Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Processing of Orders on the NASDAQ Options Market, 11389-11391 [E9-5722]
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Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Notices
Number SR–NASDAQ–2009–021 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–59557; File No. SR–
NASDAQ–2009–017]
• 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–NASDAQ–2009–021. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing will also be available
for inspection and copying at the
principal office of the self-regulatory
organization. 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–2009–021 and should be
submitted on or before April 7, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.3
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5715 Filed 3–16–09; 8:45 am]
dwashington3 on PROD1PC60 with NOTICES
BILLING CODE 8011–01–P
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Modify the
Processing of Orders on the NASDAQ
Options Market
March 11, 2009.
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 March 6,
2009, 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 by Nasdaq.
Pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(5) thereunder,4
Nasdaq has designated this proposal as
one effecting a change in an existing
order-entry or trading system of a selfregulatory organization. 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 is filing a proposed rule
change to offer the ‘‘WAIT’’ order
modifier for use with orders entered
into the NASDAQ Options Market
(‘‘NOM’’). This modifier is designed to
enhance compliance with the Order
Exposure requirement set forth at
Chapter VII, Section 12 of the NOM
Rules.
The text of the proposed rule change
is available from Nasdaq’s Web site at
https://cchwallstreet.com/nasdaqomx/ at
Nasdaq’s principal office, and at the
Commission’s Public Reference Room.
Proposed new language is italicized;
proposed deletions are in brackets.5
*
*
*
*
*
Chapter VI, Trading Systems
Sec. 1. Definitions
The following definitions apply to
Chapter VI for the trading of options
listed on NOM.
(a)–(f) No Change.
(g)
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(5).
5 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at
https://www.complinet.com/nasdaq.
2 17
317
CFR 200.30–3(a)(12).
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13:44 Mar 16, 2009
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11389
(1)–(4) No Change.
(5) ‘‘WAIT’’ shall mean for orders so
designated, that upon entry into the
System, the order is held for one second
without processing for potential display
and/or execution. After one second, the
order is processed for potential display
and/or execution in accordance with all
order entry instructions as determined
by the entering party.
(h) No Change.
*
*
*
*
*
Sec. 6. Acceptance of Quotes and
Orders
All bids or offers made and accepted
on NOM in accordance with the NOM
Rules shall constitute binding contracts,
subject to applicable requirements of the
Rules of the Exchange and the Rules of
the Clearing Corporation.
(a) General—A System order is an
order that is entered into the System for
display and/or execution as appropriate.
Such orders are executable against
marketable contra-side orders in the
System.
(1) All System Orders shall indicate
limit price and whether they are a call
or put and buy or sell. Systems Orders
can be designated as Immediate or
Cancel (‘‘IOC’’), Good-till-Cancelled
(‘‘GTC’’), Day (‘‘DAY’’), [or] WAIT or
Expire Time (‘‘EXPR’’).
(2) No change.
(b) 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. The text of these
statements may be examined at the
places specified in Item III below, and
is set forth in Sections A, B, and C
below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On February 19, 2009, the Securities
Exchange Commission approved
Nasdaq’s proposal to reduce the Order
Exposure requirement set forth at
Chapter VII, Section 12 of the NOM
Rules from three seconds to one
second.6 Chapter VII, Section 12
prohibits Options Participants from
executing as principal orders they
6 See Exchange Act Release No. 59421 (Feb. 19,
2009) (accelerated approval of SR–Nasdaq–2009–
005).
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17MRN1
dwashington3 on PROD1PC60 with NOTICES
11390
Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Notices
represent as agent unless (i) agency
orders are first exposed on NOM for at
least one (1) second or (ii) the Options
Participant has been bidding or offering
on NOM for at least one (1) second prior
to receiving an agency order that is
executable against such bid or offer.
This rule ensures that Options
Participant do not gain at the expense of
customers by depriving them of the
opportunity to interact with orders in
the NOM System.
NOM Participants that enter agency
orders into the NOM System have asked
Nasdaq to develop an automated
mechanism that permits them to enter
orders into NOM as soon as the orders
are received but that also prevents them
from interacting with their own agency
orders in violation of the order exposure
requirement. Nasdaq believes this is an
efficient use of resources because it will
allow Nasdaq to program its NOM
Systems once rather than have multiple
Options Participant re-program their
systems.
In order to accomplish that request,
Nasdaq has developed the ‘‘WAIT’’
modifier which can be appended to an
order prior to entry into NOM Systems.
The WAIT modifier will instruct NOM
Systems to wait precisely one second
from the time of order entry before
processing the order in accordance with
the other instructions attached to that
order. Upon expiration of the onesecond WAIT period, the System will
time stamp, route, display, or execute
the order in accordance with the
entering party’s other order entry
instructions. Thus, the WAIT modifier
does not affect the existing display,
routing, or execution priorities of the
NOM Systems or any other obligations
of NOM Participants as set forth in the
NOM rules.
Orders designated with the WAIT
modifier are independent of all other
orders, including an agency order that is
being exposed pursuant to Chapter VII,
Section 12. WAIT orders are not
associated or in any way linked to
another order entered into the System,
as is the case with certain facilitation
orders at other options exchanges. The
System will process the WAIT order
even if a customer order entered into the
System simultaneously with the WAIT
order has been executed or cancelled
during the WAIT second, unless the
WAIT order itself is modified or
cancelled pursuant to System rules. As
a result, there is no guarantee that an
order designated as WAIT will execute
against another specific order. Use of
the WAIT modifier is completely
voluntary.
Nasdaq believes that the
implementation of the aforementioned
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13:44 Mar 16, 2009
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rule change modifying Nasdaq order
entry options will enhance compliance
with NOM rules and also preserve order
execution opportunities on NOM.
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 the proposal
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The proposed rule
change promotes these goals by
enhancing market quality and protecting
investors and market participants from
executions that violate Chapter VII,
Section 12 of NOM Rules.
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 fully expects
that other options exchanges will copy
this proposed rule change shortly after
its implementation.
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 rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and subparagraph (f)(5) of
Rule 19b–4 thereunder 10 as one that
effects a change that: (A) Does not
significantly affect the protection of
investors or the public interest; (B) does
not impose any significant burden on
competition; and (C) does not have the
effect of limiting the access to or
availability of the system.
Specifically, the proposed rule change
will benefit the protection of investors
U.S.C. 78f.
U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(5).
and the public interest by enhancing
market quality and protecting investors
and market participants from execution
that violate Chapter VII, Section 12 of
NOM Rules. The proposed rule change
does not place a burden on competition
but rather enhances competition among
the markets. The proposed rule change
does not limit access to or availability
of the system.
Nasdaq believes that this proposal
with respect to the WAIT modifier is
properly designated as a change to an
existing order entry system because the
proposal modifies the timing of
processing but not the manner in which
orders are displayed, prioritized,
executed, routed or otherwise processed
within the System. Nasdaq has
designated similar proposals in this
fashion in the past, including a proposal
to delay the operation of the Opening
Cross on NOM.11
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, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2009–017 on the
subject line.
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–2009–017. 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
7 15
8 15
PO 00000
Frm 00046
Fmt 4703
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11 Exchange Act Release No. 57822 (May 15,
2008) (SR–NASDAQ–2008–045); 73 FR 29800 (May
22, 2008).
E:\FR\FM\17MRN1.SGM
17MRN1
Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Notices
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–2009–017 and
should be submitted on or before April
7, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5722 Filed 3–16–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59559; File No. SR–NYSE–
2009–03]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Approving Proposed Rule Change To
Adopt Listing Fees for Securities
Listed Under Section 703.21 and
703.22 and Traded on NYSE Bonds
dwashington3 on PROD1PC60 with NOTICES
March 11, 2009.
I. Introduction
On January 9, 2009, the New York
Stock Exchange LLC (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
modify the listing fees for securities that
are listed under the Exchange’s Listed
Company Manual (‘‘Manual’’) Sections
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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13:44 Mar 16, 2009
Jkt 217001
703.21 and 703.22 and are traded on
NYSE Bonds. The proposed rule change
was published for comment in the
Federal Register on February 4, 2009.3
The Commission received no comments
on the proposal. This order approves the
proposed rule change.
II. Description of the Proposal
Currently, securities listed on the
NYSE pursuant to Sections 703.21
(Equity-Linked Debt Securities) and
703.22 of the Manual (Equity IndexLinked Securities, Commodity-Linked
Securities and Currency-Linked
Securities) and traded on NYSE Bonds
are subject to the fees set forth in
Section 902.09 of the Manual.4 Section
902.09 establishes various levels of fees
based on the number of shares
outstanding, with a minimum initial
listing fee of $5,000 (for one million
securities or fewer) and a maximum
initial listing fee of $45,000 (for over 15
million securities). The minimum
annual listing fee under Section 902.09
is $10,000 (for 6 million securities or
fewer), and the maximum annual listing
fee is $55,000 (for more than 50 million
securities).
The Exchange proposes to establish a
new section, proposed Section 902.10,
in the Manual establishing fees payable
in connection with the listing of
securities that are listed under Section
703.21 and Section 703.22 and are
traded on NYSE Bonds.5 Under
proposed Section 902.10, the initial
listing fee for securities listed under
Sections 703.21 and 703.22 and traded
on NYSE Bonds will be a flat fee of
$5,000 and the annual fee will be a flat
fee of $5,000, regardless of the number
of securities outstanding.
The Exchange stated that it is
adopting a low level of listing fees for
these securities because it believes
doing so will make an exchange listing
attractive in connection with offerings
where listing is not crucial to a
successful marketing of the securities.
The Exchange notes that, in order to be
listed on NYSE Bonds, a security must
have a $1,000 denomination, and
typically, index-linked securities and
equity-linked securities with $1,000
denominations are marketed to
institutional investors rather than retail
3 See Securities Exchange Act Release No. 59313
(January 28, 2009), 74 FR 6067.
4 The Exchange recently added securities listed
under Sections 703.21 and 703.22 and traded on
NYSE Bonds to those securities subject to the fees
set forth in Section 902.09. See Securities Exchange
Act Release No. 58599 (September 19, 2008), 73 FR
55883 (September 26, 2008) (SR–NYSE–2008–56).
5 The proposed rule change also amends Section
902.09 to remove references to the securities that
will be subject to the fees under proposed Section
902.10.
PO 00000
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11391
investors. Because these purchasers are
less concerned that securities they
invest in should have an exchange
listing, the Exchange notes that these
securities are generally not listed on a
national securities exchange. In
addition, the Exchange notes that
securities listed on NYSE Bonds do not
have the benefit of a Designated Market
Maker and, as such, the Exchange incurs
lower regulatory and administrative
costs in connection with such securities
than would be the case with floor-traded
securities. For the reasons noted above,
the Exchange asserts that the proposed
fees are set at a level that reflects the
lower costs incurred by the Exchange in
connection with the trading of securities
on NYSE Bonds than on the equities
trading floor, while remaining attractive
to issuers for whom an exchange listing
is not crucial.
III. Discussion
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange and, in particular,
the requirements of Section 6(b) of the
Act 6 and the rules and regulations
thereunder. Specifically, the
Commission finds that the proposal is
consistent with Sections 6(b)(4) 7 and
6(b)(5) 8 of the Act, which require that
an exchange have rules that provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
members and other persons using its
facilities, and are designed, among other
things, to promote just and equitable
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, to protect
investors and the public interest, and
are not designed to permit unfair
discrimination between customers,
issuers, brokers or dealers.9
The Commission believes that the
new fees set forth for securities listed
under Sections 703.21 and 703.22 of the
Manual and traded on NYSE Bonds are
consistent with the Act. The
Commission notes that the adoption of
new Section 902.10 will not result in
any issuer paying higher initial listing
fees, as the proposed flat initial listing
fee of $5,000 is the same as the current
minimum charged under Section
902.09. Accordingly, most issuers will
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78f(b)(5).
9 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15
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]]>Agencies
[Federal Register Volume 74, Number 50 (Tuesday, March 17, 2009)]
[Notices]
[Pages 11389-11391]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-5722]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59557; File No. SR-NASDAQ-2009-017]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Modify the Processing of Orders on the NASDAQ Options Market
March 11, 2009.
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 March 6, 2009, 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 by Nasdaq. Pursuant to Section 19(b)(3)(A) of the
Act \3\ and Rule 19b-4(f)(5) thereunder,\4\ Nasdaq has designated this
proposal as one effecting a change in an existing order-entry or
trading system of a self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq is filing a proposed rule change to offer the ``WAIT'' order
modifier for use with orders entered into the NASDAQ Options Market
(``NOM''). This modifier is designed to enhance compliance with the
Order Exposure requirement set forth at Chapter VII, Section 12 of the
NOM Rules.
The text of the proposed rule change is available from Nasdaq's Web
site at https://cchwallstreet.com/nasdaqomx/ at Nasdaq's principal
office, and at the Commission's Public Reference Room.
Proposed new language is italicized; proposed deletions are in
brackets.\5\
---------------------------------------------------------------------------
\5\ Changes are marked to the rule text that appears in the
electronic manual of Nasdaq found at https://www.complinet.com/
nasdaq.
---------------------------------------------------------------------------
* * * * *
Chapter VI, Trading Systems
Sec. 1. Definitions
The following definitions apply to Chapter VI for the trading of
options listed on NOM.
(a)-(f) No Change.
(g)
(1)-(4) No Change.
(5) ``WAIT'' shall mean for orders so designated, that upon entry
into the System, the order is held for one second without processing
for potential display and/or execution. After one second, the order is
processed for potential display and/or execution in accordance with all
order entry instructions as determined by the entering party.
(h) No Change.
* * * * *
Sec. 6. Acceptance of Quotes and Orders
All bids or offers made and accepted on NOM in accordance with the
NOM Rules shall constitute binding contracts, subject to applicable
requirements of the Rules of the Exchange and the Rules of the Clearing
Corporation.
(a) General--A System order is an order that is entered into the
System for display and/or execution as appropriate. Such orders are
executable against marketable contra-side orders in the System.
(1) All System Orders shall indicate limit price and whether they
are a call or put and buy or sell. Systems Orders can be designated as
Immediate or Cancel (``IOC''), Good-till-Cancelled (``GTC''), Day
(``DAY''), [or] WAIT or Expire Time (``EXPR'').
(2) No change.
(b) 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. The
text of these statements may be examined at the places specified in
Item III below, and is set forth in Sections A, B, and C below.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On February 19, 2009, the Securities Exchange Commission approved
Nasdaq's proposal to reduce the Order Exposure requirement set forth at
Chapter VII, Section 12 of the NOM Rules from three seconds to one
second.\6\ Chapter VII, Section 12 prohibits Options Participants from
executing as principal orders they
[[Page 11390]]
represent as agent unless (i) agency orders are first exposed on NOM
for at least one (1) second or (ii) the Options Participant has been
bidding or offering on NOM for at least one (1) second prior to
receiving an agency order that is executable against such bid or offer.
This rule ensures that Options Participant do not gain at the expense
of customers by depriving them of the opportunity to interact with
orders in the NOM System.
---------------------------------------------------------------------------
\6\ See Exchange Act Release No. 59421 (Feb. 19, 2009)
(accelerated approval of SR-Nasdaq-2009-005).
---------------------------------------------------------------------------
NOM Participants that enter agency orders into the NOM System have
asked Nasdaq to develop an automated mechanism that permits them to
enter orders into NOM as soon as the orders are received but that also
prevents them from interacting with their own agency orders in
violation of the order exposure requirement. Nasdaq believes this is an
efficient use of resources because it will allow Nasdaq to program its
NOM Systems once rather than have multiple Options Participant re-
program their systems.
In order to accomplish that request, Nasdaq has developed the
``WAIT'' modifier which can be appended to an order prior to entry into
NOM Systems. The WAIT modifier will instruct NOM Systems to wait
precisely one second from the time of order entry before processing the
order in accordance with the other instructions attached to that order.
Upon expiration of the one-second WAIT period, the System will time
stamp, route, display, or execute the order in accordance with the
entering party's other order entry instructions. Thus, the WAIT
modifier does not affect the existing display, routing, or execution
priorities of the NOM Systems or any other obligations of NOM
Participants as set forth in the NOM rules.
Orders designated with the WAIT modifier are independent of all
other orders, including an agency order that is being exposed pursuant
to Chapter VII, Section 12. WAIT orders are not associated or in any
way linked to another order entered into the System, as is the case
with certain facilitation orders at other options exchanges. The System
will process the WAIT order even if a customer order entered into the
System simultaneously with the WAIT order has been executed or
cancelled during the WAIT second, unless the WAIT order itself is
modified or cancelled pursuant to System rules. As a result, there is
no guarantee that an order designated as WAIT will execute against
another specific order. Use of the WAIT modifier is completely
voluntary.
Nasdaq believes that the implementation of the aforementioned rule
change modifying Nasdaq order entry options will enhance compliance
with NOM rules and also preserve order execution opportunities on NOM.
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 the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. The proposed rule change
promotes these goals by enhancing market quality and protecting
investors and market participants from executions that violate Chapter
VII, Section 12 of NOM Rules.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. To the contrary,
Nasdaq fully expects that other options exchanges will copy this
proposed rule change shortly after its implementation.
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 rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ and subparagraph (f)(5) of Rule 19b-4
thereunder \10\ as one that effects a change that: (A) Does not
significantly affect the protection of investors or the public
interest; (B) does not impose any significant burden on competition;
and (C) does not have the effect of limiting the access to or
availability of the system.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(5).
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Specifically, the proposed rule change will benefit the protection
of investors and the public interest by enhancing market quality and
protecting investors and market participants from execution that
violate Chapter VII, Section 12 of NOM Rules. The proposed rule change
does not place a burden on competition but rather enhances competition
among the markets. The proposed rule change does not limit access to or
availability of the system.
Nasdaq believes that this proposal with respect to the WAIT
modifier is properly designated as a change to an existing order entry
system because the proposal modifies the timing of processing but not
the manner in which orders are displayed, prioritized, executed, routed
or otherwise processed within the System. Nasdaq has designated similar
proposals in this fashion in the past, including a proposal to delay
the operation of the Opening Cross on NOM.\11\
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\11\ Exchange Act Release No. 57822 (May 15, 2008) (SR-NASDAQ-
2008-045); 73 FR 29800 (May 22, 2008).
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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, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2009-017 on the subject line.
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-2009-017. 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
[[Page 11391]]
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-2009-017 and
should be submitted on or before April 7, 2009.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-5722 Filed 3-16-09; 8:45 am]
BILLING CODE 8011-01-P
