Self-Regulatory Organizations; NASDAQ Stock Market, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Membership in The NASDAQ Stock Market LLC, 52373-52375 [2012-21256]
Download as PDF
<![CDATA[
TKELLEY on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 168 / Wednesday, August 29, 2012 / Notices
249.100) under the Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.)
(‘‘Exchange Act’’). The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
Rule 17f–1(c) (17 CFR 240.17f–1(c))
requires approximately 26,000 entities
in the securities industry to report lost,
stolen, missing, or counterfeit securities
to a central database. Form X–17F–1A
(17 CFR 249.100) facilitates the accurate
reporting and precise and immediate
data entry into the central database.
Reporting to the central database fulfills
a statutory requirement that reporting
institutions report and inquire about
missing, lost, counterfeit, or stolen
securities. Reporting to the central
database also allows reporting
institutions to gain access to the
database that stores information for the
Lost and Stolen Securities Program.
We estimate that 26,000 reporting
institutions will report that securities
are either missing, lost, counterfeit, or
stolen annually and that each reporting
institution will submit this report 50
times each year. The staff estimates that
the average amount of time necessary to
comply with Rule 17f–1(c) and Form X–
17F–1A is five minutes. The total
burden is 108,333 hours annually for
respondents (26,000 times 50 times 5
divided by 60).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information on respondents; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
The Commission may not conduct or
sponsor a collection of information
unless it displays a currently valid
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid Office of Management and
Budget (OMB) control number.
Please direct your written comments
to: Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi Pavlik-
VerDate Mar<15>2010
17:37 Aug 28, 2012
Jkt 226001
Simon, 6432 General Green Way,
Alexandria, Virginia 22312 or send an
email to: PRA_Mailbox@sec.gov.
Dated: August 23, 2012.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–21257 Filed 8–28–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension:
Voluntary XBRL-Related; SEC File
No. 270–550; OMB Control No.
3235–0611.
Documents
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
As part of our evaluation of the
potential of interactive data tagging
technology, the Commission permits
registered investment companies
(‘‘funds’’) to submit on a voluntary basis
specified financial statement and
portfolio holdings disclosure tagged in
eXtensible Business Reporting Language
(‘‘XBRL’’) format as an exhibit to certain
filings on the Commission’s Electronic
Data Gathering, Analysis and Retrieval
System (‘‘EDGAR’’). The current
voluntary program permits any fund to
participate merely by submitting a
tagged exhibit in the required manner.
These exhibits are publicly available but
are considered furnished rather than
filed. The purpose of the collection of
information is to help evaluate the
usefulness of data tagging and XBRL to
registrants, investors, the Commission,
and the marketplace.
We estimate that no funds participate
in the voluntary program each year.
This information collection, therefore,
imposes no time burden; however, we
are requesting a one hour burden for
administrative purposes. We also
estimate that the information collection
imposes no cost burden.
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
52373
Estimates of average burden hours
and costs are made solely for the
purposes of the Paperwork Reduction
Act and are not derived from a
comprehensive or even representative
survey or study of the costs of
Commission rules and forms.
Participation in the program is
voluntary. Submissions under the
program will not be kept confidential.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless it
displays a currently valid OMB control
number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way,
Alexandria, VA 22312; or send an email
to: PRA_Mailbox@sec.gov.
Dated: August 23, 2012.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–21258 Filed 8–28–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67721; File No. SR–
NASDAQ–2012–097]
Self-Regulatory Organizations;
NASDAQ Stock Market, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Membership in The NASDAQ Stock
Market LLC
August 23, 2012.
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 August
1 15
2 17
E:\FR\FM\29AUN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
29AUN1
52374
Federal Register / Vol. 77, No. 168 / Wednesday, August 29, 2012 / Notices
21, 2012, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ 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 NASDAQ.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The NASDAQ Stock Market LLC
proposes to amend NASDAQ Rule 1013,
titled ‘‘New Member Application’’ to
provide that an applicant that is
approved by NASDAQ OMX BX, Inc.
(‘‘BX’’) shall have the option to apply to
become a NASDAQ member through an
expedited process.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
www.nasdaq.cchwallstreet.com, at
https://www.sec.gov, at the principal
office of the Exchange, 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. 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
TKELLEY on DSK3SPTVN1PROD with NOTICES
1. Purpose
The Exchange desires to streamline
the process of becoming a NASDAQ
member for current BX members.
Today, Rule 1013 permits applicants
that are an approved Financial Industry
Regulatory Authority (‘‘FINRA’’)
member to have the option to apply to
become a NASDAQ member and to
register with NASDAQ all associated
persons of the firm whose registrations
with the firm are approved by FINRA in
categories recognized by NASDAQ
Rules through an expedited process by
submitting a Waive-In Membership
Application Form and a NASDAQ
Membership Agreement. The Exchange
proposes to also permit a current BX
VerDate Mar<15>2010
17:37 Aug 28, 2012
Jkt 226001
member to have the same options as a
FINRA member in applying to NASDAQ
for membership.
The membership application rules of
NASDAQ and BX are substantially
similar to each other as are the rules of
FINRA with both NASDAQ and BX
Rules. BX Rule 1013(a)(5) provides that
an approved member of FINRA or
NASDAQ may apply to become a BX
member and register with the Exchange
all associated persons whose
registrations are approved with FINRA
or NASDAQ (as applicable) in categories
of registration recognized by the
Exchange through an expedited process
by submitting a Short Form Membership
Application and Agreement.3
The process by which an applicant
may register and become a member of
NASDAQ, FINRA or BX is substantially
similar. The Exchange requests the same
information from applicants applying to
be members of NASDAQ or BX.4 The
steps and procedures undertaken by
Exchange staff of NASDAQ and BX,
pursuant to membership rules, are the
same for reviewing new member
applications.5
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 6 in general, and furthers the
objectives of Section 6(b)(5) of the Act 7
in particular, in that it is designed to
promote just and equitable principles of
trade, 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, by
3 See Securities Exchange Act Release No. 58927
(November 10, 2008), 73 FR
69685 (November 19, 2008) (SR–BSE–2008–48).
See also BX Rule 1013(a)(5).
4 See NASDAQ Rule 1013 and BX Rule 1013. See
Securities Exchange Act Release No. 58927
(November 10, 2008), 73 FR 69685 (November 19,
2008) (SR–BSE–2008–48). See also BX Rule
1013(a)(5). BX Rule 1013 (a)(5(C) [sic] today
provides that a FINRA or NASDAQ member shall
have the option to apply to become a member of
the Exchange and to register with the Exchange all
associated persons of the firm whose registrations
with the firm are approved with FINRA or
NASDAQ in categories recognized by the Rules of
the Exchange through an expedited process by
submitting a Short Form Membership Application
Form and a Membership Agreement. The Short
Form Membership Application Form shall contain
information sufficient to establish the identity of
the applicant as an approved FINRA or NASDAQ
member, its proposed activity on the Exchange, and
certain contact personnel, and shall be available on
a Web site maintained by the Exchange. The
proposal would create a similar rule for NASDAQ
to provide BX members the same reciprocity that
the BX rule provides today.
5 See NASDAQ Rules 1013 and 1014 and BX
Rules 1013 and 1014.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
streamlining the process by which
applicants may apply to become a
member of NASDAQ. Today, an
applicant seeking membership at BX has
the option of applying through an
expedited process if that applicant is a
NASDAQ member. The Exchange
believes that same reciprocity should be
granted to BX members desiring to
become NASDAQ members. The rules
and process are substantially similar
with nearly identical rules for each
market. The Exchange believes that
permitting an expedited review similar
to the process which exists today for
FINRA members would allow BX
members to forego unnecessary
paperwork that was already obtained at
the time they applied to become a BX
member.
Additionally, Exchange staff expends
considerable time in reviewing
applications. The Exchange believes
that the streamlined process would not
only avoid duplicative processes for BX
members, but also assist Exchange staff
in conserving resources by focusing on
the pertinent information that would be
required by a BX member seeking
membership at NASDAQ rather than
obtaining paperwork that was already
provided at the time the BX member
applied for membership with BX.
While the Exchange is streamlining
the process to create a more efficient
review of applications and more
appropriately allocate resources, the
Exchange will continue to review
member applications to ensure that all
applications comply with its Rules. BX
members have a continuing obligation
to comply with Exchange Rules, which
are substantially similar to those of
NASDAQ. FINRA would initially
review the application for membership
on NASDAQ’s behalf for compliance
with those rules and there would also be
a requirement for continued compliance
as exists for BX today. The Exchange
would continue to ensure that all
applicants comply with Exchange rules
despite a shortened form of application.
The Exchange also believes that its
proposal will not have a negative impact
on the protection of investors or the
public interest because the Exchange
will continue to review member
applications to ensure that all
applications comply with its Rules.
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.
E:\FR\FM\29AUN1.SGM
29AUN1
Federal Register / Vol. 77, No. 168 / Wednesday, August 29, 2012 / 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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 8 and Rule 19b–4(f)(6) 9
thereunder.
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
All submissions should refer to File No.
SR–NASDAQ–2012–097. 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
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
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of NASDAQ. 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 No. SR–NASDAQ–
2012–097 and should be submitted on
or before September 19, 2012.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
Electronic Comments
BILLING CODE 8011–01–P
• 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–NASDAQ–2012–097 on the
subject line.
Paper Comments
TKELLEY on DSK3SPTVN1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
8 15
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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 satisfied this
requirement.
VerDate Mar<15>2010
17:37 Aug 28, 2012
Jkt 226001
[FR Doc. 2012–21256 Filed 8–28–12; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67722; File No. SR–
NASDAQ–2012–095]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Eliminate
Market Maker Pre-Opening Obligations
on NOM
August 23, 2012.
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 August
10, 2012, The NASDAQ Stock Market
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
52375
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) 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 proposes to modify
Chapter VII, Section 6 (Market Maker
Quotations) of the NASDAQ Options
Market, LLC (‘‘NOM’’), to eliminate
market maker pre-opening obligations
on NOM. The Exchange also proposes to
modify Chapter VII, Section 5
(Obligations of Market Makers) to
conform it to Section 6.
The text of the proposed rule change
is available at https://
nasdaq.cchwallstreet.com/, at the
Exchange’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
The purpose of the proposed rule
change is to modify Chapter VII, Section
6 of the NOM rulebook to remove
obligations imposed on NOM market
makers (‘‘Market Makers’’) 3 to
participate in the pre-opening phase in
terms of continuous quotes; and to
conform Section 5 to Section 6 as
modified. This is done to put Market
Makers on par with the market makers
on other options Exchanges that do not
3 A Market Maker is a NOM participant that is
registered with the Exchange as a Market Maker and
has certain rights and bears certain responsibilities
beyond those of other Options Participants. All
Market Makers are designated as specialists on
NOM. See Chapter VII, Section 2.
E:\FR\FM\29AUN1.SGM
29AUN1
]]>Agencies
[Federal Register Volume 77, Number 168 (Wednesday, August 29, 2012)]
[Notices]
[Pages 52373-52375]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-21256]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67721; File No. SR-NASDAQ-2012-097]
Self-Regulatory Organizations; NASDAQ Stock Market, LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Membership in The NASDAQ Stock Market LLC
August 23, 2012.
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 August
[[Page 52374]]
21, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' 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 NASDAQ. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASDAQ Stock Market LLC proposes to amend NASDAQ Rule 1013,
titled ``New Member Application'' to provide that an applicant that is
approved by NASDAQ OMX BX, Inc. (``BX'') shall have the option to apply
to become a NASDAQ member through an expedited process.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nasdaq.cchwallstreet.com, at https://www.sec.gov,
at the principal office of the Exchange, 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. 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
The Exchange desires to streamline the process of becoming a NASDAQ
member for current BX members. Today, Rule 1013 permits applicants that
are an approved Financial Industry Regulatory Authority (``FINRA'')
member to have the option to apply to become a NASDAQ member and to
register with NASDAQ all associated persons of the firm whose
registrations with the firm are approved by FINRA in categories
recognized by NASDAQ Rules through an expedited process by submitting a
Waive-In Membership Application Form and a NASDAQ Membership Agreement.
The Exchange proposes to also permit a current BX member to have the
same options as a FINRA member in applying to NASDAQ for membership.
The membership application rules of NASDAQ and BX are substantially
similar to each other as are the rules of FINRA with both NASDAQ and BX
Rules. BX Rule 1013(a)(5) provides that an approved member of FINRA or
NASDAQ may apply to become a BX member and register with the Exchange
all associated persons whose registrations are approved with FINRA or
NASDAQ (as applicable) in categories of registration recognized by the
Exchange through an expedited process by submitting a Short Form
Membership Application and Agreement.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 58927 (November 10,
2008), 73 FR
69685 (November 19, 2008) (SR-BSE-2008-48). See also BX Rule
1013(a)(5).
---------------------------------------------------------------------------
The process by which an applicant may register and become a member
of NASDAQ, FINRA or BX is substantially similar. The Exchange requests
the same information from applicants applying to be members of NASDAQ
or BX.\4\ The steps and procedures undertaken by Exchange staff of
NASDAQ and BX, pursuant to membership rules, are the same for reviewing
new member applications.\5\
---------------------------------------------------------------------------
\4\ See NASDAQ Rule 1013 and BX Rule 1013. See Securities
Exchange Act Release No. 58927 (November 10, 2008), 73 FR 69685
(November 19, 2008) (SR-BSE-2008-48). See also BX Rule 1013(a)(5).
BX Rule 1013 (a)(5(C) [sic] today provides that a FINRA or NASDAQ
member shall have the option to apply to become a member of the
Exchange and to register with the Exchange all associated persons of
the firm whose registrations with the firm are approved with FINRA
or NASDAQ in categories recognized by the Rules of the Exchange
through an expedited process by submitting a Short Form Membership
Application Form and a Membership Agreement. The Short Form
Membership Application Form shall contain information sufficient to
establish the identity of the applicant as an approved FINRA or
NASDAQ member, its proposed activity on the Exchange, and certain
contact personnel, and shall be available on a Web site maintained
by the Exchange. The proposal would create a similar rule for NASDAQ
to provide BX members the same reciprocity that the BX rule provides
today.
\5\ See NASDAQ Rules 1013 and 1014 and BX Rules 1013 and 1014.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \6\ in general, and furthers the objectives of Section
6(b)(5) of the Act \7\ in particular, in that it is designed to promote
just and equitable principles of trade, 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,
by streamlining the process by which applicants may apply to become a
member of NASDAQ. Today, an applicant seeking membership at BX has the
option of applying through an expedited process if that applicant is a
NASDAQ member. The Exchange believes that same reciprocity should be
granted to BX members desiring to become NASDAQ members. The rules and
process are substantially similar with nearly identical rules for each
market. The Exchange believes that permitting an expedited review
similar to the process which exists today for FINRA members would allow
BX members to forego unnecessary paperwork that was already obtained at
the time they applied to become a BX member.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Additionally, Exchange staff expends considerable time in reviewing
applications. The Exchange believes that the streamlined process would
not only avoid duplicative processes for BX members, but also assist
Exchange staff in conserving resources by focusing on the pertinent
information that would be required by a BX member seeking membership at
NASDAQ rather than obtaining paperwork that was already provided at the
time the BX member applied for membership with BX.
While the Exchange is streamlining the process to create a more
efficient review of applications and more appropriately allocate
resources, the Exchange will continue to review member applications to
ensure that all applications comply with its Rules. BX members have a
continuing obligation to comply with Exchange Rules, which are
substantially similar to those of NASDAQ. FINRA would initially review
the application for membership on NASDAQ's behalf for compliance with
those rules and there would also be a requirement for continued
compliance as exists for BX today. The Exchange would continue to
ensure that all applicants comply with Exchange rules despite a
shortened form of application. The Exchange also believes that its
proposal will not have a negative impact on the protection of investors
or the public interest because the Exchange will continue to review
member applications to ensure that all applications comply with its
Rules.
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 52375]]
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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\
thereunder.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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 satisfied this requirement.
---------------------------------------------------------------------------
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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or 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 No. SR-NASDAQ-2012-097 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 No. SR-NASDAQ-2012-097. 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 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 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of NASDAQ. 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 No. SR-NASDAQ-2012-097 and should be submitted on
or before September 19, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-21256 Filed 8-28-12; 8:45 am]
BILLING CODE 8011-01-P
