Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Offer the ACT Reject Scan and Assess a Related Fee, 62283-62285 [2012-25106]
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Federal Register / Vol. 77, No. 198 / Friday, October 12, 2012 / Notices
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,
because the proposed rule change will
allow the Exchange to continue to
receive inbound routes of orders from
NES, acting in its capacity as a facility
of BX, in a manner consistent with prior
approvals and established protections.
The Exchange believes that extending
the previously approved pilot period for
six months is a sufficient length of time
to permit both the Exchange and the
Commission to assess the impact of the
Exchange’s authority to permit it to
receive inbound routes of certain orders
via NES (including the attendant
obligations and conditions).
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.
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
wreier-aviles on DSK5TPTVN1PROD with NOTICES
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest, does not impose any significant
burden on competition, and, by its
terms, does not become operative for 30
days from the date on which it was
filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) thereunder.10
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest
because such waiver would allow the
pilot period to be extended without
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
10 17
VerDate Mar<15>2010
13:59 Oct 11, 2012
Jkt 229001
undue delay through March 30, 2013.11
Accordingly, the Commission hereby
grants the Exchange’s request and
designates the proposal operative upon
filing.12
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Phlx–2012–118 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–Phlx–2012–118. 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
11 See
SR–PHLX–2012–118, Item 7.
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
12 For
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
62283
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2012–118 and should be submitted on
or before November 2, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–25130 Filed 10–11–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67977; File No. SR–
NASDAQ–2012–110]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Offer the
ACT Reject Scan and Assess a Related
Fee
October 4, 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
September 28, 2012, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a 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 the Substance
of the Proposed Rule Change
Nasdaq proposes to establish a new
service, the ACT Reject Scan, and assess
a related fee. Nasdaq is proposing to
implement the proposed service on
October 1, 2012 and implement the
proposed fee on November 1, 2012. The
text of the proposed rule change is
available at https://
nasdaq.cchwallstreet.com, at Nasdaq’s
principal office, and at the
Commission’s Public Reference Room.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\12OCN1.SGM
12OCN1
62284
Federal Register / Vol. 77, No. 198 / Friday, October 12, 2012 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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 III [sic] below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq proposes to establish a new
add-on service to the Nasdaq
Workstation and Weblink ACT 2.0, and
establish related fees. Nasdaq’s ACT
Reject Scan service allows a member
firm, at any point during the trading
day, to scan the trades it has submitted
to the Automated Confirmation
Transaction Service (‘‘ACT’’) for all
trades rejected by ACT. Currently, a
member firm must investigate any trade
that has been rejected by ACT and for
which it has not received a control
number.3 Some member firms have
developed their own internal systems
that record the data transmitted to ACT
in a searchable database, which can aid
them in assessing whether a trade was
rejected by ACT. Member firms without
such systems must contact Nasdaq
Subscriber Services to determine the
nature of the rejected trade. This manual
process can be time-consuming, at a
point when a member firm has limited
time to report its trades. Nasdaq
received feedback from member firms
that a reject scan feature would aid in
editing and resubmitting rejected trades,
a process known as submitting a
‘‘repaired’’ trade. In response, Nasdaq
developed the ACT Reject Scan service,
which automates this process by
providing to a subscribing member firm
a list of all of its rejected trades together
with the trade report forms populated
with the original data entered.
Subscribing member firms may then
correct the rejected trade report forms
and resubmit the repaired trade reports.
The ACT Reject Scan service can only
be accessed using a Nasdaq Workstation
or Weblink ACT 2.0 user account.
Member firms subscribing to the ACT
3 ACT provides a member firm a control number
for all of its trades that are accepted by ACT.
VerDate Mar<15>2010
13:59 Oct 11, 2012
Jkt 229001
Reject Scan service are charged a
monthly fee per user, which provides
access to the service for each Nasdaq
Workstation and Weblink ACT 2.0 user
account selected for subscription to the
ACT Reject Scan service. Nasdaq
proposes to offer the ACT Reject Scan
service to each subscriber for a
subscription fee of $75 per user, per
month. Use of the ACT Reject Scan
service is voluntary and the
subscription fee will be imposed on all
purchasers equally based on the number
of users selected. The proposed fee will
be applied to offset the costs associated
with establishing the service,
responding to customer requests,
configuring Nasdaq’s systems,
programming to user specifications, and
administering the service, among other
things. To the extent that costs are
covered by the proposed fee, the
proposed fee may also provide Nasdaq
with a profit.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,4 in
general, and Section 6(b)(4) of the Act,5
in particular, because it provides for the
equitable allocation of reasonable dues,
fees and other charges among members
and issuers and other persons using any
facility or system that Nasdaq operates
or controls, and it does not unfairly
discriminate between customers,
issuers, brokers or dealers. As noted, use
of the proposed ACT Reject Scan service
is voluntary and the subscription fee
will be imposed on all purchasers
equally based on the number of users.
The proposed fee will be allocated to
cover the costs associated with
establishing the service, responding to
customer requests, configuring Nasdaq’s
systems, programming to user
specifications, and administering the
service, among other things, and may
provide Nasdaq with a profit to the
extent costs are covered.
The Exchange determined that the
proposed fee is reasonable based on
member firm interest in ACT Reject
Scan service, costs associated with
developing and supporting the service,
and the value that ACT Reject Scan
service provides to subscribing member
firms. The information provided by ACT
Reject Scan service relates to the
subscribing member firm’s trade
submission activity through ACT and
the member firm may aggregate and
access this information by developing
its own system or by contacting Nasdaq
Subscriber Services for such
4 15
5 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(4).
Frm 00074
Fmt 4703
information. As such, the Exchange
believes that if a member firm
determines that the fee is not costefficient for its needs, it may decline to
subscribe to ACT Reject Scan service
and access such information from other
sources.
The Exchange also believes the
proposed rule change is consistent with
Section 6(b)(5) of the Act,6 which
requires that the rules of an exchange be
designed to prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities,
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, protect investors and the public
interest. The Exchange believes the
proposed rule change is consistent with
these requirements because the
proposed service provides subscribing
members with a useful surveillance tool
with which they may access information
concerning the acceptance of their trade
reports entered into ACT, and quickly
repair and resubmit their rejected
reports. Accordingly, the Exchange
believes that the proposed service will
further goals of the Act by providing
subscribing members with greater
transparency with respect to their trade
reports and increasing efficiency with
respect to the re-submission of repaired
reports.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change 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 from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
6 15
Sfmt 4703
E:\FR\FM\12OCN1.SGM
U.S.C. 78f(b)(5).
12OCN1
Federal Register / Vol. 77, No. 198 / Friday, October 12, 2012 / Notices
become effective pursuant to Section
19(b)(3)(A) 7 of the Act and
subparagraph (f)(6) of Rule 19b–4
thereunder.8
A proposed rule change filed under
Rule 19b–4(f)(6) 9 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 10 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that Nasdaq may offer
the ACT Reject Scan service beginning
on October 1, 2012. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest as it will provide members with
the option to obtain greater transparency
with respect to their trade reports, as
well as an enhanced ability to repair
rejected trades.11 In addition, the
Commission notes that the service is
being offered at no charge for the month
of October. Therefore, the Commission
hereby waives the 30-day operative
delay and designates the proposed rule
change to be operative upon filing with
the Commission.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). 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 the filing of the proposed
rule change, or such shorter time as designated by
the Commission. The Exchange has satisfied this
requirement.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
wreier-aviles on DSK5TPTVN1PROD with NOTICES
8 17
VerDate Mar<15>2010
13:59 Oct 11, 2012
Jkt 229001
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2012–110 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2012–110. 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 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 offices of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2012–110, and should be
submitted on or before November 2,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–25106 Filed 10–11–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67990; File No. SR–BX–
2012–064]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend
Exchange Rule 4758(a)(1)(A) To Reflect
a Change in Its Routing Functionality
To Allow Routable Orders To
Simultaneously Execute Against
Exchange Available Shares and Route
to Other Markets for Execution of the
Remainder of the Order
October 5, 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
September 25, 2012, NASDAQ OMX
BX, Inc. (‘‘BX’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), a
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
BX proposes to amend Rule
4758(a)(1)(A) to reflect a change in its
routing functionality. The Exchange is
proposing to implement the rule change
as soon as practicable, but in no case
later than thirty calendar days from the
filing date of this proposal. The text of
the proposed rule change is available at
https://nasdaqomxbx.cchwallstreet.com,
at BX’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
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.
1 15
12 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00075
Fmt 4703
Sfmt 4703
62285
2 17
E:\FR\FM\12OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
12OCN1
]]>Agencies
[Federal Register Volume 77, Number 198 (Friday, October 12, 2012)]
[Notices]
[Pages 62283-62285]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25106]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67977; File No. SR-NASDAQ-2012-110]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Offer the ACT Reject Scan and Assess a Related Fee
October 4, 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 September 28, 2012, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
Nasdaq proposes to establish a new service, the ACT Reject Scan,
and assess a related fee. Nasdaq is proposing to implement the proposed
service on October 1, 2012 and implement the proposed fee on November
1, 2012. The text of the proposed rule change is available at https://nasdaq.cchwallstreet.com, at Nasdaq's principal office, and at the
Commission's Public Reference Room.
[[Page 62284]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Nasdaq 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 III [sic] 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
1. Purpose
Nasdaq proposes to establish a new add-on service to the Nasdaq
Workstation and Weblink ACT 2.0, and establish related fees. Nasdaq's
ACT Reject Scan service allows a member firm, at any point during the
trading day, to scan the trades it has submitted to the Automated
Confirmation Transaction Service (``ACT'') for all trades rejected by
ACT. Currently, a member firm must investigate any trade that has been
rejected by ACT and for which it has not received a control number.\3\
Some member firms have developed their own internal systems that record
the data transmitted to ACT in a searchable database, which can aid
them in assessing whether a trade was rejected by ACT. Member firms
without such systems must contact Nasdaq Subscriber Services to
determine the nature of the rejected trade. This manual process can be
time-consuming, at a point when a member firm has limited time to
report its trades. Nasdaq received feedback from member firms that a
reject scan feature would aid in editing and resubmitting rejected
trades, a process known as submitting a ``repaired'' trade. In
response, Nasdaq developed the ACT Reject Scan service, which automates
this process by providing to a subscribing member firm a list of all of
its rejected trades together with the trade report forms populated with
the original data entered. Subscribing member firms may then correct
the rejected trade report forms and resubmit the repaired trade
reports.
---------------------------------------------------------------------------
\3\ ACT provides a member firm a control number for all of its
trades that are accepted by ACT.
---------------------------------------------------------------------------
The ACT Reject Scan service can only be accessed using a Nasdaq
Workstation or Weblink ACT 2.0 user account. Member firms subscribing
to the ACT Reject Scan service are charged a monthly fee per user,
which provides access to the service for each Nasdaq Workstation and
Weblink ACT 2.0 user account selected for subscription to the ACT
Reject Scan service. Nasdaq proposes to offer the ACT Reject Scan
service to each subscriber for a subscription fee of $75 per user, per
month. Use of the ACT Reject Scan service is voluntary and the
subscription fee will be imposed on all purchasers equally based on the
number of users selected. The proposed fee will be applied to offset
the costs associated with establishing the service, responding to
customer requests, configuring Nasdaq's systems, programming to user
specifications, and administering the service, among other things. To
the extent that costs are covered by the proposed fee, the proposed fee
may also provide Nasdaq with a profit.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\4\ in general, and Section
6(b)(4) of the Act,\5\ in particular, because it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system that
Nasdaq operates or controls, and it does not unfairly discriminate
between customers, issuers, brokers or dealers. As noted, use of the
proposed ACT Reject Scan service is voluntary and the subscription fee
will be imposed on all purchasers equally based on the number of users.
The proposed fee will be allocated to cover the costs associated with
establishing the service, responding to customer requests, configuring
Nasdaq's systems, programming to user specifications, and administering
the service, among other things, and may provide Nasdaq with a profit
to the extent costs are covered.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange determined that the proposed fee is reasonable based
on member firm interest in ACT Reject Scan service, costs associated
with developing and supporting the service, and the value that ACT
Reject Scan service provides to subscribing member firms. The
information provided by ACT Reject Scan service relates to the
subscribing member firm's trade submission activity through ACT and the
member firm may aggregate and access this information by developing its
own system or by contacting Nasdaq Subscriber Services for such
information. As such, the Exchange believes that if a member firm
determines that the fee is not cost-efficient for its needs, it may
decline to subscribe to ACT Reject Scan service and access such
information from other sources.
The Exchange also believes the proposed rule change is consistent
with Section 6(b)(5) of the Act,\6\ which requires that the rules of an
exchange be designed to prevent fraudulent and manipulative acts and
practices, promote just and equitable principles of trade, foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, protect investors and the public interest. The
Exchange believes the proposed rule change is consistent with these
requirements because the proposed service provides subscribing members
with a useful surveillance tool with which they may access information
concerning the acceptance of their trade reports entered into ACT, and
quickly repair and resubmit their rejected reports. Accordingly, the
Exchange believes that the proposed service will further goals of the
Act by providing subscribing members with greater transparency with
respect to their trade reports and increasing efficiency with respect
to the re-submission of repaired reports.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change 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 from the date on which it was filed, or
such shorter time as the Commission may designate, it has
[[Page 62285]]
become effective pursuant to Section 19(b)(3)(A) \7\ of the Act and
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6)(iii). 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 the filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that Nasdaq may
offer the ACT Reject Scan service beginning on October 1, 2012. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest as
it will provide members with the option to obtain greater transparency
with respect to their trade reports, as well as an enhanced ability to
repair rejected trades.\11\ In addition, the Commission notes that the
service is being offered at no charge for the month of October.
Therefore, the Commission hereby waives the 30-day operative delay and
designates the proposed rule change to be operative upon filing with
the Commission.
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\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2012-110 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2012-110. 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 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 offices of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NASDAQ-2012-110, and should be submitted on or before
November 2, 2012.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-25106 Filed 10-11-12; 8:45 am]
BILLING CODE 8011-01-P
