[Federal Register Volume 76, Number 46 (Wednesday, March 9, 2011)]
[Notices]
[Page 13010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5379]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64028; File No. SR-BX-2010-059]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Designation of Longer Period for Commission Action on Proceedings To
Determine Whether To Disapprove Proposed Rule Change, as Modified by
Amendment No. 1, To Create a Listing Market on the Exchange
March 3, 2011.
On August 20, 2010, NASDAQ OMX BX, Inc. (the ``Exchange'') filed
with the Securities and Exchange Commission (the ``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change
to create a listing market on the Exchange. The proposed rule change
was published for comment in the Federal Register on September 8,
2010.\3\ The Commission received three comment letters on the
proposal.\4\ The Commission subsequently extended the time period in
which to either approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change, to December 7, 2010.\5\ On
December 6, 2010, the Exchange filed Amendment No. 1 to the proposed
rule change.\6\ On December 7, 2010, the Commission instituted
proceedings to determine whether to disapprove the proposed rule
change, as modified by Amendment No. 1.\7\ The Commission thereafter
received seven comments on the proposal.\8\ The Exchange responded to
these comments on February 17, 2011.\9\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 62818 (September 1,
2010), 75 FR 54665 (``Notice'').
\4\ See Letters to Elizabeth M. Murphy, Secretary, Commission,
from William F. Galvin, Secretary of the Commonwealth, Commonwealth
of Massachusetts, dated September 28, 2010; Michael R. Trocchio,
Bingham McCutchen LLP, on behalf of Pink OTC Markets Inc., dated
October 3, 2010; and Tom A. Alberg, Managing Director and Founder,
Madrona Venture Group, dated December 1, 2010.
\5\ See Securities Exchange Act Release No. 63105 (October 14,
2010), 75 FR 64772 (October 20, 2010) (``Extension'').
\6\ See Securities Exchange Act Release No. 63597 (December 22,
2010), 75 FR 82098 (December 29, 2010) (``Amendment No. 1'').
\7\ See Securities Exchange Act Release No. 63448 (December 7,
2010), 75 FR 77036 (December 10, 2010) (``Order Instituting
Proceedings'').
\8\ See Letters to Elizabeth M. Murphy, Secretary, Commission,
from James J. Angel, Ph.D., CFA, dated January 14, 2011; K. Richard
B. Niehoff, Chairman and CEO, United States OTC Markets, Inc., dated
January 20, 2011; Mark G. Heesen, President, National Venture
Capital Association, dated January 21, 2011; Alan F. Eisenberg,
Executive Vice President, Emerging Companies and Business
Development, Biotechnology Industry Organization, dated January 24,
2011; Michael R. Trocchio, Bingham McCutchen LLP, on behalf of OTC
Markets Group Inc., dated January 24, 2011; Rey Ramsey, President
and CEO, TechNet, dated January 24, 2011; and William F. Galvin,
Secretary of the Commonwealth, Commonwealth of Massachusetts, dated
January 26, 2011.
\9\ See Letter to Elizabeth M. Murphy, Secretary, Commission,
from Joan C. Conley, Senior Vice President and Corporate Secretary,
The NASDAQ OMX Group, dated February 17, 2011.
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Section 19(b)(2) of the Act \10\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of the filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on September 8, 2010. March 7, 2011 is 180 days from
that date, and May 6, 2011 is an additional 60 days from that date.
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\10\ 15 U.S.C. 78s(b)(2).
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The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider this proposed
rule change, the issues raised in the comment letters that have been
submitted in connection with this proposed rule change, and the
Exchange's response to such issues in its response letter.
Specifically, while the Exchange noted a number of benefits to the
proposal,\11\ as the Commission noted in the Order Instituting
Proceedings, the proposal raises issues such as whether BX-listed
securities could be more prone to manipulation, and whether investors
will understand that BX-listed securities could pose substantially more
risk than those listed on other markets.\12\
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\11\ The Exchange believes that a BX listing could help
companies that are being delisted from another national securities
exchange for failure to meet its quantitative listing standards and
companies with smaller market capitalization contemplating an
initial exchange listing to raise capital, and in turn promote job
creation within the United States. See Amendment No. 1, supra note 6
at 82100. The Exchange further believes that the proposed listing
venue will provide a transparent, well-regulated marketplace for
these companies and their investors. See id. at 82099.
\12\ See Order Instituting Proceedings, supra note 7 at 77040.
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Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\13\ designates May 6, 2011, as the date by which the Commission
should either approve or disapprove the proposed rule change.
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\13\ 15 U.S.C. 78s(b)(2).
\14\ 17 CFR 200.30-3(a)(57).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5379 Filed 3-8-11; 8:45 am]
BILLING CODE 8011-01-P