Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Provide an Exemption from the Thirty-Day Written Notice Requirement of Rule 7018(i)(3), 79056-79058 [2010-31682]
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79056
Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Notices
2. Comments by interested persons in
these proceedings are due no later than
December 21, 2010.
3. Pursuant to 39 U.S.C. 505, Paul L.
Harrington is appointed to serve as the
officer of the Commission (Public
Representative) to represent the
interests of the general public in these
proceedings.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010–31671 Filed 12–16–10; 8:45 am]
BILLING CODE 7710–FW–P
RAILROAD RETIREMENT BOARD
Proposed Data Collection(s) Available
for Public Comment and
Recommendations
In accordance with the
requirement of Section 3506 (c)(2)(A) of
SUMMARY:
the Paperwork Reduction Act of 1995
which provides opportunity for public
comment on new or revised data
collections, the Railroad Retirement
Board (RRB) will publish periodic
summaries of proposed data collections.
Comments are invited on: (a) Whether
the proposed information collections are
necessary for the proper performance of
the functions of the agency, including
whether the information has practical
utility; (b) the accuracy of the RRB’s
estimate of the burden for the collection
of the information; (c) ways to enhance
the quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden related to
the collection of information on
respondents, including the use of
automated collection techniques or
other forms of information technology.
1. Title and Purpose of Information
Collection
Representative Payee Parental
Custody Monitoring: OMB 3220–0176.
Under Section 12 (a) of the Railroad
Retirement Act (RRA), the Railroad
Retirement Board (RRB) is authorized to
select, make payments to, and to
conduct transactions with, a
beneficiary’s relative or some other
person willing to act on behalf of the
beneficiary as a representative payee.
The RRB is responsible for determining
if direct payment to the beneficiary or
payment to a representative payee
would best serve the beneficiary’s
interest. Inherent in the RRB’s
authorization to select a representative
payee is the responsibility to monitor
the payee to assure that the beneficiary’s
interests are protected. The RRB utilizes
Form G–99d, Parental Custody Report,
to obtain information needed to verify
that a parent-for-child representative
payee still has custody of the child. One
response is required from each
respondent. The RRB proposes no
changes to Form G–99d.
The estimated annual respondent
burden is as follows:
Annual
responses
Form #(s)
G–99d ..........................................................................................................................................
2. Title and Purpose of Information
Collection
Report of Medicaid State Office on
Beneficiary’s Buy-In Status; OMB 3220–
0185.
Under Section 7(d) of the Railroad
Retirement Act, the RRB administers the
Medicare program for persons covered
by the railroad retirement system. Under
Section 1843 of the Social Security Act,
states may enter into ‘‘buy-in
agreements’’ with the Secretary of
Health and Human Services for the
purpose of enrolling certain groups of
low-income individuals under the
Medicare medical insurance (Part B)
program and paying the premiums for
their insurance coverage. Generally,
these individuals are categorically
needy under Medicaid and meet the
eligibility requirements for Medicare
Part B. States can also include in their
buy-in agreements, individuals who are
eligible for medical assistance only. The
RRB uses Form RL–380–F, Report to
1,030
emcdonald on DSK2BSOYB1PROD with NOTICES
RL–380–F ....................................................................................................................................
Additional Information or Comments:
To request more information or to
obtain a copy of the information
collection justification, forms, and/or
supporting material, please call the RRB
Clearance Officer at (312) 751–3363 or
send an e-mail request to
Charles.Mierzwa@RRB.GOV. Comments
regarding the information collection
should be addressed to Patricia A.
Henaghan, Railroad Retirement Board,
844 North Rush Street, Chicago, Illinois
60611–2092 or send an e-mail to
Patricia.Henaghan@RRB.GOV. Written
VerDate Mar<15>2010
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Burden (hrs)
5
86
State Medicaid Office, to obtain
information needed to determine if
certain railroad beneficiaries are entitled
to receive Supplementary Medical
Insurance program coverage under a
state buy-in agreement in states in
which they reside. Completion of Form
RL–380–F is voluntary. One response is
received from each respondent. The
RRB proposes no changes to Form RL–
380–F.
The estimated annual respondent
burden is as follows:
Annual
responses
Form #(s)
Time (min)
Time (min)
600
Burden (hrs)
10
100
comments should be received within 60
days of this notice.
SECURITIES AND EXCHANGE
COMMISSION
Charles Mierzwa,
Clearance Officer.
[Release No. 34–63530; File No. SR–
NASDAQ–2010–164]
[FR Doc. 2010–31795 Filed 12–16–10; 8:45 am]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Provide an
Exemption from the Thirty-Day Written
Notice Requirement of Rule 7018(i)(3)
BILLING CODE 7905–01–P
PO 00000
December 10, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
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Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Notices
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
9, 2010, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by NASDAQ. 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 the Substance
of the Proposed Rule Change
NASDAQ is proposing to modify the
thirty-day written notice requirement
applicable to a member firm seeking to
withdraw as Designated Liquidity
Provider.
The text of the proposed rule change
is below. Proposed new language is
italicized.
7018. Nasdaq Market Center Order
Execution and Routing
(a)–(h) No change.
(i) Notwithstanding the foregoing, the
following charges shall apply to
transactions in a Qualified Security by
one of its Designated Liquidity
Providers:
emcdonald on DSK2BSOYB1PROD with NOTICES
Charge to Designated Liquidity Provider entering Order
that executes
in the Nasdaq
Market Center
or attempts to
execute in the
Nasdaq Market
Center prior to
routing:.
Credit to Designated Liquidity Provider
providing displayed liquidity
through the
Nasdaq Market
Center:.
$0.003 per share executed for securities
priced at $1 or more
per share (For securities priced at less than
$1 per share, the normal execution fee under
7018(a) will apply).
$0.004 per share executed (or $0, in the
case of executions
against Quotes/Orders
in the Nasdaq Market
Center at less than
$1.00 per share), up to
10 million shares average daily volume.
Normal credits under
7018(a) apply to shares
greater than 10 million
average daily volume
and nondisplayed liquidity.
For purposes of this paragraph:
(1)–(2) No change.
(3) If a DLP does not meet the
performance measurements for a given
month, fees and credits will revert to the
normal schedule under 7018(a). If a DLP
does not meet the stated performance
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate Mar<15>2010
16:45 Dec 16, 2010
Jkt 223001
measurements for 3 out of the past 4
months, the DLP is subject to forfeit of
DLP status for that instrument, at
NASDAQ’s discretion. A DLP must
provide 30 days written notice if it
wishes to withdraw its registration in a
Qualified Security, unless it is also
withdrawing as a market maker in the
Qualified Security.
(j) No change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASDAQ included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below.
NASDAQ has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASDAQ is proposing to modify the
thirty-day written notice requirement
applicable to a member firm seeking to
withdraw as Designated Liquidity
Provider (‘‘DLP’’) in a Qualified
Security 3 to exempt member firms that
are also withdrawing as a market maker
in the Qualified Security. NASDAQ
recently amended Rule 7018(i) to
include new subparagraph (3),
discussing DLP performance
requirements and adopting a 30 day
written notice requirement of a member
firm’s desire to withdraw as a DLP in a
Qualified Security.4 Specifically,
NASDAQ described the consequences of
failing to meet the DLP minimum
performance criteria described in Rule
7018(i)(2) and adopted a thirty-day prior
notice obligation on DLPs seeking to
withdraw registration in a Qualified
Security. The thirty-day notice
requirement was adopted to ensure that
NASDAQ has adequate time to assign a
new DLP, thus avoiding any disruption
3 To be designated as a ‘‘Qualified Security,’’ Rule
7018(i)(1) requires that the security is an exchangetraded fund or index-linked security listed on
Nasdaq pursuant to Nasdaq Rules 5705, 5710, or
5720, and that it has at least one Designated
Liquidity Provider.
4 Securities Exchange Act Release No. 63040
(October 5, 2010), 75 FR 63238 (October 14, 2010)
(SR–NASDAQ–2010–128).
PO 00000
Frm 00093
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79057
in market quality that may be caused by
the absence of an assigned DLP.
NASDAQ is proposing an exemption
to the thirty-day written notice
requirement limited to member firms
seeking to withdraw both as a DLP and
market maker in a Qualified Security.
NASDAQ rules do not specify or require
a minimum time of prior notice of a
member firm’s desire to withdraw as a
market maker in a particular security.5
As such, a member firm may withdraw
from any given security the same day as
notice is provided to NASDAQ. A
member firm is, however, restricted
from making a market in any security
that it has withdrawn from for 20 days.6
To be a DLP, a member firm must be a
registered market maker in the Qualified
Security.7 Therefore, if a member firm
withdraws its registration as a market
maker in a Qualified Security, it is not
eligible to act as a DLP.
NASDAQ adopted the thirty-day
written notice of withdrawal
requirement so that it would have
adequate time to assign a new DLP as a
replacement of the withdrawing
member firm. Typically, a member firm
would continue as a market maker in
the security that it was withdrawing its
DLP designation, and thus was able to
avail itself of the benefits of making a
market in the Qualified Security.
NASDAQ believes that, in cases of
complete withdrawal from market
making in a Qualified Security, the
thirty-day written notice of withdrawal
requirement should not apply, since the
member firm is not seeking to continue
availing itself of the benefit of making
a market in the security, but rather is
completely withdrawing from making a
market in the security. Such member
firms have no intent to make markets in
the security and are precluded from
becoming a market maker in the security
for 20 days. Accordingly, NASDAQ does
not believe that compelling a member
firm to participate as a market maker
and DLP in a security during the thirtyday notice period is beneficial to the
member firm or the quality of the
market in the Qualified Security.
2. Statutory Basis
NASDAQ believes the proposed rule
change is consistent with the provisions
of Section 6 of the Act,8 in general and
with Section 6(b)(5) of the Act,9 in
particular, which requires that the rules
of an exchange be designed to prevent
fraudulent and manipulative acts and
5 Rule
4620(a).
6 Id.
7 Rule
7018(i)(2).
U.S.C. 78f.
9 15 U.S.C. 78f(b)(5).
8 15
E:\FR\FM\17DEN1.SGM
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79058
Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Notices
practices, promote just and equitable
principles of trade, foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, protect
investors and the public interest.
NASDAQ believes that the proposed
rule change is consistent with these
requirements because exempting
member firms that are entirely
withdrawing as a market maker in a
Qualified Security from the thirty-day
written notice requirement of Rule
7018(i)(3) eliminates an inconsistency
in the current rules concerning the
notice a market maker is required to
provide NASDAQ when it determines to
withdraw from making a market in
Qualified Securities. NASDAQ believes
a member firm should be able withdraw
from making a market in any security
under the terms of Rule 4620(a) and not
be subject to an additional notice
requirement that was designed to apply
to member firms that would continue to
participate as a registered market maker
in the security. Further, NASDAQ does
not believe that compelling a member
firm wishing to withdraw as a market
maker in a Qualified Security to
participate as a market maker and DLP
in that security during the thirty-day
notice period is beneficial to the
member firm or the quality of the
market in the Qualified Security.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
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.
emcdonald on DSK2BSOYB1PROD with NOTICES
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
VerDate Mar<15>2010
16:45 Dec 16, 2010
Jkt 223001
19(b)(3)(A)10 of the Act and Rule 19b–
4(f)(6) thereunder.11 At any time within
60 days of the filing of the proposed rule
change, the Commission may summarily
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
the purposes of the Act.
NASDAQ has asked that the
Commission waive the 30-day preoperative waiting period contained in
Rule 19b–4(f)(6)(iii).12 NASDAQ has
requested such waiver to quickly cure
an unintended inconsistency in the
notice requirements for withdrawing as
a market maker in certain securities.
Based on NASDAQ’s representations
that the proposed rule change is noncontroversial and that no novel issues
are presented in this proposed rule
change, the Commission sees no reason
to delay implementation of the
proposed rule change. The Commission
believes it is consistent with the
protection of investors and the public
interest to waive the 30-day operative
delay, and hereby grants such waiver.13
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2010–164 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–2010–164. 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
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
11 17
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
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 offices 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–2010–164, and
should be submitted on or before
January 7, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–31682 Filed 12–16–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63531; File No. SR–ISE–
2010–109]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to a Fee Waiver
December 10, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
30, 2010, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change, as described
in Items I and II below, which items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\17DEN1.SGM
17DEN1
]]>Agencies
[Federal Register Volume 75, Number 242 (Friday, December 17, 2010)]
[Notices]
[Pages 79056-79058]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31682]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63530; File No. SR-NASDAQ-2010-164]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Provide an Exemption from the Thirty-Day Written Notice Requirement of
Rule 7018(i)(3)
December 10, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 79057]]
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 9, 2010, The NASDAQ Stock Market LLC (``NASDAQ'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by NASDAQ. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
NASDAQ is proposing to modify the thirty-day written notice
requirement applicable to a member firm seeking to withdraw as
Designated Liquidity Provider.
The text of the proposed rule change is below. Proposed new
language is italicized.
7018. Nasdaq Market Center Order Execution and Routing
(a)-(h) No change.
(i) Notwithstanding the foregoing, the following charges shall
apply to transactions in a Qualified Security by one of its Designated
Liquidity Providers:
------------------------------------------------------------------------
------------------------------------------------------------------------
Charge to Designated Liquidity Provider $0.003 per share executed
entering Order that executes in the for securities priced at $1
Nasdaq Market Center or attempts to or more per share (For
execute in the Nasdaq Market Center prior securities priced at less
to routing:. than $1 per share, the
normal execution fee under
7018(a) will apply).
Credit to Designated Liquidity Provider $0.004 per share executed
providing displayed liquidity through the (or $0, in the case of
Nasdaq Market Center:. executions against Quotes/
Orders in the Nasdaq Market
Center at less than $1.00
per share), up to 10
million shares average
daily volume.
Normal credits under 7018(a)
apply to shares greater
than 10 million average
daily volume and
nondisplayed liquidity.
------------------------------------------------------------------------
For purposes of this paragraph:
(1)-(2) No change.
(3) If a DLP does not meet the performance measurements for a given
month, fees and credits will revert to the normal schedule under
7018(a). If a DLP does not meet the stated performance measurements for
3 out of the past 4 months, the DLP is subject to forfeit of DLP status
for that instrument, at NASDAQ's discretion. A DLP must provide 30 days
written notice if it wishes to withdraw its registration in a Qualified
Security, unless it is also withdrawing as a market maker in the
Qualified Security.
(j) No change.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASDAQ included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. NASDAQ has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is proposing to modify the thirty-day written notice
requirement applicable to a member firm seeking to withdraw as
Designated Liquidity Provider (``DLP'') in a Qualified Security \3\ to
exempt member firms that are also withdrawing as a market maker in the
Qualified Security. NASDAQ recently amended Rule 7018(i) to include new
subparagraph (3), discussing DLP performance requirements and adopting
a 30 day written notice requirement of a member firm's desire to
withdraw as a DLP in a Qualified Security.\4\ Specifically, NASDAQ
described the consequences of failing to meet the DLP minimum
performance criteria described in Rule 7018(i)(2) and adopted a thirty-
day prior notice obligation on DLPs seeking to withdraw registration in
a Qualified Security. The thirty-day notice requirement was adopted to
ensure that NASDAQ has adequate time to assign a new DLP, thus avoiding
any disruption in market quality that may be caused by the absence of
an assigned DLP.
---------------------------------------------------------------------------
\3\ To be designated as a ``Qualified Security,'' Rule
7018(i)(1) requires that the security is an exchange-traded fund or
index-linked security listed on Nasdaq pursuant to Nasdaq Rules
5705, 5710, or 5720, and that it has at least one Designated
Liquidity Provider.
\4\ Securities Exchange Act Release No. 63040 (October 5, 2010),
75 FR 63238 (October 14, 2010) (SR-NASDAQ-2010-128).
---------------------------------------------------------------------------
NASDAQ is proposing an exemption to the thirty-day written notice
requirement limited to member firms seeking to withdraw both as a DLP
and market maker in a Qualified Security. NASDAQ rules do not specify
or require a minimum time of prior notice of a member firm's desire to
withdraw as a market maker in a particular security.\5\ As such, a
member firm may withdraw from any given security the same day as notice
is provided to NASDAQ. A member firm is, however, restricted from
making a market in any security that it has withdrawn from for 20
days.\6\ To be a DLP, a member firm must be a registered market maker
in the Qualified Security.\7\ Therefore, if a member firm withdraws its
registration as a market maker in a Qualified Security, it is not
eligible to act as a DLP.
---------------------------------------------------------------------------
\5\ Rule 4620(a).
\6\ Id.
\7\ Rule 7018(i)(2).
---------------------------------------------------------------------------
NASDAQ adopted the thirty-day written notice of withdrawal
requirement so that it would have adequate time to assign a new DLP as
a replacement of the withdrawing member firm. Typically, a member firm
would continue as a market maker in the security that it was
withdrawing its DLP designation, and thus was able to avail itself of
the benefits of making a market in the Qualified Security. NASDAQ
believes that, in cases of complete withdrawal from market making in a
Qualified Security, the thirty-day written notice of withdrawal
requirement should not apply, since the member firm is not seeking to
continue availing itself of the benefit of making a market in the
security, but rather is completely withdrawing from making a market in
the security. Such member firms have no intent to make markets in the
security and are precluded from becoming a market maker in the security
for 20 days. Accordingly, NASDAQ does not believe that compelling a
member firm to participate as a market maker and DLP in a security
during the thirty-day notice period is beneficial to the member firm or
the quality of the market in the Qualified Security.
2. Statutory Basis
NASDAQ believes the proposed rule change is consistent with the
provisions of Section 6 of the Act,\8\ in general and with Section
6(b)(5) of the Act,\9\ in particular, which requires that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
[[Page 79058]]
practices, promote just and equitable principles of trade, foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, protect investors and the public interest.
NASDAQ believes that the proposed rule change is consistent with these
requirements because exempting member firms that are entirely
withdrawing as a market maker in a Qualified Security from the thirty-
day written notice requirement of Rule 7018(i)(3) eliminates an
inconsistency in the current rules concerning the notice a market maker
is required to provide NASDAQ when it determines to withdraw from
making a market in Qualified Securities. NASDAQ believes a member firm
should be able withdraw from making a market in any security under the
terms of Rule 4620(a) and not be subject to an additional notice
requirement that was designed to apply to member firms that would
continue to participate as a registered market maker in the security.
Further, NASDAQ does not believe that compelling a member firm wishing
to withdraw as a market maker in a Qualified Security to participate as
a market maker and DLP in that security during the thirty-day notice
period is beneficial to the member firm or the quality of the market in
the Qualified Security.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)\10\ of the Act and Rule 19b-
4(f)(6) thereunder.\11\ At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily 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 the purposes of the Act.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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NASDAQ has asked that the Commission waive the 30-day pre-operative
waiting period contained in Rule 19b-4(f)(6)(iii).\12\ NASDAQ has
requested such waiver to quickly cure an unintended inconsistency in
the notice requirements for withdrawing as a market maker in certain
securities. Based on NASDAQ's representations that the proposed rule
change is non-controversial and that no novel issues are presented in
this proposed rule change, the Commission sees no reason to delay
implementation of the proposed rule change. The Commission believes it
is consistent with the protection of investors and the public interest
to waive the 30-day operative delay, and hereby grants such waiver.\13\
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\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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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-2010-164 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-2010-164. 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 offices 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-2010-164, and should be submitted on or before
January 7, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
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\14\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-31682 Filed 12-16-10; 8:45 am]
BILLING CODE 8011-01-P
