Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Permit Listing Option Series That Are Restricted to Closing Transactions if Such Series Are Listed and Restricted to Closing Transactions on Another National Securities Exchange, 56677-56679 [E9-26255]
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Federal Register / Vol. 74, No. 210 / Monday, November 2, 2009 / Notices
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 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.
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 14 and Rule
19b–4(f)(6) thereunder.15 Because the
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
prior to 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 16 and
Rule 19b–4(f)(6)(iii) thereunder.17
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of the filing.18 However,
pursuant to Rule 19b–4(f)(6)(iii),19 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange notes that the
proposed rule change is substantially
similar to a proposal submitted by
another options exchange that was
recently approved by the Commission
and also incorporates a change to the
initial expansion date filed by the other
exchange. The Exchange further states
that waiving the 30-day operative delay
14 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
16 15 U.S.C. 78s(b)(3)(A).
17 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this pre-filing requirement.
18 17 CFR 240.19b–4(f)(6).
19 17 CFR 240.19b–4(f)(6)(iii).
srobinson on DSKHWCL6B1PROD with NOTICES
15 17
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17:03 Oct 30, 2009
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will allow the Pilot Program to continue
uninterrupted and allow Nasdaq to
adopt the same expansion schedule as
other exchanges.
The Commission believes waiving the
30-day operative delay 20 is consistent
with the protection of investors and the
public interest because such waiver will
allow Nasdaq to implement the 75
additional classes on November 2, 2009
and permit the Pilot Program to
continue uninterrupted, consistent with
other exchanges.21 For these reasons,
the Commission designates the proposal
to be operative upon filing with the
Commission.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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
56677
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 the Exchange. 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 No.
SR–Phlx–2009–91 and should be
submitted on or before November 23,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–26252 Filed 10–30–09; 8:45 am]
• 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–Phlx–2009–91 on the
subject line.
BILLING CODE 8011–01–P
Paper Comments
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Permit
Listing Option Series That Are
Restricted to Closing Transactions if
Such Series Are Listed and Restricted
to Closing Transactions on Another
National Securities Exchange
• 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–Phlx–2009–91. 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
20 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78(c)(f).
21 See Securities Exchange Act Release Nos.
60711 (September 23, 2009), 74 FR 49419
(September 28, 2009) (SR–NYSEArca–2009–44);
and 60833 (October 16, 2009), 74 FR 54617 (October
22, 2009) (SR–NYSEArca–2009–91).
PO 00000
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60880; File No. SR–
NASDAQ–2009–090]
October 26, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on October
16, 2009, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II,
below, which Items have been prepared
by Nasdaq. Nasdaq filed the proposal as
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\02NON1.SGM
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56678
Federal Register / Vol. 74, No. 210 / Monday, November 2, 2009 / Notices
a ‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 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 proposal for the
NASDAQ Options Market (‘‘NOM’’ or
‘‘Exchange’’) to amend its Chapter IV,
Section 4 (Withdrawal of Approval of
Underlying Securities) to permit the
Exchange to list option series that are
restricted to closing transactions if such
series are listed and restricted to closing
transactions on another exchange. The
Exchange requests that the Commission
waive the 30-day operative delay period
contained in Exchange Act Rule 19b–
4(f)(6)(iii).5
The text of the proposed rule change
is available from Nasdaq’s Web site at
https://nasdaq.cchwallstreet.com, at
Nasdaq’s principal office, 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,
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.
srobinson on DSKHWCL6B1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend NOM Chapter IV,
Section 4 to permit the Exchange to list
option series that are restricted to
closing transactions if such series are
listed and restricted to closing
transactions on another exchange.
This filing is based on a similar
immediately effective filing recently
filed by another options exchange,
Chicago Board Options Exchange
(‘‘CBOE’’).6 In that filing, it was noted
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 17 CFR 240.19b–4(f)(6)(iii).
6 See Securities Exchange Act Release No. 60625
(September 4, 2009), 74 FR 46825 (September 11,
4 17
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17:03 Oct 30, 2009
Jkt 220001
that the impetus for the filing was a
customer request for it to list a series of
options that was previously delisted by
the filing exchange but listed on another
exchange and restricted to closing
transactions, a situation that may
equally occur on NOM as well as other
options exchanges.
Chapter IV, Section 3 (Criteria for
Underlying Securities) sets forth the
requirements or criteria that underlying
securities must meet before the
Exchange may initially list options on
such securities. Chapter IV, Section 4
sets forth listing maintenance and
delisting criteria in respect of securities
underlying options listed on the
Exchange that are used by the Exchange
to determine whether such listing status
should be continued. These rules do not
have provisions for listing option series
that are restricted to closing transactions
where such series are listed on another
exchange.
The Exchange proposes to add new
subsection (m) to Chapter IV, Section 4
to provide that if an option series is
listed but restricted to closing
transactions on another national
securities exchange, the Exchange may
list such series (even if such series
would not otherwise be eligible for
listing under the Exchange’s rules),
which shall also be restricted to closing
transactions on the Exchange.7 No
restrictions will be in place with respect
to the exercise of any restricted series.
The Exchange believes that the
proposed rule change should encourage
competition and be beneficial to traders
and market participants by providing
them with a means to trade on the
Exchange securities that are listed and
traded on other exchanges.
2. Statutory Basis
The Exchange believes that its
proposal 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 foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system.
Permitting the Exchange to
accommodate possible customer
requests and allow execution of trades
on the Exchange will encourage
competition and not harm investors or
the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange believes that the
foregoing proposed rule change may
take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A) 10 of the Act and Rule 19b–
4(f)(6)(iii) 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 protection of
investors and the public interest.12
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. 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 period. The Commission believes
that waiver of the 30-day operative
delay period is consistent with the
protection of investors and the public
interest. In particular, the Exchange
would be permitted to list the restricted
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
12 In addition, Rule 19b–4(f)(6)(iii) requires the
self-regulatory organization to submit to the
Commission 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 filing of the
proposed rule change, or such shorter time as
designated by the Commission. Nasdaq has satisfied
this requirement.
13 17 CFR 240.19b–4(f)(6)(iii).
11 17
2009) (SR–CBOE–2009–066) (notice of filing and
immediate effectiveness).
7 The parenthetical text is being proposed to
eliminate ambiguity about the Exchange’s ability to
list a restricted series pursuant to proposed
subsection (m) to Chapter IV, Section 4 in the event
other Exchange rules would otherwise prohibit the
listing of that series.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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E:\FR\FM\02NON1.SGM
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Federal Register / Vol. 74, No. 210 / Monday, November 2, 2009 / Notices
series solely for the purpose of closing
transactions as long as the restricted
series is listed on another national
securities exchange. In addition, the
proposed rule change is substantially
similar to the rules of CBOE.14 The
Commission therefore 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 proposed 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.16
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:
srobinson on DSKHWCL6B1PROD with NOTICES
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–2009–090 on the
subject line.
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 available publicly. All
submissions should refer to File
Number SR–NASDAQ–2009–090 and
should be submitted on or before
November 23, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–26255 Filed 10–30–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60878; No. SR–FINRA–
2009–041]
Self-Regulatory Organizations;
Financial Industry Regulatory
Paper Comments
Authority, Inc.; Notice of Filing
Amendment No. 1 and Order Granting
• Send paper comments in triplicate
Accelerated Approval of a Proposed
to Elizabeth M. Murphy, Secretary,
Rule Change, as Modified by
Securities and Exchange Commission,
Amendment No. 1 Thereto, To Amend
100 F Street, NE., Washington, DC
Rules 12100, 12506, and 12902 of the
20549–1090.
Code of Arbitration Procedure for
All submissions should refer to File
Customer Disputes and Rule 13100 of
Number SR–NASDAQ–2009–090. This
the Code of Arbitration Procedure for
file number should be included on the
subject line if e-mail is used. To help the Industry Disputes To Implement
Conforming Changes
Commission process and review your
comments more efficiently, please use
October 26, 2009.
only one method. The Commission will
post all comments on the Commission’s I. Introduction
Internet Web site (https://www.sec.gov/
On June 5, 2009, Financial Industry
rules/sro.shtml). Copies of the
Regulatory Authority, Inc. (‘‘FINRA’’ or
submission, all subsequent
the ‘‘Corporation’’) (f/k/a National
amendments, all written statements
Association of Securities Dealers, Inc.
with respect to the proposed rule
(‘‘NASD’’)) filed with the Securities and
change that are filed with the
Exchange Commission (‘‘SEC’’ or
Commission, and all written
‘‘Commission’’), pursuant to Section
communications relating to the
19(b)(1) of the Securities Exchange Act
proposed rule change between the
of 1934 (‘‘Exchange Act’’ or ‘‘Act’’) 1 and
Commission and any person, other than Rule 19b–4 thereunder,2 a proposed rule
those that may be withheld from the
change to amend Rules 12100(r),
public in accordance with the
12506(a), and 12902(a) of the Code of
Arbitration Procedure for Customer
14 See CBOE Rule 5.4.12(b).
Disputes (‘‘Customer Code’’) and Rule
15 For purposes only of waiving the operative
13100(r) of the Code of Arbitration
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
16 15 U.S.C. 78s(b)(3)(C).
VerDate Nov<24>2008
17:03 Oct 30, 2009
Jkt 220001
17 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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Fmt 4703
Sfmt 4703
56679
Procedure for Industry Disputes
(‘‘Industry Code’’) to amend the
definition of ‘‘associated person,’’
streamline case administration
procedure, and clarify that customers
could be assessed hearing session fees
based on their own claims for relief in
connection with an industry claim. The
proposed rule change was published for
comment in the Federal Register on July
2, 2009.3 The Commission received one
comment on the proposed rule change.4
On August 10, 2009, FINRA responded
to the comment letter.5 On October 16,
2009, FINRA filed Amendment No. 1 to
the proposed rule change.6 The
Commission is publishing this notice
and order to solicit comments on
Amendment No. 1 and to approve the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis.
II. Description of Proposed Rule Change
On January 24, 2007, the SEC
approved amendments to the NASD
Code of Arbitration Procedure (‘‘old
Code’’) in connection with rules
applicable to customer disputes and to
industry disputes,7 a final step in the
reorganization of the old Code into three
separate procedural codes: The
Customer Code, the Industry Code, and
the Mediation Code (the ‘‘Code
Revision’’).8 The Code Revision
simplified the language of the old Code,
codified current dispute resolution
practices, and implemented several
substantive changes to dispute
resolution rules. Since the SEC
approved the Code Revision, Dispute
Resolution staff (‘‘staff’’) has found rule
language that was omitted inadvertently
from the Customer Code and the
Industry Code (collectively, ‘‘Codes’’),
as well as rule language that could be
improved to better convey FINRA’s
3 Securities Exchange Act Release No. 60159
(June 22, 2009), 74 FR 31779 (‘‘Notice’’).
4 See letter from Brian M. Smiley, Public
Investors Arbitration Bar Association, to Elizabeth
M. Murphy, Secretary, Commission, dated July 29,
2009 (‘‘PIABA Letter’’).
5 See letter from Mignon McLemore, FINRA
Dispute Resolution, to Elizabeth M. Murphy,
Secretary, Commission, dated August 10, 2009
(‘‘FINRA Response’’).
6 Amendment No. 1 was a partial amendment that
made minor technical edits to the rule text and the
description of the proposal, and therefore does not
require notice and comment.
7 See Securities Exchange Act Release No. 55158
(January 24, 2007), 72 FR 4574 (January 31, 2007)
(File Nos. SR–NASD–2003–158 and SR–NASD–
2004–011).
8 The Mediation Code was filed separately with
the Commission as SR–NASD–2004–013. The
Commission approved the Mediation Code on
October 31, 2005, and it became effective on
January 30, 2006. See Securities Exchange Act Rel.
No. 52705 (October 31, 2005), 70 FR 67525
(November 7, 2005) (SR–NASD–2004–013).
E:\FR\FM\02NON1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 210 (Monday, November 2, 2009)]
[Notices]
[Pages 56677-56679]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-26255]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60880; File No. SR-NASDAQ-2009-090]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Permit Listing Option Series That Are Restricted to Closing
Transactions if Such Series Are Listed and Restricted to Closing
Transactions on Another National Securities Exchange
October 26, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\, and Rule 19b-4 \2\ thereunder, notice is hereby given
that on October 16, 2009, The NASDAQ Stock Market LLC (``Nasdaq'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I and
II, below, which Items have been prepared by Nasdaq. Nasdaq filed the
proposal as
[[Page 56678]]
a ``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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)(iii).
\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 is filing a proposal for the NASDAQ Options Market (``NOM''
or ``Exchange'') to amend its Chapter IV, Section 4 (Withdrawal of
Approval of Underlying Securities) to permit the Exchange to list
option series that are restricted to closing transactions if such
series are listed and restricted to closing transactions on another
exchange. The Exchange requests that the Commission waive the 30-day
operative delay period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\5\
---------------------------------------------------------------------------
\5\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The text of the proposed rule change is available from Nasdaq's Web
site at https://nasdaq.cchwallstreet.com, at Nasdaq's principal office,
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, 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
The purpose of the proposed rule change is to amend NOM Chapter IV,
Section 4 to permit the Exchange to list option series that are
restricted to closing transactions if such series are listed and
restricted to closing transactions on another exchange.
This filing is based on a similar immediately effective filing
recently filed by another options exchange, Chicago Board Options
Exchange (``CBOE'').\6\ In that filing, it was noted that the impetus
for the filing was a customer request for it to list a series of
options that was previously delisted by the filing exchange but listed
on another exchange and restricted to closing transactions, a situation
that may equally occur on NOM as well as other options exchanges.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 60625 (September 4,
2009), 74 FR 46825 (September 11, 2009) (SR-CBOE-2009-066) (notice
of filing and immediate effectiveness).
---------------------------------------------------------------------------
Chapter IV, Section 3 (Criteria for Underlying Securities) sets
forth the requirements or criteria that underlying securities must meet
before the Exchange may initially list options on such securities.
Chapter IV, Section 4 sets forth listing maintenance and delisting
criteria in respect of securities underlying options listed on the
Exchange that are used by the Exchange to determine whether such
listing status should be continued. These rules do not have provisions
for listing option series that are restricted to closing transactions
where such series are listed on another exchange.
The Exchange proposes to add new subsection (m) to Chapter IV,
Section 4 to provide that if an option series is listed but restricted
to closing transactions on another national securities exchange, the
Exchange may list such series (even if such series would not otherwise
be eligible for listing under the Exchange's rules), which shall also
be restricted to closing transactions on the Exchange.\7\ No
restrictions will be in place with respect to the exercise of any
restricted series.
---------------------------------------------------------------------------
\7\ The parenthetical text is being proposed to eliminate
ambiguity about the Exchange's ability to list a restricted series
pursuant to proposed subsection (m) to Chapter IV, Section 4 in the
event other Exchange rules would otherwise prohibit the listing of
that series.
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change should
encourage competition and be beneficial to traders and market
participants by providing them with a means to trade on the Exchange
securities that are listed and traded on other exchanges.
2. Statutory Basis
The Exchange believes that its proposal 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 foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system. Permitting the Exchange to
accommodate possible customer requests and allow execution of trades on
the Exchange will encourage competition and not harm investors or the
public interest.
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\8\ 15 U.S.C. 78f(b).
\9\ 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.
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 Exchange believes that the foregoing proposed rule change may
take effect upon filing with the Commission pursuant to Section
19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(6)(iii) 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 protection of
investors and the public interest.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ In addition, Rule 19b-4(f)(6)(iii) requires the self-
regulatory organization to submit to the Commission 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 filing of the proposed rule
change, or such shorter time as designated by the Commission. Nasdaq
has satisfied this requirement.
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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.
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 period. The Commission
believes that waiver of the 30-day operative delay period is consistent
with the protection of investors and the public interest. In
particular, the Exchange would be permitted to list the restricted
[[Page 56679]]
series solely for the purpose of closing transactions as long as the
restricted series is listed on another national securities exchange. In
addition, the proposed rule change is substantially similar to the
rules of CBOE.\14\ The Commission therefore designates the proposal
operative upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ See CBOE Rule 5.4.12(b).
\15\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 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 proposed 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.\16\
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\16\ 15 U.S.C. 78s(b)(3)(C).
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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-NASDAQ-2009-090 on the subject line.
Paper Comments
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-2009-090. 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 available publicly. All
submissions should refer to File Number SR-NASDAQ-2009-090 and should
be submitted on or before November 23, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-26255 Filed 10-30-09; 8:45 am]
BILLING CODE 8011-01-P
