Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Establish the Market Quality Program, 31050 [2012-12584]

Download as PDF 31050 Federal Register / Vol. 77, No. 101 / Thursday, May 24, 2012 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–67022; File No. SR– NASDAQ–2012–043] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Establish the Market Quality Program May 18, 2012. On March 23, 2012, The NASDAQ Stock Market LLC (‘‘NASDAQ’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to establish the Market Quality Program. On March 29, 2012, the Exchange submitted Amendment No. 1 to the proposed rule change.3 The proposed rule change, as modified by Amendment No. 1, was published for comment in the Federal Register on April 12, 2012.4 The Commission received fifteen comment letters on the proposal.5 Section 19(b)(2) of the Act 6 provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day for this filing is May 27, 2012. The Commission is extending this 45-day time period. The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change, the comments received, and any response to the comments 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, the Exchange made a technical amendment to Item I of Exhibit 1 to delete an erroneous reference to the NASDAQ Options Market and replace it with a reference to the Exchange. 4 Securities Exchange Act Release No. 66765 (April 6, 2012), 77 FR 22042. 5 See Letter from Frank Choi, dated April 13, 2012; Letter from Christopher J. Csicsko, dated April 14, 2012; Letter from Jeremiah O’Connor III, dated April 14, 2012; Letter from Dezso J. Szalay, dated April 15, 2012; Letter from Kathryn Keita, dated April 18, 2012; Letter, Anonymous, dated srobinson on DSK4SPTVN1PROD with NOTICES 2 17 VerDate Mar<15>2010 16:31 May 23, 2012 Jkt 226001 submitted by NASDAQ. The proposed rule change would, among other things, add new Rule 5950 to establish the Market Quality Program and exempt the Market Quality Program from NASDAQ Rule 2460 (Payment for Market Making). Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,7 designates July 11, 2012, as the date by which the Commission should either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change (File Number SR–NASDAQ–2012–043). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–12584 Filed 5–23–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–67020; File No. SR– NYSEArca–2012–41] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule Relating to Electronic Executions of Posted Customer Liquidity in Penny Pilot Issues I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (‘‘Fee Schedule’’) to restructure the threshold qualifications and corresponding rates applicable to Option Trading Permit (‘‘OTP’’) Holder and OTP Firm electronic executions of posted Customer liquidity in Penny Pilot issues. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and www.nyse.com. 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. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 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 8, 2012, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) 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. Purpose The Exchange proposes to amend the Fee Schedule to restructure the threshold qualifications and corresponding rates applicable to OTP Holder and OTP Firm electronic executions of posted Customer liquidity in Penny Pilot issues. The Exchange proposes to make the changes operative on May 8, 2012. OTP Holders and OTP Firms are currently provided with a credit of $0.25 per contract for electronic executions of posted Customer liquidity in Penny Pilot issues.3 However, the amount of this credit increases as an OTP Holder or OTP Firm electronically executes a certain monthly total number April 18, 2012; Letter from Mark Connell, dated April 19, 2012; Letter from Timothy Quast, Managing Director, Modern Networks IR LLC, dated April 26, 2012; Letter from Daniel G. Weaver, Ph.D., Professor of Finance, Rutgers Business School, dated April 26, 2012; Letter from Amber Anand, Associate Professor of Finance, Syracuse University, dated April 29, 2012; Letter from Albert J. Menkveld, Associate Professor of Finance, VU University Amsterdam, dated May 2, 2012; Letter from James J. Angel, Associate Professor of Finance, Georgetown University, dated May 2, 2012; Letter from Ari Burstein, Senior Counsel, Investment Company Institute, dated May 3, 2012; Letter from Gus Sauter, Managing Director and Chief Investment Officer, Vanguard, dated May 3, 2012; and Letter from Leonard J. Amoruso, General Counsel, Knight Capital Group, Inc., dated May 4, 2012. 6 15 U.S.C. 78s(b)(2). 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(31). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 As provided under NYSE Arca Options Rule 6.72, options on certain issues have been approved to trade with a minimum price variation of $0.01 as part of a pilot program that is currently scheduled to expire on June 30, 2012. May 18, 2012. PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 E:\FR\FM\24MYN1.SGM 24MYN1

Agencies

[Federal Register Volume 77, Number 101 (Thursday, May 24, 2012)]
[Notices]
[Page 31050]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12584]



[[Page 31050]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67022; File No. SR-NASDAQ-2012-043]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Designation of a Longer Period for Commission Action on 
Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To 
Establish the Market Quality Program

May 18, 2012.
    On March 23, 2012, The NASDAQ Stock Market LLC (``NASDAQ'') filed 
with the Securities and Exchange Commission (``SEC'' or 
``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to establish the Market Quality Program. On March 
29, 2012, the Exchange submitted Amendment No. 1 to the proposed rule 
change.\3\ The proposed rule change, as modified by Amendment No. 1, 
was published for comment in the Federal Register on April 12, 2012.\4\ 
The Commission received fifteen comment letters on the proposal.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange made a technical amendment 
to Item I of Exhibit 1 to delete an erroneous reference to the 
NASDAQ Options Market and replace it with a reference to the 
Exchange.
    \4\ Securities Exchange Act Release No. 66765 (April 6, 2012), 
77 FR 22042.
    \5\ See Letter from Frank Choi, dated April 13, 2012; Letter 
from Christopher J. Csicsko, dated April 14, 2012; Letter from 
Jeremiah O'Connor III, dated April 14, 2012; Letter from Dezso J. 
Szalay, dated April 15, 2012; Letter from Kathryn Keita, dated April 
18, 2012; Letter, Anonymous, dated April 18, 2012; Letter from Mark 
Connell, dated April 19, 2012; Letter from Timothy Quast, Managing 
Director, Modern Networks IR LLC, dated April 26, 2012; Letter from 
Daniel G. Weaver, Ph.D., Professor of Finance, Rutgers Business 
School, dated April 26, 2012; Letter from Amber Anand, Associate 
Professor of Finance, Syracuse University, dated April 29, 2012; 
Letter from Albert J. Menkveld, Associate Professor of Finance, VU 
University Amsterdam, dated May 2, 2012; Letter from James J. Angel, 
Associate Professor of Finance, Georgetown University, dated May 2, 
2012; Letter from Ari Burstein, Senior Counsel, Investment Company 
Institute, dated May 3, 2012; Letter from Gus Sauter, Managing 
Director and Chief Investment Officer, Vanguard, dated May 3, 2012; 
and Letter from Leonard J. Amoruso, General Counsel, Knight Capital 
Group, Inc., dated May 4, 2012.
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    Section 19(b)(2) of the Act \6\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day for this filing is May 27, 2012. The Commission is extending 
this 45-day time period.
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    \6\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
it has sufficient time to consider the proposed rule change, the 
comments received, and any response to the comments submitted by 
NASDAQ. The proposed rule change would, among other things, add new 
Rule 5950 to establish the Market Quality Program and exempt the Market 
Quality Program from NASDAQ Rule 2460 (Payment for Market Making).
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\7\ designates July 11, 2012, as the date by which the Commission 
should either approve or disapprove or institute proceedings to 
determine whether to disapprove the proposed rule change (File Number 
SR-NASDAQ-2012-043).
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(31).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-12584 Filed 5-23-12; 8:45 am]
BILLING CODE 8011-01-P
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