Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ Stock Market LLC Relating to Trading Halts in Options During a Trading Pause in the Underlying Security, 34510-34512 [2010-14604]

Download as PDF 34510 Federal Register / Vol. 75, No. 116 / Thursday, June 17, 2010 / Notices when there are significant price movements. B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE 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. mstockstill on DSKH9S0YB1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange neither solicited nor received comments on the proposal. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change: (i) Does not significantly affect the protection of investors or the public interest; (ii) Does not impose any significant burden on competition; and (iii) does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, provided that the selfregulatory organization has given 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 proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b–4(f)(6) thereunder.10 A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative for 30 days after the date of filing.11 However, Rule 19b– 4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange requested that the Commission waive the 30-day operative delay, as specified in Rule 19b– 4(f)(6)(iii),12 which would make the rule change effective and operative upon filing. The Commission approved filings from the exchanges and the Financial Industry Regulatory Authority to institute a single stock trading pause for equity securities that experience a 10% change in price during a five minute period.13 The Commission believes that 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). The Commission notes that the Exchange has met this requirement. 11 17 CFR 240.19b–4(f)(6). 12 17 CFR 240.19b–4(f)(6)(iii). 13 See Securities Exchange Act Release Nos. 62251 and 62252 (June 10, 2010). 10 17 VerDate Mar<15>2010 16:13 Jun 16, 2010 Jkt 220001 waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will allow CBOE to halt trading for individual equity options at the same time that the primary listing market implements the pilot for eligible underlying stocks.14 At any time within 60 days of the filing of such 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. printing 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 publicly available. All submissions should refer to File Number SR–CBOE– 2010–055 and should be submitted on or before July 8, 2010. IV. Solicitation of Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. 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: [FR Doc. 2010–14606 Filed 6–16–10; 8:45 am] BILLING CODE 8010–01–P 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–CBOE–2010–055 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–CBOE–2010–055. 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 Web site viewing and 14 For 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. 78c(f). PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62270; File No. SR– NASDAQ–2010–071] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ Stock Market LLC Relating to Trading Halts in Options During a Trading Pause in the Underlying Security June 10, 2010. 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 June 10, 2010, The NASDAQ Stock Market LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) 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 the NASDAQ. The Exchange has designated the proposed rule change as constituting a ‘‘non-controversial’’ rule change under paragraph (f)(6) of Rule 19b–4 under the Act,3 which renders the proposal effective upon receipt of this filing by the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 1 15 E:\FR\FM\17JNN1.SGM 17JNN1 Federal Register / Vol. 75, No. 116 / Thursday, June 17, 2010 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The NASDAQ Stock Market LLC proposes to modify NASDAQ Options Market (‘‘NOM’’) Rule Chapter V, Section 3 by adopting new subparagraph (3)(a)vi to state that Trading on the Exchange in any option contract shall be halted whenever trading in the underlying security has been paused by the primary listing market. Trading in such options contracts may be resumed upon a determination by the Exchange that the conditions that led to the pause are no longer present and that the interests of a fair and orderly market are best served by a resumption of trading, which in no circumstances will be before the Exchange has received notification that the underlying security has resumed trading on at least one exchange. The text of the proposed rule change is available on the Exchange’s Web site at https:// www.nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change. 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 mstockstill on DSKH9S0YB1PROD with NOTICES 1. Purpose The purpose of the proposed rule change is to ensure that the Exchange maintains fair and orderly markets in options upon the imposition of a single stock pause (‘‘trading pause’’) 4 by the listing market for the underlying security. Accordingly, as proposed, if such a trading pause is imposed, it will be considered a halt or suspension on the primary market for the underlying 4 For an example of the use of the term ‘‘trading pause,’’ see Securities Exchange Act Release No. 62129 (May 19, 2010), 75 FR 28839 (May 24, 2010) (SR–NASDAQ–2010–061); and Securities Exchange Act Release No. 62124 (May 19, 2010), 75 FR 28828 (May 24, 2010) (SR–BX–2010–037). VerDate Mar<15>2010 16:13 Jun 16, 2010 Jkt 220001 security and a trading halt in the overlying option will be imposed. Transactions that occur between the time the pause is imposed on the listing market and the halt is processed on NOM may be nullified pursuant to NOM Rules, Chapter V, Section 6.5 Trading in the affected option will resume upon a determination by Nasdaq that the conditions that led to the pause are no longer present and that the interests of a fair and orderly market are best served by a resumption of trading, which in no circumstances will be before the Exchange has received notification that the underlying security has resumed trading on at least one exchange. Orders in the affected option that are received during the halt on NOM will be treated as pre-opening orders and will be re-opened upon resumption of trading on the listing market for the underlying security using the opening cross process described in NOM Rules, Chapter VI, Section 8. 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6(b) of the Act 6 in general, and furthers the objectives of Section 6(b)(5) of the Act 7 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. Specifically, NASDAQ believes that the proposal benefits customers by halting trading in options during times of uncertainty regarding the price of the underlying security due to a trading pause in such underlying security. B. Self-Regulatory Organization’s Statement on Burden on Competition NASDAQ 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. 5 Chapter V, Section 6 is the NOM rule governing Obvious Errors. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 34511 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, it has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b–4(f)(6) thereunder.9 The Exchange requested that the Commission waive the 30-day operative delay. The Exchange notes that such a waiver will permit it to immediately implement the proposed rule change in order to benefit customers by halting trading in options during times of uncertainty regarding the price of the underlying security due to a trading pause in such underlying security. The Commission approved filings from the exchanges and the Financial Industry Regulatory Authority to institute a single stock trading pause for equity securities that experience a 10% change in price during a five minute period.10 The Commission hereby grants the Exchange’s request and believes such waiver is consistent with the protection of investors and the public interest as it will allow the Exchange to honor pauses triggered on individual equity securities.11 Accordingly, the Commission designates the proposed rule change 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. 8 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 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. The Exchange has satisfied this requirement. 10 See Securities Exchange Act Release Nos. 62251 and 62252 (June 10, 2010). 11 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. See 15 U.S.C. 78c(f). 9 17 E:\FR\FM\17JNN1.SGM 17JNN1 34512 Federal Register / Vol. 75, No. 116 / Thursday, June 17, 2010 / Notices IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: [FR Doc. 2010–14604 Filed 6–16–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2010–071 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. mstockstill on DSKH9S0YB1PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [Release No. 34–62268; File No. SR–BX– 2010–039] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Halting Trading Whenever Trading in the Underlying Security Has Been Paused by the Primary Listing Market June 10, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 10, All submissions should refer to File 2010, NASDAQ OMX BX, Inc. (the Number SR–NASDAQ–2010–071. This ‘‘Exchange’’) filed with the Securities file number should be included on the subject line if e-mail is used. To help the and Exchange Commission (‘‘Commission’’) the proposed rule Commission process and review your change as described in Items I and II comments more efficiently, please use only one method. The Commission will below, which Items have been prepared by the Exchange. The Exchange filed the post all comments on the Commission’s proposed rule change pursuant to Internet Web site (https://www.sec.gov/ Section 19(b)(3)(A) of the Act,3 and Rule rules/sro.shtml). Copies of the 19b–4(f)(6) thereunder,4 which renders submission, all subsequent the proposal effective upon filing with amendments, all written statements the Commission. The Commission is with respect to the proposed rule publishing this notice to solicit change that are filed with the comments on the proposed rule from Commission, and all written interested persons. communications relating to the I. Self-Regulatory Organization’s proposed rule change between the Commission and any person, other than Statement of the Terms of Substance of the Proposed Rule Change those that may be withheld from the The Exchange proposes to amend the public in accordance with the Chapter V, Section 10 of the Rules of the provisions of 5 U.S.C. 552, will be Boston Options Exchange Group, LLC available for Web site viewing and (‘‘BOX’’) to state that trading in any printing in the Commission’s Public option contract shall be halted Reference Room on official business whenever trading in the underlying days between the hours of 10 a.m. and security has been paused by the primary 3 p.m. Copies of such filing also will be listing market. The text of the proposed available for inspection and copying at the principal office of the Exchange. All rule change is available from the principal office of the Exchange, on the comments received will be posted Commission’s Web site at https:// without change; the Commission does www.sec.gov, at the Commission’s not edit personal identifying Public Reference Room and also on the information from submissions. You Exchange’s Internet Web site at https:// should submit only information that nasdaqomxbx.cchwallstreet.com/ you wish to make available publicly. All NASDAQOMXBX/Filings/. submissions should refer to File Number SR–NASDAQ–2010–071 and 12 17 CFR 200.30–3(a)(12). should be submitted on or before July 8, 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 2010. 3 15 4 17 VerDate Mar<15>2010 16:13 Jun 16, 2010 Jkt 220001 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). Frm 00095 Fmt 4703 Sfmt 4703 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant 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 Securities and Exchange Commission recently approved rules changes relating to trading pauses due to extraordinary market volatility (‘‘trading pause’’).5 The purpose of the proposed rule change is to ensure that the Exchange maintains a fair and orderly market upon the imposition of a trading pause. Accordingly, as proposed, trading in any option contract shall be halted whenever trading in the underlying security has been paused by the primary listing market. Trading in such options contracts may be resumed upon a determination by the Exchange that the conditions that led to the pause are no longer present and that the interests of a fair and orderly market are best served by a resumption of trading, which in no circumstances will be before the Exchange has received notification that the underlying security has resumed trading on at least one exchange. The Exchange anticipates that all U.S. options exchanges will be submitting similar proposals. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act 6 in general, and furthers the objectives of Section 6(b)(5) of the Act 7 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and 5 See Securities Exchange Act Release No. 34– 62252 (June 10, 2010), (SR–BATS–2010–014; SR– EDGA–2010–01; SR–EDGX–2010–01; SR–BX–2010– 037; SR–ISE–2010–48; SR–NYSE–2010–39; SR– NYSEAmex–2010–46; SR–NYSEArca–2010–41; SR– NASDAQ–2010–061; SR–CHX–2010–10; SR–NSX– 2010–05; SR–CBOE–2010–047). The term trading pause is not defined in the BOX Trading Rules, but is described in these recently approved rules. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). E:\FR\FM\17JNN1.SGM 17JNN1

Agencies

[Federal Register Volume 75, Number 116 (Thursday, June 17, 2010)]
[Notices]
[Pages 34510-34512]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-14604]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62270; File No. SR-NASDAQ-2010-071]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ Stock Market LLC 
Relating to Trading Halts in Options During a Trading Pause in the 
Underlying Security

June 10, 2010.
    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 June 10, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') 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 the NASDAQ. The 
Exchange has designated the proposed rule change as constituting a 
``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-4 
under the Act,\3\ which renders the proposal effective upon receipt of 
this filing by 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\ 17 CFR 240.19b-4(f)(6).

---------------------------------------------------------------------------

[[Page 34511]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NASDAQ Stock Market LLC proposes to modify NASDAQ Options 
Market (``NOM'') Rule Chapter V, Section 3 by adopting new sub-
paragraph (3)(a)vi to state that Trading on the Exchange in any option 
contract shall be halted whenever trading in the underlying security 
has been paused by the primary listing market. Trading in such options 
contracts may be resumed upon a determination by the Exchange that the 
conditions that led to the pause are no longer present and that the 
interests of a fair and orderly market are best served by a resumption 
of trading, which in no circumstances will be before the Exchange has 
received notification that the underlying security has resumed trading 
on at least one exchange.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://www.nasdaq.cchwallstreet.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change. 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 purpose of the proposed rule change is to ensure that the 
Exchange maintains fair and orderly markets in options upon the 
imposition of a single stock pause (``trading pause'') \4\ by the 
listing market for the underlying security. Accordingly, as proposed, 
if such a trading pause is imposed, it will be considered a halt or 
suspension on the primary market for the underlying security and a 
trading halt in the overlying option will be imposed.
---------------------------------------------------------------------------

    \4\ For an example of the use of the term ``trading pause,'' see 
Securities Exchange Act Release No. 62129 (May 19, 2010), 75 FR 
28839 (May 24, 2010) (SR-NASDAQ-2010-061); and Securities Exchange 
Act Release No. 62124 (May 19, 2010), 75 FR 28828 (May 24, 2010) 
(SR-BX-2010-037).
---------------------------------------------------------------------------

    Transactions that occur between the time the pause is imposed on 
the listing market and the halt is processed on NOM may be nullified 
pursuant to NOM Rules, Chapter V, Section 6.\5\
---------------------------------------------------------------------------

    \5\ Chapter V, Section 6 is the NOM rule governing Obvious 
Errors.
---------------------------------------------------------------------------

    Trading in the affected option will resume upon a determination by 
Nasdaq that the conditions that led to the pause are no longer present 
and that the interests of a fair and orderly market are best served by 
a resumption of trading, which in no circumstances will be before the 
Exchange has received notification that the underlying security has 
resumed trading on at least one exchange.
    Orders in the affected option that are received during the halt on 
NOM will be treated as pre-opening orders and will be re-opened upon 
resumption of trading on the listing market for the underlying security 
using the opening cross process described in NOM Rules, Chapter VI, 
Section 8.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6(b) of the Act \6\ in general, and furthers 
the objectives of Section 6(b)(5) of the Act \7\ in particular, in that 
it is designed to promote just and equitable principles of trade, to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, and, in general to protect 
investors and the public interest. Specifically, NASDAQ believes that 
the proposal benefits customers by halting trading in options during 
times of uncertainty regarding the price of the underlying security due 
to a trading pause in such underlying security.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 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 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

    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, it 
has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and 
Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). 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. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    The Exchange requested that the Commission waive the 30-day 
operative delay. The Exchange notes that such a waiver will permit it 
to immediately implement the proposed rule change in order to benefit 
customers by halting trading in options during times of uncertainty 
regarding the price of the underlying security due to a trading pause 
in such underlying security. The Commission approved filings from the 
exchanges and the Financial Industry Regulatory Authority to institute 
a single stock trading pause for equity securities that experience a 
10% change in price during a five minute period.\10\ The Commission 
hereby grants the Exchange's request and believes such waiver is 
consistent with the protection of investors and the public interest as 
it will allow the Exchange to honor pauses triggered on individual 
equity securities.\11\ Accordingly, the Commission designates the 
proposed rule change operative upon filing with the Commission.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release Nos. 62251 and 62252 
(June 10, 2010).
    \11\ 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. See 15 
U.S.C. 78c(f).
---------------------------------------------------------------------------

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

[[Page 34512]]

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-2010-071 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-2010-071. 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 Web site 
viewing and printing 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 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 Number SR-NASDAQ-2010-071 and should be submitted on or before 
July 8, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-14604 Filed 6-16-10; 8:45 am]
BILLING CODE 8010-01-P
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