Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Two Aspects of the Rules and Operation of The NASDAQ Options Market, 72855-72857 [2010-29721]
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srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 227 / Friday, November 26, 2010 / Notices
coverage than the member’s minimum
required coverage under the rule. The
parent organization’s bond must contain
a rider that provides for the subsidiary
broker-dealer’s coverage by enumerating
the requirements of the FINRA rule and
providing for, at a minimum, the
subsidiary’s minimum required
coverage. Accordingly, FINRA does not
propose to amend the proposed rule in
this respect as it is unnecessary.
Two commenters urged FINRA to
maintain an exemption from the fidelity
bond requirements for one-person
firms.30 The commenters noted that
FINRA could be requiring coverage that
is not available in the marketplace,
since the alter ego concept applies to
fidelity bond claims for these entities.
As noted above in the Purpose section
of this rule filing, many one-person
firms currently maintain fidelity bond
coverage notwithstanding the
exemption in NASD Rule 3020, and
claims are likely to be paid based on a
facts-and-circumstances analysis, not on
a firm’s size or structure. As such,
FINRA is not proposing any changes to
the original proposal in this respect.
One commenter noted that the
proposed rule serves no purpose to
investors of the financial markets in its
application to small firms that do not
hold customer funds, execute
transactions in securities on public
markets, or engage in trading or
underwriting (e.g., a firm that solely
provides corporate financial advisory
services for fee income).31
FINRA believes that all members of
SIPC should maintain fidelity bond
coverage. FINRA does not agree with the
commenter’s assessment, since any firm
could be the target of malfeasance of one
of its employees. Thus, FINRA is not
proposing to incorporate an exemption
for these small firms.
One commenter encouraged FINRA to
incorporate a requirement for an
insuring agreement for Computer
Theft.32 FINRA did not amend the
proposal to add this insuring agreement
at this time; however, FINRA
understands that this coverage is
already included in most basic riders
obtained by members at no extra cost, so
a member will likely obtain this
coverage automatically as part of its
fidelity bond coverage.
One commenter supported increased
deductible thresholds; however, the
commenter suggested deleting the
haircut provision because the proposed
rule may discourage a firm from
pursuing or accepting higher
and Travelers.
Bay.
32 Travelers.
deductibles if it has to take a haircut in
its net capital computation for
deductibles over 10 percent.33 Another
commenter suggested that the annual
review requirement is duplicitous and
unnecessary and that the proposed rule
should speak solely to minimum bond
requirements for members.34 The
commenter noted that fidelity bond
reviews should be triggered by changes
in a firm’s net capital requirement and
not subject to an annual requirement,
since the firm would likely review how
any changes in net capital affect all
aspects of the firm when such changes
occur. FINRA did not make any
amendments to the proposal in these
areas as these concepts have not been
substantively amended from the legacy
NASD rule, and FINRA believes that
they are achieving their intended
purposes.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or (B)
institute proceedings to determine
whether the proposed rule change
should be disapproved.
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:
VerDate Mar<15>2010
16:32 Nov 24, 2010
All submissions should refer to File
Number SR–FINRA–2010–059. 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
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, 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
FINRA. 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–FINRA–2010–059 and
should be submitted on or before
December 17, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–29727 Filed 11–24–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–63341; File No. SR–
NASDAQ–2010–147]
• 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–FINRA–2010–059 on the
subject line.
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify Two
Aspects of the Rules and Operation of
The NASDAQ Options Market
November 18, 2010.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
30 SFAA
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 November
10, 2010, The NASDAQ Stock Market
35 17
31 Akin
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
33 Travelers.
1 15
34 IBI.
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Federal Register / Vol. 75, No. 227 / Friday, November 26, 2010 / Notices
LLC (the ‘‘Exchange’’ or ‘‘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 the Exchange.
The Exchange has designated the
proposed rule change as constituting a
non-controversial rule change under
Rule 19b–4(f)(6) under the Act,3 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing this proposed
rule change to modify two aspects of the
rules and operation of the NASDAQ
Options Market (‘‘NOM’’): (1) To
eliminate the Closing Cross set forth in
Chapter VI, Section 9 of the rules; and
(2) to increase the maximum order size
from 9,999 to 999,999 contracts in
Chapter VI, Section 1 of the rules. The
text of the proposed rule change is
available at https://
nasdaq.cchwallstreet.com/, at the
Exchange’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, 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.
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 NASDAQ Options Market
(‘‘NOM’’), the options trading facility of
The NASDAQ Stock Market LLC, has
been fully operational for just over two
years. After assessing NOM’s
performance, NASDAQ has identified
two minor changes to NOM’s operation:
(1) Eliminating the Closing Cross set
forth in Chapter VI, Section 9 of the
rules; and (2) increasing the maximum
order size from 9,999 to 999,999
3 17
CFR 240.19b–4(f)(6).
VerDate Mar<15>2010
16:32 Nov 24, 2010
Jkt 223001
contracts in Chapter VI, Section 1 of the
rules. NASDAQ believes that neither of
these changes will have a material
impact on the operation of NOM or of
NOM members.
1. Eliminating the NOM Closing Cross
NASDAQ’s proposal to transport the
closing cross from NASDAQ’s equities
market to NOM was intended to
determine whether a standard closing
cross could aid price discovery and
liquidity in a derivative product.
Although a few market participants
experimented with the NOM Closing
Cross just after launch, the Closing
Cross never attracted meaningful
liquidity. The Closing Cross has not
been used by any market participant in
any options class for quite some time.
Accordingly, NASDAQ is proposing to
eliminate that functionality from the
technology and from the rule book
(Chapter VI, Section 9) governing NOM.
2. Increasing the Maximum Order Size
NASDAQ members have requested
the ability to enter orders into the
system of greater than 9,999 contracts.
The existing limit on order size was a
technological constraint that can easily
be modified. Accordingly, NASDAQ
proposes to modify the system and
downstream processes and data feeds to
accept orders of up to 999,999 contracts.
Following this change, NOM will match
the maximum order size currently in
place at other options exchanges.4
NASDAQ has safeguards in place to
protect the market from inadvertent
entry of large orders. Each member that
requests connectivity through an order
entry port is required to specify the
maximum order size for its individual
port.5 NASDAQ sets the default
maximum order size at 2,500 contracts.
Members are permitted to deviate from
the default maximum order size but
NASDAQ members are required to have
processes and procedures in place to
ensure the proper entry and monitoring
of orders entered into NASDAQ
systems. Prior to implementing this
change, NASDAQ will issue an alert to
members to ensure that they have
policies and procedures in place to
employ the new functionality in a
prudent fashion.
4 See. e.g., BATS Exchange Rule 21.1(e) (‘‘The
term ‘‘Order Size’’ shall mean the number of
contracts up to 999,999 associated with the Order’’);
CBOE Regulatory Circular RG 10–43 (March 26,
2010) at https://www.cboe.org/publish/RegCir/
RG10-043.pdf.
5 See NASDAQ Options Port Request Form at
https://www.nasdaqtrader.com/content/
AdministrationSupport/AgreementsTrading/
options_portrequest.pdf.
PO 00000
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2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,6 in
general, and with Section 6(b)(5) of the
Act,7 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
changes should enhance the NOM
market as described above based on
NASDAQ’s experience operating NOM
for two years.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act8 and Rule 19b–
4(f)(6) thereunder.9
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend 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
6 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
7 15
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Federal Register / Vol. 75, No. 227 / Friday, November 26, 2010 / Notices
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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
srobinson on DSKHWCL6B1PROD with NOTICES
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–2010–147. 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,10 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, 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 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
10 The text of the proposed rule change is
available on Exchange’s Web site at https://
nasdaq.cchwallstreet.com/, on the Commission’s
Web site at https://www.sec.gov, at NASDAQ, and at
the Commission’s Public Reference Room.
16:32 Nov 24, 2010
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–29721 Filed 11–24–10; 8:45 am]
BILLING CODE 8011–01–P
• 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–2010–147 on the
subject line.
VerDate Mar<15>2010
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–2010–147 and should be
submitted on or before December 17,
2010.
Jkt 223001
SUSQUEHANNA RIVER BASIN
COMMISSION
Notice of Public Hearing and
Commission Meeting
Susquehanna River Basin
Commission.
ACTION: Notice of public hearing and
Commission meeting.
AGENCY:
The Susquehanna River Basin
Commission will hold a public hearing
as part of its regular business meeting
on December 16, 2010, in Aberdeen,
Md. At the public hearing, the
Commission will consider: (1) Action on
certain water resources projects; (2)
compliance matters involving two
projects; and (3) the rescission of a
docket approval. Details concerning the
matters to be addressed at the public
hearing and business meeting are
contained in the SUPPLEMENTARY
INFORMATION section of this notice.
DATES: December 16, 2010, at 8:30 a.m.
ADDRESSES: Hilton Garden Inn
Aberdeen, 1050 Beards Hill Road,
Aberdeen, MD 21001.
FOR FURTHER INFORMATION CONTACT:
Richard A. Cairo, General Counsel,
telephone: (717) 238–0423, ext. 306; fax:
(717) 238–2436; e-mail: rcairo@srbc.net
or Stephanie L. Richardson, Secretary to
the Commission, telephone: (717) 238–
0423, ext. 304; fax: (717) 238–2436; email: srichardson@srbc.net.
SUPPLEMENTARY INFORMATION: In
addition to the public hearing and its
related action items identified below,
the business meeting also includes
actions or presentations on the
following items: (1) Presentations on
Climate Change Initiatives to Protect the
Chesapeake Bay; (2) hydrologic
conditions in the basin; (3) FY–2012
funding of the Susquehanna Flood
Forecast and Warning System; (4)
ratification/approval of grants/contracts;
SUMMARY:
11 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00078
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(5) a Record Retention and Destruction
Policy; (6) the FY–2010 Audit Report;
(7) a proposed FY–2011 Capital Budget;
(8) acquisition of new headquarters
facilities; (9) a recommendation for new
independent auditors; and (10)
amendment of Commission By-Laws.
The Commission will also hear Legal
Counsel’s report.
Public Hearing—Compliance Matters
1. Project Sponsor: Chesapeake
Appalachia, LLC. Withdrawal ID:
Susquehanna River—Hicks (Docket No.
20091201), Great Bend Township,
Susquehanna County, Pa.
2. Project Sponsor: J–W Operating
Company. Pad ID: Pardee & Curtin
Lumber Co. C–12H, Shippen Township,
Cameron County, Pa.
Public Hearing—Projects Scheduled for
Action
1. Project Sponsor and Facility:
Anadarko E&P Company LP (Pine
Creek—3), Watson Township, Lycoming
County, Pa. Application for surface
water withdrawal of up to 0.720 mgd.
2. Project Sponsor: Aqua
Pennsylvania, Inc. Project Facility:
Monroe Manor Water System, Monroe
Township, Snyder County, Pa.
Application for groundwater
withdrawal of up to 0.415 mgd from
Well 6.
3. Project Sponsor and Facility: East
Resources Management, LLC
(Cowanesque River), Westfield
Township, Tioga County, Pa.
Application for surface water
withdrawal of up to 0.375 mgd.
4. Project Sponsor and Facility: EXCO
Resources (PA), LLC (West Branch
Susquehanna River), Curwensville
Borough, Clearfield County, Pa.
Application for surface water
withdrawal of up to 2.000 mgd.
5. Project Sponsor: Hughesville-Wolf
Township Joint Municipal Authority.
Project Facility: Wastewater Treatment
Plant, Wolf Township, Lycoming
County, Pa. Application for withdrawal
of treated wastewater effluent of up to
0.249 mgd.
6. Project Sponsor and Facility:
Leonard & Jean Marie Azaravich
(Meshoppen Creek), Springville
Township, Susquehanna County, Pa.
Application for surface water
withdrawal of up to 0.249 mgd.
7. Project Sponsor and Facility: LHP
Management, LLC (Fishing Creek—
Clinton Country Club), Bald Eagle
Township, Clinton County, Pa.
Modification to increase surface water
withdrawal up to 0.999 mgd (Docket No.
20090906).
8. Project Sponsor and Facility: Linde
Corporation (Lackawanna River), Fell
E:\FR\FM\26NON1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 227 (Friday, November 26, 2010)]
[Notices]
[Pages 72855-72857]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29721]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63341; File No. SR-NASDAQ-2010-147]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Two Aspects of the Rules and Operation of The NASDAQ Options
Market
November 18, 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 November 10, 2010, The NASDAQ Stock Market
[[Page 72856]]
LLC (the ``Exchange'' or ``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 the Exchange. The Exchange has designated the proposed rule change
as constituting a non-controversial rule change under Rule 19b-4(f)(6)
under the Act,\3\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing this proposed rule change to modify two
aspects of the rules and operation of the NASDAQ Options Market
(``NOM''): (1) To eliminate the Closing Cross set forth in Chapter VI,
Section 9 of the rules; and (2) to increase the maximum order size from
9,999 to 999,999 contracts in Chapter VI, Section 1 of the rules. The
text of the proposed rule change is available at https://nasdaq.cchwallstreet.com/, at the Exchange'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, 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 NASDAQ Options Market (``NOM''), the options trading facility
of The NASDAQ Stock Market LLC, has been fully operational for just
over two years. After assessing NOM's performance, NASDAQ has
identified two minor changes to NOM's operation: (1) Eliminating the
Closing Cross set forth in Chapter VI, Section 9 of the rules; and (2)
increasing the maximum order size from 9,999 to 999,999 contracts in
Chapter VI, Section 1 of the rules. NASDAQ believes that neither of
these changes will have a material impact on the operation of NOM or of
NOM members.
1. Eliminating the NOM Closing Cross
NASDAQ's proposal to transport the closing cross from NASDAQ's
equities market to NOM was intended to determine whether a standard
closing cross could aid price discovery and liquidity in a derivative
product. Although a few market participants experimented with the NOM
Closing Cross just after launch, the Closing Cross never attracted
meaningful liquidity. The Closing Cross has not been used by any market
participant in any options class for quite some time. Accordingly,
NASDAQ is proposing to eliminate that functionality from the technology
and from the rule book (Chapter VI, Section 9) governing NOM.
2. Increasing the Maximum Order Size
NASDAQ members have requested the ability to enter orders into the
system of greater than 9,999 contracts. The existing limit on order
size was a technological constraint that can easily be modified.
Accordingly, NASDAQ proposes to modify the system and downstream
processes and data feeds to accept orders of up to 999,999 contracts.
Following this change, NOM will match the maximum order size currently
in place at other options exchanges.\4\
---------------------------------------------------------------------------
\4\ See. e.g., BATS Exchange Rule 21.1(e) (``The term ``Order
Size'' shall mean the number of contracts up to 999,999 associated
with the Order''); CBOE Regulatory Circular RG 10-43 (March 26,
2010) at https://www.cboe.org/publish/RegCir/RG10-043.pdf.
---------------------------------------------------------------------------
NASDAQ has safeguards in place to protect the market from
inadvertent entry of large orders. Each member that requests
connectivity through an order entry port is required to specify the
maximum order size for its individual port.\5\ NASDAQ sets the default
maximum order size at 2,500 contracts. Members are permitted to deviate
from the default maximum order size but NASDAQ members are required to
have processes and procedures in place to ensure the proper entry and
monitoring of orders entered into NASDAQ systems. Prior to implementing
this change, NASDAQ will issue an alert to members to ensure that they
have policies and procedures in place to employ the new functionality
in a prudent fashion.
---------------------------------------------------------------------------
\5\ See NASDAQ Options Port Request Form at https://www.nasdaqtrader.com/content/AdministrationSupport/AgreementsTrading/options_portrequest.pdf.
---------------------------------------------------------------------------
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\6\ in general, and with Section
6(b)(5) of the Act,\7\ 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 changes
should enhance the NOM market as described above based on NASDAQ's
experience operating NOM for two years.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act\8\ and Rule 19b-
4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend 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
[[Page 72857]]
the purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
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-2010-147 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-2010-147. 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,\10\ 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, 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 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-2010-147 and should be submitted on or before
December 17, 2010.
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\10\ The text of the proposed rule change is available on
Exchange's Web site at https://nasdaq.cchwallstreet.com/, on the
Commission's Web site at https://www.sec.gov, at NASDAQ, and at the
Commission's Public Reference Room.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-29721 Filed 11-24-10; 8:45 am]
BILLING CODE 8011-01-P
