Securities and Exchange
provisions of 5 U.S.C. 552, will be
Commission (‘‘Commission’’) the
available for inspection and copying in
proposed rule change as described in
the Commission’s Public Reference
Items I, II, and III below, which Items
Room, on official business days between
have been prepared by the Exchange.
the hours of 10 a.m. and 3 p.m. Copies
The Commission is publishing this
of such filing also will be available for
notice to solicit comments on the
inspection and copying at the principal
proposed rule change from interested
office of Nasdaq. All comments received persons.
will be posted without change; the
I. Self-Regulatory Organization’s
Commission does not edit personal
Statement of the Terms of Substance of
identifying information from
the Proposed Rule Change
submissions. You should submit only
The Exchange proposes the
information that you wish to make
amendment of (i) its limited liability
available publicly. All submissions
company operating agreement and (ii)
should refer to File Number SR–
the bylaws of its wholly-owned
NASDAQ–2009–006 and should be
subsidiary NYSE Market, Inc. (‘‘NYSE
submitted on or before March 13, 2009.
Market’’) to eliminate, in each case, a
For the Commission, by the Division of
requirement that not less than two
Trading and Markets, pursuant to delegated
members of the board of directors must
16
authority.
qualify as ‘‘non-affiliated directors’’ and
Florence E. Harmon,
a related requirement that not less than
Deputy Secretary.
two members of the board of directors
must qualify as ‘‘fair representation
[FR Doc. E9–3574 Filed 2–19–09; 8:45 am]
candidates’’ (as each of those terms is
BILLING CODE 8011–01–P
defined in the foregoing documents). A
20% minimum requirement would
remain in place with respect to each of
those categories of directors.
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
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
16 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
17:55 Feb 19, 2009
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7945
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
The Exchange is proposing that its
parent company, NYSE Group, Inc., as
the sole member of the Exchange, a New
York limited liability company, amend
the Second Amended and Restated
Operating Agreement of the Exchange
(the ‘‘Operating Agreement’’) to
eliminate the requirements that (a) not
less than two members of the board of
directors of the Exchange (‘‘Exchange
Board’’) must be persons who are not
members of the board of directors of
NYSE Euronext (‘‘NYSE Euronext
Board’’), and who qualify as
independent under the independence
policy of the NYSE Euronext Board
(‘‘NYSE non-affiliated directors’’) and
(b) not less than two members of the
Exchange Board must be ‘‘fair
representation candidates’’ (as defined
in the Operating Agreement). In each
case, however, the current 20%
minimum requirement will continue to
apply.
The Exchange is further proposing
that the Exchange, the sole stockholder
of NYSE Market, amend the Amended
and Restated Bylaws of NYSE Market
(‘‘Market Bylaws’’) to eliminate the
requirements that (a) not less than two
members of the board of directors of
NYSE Market (‘‘Market Board’’) must be
persons who are not members of the
NYSE Euronext Board, although such
directors need not be independent
(‘‘Market non-affiliated directors’’) and
(b) not less than two members of the
Market Board must be ‘‘fair
representation candidates’’ (as defined
in the Market Bylaws). In each case,
however, the current 20% minimum
requirement will continue to apply.
The practical effect of the proposed
rule change is to enable the size of each
of the Exchange Board and the Market
Board to be reduced from ten members
to five members. The Exchange believes
that reducing the size of each board to
five directors, when combined with the
current process for selecting the 20% of
directors who meet the fair
representation requirement in Section
E:\FR\FM\20FEN1.SGM
20FEN1
]]>Agencies
[Federal Register Volume 74, Number 33 (Friday, February 20, 2009)]
[Notices]
[Pages 7943-7945]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-3574]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59392; File No. SR-NASDAQ-2009-006]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Establish a Post-Only Order
February 11, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 28, 2009, 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 prepared by Nasdaq. Nasdaq filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6) thereunder,\4\ which renders it 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
Nasdaq proposes to establish a Post-Only Order. The text of the
proposed rule change is below. Proposed new language is italicized.\5\
---------------------------------------------------------------------------
\5\ Changes are marked to the rule text that appears in the
electronic manual of Nasdaq found at https://
nasdaq.cchwallstreet.com.
---------------------------------------------------------------------------
* * * * *
4751. Definitions
(a)-(e) No change.
(f) No change.
(1)-(9) No change.
(10) ``Post-Only Orders'' are orders that if, at the time of entry,
would lock an order on the System, the order will be re-priced and
displayed by the System to one minimum price increment (i.e., $0.01 or
$0.0001) below the current low offer (for bids) or above the current
best bid (for offers).
(g)-(i) No change.
* * * * *
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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In order to provide enhanced functionality, Nasdaq proposes to
adopt an additional order type known as the Post-Only Order. A Post-
Only Order is an order that does not remove liquidity
[[Page 7944]]
from the System upon entry if it would lock an order on Nasdaq's system
for trading cash equities (the ``System''). If, at the time of entry, a
Post-Only Order would lock an order on the System it will be re-priced
and displayed by the System to one minimum price increment (i.e., $0.01
or $0.0001) below the current low offer (for bids) or above the current
best bid (for offers). In the case of a Post-Only Order locking an
order, the Post-Only Order will be repriced only once upon entry into
the System. Post-Only Orders will not be routed away to other trading
centers.
An example of how the price sliding mechanism will work if the
Post-Only Order locks an order on the System is as follows:
The System is displaying a $10.15 offer.
A firm enters a Post-Only Order to buy at $10.15.
The incoming Post-Only Order will go on the book and
display at $10.14.
If the Post-Only Order would lock or cross a protected quote of
another market center the post-only logic is not applicable and the
order will be processed in the same manner as a Price to Comply Post
Order.
Another market center is displaying a $10.15 offer.
A firm enters a Post-Only Order to buy at $10.15.
The incoming Post-Only Order will be accepted and display
at $10.14.
If the Post-Only Order would cross another order already on the
System and the price improvement for executing the order is greater
than the liquidity taker fee and higher than the rebate for being a
liquidity provider, then the post-only logic is not applicable and the
order will be processed and execute in the same manner as an order with
a time-in-force of Immediate or Cancel (IOC).
The System is displaying a $10.15 offer.
A firm enters a Post-Only Order to buy at $10.16.
The incoming Post-Only Order will execute at $10.15.
Nasdaq believes that the Post-Only Order type will increase the
ability of market participants to control their provision or taking of
market liquidity and thus better anticipate their trading costs. Nasdaq
notes that orders similar to the proposed Post-Only Order type are
already in use by other market centers.\6\ In addition, the process for
re-pricing Post-Only Orders is comparable to the existing re-pricing
mechanism approved for use for Price to Comply Post Orders.\7\
---------------------------------------------------------------------------
\6\ See Rule 4751(f)(9) of NASDAQ OMX BX, Rule 11.9(c)(5) of the
BATS Exchange and Rule 7.31 of NYSE Arca. The proposed Post-Only
Order would operate in the same manner as the Post-Only Order
adopted by NASDAQ OMX BX and have functionalities similar to the
NYSE Arca Adding Liquidity Only Order and the BATS Post Only Order.
\7\ See Rule 4751(f)(8).
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2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
Section 6(b) of the Act,\8\ in general, and furthers the objectives of
Section 6(b)(5),\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 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 mechanisms of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Specifically, the Post-Only
Order is designed to encourage displayed liquidity and to offer Nasdaq
users greater discretion and flexibility to post liquidity on Nasdaq.
---------------------------------------------------------------------------
\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
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 the Post-Only Order is designed to compete with
orders already approved and in use at other national securities
exchanges, thereby 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 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 protection of investors and the public interest, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\10\ and subparagraph (f)(6) of Rule 19b-4 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 and designate the proposed
rule change operative upon filing. The Commission believes that waiving
the 30-day operative delay is consistent with the protection of
investors and the public interest. The Commission notes that other
self-regulatory organizations have similar order types \14\ and that
this filing raises no new regulatory issues. Therefore, the Commission
designates the proposal operative upon filing.\15\
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\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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 complied with this requirement.
\13\ Id.
\14\ See BATS Exchange, Inc. Rule 11.9(c)(5) and NASDAQ OMX BX,
Inc. Rule 4751(f)(9).
\15\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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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 No. SR-NASDAQ-2009-006 on the subject line.
[[Page 7945]]
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2009-006. 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 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 available publicly. All submissions should refer to
File Number SR-NASDAQ-2009-006 and should be submitted on or before
March 13, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-3574 Filed 2-19-09; 8:45 am]
BILLING CODE 8011-01-P
