Self-Regulatory Organizations; Stock Clearing Corporation of Philadelphia; Notice of Filing of Proposed Rule Change With Respect to an Amendment to the By-Laws of The NASDAQ OMX Group, Inc., 67009-67010 [2011-27899]

Download as PDF Federal Register / Vol. 76, No. 209 / Friday, October 28, 2011 / Notices • Send an email to rulecomments@sec.gov. Please include File Number SR–BSECC–2011–003 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–BSECC–2011–003. 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 the filing also will be available for inspection and copying at the principal office of the Corporation. 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–BSECC–2011–003 and should be submitted on or before November 18, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.5 Kevin M. O’Neill, Deputy Secretary. sroberts on DSK5SPTVN1PROD with NOTICES [FR Doc. 2011–27898 Filed 10–27–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65614; File No. SR–SCCP– 2011–03] Self-Regulatory Organizations; Stock Clearing Corporation of Philadelphia; Notice of Filing of Proposed Rule Change With Respect to an Amendment to the By-Laws of The NASDAQ OMX Group, Inc. October 24, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–42 thereunder, notice is hereby given that on October 11, 2011, Stock Clearing Corporation of Philadelphia (‘‘SCCP’’ or the ‘‘Corporation’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by SCCP. 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 SCCP 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 Corporation’s Web site at https:// nasdaqomxphlx.cchwallstreet.com/ nasdaqomxphlx/sccp, at the principal office of the Corporation, and at the Commission’s Public Reference Room. The proposed rule change 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 Corporation 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 Corporation has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 1 15 5 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:56 Oct 27, 2011 2 17 Jkt 226001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00119 Fmt 4703 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. 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. SCCP 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 3 NASDAQ Sfmt 4703 67009 E:\FR\FM\28OCN1.SGM IM–5605–3. 28OCN1 67010 Federal Register / Vol. 76, No. 209 / Friday, October 28, 2011 / Notices sroberts on DSK5SPTVN1PROD with NOTICES supervises the audit function with respect to NASDAQ OMX and all of its subsidiaries, including SCCP, 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 of 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 SCCP believes that that the proposed rule change is consistent with provisions of Section 17A of the Act.4 SCCP 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 4 15 U.S.C. 78q–1. VerDate Mar<15>2010 16:56 Oct 27, 2011 Jkt 226001 greater flexibility to determine the appropriate size for these committees, while maintaining compliance with applicable listing standards. SCCP 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 Corporation does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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: Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–SCCP–2011–03. 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 the filing also will be available for inspection and copying at the principal office of the Corporation. 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–SCCP–2011–03 and should be submitted on or before November 18, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.5 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2011–27899 Filed 10–27–11; 8:45 am] BILLING CODE 8011–01–P 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–SCCP–2011–03 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, PO 00000 Frm 00120 Fmt 4703 Sfmt 9990 5 17 E:\FR\FM\28OCN1.SGM CFR 200.30–3(a)(12). 28OCN1

Agencies

[Federal Register Volume 76, Number 209 (Friday, October 28, 2011)]
[Notices]
[Pages 67009-67010]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-27899]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65614; File No. SR-SCCP-2011-03]


Self-Regulatory Organizations; Stock Clearing Corporation of 
Philadelphia; Notice of Filing of Proposed Rule Change With Respect to 
an Amendment to the By-Laws of The NASDAQ OMX Group, Inc.

October 24, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4\2\ thereunder, notice is hereby given that 
on October 11, 2011, Stock Clearing Corporation of Philadelphia 
(``SCCP'' or the ``Corporation'') filed with the Securities and 
Exchange Commission (``SEC'' or ``Commission'') the proposed rule 
change as described in Items I, II, and III, below, which Items have 
been prepared by SCCP. 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

    SCCP 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 Corporation's Web site at https://nasdaqomxphlx.cchwallstreet.com/nasdaqomxphlx/sccp, at the principal 
office of the Corporation, and at the Commission's Public Reference 
Room. The proposed rule change 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 Corporation 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 Corporation 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-5605-3.
---------------------------------------------------------------------------

    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.
    SCCP 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

[[Page 67010]]

supervises the audit function with respect to NASDAQ OMX and all of its 
subsidiaries, including SCCP, 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 of 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
    SCCP believes that that the proposed rule change is consistent with 
provisions of Section 17A of the Act.\4\ SCCP 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. SCCP 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Corporation does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    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-SCCP-2011-03 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-SCCP-2011-03. 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 the filing also will be available for 
inspection and copying at the principal office of the Corporation. 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-SCCP-2011-03 and 
should be submitted on or before November 18, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-27899 Filed 10-27-11; 8:45 am]
BILLING CODE 8011-01-P
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