Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Functionality of the Post-Only Order, 31998-32000 [2011-13624]
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Federal Register / Vol. 76, No. 106 / Thursday, June 2, 2011 / Notices
OFFICE OF PERSONNEL
MANAGEMENT
Cancellation of an Optional Form by
the Office of Personnel Management
U.S. Office of Personnel
Management.
ACTION: Notice.
AGENCY:
The U.S. Office of Personnel
Management (OPM) is cancelling the
Optional Application for Federal
Employment. The information
contained in the OF 612 is now
incorporated in the online Resume
Builder on the USAJOBS® Web site. The
need to maintain the OF 612 as an
alternative means of applying for
Federal positions no longer exists as job
seekers now have the ability to either
build or upload resumes. This action is
being taken to facilitate a more seamless
employment application process for
both Federal agencies and job seekers,
consistent with the goals of Federal
hiring reform.
DATES: Effective June 13, 2011.
FOR FURTHER INFORMATION CONTACT: U.S.
Office of Personnel Management,
Employment Services, USAJOBS, 1900
E. Street, NW., Washington, DC 20415,
Attention: USAJOBS, or via electronic
mail to patricia.stevens@opm.gov.
SUMMARY:
U.S. Office of Personnel Management.
John Berry,
Director.
[FR Doc. 2011–13704 Filed 6–1–11; 8:45 am]
BILLING CODE 6325–38–P
OFFICE OF PERSONNEL
MANAGEMENT
Illinois, Kentucky, Louisiana,
Mississippi, Missouri, Montana, New
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Dakota, and Wyoming. South Carolina is
designated as a Medically Underserved
Area in 2011, but will not be so
designated for 2012. Alaska is being
added as a Medically Underserved Area
for the 2012 calendar year.
DATES: Effective Date: January 1, 2012.
FOR FURTHER INFORMATION CONTACT:
Lynelle T. Frye, 202–606–0004.
SUPPLEMENTARY INFORMATION: FEHB law
(5 U.S.C. 8902(m)(2)) requires special
consideration for enrollees of certain
FEHB plans who receive covered health
services in States with critical shortages
of primary care physicians. This section
of the law requires that a State be
designated as a Medically Underserved
Area if 25 percent or more of the
population lives in an area designated
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Services (HHS) as a primary medical
care manpower shortage area. Such
States are designated as Medically
Underserved Areas for purposes of the
FEHB Program, and the law requires
non-HMO FEHB plans to reimburse
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terms, for covered services obtained
from any licensed provider in these
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FEHB regulations (5 CFR 890.701)
require OPM to make an annual
determination of the States that qualify
as Medically Underserved Areas for the
next calendar year by comparing the
latest HHS State-by-State population
counts on primary medical care
manpower shortage areas with U.S.
Census figures on State resident
populations.
Federal Employees Health Benefits
Program: Medically Underserved Areas
for 2012
U.S. Office of Personnel Management.
U.S. Office of Personnel
Management.
ACTION: Notice.
[FR Doc. 2011–13695 Filed 6–1–11; 8:45 am]
The U.S. Office of Personnel
Management (OPM) has completed its
annual determination of the States that
qualify as Medically Underserved Areas
under the Federal Employees Health
Benefits (FEHB) Program for calendar
year 2012. This is necessary to comply
with a provision of the FEHB law that
mandates special consideration for
enrollees of certain FEHB plans who
receive covered health services in States
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OFFICE OF PERSONNEL
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AGENCY:
emcdonald on DSK2BSOYB1PROD with NOTICES
SUMMARY:
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John Berry,
Director..
BILLING CODE 6325–63–P
Posting of Service Contract Inventory
Office of Personnel
Management.
ACTION: Notice of posting.
AGENCY:
The Office of Personnel
Management has posted on its public
Web site an inventory of the services
contracts exceeding $25,000 that were
awarded by the agency in Fiscal Year
(FY) 2010. The inventory was prepared
in accordance with Section 743 of
Division C of the FY 2010 Consolidated
Appropriations Act, Public Law 111–
SUMMARY:
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117, and with a Memorandum from the
Office of Federal Procurement Policy
dated November 5, 2010. It consists of
two parts: (1) A complete listing of all
contracts; and (2) A summary by
Product or Service Code to show the use
of contractors to perform ‘‘special
interest functions’’ as well as the
services that accounted for the agency’s
greatest percentage of spend in FY 2010.
Both parts of the inventory can be found
at: https://www.opm.gov/doingbusiness/
contract/businessops.aspx.
FOR FURTHER INFORMATION CONTACT:
William N. Patterson, Director,
Contracting Group, Facilities, Security
and Contracting, Office of Personnel
Management, 1900 E Street, NW., Room
1342, Washington, DC 20415. Phone
(202) 606–1984 or e-mail at
William.Patterson@opm.gov.
U.S. Office of Personnel Management.
John Berry,
Director.
[FR Doc. 2011–13696 Filed 6–1–11; 8:45 am]
BILLING CODE 6325–45–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64552; File No. SR–
NASDAQ–2011–070]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify the
Functionality of the Post-Only Order
May 26, 2011.
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 May 19,
2011, The NASDAQ Stock Market LLC
(the ‘‘Exchange’’ or ‘‘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 the Exchange. 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 the functionality
of its Post-Only Order. NASDAQ
proposes to implement the rule change
thirty days after the date of filing or as
soon thereafter as practicable. The text
of the proposed rule change is available
1 15
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E:\FR\FM\02JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 76, No. 106 / Thursday, June 2, 2011 / Notices
at https://nasdaq.cchwallstreet.com/, at
NASDAQ’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, 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
emcdonald on DSK2BSOYB1PROD with NOTICES
1. Purpose
NASDAQ proposes to modify the
functionality associated with its existing
Post-Only Order. Currently, if a PostOnly Order would lock an order on the
NASDAQ System at the time of entry,
the order is re-priced and displayed by
the System to one minimum price
increment (i.e., $0.01 or $0.0001) below
the current low offer (for bids) or above
the current best bid (for offers). Thus, if
the best bid and best offer on the
NASDAQ book were $10.00 × $10.05,
and a market participant entered a PostOnly Order to buy at $10.05, the order
would be re-priced and displayed at
$10.04. This aspect of the functionality
of the order is not changing. In addition,
if a Post-Only Order would cross an
order on the System, the order will be
repriced as described above unless the
value of price improvement associated
with executing against a resting order
equals or exceeds the sum of fees
charged for such execution and the
value of any rebate that would be
provided if the order posted to the book
and subsequently provided liquidity, in
which case the order will execute. As
provided by Rule 4757, price
improvement accrues to the party
entering the order. Thus, if a sell order
is on the book at $10 and a Post-Only
Order to buy at $10.01 is entered, the
order will execute at $10. This aspect of
the order’s functionality is also not
changing.3
3 The functionality was described in the original
filing to establish the Post-Only Order but was not
fully reflected in the text of Rule 4751. See
Securities Exchange Act Release No. 59392
(February 11, 2009), 74 FR 7943 (February 20, 2009)
(SR–NASDAQ–2009–006). Accordingly, the rule is
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At present, however, the order is
repriced in a similar manner if the order
would lock or cross a protected
quotation of another market center.
Thus, if the national best offer of $10.05
is being displayed on another market
center but not on NASDAQ, at present
an order to buy at $10.05 would be
repriced and displayed at $10.04. Under
the changed functionality that NASDAQ
is proposing, if the order locks or
crosses the other market center, the
order will be accepted at the locking
price (i.e., the current low offer (for
bids) or to the current best bid (for
offers)) and displayed by the System to
one minimum price increment (i.e.,
$0.01 or $0.0001) below the current low
offer (for bids) or above the current best
bid (for offers). Thus, if the national best
bid and offer, as displayed on another
market center, was $10 x $10.05, an
order to buy at $10.05 or higher would
be accepted at the locking price of
$10.05, but would be displayed at
$10.04. Subsequently, an incoming
order to sell at $10.05 or lower would
be matched against the Post-Only buy
order. In this case, the incoming sell
order would receive price improvement.
As a result of the change, the order
will resemble more closely NASDAQ’s
Price to Comply order, which uses a
similar logic of retaining a locking price
but displaying at a non-locking price.
The modified Post-Only Order will
serve to allow the market participant
entering the order to post its order at its
desired price, unless the price would
lock or cross the NASDAQ book, in
which case the order will execute or be
repriced, as is currently the case, to
avoid the internal lock/cross. The
revised order type is designed to
provide market participants with better
control over their execution costs and to
provide them with a means to offer
price improvement opportunities to
other market participants.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,4 in
general, and with Section 6(b)(5) of the
Act,5 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
being amended to provide a complete description
of the order’s current behavior when crossing an
existing order on the System.
4 15 U.S.C. 78f.
5 15 U.S.C. 78f(b)(5).
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31999
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. NASDAQ also believes
that the modified order is consistent
with Rule 610(d) under Regulation
NMS.6 Rule 610(d) requires exchanges
to establish, maintain, and enforce rules
that require members reasonably to
avoid ‘‘[d]isplaying quotations that lock
or cross any protected quotation in an
NMS stock.’’ Such rules must be
‘‘reasonably designed to assure the
reconciliation of locked or crossed
quotations in an NMS stock,’’ and must
‘‘prohibit * * * members from engaging
in a pattern or practice of displaying
quotations that lock or cross any
quotation in an NMS stock.’’ Rule 600
under Regulation NMS 7 defines a
‘‘quotation’’ as a ‘‘bid or offer,’’ and in
turn defines ‘‘bid or offer’’ to mean ‘‘the
bid price or the offer price
communicated by a member * * * to
any broker or dealer, or to any customer,
at which it is willing to buy or sell one
or more round lots of an NMS security
* * *.’’ Thus, the hidden price of the
Post-Only Order is not a quotation
under Regulation NMS, and is therefore
covered neither by the provisions of
Rule 610 pertaining to displayed
quotations nor by the provision
requiring rules to assure reconciliation
of locked or crossed quotations. In this
respect, the order is similar to
NASDAQ’s existing Price to Comply
order, which uses a hidden locking
price and a displayed non-locking price
to ensure compliance with this rule. It
is also similar to the Post Only Order of
the BATS Exchange and the BATS–Y
Exchange, as described in BATS
Exchange Rule 11.9(c)(4) and (6) and
BATS–Y Exchange Rule 11.9(c)(4) and
(6), and the Post Only Order of the
EDGA Exchange and EDGX Exchange,
as described in EDGA Exchange Rule
11.5(c)(4) and (5) and EDGX Exchange
Rule 11.5(c)(4) and (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.
Rather, the change will promote greater
competition by allowing NASDAQ to
adopt functionality already in use at
competing national securities
exchanges.
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CFR 242.610(d).
CFR 242.600.
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Federal Register / Vol. 76, No. 106 / Thursday, June 2, 2011 / Notices
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: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 8 and Rule
19b–4(f)(6) thereunder.9
At any time within 60 days of the
filing of the 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
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• 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–2011–070 on the
subject line.
emcdonald on DSK2BSOYB1PROD 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–2011–070. This
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with 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 fulfilled this requirement.
9 17
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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, 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–2011–070 and should be
submitted on or before June 23, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–13624 Filed 6–1–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64551; File No. SR–CBOE–
2011–026]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of Proposed Rule Change and Notice
of Filing and Order Granting
Accelerated Approval to Amendment
No. 1 Thereto To Trade Options on
Certain Individual Stock Based
Volatility Indexes and ExchangeTraded Fund Based Volatility Indexes
Securities and Exchange Commission
(the ‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (the ‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
trade options on certain individual
stock based and exchange-traded fund
(‘‘ETF’’) based volatility indexes. The
proposed rule change was published for
comment in the Federal Register on
April 13, 2011.3 The Commission
received no comments in response to
the Notice.
On May 16, 2011, the Exchange
submitted Amendment No. 1 to the
proposed rule change, as described in
Items I and II below, which items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on Amendment No. 1
from interested persons and is
approving the proposed rule change, as
modified by Amendment No. 1, on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
Amendment No. 1 to the Proposed Rule
Change
CBOE proposes to amend its rules to
list and trade options on certain
individual stock based volatility indexes
and ETF based volatility indexes. The
proposed options will be cash-settled
and will have European-style exercise.
The text of the rule proposal is available
on the Exchange’s Web site (https://
www.cboe.org/legal), at the Exchange’s
Office of the Secretary 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
self-regulatory organization 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 those 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 parts of such
statements.
May 26, 2011.
On March 29, 2011, Chicago Board
Options Exchange, Incorporated (the
‘‘Exchange’’ or ‘‘CBOE’’) filed with the
10 17
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CFR 200.30–3(a)(12).
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1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 64245
(April 7, 2011), 76 FR 20784 (‘‘Notice’’).
2 17
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]]>Agencies
[Federal Register Volume 76, Number 106 (Thursday, June 2, 2011)]
[Notices]
[Pages 31998-32000]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13624]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64552; File No. SR-NASDAQ-2011-070]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify the Functionality of the Post-Only Order
May 26, 2011.
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 May 19, 2011, The NASDAQ Stock Market LLC (the ``Exchange'' or
``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 the Exchange. 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 Substance
of the Proposed Rule Change
The Exchange is filing this proposed rule change to modify the
functionality of its Post-Only Order. NASDAQ proposes to implement the
rule change thirty days after the date of filing or as soon thereafter
as practicable. The text of the proposed rule change is available
[[Page 31999]]
at https://nasdaq.cchwallstreet.com/, at NASDAQ's principal office, and
at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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
NASDAQ proposes to modify the functionality associated with its
existing Post-Only Order. Currently, if a Post-Only Order would lock an
order on the NASDAQ System at the time of entry, the order is re-priced
and displayed by the System to one minimum price increment (i.e., $0.01
or $0.0001) below the current low offer (for bids) or above the current
best bid (for offers). Thus, if the best bid and best offer on the
NASDAQ book were $10.00 x $10.05, and a market participant entered a
Post-Only Order to buy at $10.05, the order would be re-priced and
displayed at $10.04. This aspect of the functionality of the order is
not changing. In addition, if a Post-Only Order would cross an order on
the System, the order will be repriced as described above unless the
value of price improvement associated with executing against a resting
order equals or exceeds the sum of fees charged for such execution and
the value of any rebate that would be provided if the order posted to
the book and subsequently provided liquidity, in which case the order
will execute. As provided by Rule 4757, price improvement accrues to
the party entering the order. Thus, if a sell order is on the book at
$10 and a Post-Only Order to buy at $10.01 is entered, the order will
execute at $10. This aspect of the order's functionality is also not
changing.\3\
---------------------------------------------------------------------------
\3\ The functionality was described in the original filing to
establish the Post-Only Order but was not fully reflected in the
text of Rule 4751. See Securities Exchange Act Release No. 59392
(February 11, 2009), 74 FR 7943 (February 20, 2009) (SR-NASDAQ-2009-
006). Accordingly, the rule is being amended to provide a complete
description of the order's current behavior when crossing an
existing order on the System.
---------------------------------------------------------------------------
At present, however, the order is repriced in a similar manner if
the order would lock or cross a protected quotation of another market
center. Thus, if the national best offer of $10.05 is being displayed
on another market center but not on NASDAQ, at present an order to buy
at $10.05 would be repriced and displayed at $10.04. Under the changed
functionality that NASDAQ is proposing, if the order locks or crosses
the other market center, the order will be accepted at the locking
price (i.e., the current low offer (for bids) or to the current best
bid (for offers)) and displayed by the System to one minimum price
increment (i.e., $0.01 or $0.0001) below the current low offer (for
bids) or above the current best bid (for offers). Thus, if the national
best bid and offer, as displayed on another market center, was $10 x
$10.05, an order to buy at $10.05 or higher would be accepted at the
locking price of $10.05, but would be displayed at $10.04.
Subsequently, an incoming order to sell at $10.05 or lower would be
matched against the Post-Only buy order. In this case, the incoming
sell order would receive price improvement.
As a result of the change, the order will resemble more closely
NASDAQ's Price to Comply order, which uses a similar logic of retaining
a locking price but displaying at a non-locking price. The modified
Post-Only Order will serve to allow the market participant entering the
order to post its order at its desired price, unless the price would
lock or cross the NASDAQ book, in which case the order will execute or
be repriced, as is currently the case, to avoid the internal lock/
cross. The revised order type is designed to provide market
participants with better control over their execution costs and to
provide them with a means to offer price improvement opportunities to
other market participants.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\4\ in general, and with Section
6(b)(5) of the Act,\5\ 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. NASDAQ also believes that
the modified order is consistent with Rule 610(d) under Regulation
NMS.\6\ Rule 610(d) requires exchanges to establish, maintain, and
enforce rules that require members reasonably to avoid ``[d]isplaying
quotations that lock or cross any protected quotation in an NMS
stock.'' Such rules must be ``reasonably designed to assure the
reconciliation of locked or crossed quotations in an NMS stock,'' and
must ``prohibit * * * members from engaging in a pattern or practice of
displaying quotations that lock or cross any quotation in an NMS
stock.'' Rule 600 under Regulation NMS \7\ defines a ``quotation'' as a
``bid or offer,'' and in turn defines ``bid or offer'' to mean ``the
bid price or the offer price communicated by a member * * * to any
broker or dealer, or to any customer, at which it is willing to buy or
sell one or more round lots of an NMS security * * *.'' Thus, the
hidden price of the Post-Only Order is not a quotation under Regulation
NMS, and is therefore covered neither by the provisions of Rule 610
pertaining to displayed quotations nor by the provision requiring rules
to assure reconciliation of locked or crossed quotations. In this
respect, the order is similar to NASDAQ's existing Price to Comply
order, which uses a hidden locking price and a displayed non-locking
price to ensure compliance with this rule. It is also similar to the
Post Only Order of the BATS Exchange and the BATS-Y Exchange, as
described in BATS Exchange Rule 11.9(c)(4) and (6) and BATS-Y Exchange
Rule 11.9(c)(4) and (6), and the Post Only Order of the EDGA Exchange
and EDGX Exchange, as described in EDGA Exchange Rule 11.5(c)(4) and
(5) and EDGX Exchange Rule 11.5(c)(4) and (5).
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\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(5).
\6\ 17 CFR 242.610(d).
\7\ 17 CFR 242.600.
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. Rather, the change
will promote greater competition by allowing NASDAQ to adopt
functionality already in use at competing national securities
exchanges.
[[Page 32000]]
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: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \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). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with 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 fulfilled this requirement.
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At any time within 60 days of the filing of the 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 the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
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-2011-070 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-2011-070. 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, 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-2011-070 and should be submitted on or before June 23, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13624 Filed 6-1-11; 8:45 am]
BILLING CODE 8011-01-P
