[Federal Register Volume 76, Number 120 (Wednesday, June 22, 2011)]
[Notices]
[Pages 36610-36612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-15555]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64691; File No. SR-NASDAQ-2011-079]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend the Implementation Date for Several Rules in Connection With
Trading System Enhancements
June 16, 2011.
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 June 8, 2011, The NASDAQ Stock Market LLC (``Exchange'' or
``NASDAQ'') filed with the Securities and Exchange Commission (``SEC''
or ``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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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[[Page 36611]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASDAQ is filing with the Securities and Exchange Commission
(``Commission'') a proposal for the NASDAQ Options Market (``NOM'') to
extend the time period where certain rules, in connection with several
trading system enhancements, are implemented from May 2011 to August
2011, as described below. The Exchange will announce the specific
implementation schedule by Options Trader Alert, once the rollout
schedule is finalized.
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.
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 extend the time
period where certain rules, in connection with several trading system
enhancements, are implemented from May 2011 to August 2011. The
Exchange intends to rollout these enhancements in August 2011.\3\ The
Exchange will announce the specific implementation schedule by Options
Trader Alert, once the rollout schedule is finalized.
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\3\ The Commission notes that NASDAQ intends to begin
implementation of these two rules by August 31, with the specific
implementation scheduled to be announced via Options Trader Alert,
as stated above. In the event that this does not occur by August 31,
NASDAQ has represented that it will file a proposed rule change to
establish the revised time period. See e-mail from Edith Callahan,
Principal Associate General Counsel, The NASDAQ OMX Group, Inc., to
Steve L. Kuan, Special Counsel, Division of Trading and Markets,
Commission, on June 16, 2011.
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Previously, the Exchange filed two proposed rule changes indicating
an implementation date of May 31, 2011.\4\ The first one amended
various rules to: (a) Permit market maker assignment by option rather
than by series; (b) adopt a $5 quotation spread parameter; and (c)
amend the quoting requirement for Market Makers.\5\ The second one
modified the procedures for the opening of trading at the start of the
trading day and at the resumption of trading following a trading halt
on NOM.\6\ The implementation of both of those rules is now scheduled
for August 2011. At the time the Exchange filed those two filings, the
Exchange expected implementation to occur in May. However, since that
time, additional enhancements have been finalized and filed as well,\7\
all of which are intended to be implemented together. The Exchange
needed more time to implement the enhancements. As a result,
participants will have additional time to adapt to the enhancements.
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\4\ The Exchange has also filed other proposed rule changes in
connection with these enhancements, but established the
implementation date as on or about August 1, 2011, such that it does
not need to be revised.
\5\ Securities Exchange Act Release No. 64054 (March 8, 2011),
76 FR 14111 (March 15, 2011) (SR-NASDAQ-2011-036). The
implementation date in the filing was May 31, 2011.
\6\ Securities Exchange Act Release No. 64463 (May 11, 2011), 76
FR 28257 (May 16, 2011) (SR-NASDAQ-2011-037). The implementation
date in the filing was May 31, 2011.
\7\ See e.g., Securities Exchange Act Release No. 64312 (April
20, 2011), 76 FR 23351 (April 26, 2011) (SR-NASDAQ-2011-053).
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \8\ in general, and furthers the objectives of Section
6(b)(5) of the Act \9\ in particular, in that it 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 facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system, and, in general, to protect
investors and the public interest, because it merely extends an
implementation period for two NOM enhancements, which should provide
NOM Participants additional time to adapt to the enhancements.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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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.
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 from the date on which it was filed, or
such shorter time as the Commission may designate, if consistent with
the protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to submit to the
Commission written notice of its 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.
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The Exchange has requested the Commission to waive the 30-day
operative delay so that NOM Participants will know that these two rules
are not yet implemented. The Exchange noted that it will announce the
specific implementation schedule by Options Trader Alert, once the
rollout schedule is finalized. The Commission hereby grants the
Exchange's request and believes such waiver is reasonable as it would
provide notice to NOM participants with respect to the change in
implementation date and is consistent with the protection of investors
and the public interest.\12\ Accordingly, the Commission designates the
proposed rule change operative upon filing with the Commission.
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\12\ For purposes only of waiving the 30-day operative delay of
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.
[[Page 36612]]
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-2011-079 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-2011-079. 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 days between the hours of 10 a.m. and 3 p.m. Copies
of such 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-2011-079 and should be submitted on or before
July 13, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-15555 Filed 6-21-11; 8:45 am]
BILLING CODE 8011-01-P