[Federal Register Volume 75, Number 198 (Thursday, October 14, 2010)]
[Notices]
[Pages 63229-63231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-25863]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63063; File No. SR-NASDAQ-2010-126]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Make a Conforming Change to NASDAQ Rules
October 7, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 1, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``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.
---------------------------------------------------------------------------
\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
NASDAQ proposes to make a conforming change to Rule 4758 to reflect
prior effectiveness of filings allowing routing of orders to a facility
of an exchange that is an affiliate of NASDAQ. NASDAQ proposes to
implement the rule change concurrent with the launch of cash equity
trading on NASDAQ OMX PSX, which is currently scheduled to occur on
October 8, 2010. The text of the proposed rule change is available at
http://nasdaq.cchwallstreet.com/, at NASDAQ's principal office, and at
the Commission's Public Reference Room.
[[Page 63230]]
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. The
text of these statements may be examined at the places specified in
Item III below, and is set forth in Sections A, B, and C below.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The NASDAQ OMX Group, Inc. (``NASDAQ OMX'') owns three U.S.
registered securities exchanges--NASDAQ, NASDAQ OMX PHLX, Inc.
(``PHLX'') and NASDAQ OMX BX, Inc. (``BX''). In addition, NASDAQ OMX
currently indirectly owns Nasdaq Execution Services, LLC (``NES''), a
registered broker-dealer and a member of PHLX. Thus, NES is an
affiliate of each of NASDAQ, PHLX and BX.
PHLX has received approval to launch NASDAQ OMX PSX (``PSX'') \3\
as a new platform for trading NMS stocks (as defined in Rule 600 under
Regulation NMS).\4\ Although PSX will not route to other market
centers, PSX will receive orders routed to it by other market centers,
including NASDAQ.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 62877 (September 9,
2010), 75 FR 56633 (September 16, 2010) (SR-PHLX-2010-79).
\4\ 17 CFR 242.600.
---------------------------------------------------------------------------
In SR-NASDAQ-2010-100,\5\ NASDAQ submitted a proposed rule change
that authorized it to route orders to PSX through NES without checking
the NASDAQ book. In addition, in SR-PHLX-2010-79, PHLX received
approval, on a pilot basis, to receive orders routed to it by NES that
did not check the NASDAQ book prior to routing.\6\ The change to NASDAQ
rules was reflected in an amendment to Rule 4751, but should have also
been reflected in an amendment to Rule 4758. Accordingly, NASDAQ is
submitting this rule change to make the conforming change.
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 62736 (August 17, 2010),
75 FR 51861 (August 23, 2010) (SR-NASDAQ-2010-100).
\6\ Supra n.3.
---------------------------------------------------------------------------
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(5) of the Act,\8\ in particular, in that the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. The proposed rule change
would make a conforming change to NASDAQ rules to reflect previously
adopted rule changes.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ 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 become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\ NASDAQ requests that the Commission waive the
30-day pre-operative delay contained in Exchange Act Rule 19b-
4(f)(6)(iii).\11\ NASDAQ requests such a waiver because the proposed
rule change merely conforms the text of Rule 4758 to rule changes made
by SR-NASDAQ-2010-100 and SR-PHLX-2010-79 that have already become
effective, and such waivers will allow the proposed rule change to be
in effect on October 8, 2010, the date on which trading will commence
on PSX. The Commission believes that waiving the 30-day operative delay
\12\ is consistent with the protection of investors and the public
interest. Accordingly, the Commission designates the proposal operative
upon filing.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For 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).
---------------------------------------------------------------------------
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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-NASDAQ-2010-126 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-2010-126. This
file number should be included on the subject line if e-mail 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 (http://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
[[Page 63231]]
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 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-2010-126 and should be submitted on or before November 4, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-25863 Filed 10-13-10; 8:45 am]
BILLING CODE 8011-01-P