Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing of Proposed Rule Change With Respect to an Amendment to the By-Laws of The NASDAQ OMX Group, Inc., 67013-67015 [2011-27887]
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Federal Register / Vol. 76, No. 209 / Friday, October 28, 2011 / Notices
2. Statutory Basis
PHLX believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act,3 in general, and
with Section 6(b)(5) of the Act,4 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 Exchange believes
that the order will enhance PSX’s
market quality by providing a means for
market participants to signal
commitment to trade at the stated price
of the order for a defined period of time.
The Exchange believes that the use of
such orders will benefit other market
participants by increasing the certainty
of execution, and benefit the Exchange
and all of its participants by attracting
additional order flow and increasing
order interaction.
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
The Exchange stated that it will
submit an amendment to the proposed
rule change upon its approval by the
Board of Directors of PHLX.5 The
Exchange consented to an extension of
the period of time specified in Section
19(b)(2) of the Act 6 until forty-five days
after the Exchange files an amendment
to this filing reflecting approval of the
provisions of the proposed rule change
by the Board of Directors of PHLX.7
B. Self-Regulatory Organization’s
Statement on Burden on Competition
PHLX 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 enhancing the
functionality offered by PSX. Use of the
order type is entirely voluntary.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Phlx–2011–141. This file
number should be included on the
subject line if email 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
sroberts on DSK5SPTVN1PROD with 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
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
3 15
U.S.C. 78f.
4 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
18:46 Oct 27, 2011
Jkt 226001
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 email to rulecomments@sec.gov. Please include File
No. SR–Phlx–2011–141 on the subject
line.
5 See Item 2 of the Form 19b–4 filed by the
Exchange on October 12, 2011.
6 15 U.S.C. 78s(b)(2).
7 See Item 6 of the Form 19b–4 filed by the
Exchange on October 12, 2011.
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
67013
10 a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2011–141 and should be submitted on
or before November 18, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–27888 Filed 10–27–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65603; File No. SR–BX–
2011–071]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
of Proposed Rule Change With
Respect to an Amendment to the ByLaws of The NASDAQ OMX Group, Inc.
October 21, 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 October
11, 2011, NASDAQ OMX BX, Inc. (‘‘BX’’
or ‘‘Exchange’’) 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 self-regulatory
organization. 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
BX is filing this proposed rule change
with respect to an amendment to the bylaws of its parent corporation, The
NASDAQ OMX Group, Inc. (‘‘NASDAQ
OMX’’). The text of the proposed rule
change is available on the Exchange’s
Web site at https://
nasdaqomxbx.cchwallstreet.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room. The proposed amendments will
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\28OCN1.SGM
28OCN1
67014
Federal Register / Vol. 76, No. 209 / Friday, October 28, 2011 / Notices
be implemented upon approval by the
Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
sroberts on DSK5SPTVN1PROD with NOTICES
1. Purpose
NASDAQ OMX is proposing
amendments to provisions of its by-laws
pertaining to the composition of
committees of the NASDAQ OMX Board
of Directors. First, NASDAQ OMX is
amending the compositional
requirements of its Audit Committee in
Section 4.13(g) to provide that the
committee shall include three or more
directors. Currently, the provision
provides that the Audit Committee shall
be composed of either four or five
directors. The change will provide the
NASDAQ OMX Board of Directors,
which has authority to establish the size
of each committee of the Board of
Directors, with flexibility to increase or
decrease the size of the committee, as
long as the committee includes at least
three directors. The listing standards of
the NASDAQ Stock Market, which
apply to NASDAQ OMX as a listed
company, require that NASDAQ OMX’s
Audit Committee must have at least
three members.3 The amendment would
not change any of the other
compositional requirements of the
Audit Committee, including
independence requirements.
Similarly, NASDAQ OMX is
proposing to amend the compositional
requirements of the Nominating &
Governance Committee in Section
4.13(h) to replace a requirement that the
committee comprise four or five
members with a requirement to include
two or more members, thereby creating
flexibility to populate a larger or a
smaller committee than is currently the
case. NASDAQ Stock Market listing
standards do not regulate the size of a
listed company’s nominating
committee. The amendment would not
3 NASDAQ
IM–4605–3. [sic]
VerDate Mar<15>2010
16:56 Oct 27, 2011
Jkt 226001
change any of the other compositional
requirements of the Nominating &
Governance Committee, including
independence requirements.
BX expects that the NASDAQ OMX
Board of Directors will, in the
immediate future, use the modified
authority to increase the size of the
Nominating & Governance Committee to
six directors, but will not modify the
size of the Audit Committee at this time.
It is likely that the authority would be
used to reduce the size of these
committees below their current levels
only in the event of a reduction in the
overall size of the NASDAQ OMX Board
of Directors (which currently has 16
members). The Audit Committee
supervises the audit function with
respect to NASDAQ OMX and all of its
subsidiaries, including BX, but the
Nominating & Governance Committee
does not perform a nominating function
with respect to NASDAQ OMX’s
subsidiaries.
Third, NASDAQ OMX proposes to
delete a paragraph of the by-laws
(Section 4.13(k)) that pertains to the
qualifications of committee members
who are not directors. This provision
was originally adopted by NASDAQ
OMX’s predecessor corporation, The
Nasdaq Stock Market, Inc., when it was
a subsidiary and facility of the National
Association of Securities Dealers, Inc.
(‘‘NASD’’). In that capacity, The Nasdaq
Stock Market, Inc. appointed
committees that included non-directors
and that exercised authority provided
for under NASD rules. For example, at
that time, the Board of Directors of The
Nasdaq Stock Market, Inc. appointed the
Nasdaq Listing and Hearing Review
Council, a committee composed of nondirectors with authority to review listing
decisions with respect to companies
with securities listed on The Nasdaq
Stock Market, which was then a facility
of NASD.
In 2005, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’) was formed as a
subsidiary [sic] The Nasdaq Stock
Market, Inc., and in 2006, NASDAQ was
registered as a national securities
exchange. The Nasdaq Stock Market,
Inc., which had already issued stock to
the public, became a holding company,
and in 2007, it ceased operating as a
facility of NASD or NASDAQ.
Subsequently, following the acquisition
of OMX AB, The Nasdaq Stock Market,
Inc. became NASDAQ OMX. As a public
holding company, NASDAQ OMX no
longer appoints committees that include
non-directors. Accordingly, the
provision with respect to the
qualifications of non-directors is
obsolete and may appropriately be
deleted.
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
Finally, NASDAQ OMX is correcting
a typographical error in the numbering
of the provisions of Section 4.13(h) of
the by-laws.
2. Statutory Basis
BX believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act,4 in general, and
with Sections 6(b)(1) and (b)(5) of the
Act,5 in particular, in that the proposal
enables BX to be so organized and to
have the capacity to be able to carry out
the purposes of the Act and to comply
with and enforce compliance by
members and persons associated with
members with provisions of the Act, the
rules and regulations thereunder, and
BX rules, and 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.
BX believes that the proposed
amendments are non-controversial. The
proposal to modify the compositional
requirements of the NASDAQ OMX
Audit Committee and Nominating &
Governance Committee will provide the
NASDAQ OMX Board of Directors with
greater flexibility to determine the
appropriate size for these committees,
while maintaining compliance with
applicable listing standards. BX expects
that the NASDAQ OMX Board of
Directors will, in the immediate future,
use the modified authority to increase
the size of the Nominating &
Governance Committee to six directors,
but will not modify the size of the Audit
Committee at this time. The proposed
changes also delete an obsolete
provision from the by-laws and correct
a typographical error.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
4 15
5 15
E:\FR\FM\28OCN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(1), (5).
28OCN1
Federal Register / Vol. 76, No. 209 / Friday, October 28, 2011 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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
shall: (a) By order approve or
disapprove such proposed rule change,
or (b) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BX–2011–071 on the
subject line.
sroberts on DSK5SPTVN1PROD 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–BX–2011–071. This file
number should be included on the
subject line if email 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
16:56 Oct 27, 2011
Jkt 226001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority. 6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–27887 Filed 10–27–11; 8:45 am]
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
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 such filing
also will be available for inspection and
copying at the principal office of BX. 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–BX–2011–071 and should
be submitted on or before November 18,
2011.
BILLING CODE 8011–01–P
Exchange’s Web site at https://
nasdaqomxphlx.cchwallstreet.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room. The proposed amendments will
be implemented upon approval by the
Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65605; File No. SR–PHLX–
2011–140]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing of Proposed Rule Change To
Amend the By-Laws of The NASDAQ
OMX Group, Inc.
October 21, 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 October
11, 2011, NASDAQ OMX PHLX LLC
(‘‘PHLX’’ or ‘‘Exchange’’) 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
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
PHLX is filing this proposed rule
change with respect to an amendment to
the by-laws of its parent corporation,
The NASDAQ OMX Group, Inc.
(‘‘NASDAQ OMX’’). The text of the
proposed rule change is available on the
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
NASDAQ OMX is proposing
amendments to provisions of its by-laws
pertaining to the composition of
committees of the NASDAQ OMX Board
of Directors. First, NASDAQ OMX is
amending the compositional
requirements of its Audit Committee in
Section 4.13(g) to provide that the
committee shall include three or more
directors. Currently, the provision
provides that the Audit Committee shall
be composed of either four or five
directors. The change will provide the
NASDAQ OMX Board of Directors,
which has authority to establish the size
of each committee of the Board of
Directors, with flexibility to increase or
decrease the size of the committee, as
long as the committee includes at least
three directors. The listing standards of
the NASDAQ Stock Market, which
apply to NASDAQ OMX as a listed
company, require that NASDAQ OMX’s
Audit Committee must have at least
three members.3 The amendment would
not change any of the other
compositional requirements of the
Audit Committee, including
independence requirements.
Similarly, NASDAQ OMX is
proposing to amend the compositional
requirements of the Nominating &
Governance Committee in Section
4.13(h) to replace a requirement that the
committee comprise four or five
members with a requirement to include
two or more members, thereby creating
flexibility to populate a larger or a
1 15
PO 00000
Frm 00125
Fmt 4703
67015
3 NASDAQ
Sfmt 4703
E:\FR\FM\28OCN1.SGM
IM–4605–3. [sic]
28OCN1
Agencies
[Federal Register Volume 76, Number 209 (Friday, October 28, 2011)]
[Notices]
[Pages 67013-67015]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-27887]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65603; File No. SR-BX-2011-071]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing of Proposed Rule Change With Respect to an Amendment to the By-
Laws of The NASDAQ OMX Group, Inc.
October 21, 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 October 11, 2011, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') 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 self-regulatory organization. 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
BX is filing this proposed rule change with respect to an amendment
to the by-laws of its parent corporation, The NASDAQ OMX Group, Inc.
(``NASDAQ OMX''). The text of the proposed rule change is available on
the Exchange's Web site at https://nasdaqomxbx.cchwallstreet.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room. The proposed amendments will
[[Page 67014]]
be implemented upon approval by the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ OMX is proposing amendments to provisions of its by-laws
pertaining to the composition of committees of the NASDAQ OMX Board of
Directors. First, NASDAQ OMX is amending the compositional requirements
of its Audit Committee in Section 4.13(g) to provide that the committee
shall include three or more directors. Currently, the provision
provides that the Audit Committee shall be composed of either four or
five directors. The change will provide the NASDAQ OMX Board of
Directors, which has authority to establish the size of each committee
of the Board of Directors, with flexibility to increase or decrease the
size of the committee, as long as the committee includes at least three
directors. The listing standards of the NASDAQ Stock Market, which
apply to NASDAQ OMX as a listed company, require that NASDAQ OMX's
Audit Committee must have at least three members.\3\ The amendment
would not change any of the other compositional requirements of the
Audit Committee, including independence requirements.
---------------------------------------------------------------------------
\3\ NASDAQ IM-4605-3. [sic]
---------------------------------------------------------------------------
Similarly, NASDAQ OMX is proposing to amend the compositional
requirements of the Nominating & Governance Committee in Section
4.13(h) to replace a requirement that the committee comprise four or
five members with a requirement to include two or more members, thereby
creating flexibility to populate a larger or a smaller committee than
is currently the case. NASDAQ Stock Market listing standards do not
regulate the size of a listed company's nominating committee. The
amendment would not change any of the other compositional requirements
of the Nominating & Governance Committee, including independence
requirements.
BX expects that the NASDAQ OMX Board of Directors will, in the
immediate future, use the modified authority to increase the size of
the Nominating & Governance Committee to six directors, but will not
modify the size of the Audit Committee at this time. It is likely that
the authority would be used to reduce the size of these committees
below their current levels only in the event of a reduction in the
overall size of the NASDAQ OMX Board of Directors (which currently has
16 members). The Audit Committee supervises the audit function with
respect to NASDAQ OMX and all of its subsidiaries, including BX, but
the Nominating & Governance Committee does not perform a nominating
function with respect to NASDAQ OMX's subsidiaries.
Third, NASDAQ OMX proposes to delete a paragraph of the by-laws
(Section 4.13(k)) that pertains to the qualifications of committee
members who are not directors. This provision was originally adopted by
NASDAQ OMX's predecessor corporation, The Nasdaq Stock Market, Inc.,
when it was a subsidiary and facility of the National Association of
Securities Dealers, Inc. (``NASD''). In that capacity, The Nasdaq Stock
Market, Inc. appointed committees that included non-directors and that
exercised authority provided for under NASD rules. For example, at that
time, the Board of Directors of The Nasdaq Stock Market, Inc. appointed
the Nasdaq Listing and Hearing Review Council, a committee composed of
non-directors with authority to review listing decisions with respect
to companies with securities listed on The Nasdaq Stock Market, which
was then a facility of NASD.
In 2005, The NASDAQ Stock Market LLC (``NASDAQ'') was formed as a
subsidiary [sic] The Nasdaq Stock Market, Inc., and in 2006, NASDAQ was
registered as a national securities exchange. The Nasdaq Stock Market,
Inc., which had already issued stock to the public, became a holding
company, and in 2007, it ceased operating as a facility of NASD or
NASDAQ. Subsequently, following the acquisition of OMX AB, The Nasdaq
Stock Market, Inc. became NASDAQ OMX. As a public holding company,
NASDAQ OMX no longer appoints committees that include non-directors.
Accordingly, the provision with respect to the qualifications of non-
directors is obsolete and may appropriately be deleted.
Finally, NASDAQ OMX is correcting a typographical error in the
numbering of the provisions of Section 4.13(h) of the by-laws.
2. Statutory Basis
BX believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act,\4\ in general, and with Sections
6(b)(1) and (b)(5) of the Act,\5\ in particular, in that the proposal
enables BX to be so organized and to have the capacity to be able to
carry out the purposes of the Act and to comply with and enforce
compliance by members and persons associated with members with
provisions of the Act, the rules and regulations thereunder, and BX
rules, and 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(1), (5).
---------------------------------------------------------------------------
BX believes that the proposed amendments are non-controversial. The
proposal to modify the compositional requirements of the NASDAQ OMX
Audit Committee and Nominating & Governance Committee will provide the
NASDAQ OMX Board of Directors with greater flexibility to determine the
appropriate size for these committees, while maintaining compliance
with applicable listing standards. BX expects that the NASDAQ OMX Board
of Directors will, in the immediate future, use the modified authority
to increase the size of the Nominating & Governance Committee to six
directors, but will not modify the size of the Audit Committee at this
time. The proposed changes also delete an obsolete provision from the
by-laws and correct a typographical error.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
[[Page 67015]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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 shall:
(a) By order approve or disapprove such 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:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BX-2011-071 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2011-071. This file
number should be included on the subject line if email 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 such filing also will be available for
inspection and copying at the principal office of BX. 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-BX-2011-071 and should be
submitted on or before November 18, 2011.
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\6\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority. \6\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-27887 Filed 10-27-11; 8:45 am]
BILLING CODE 8011-01-P