Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 13005 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

away market routing fee. Currently the 

fee is set at $0.10 per executed contract 

or share equivalent. The Exchange is 

proposing to reduce the fee to $0.05 per 

executed contract or share equivalent 

effective March 1, 2011. 

The second purpose of this proposed 

rule change is to extend the waiver of 

the PULSe Routing Intermediary fee. 

Currently the Exchange has waived the 

Routing Intermediary fee through March 

31, 2011. The Exchange is proposing to 

extend this waiver through June 30, 

2011. Thus this fee will be assessed 

beginning July 1, 2011. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,6

in general, and furthers the objectives of 

Section 6(b)(4) of the Act,7 in particular, 

in that it is designed to provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among C2 Permit 

Holders in that the same fees and fee 

waivers are applicable to all Permit 

Holders that use the PULSe workstation. 

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 that is not 

necessary or appropriate in furtherance 

of 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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change is 

designated by the Exchange as 

establishing or changing a due, fee, or 

other charge, thereby qualifying for 

effectiveness on filing pursuant to 

Section 19(b)(3)(A)(ii) of the Act 8 and 

subparagraph (f)(2) of Rule 19b–4 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. 

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 rulecomments@sec.gov. Please include File 

Number SR–C2–2011–009 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–C2–2011–009. 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, 100 F Street, NE., 

Washington, DC 20549 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–C2– 

2011–009 and should be submitted on 

or before March 30, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5278 Filed 3–8–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64022; File No. SR–MSRB– 

2011–02] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Rule Change 

Consisting of Amendments to MSRB 

Rule A–3, on Membership on the Board 

March 3, 2011. 

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 February 

18, 2011, the Municipal Securities 

Rulemaking Board (‘‘Board’’ or ‘‘MSRB’’) 

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 MSRB. The 

MSRB has filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to 

Section 19(b)(3)(A)(iii),3 and Rule 19b– 

4(f)(6) thereunder,4 which renders the 

proposal effective upon filing with the 

Commission. 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 MSRB is filing with the SEC a 

proposed rule change consisting of 

amendments to MSRB Rule A–3, on 

membership on the Board. 

The text of the proposed rule change 

is available on the MSRB’s Web site at 

http://www.msrb.org/Rules-andInterpretations/SEC–Filings/2011– 

Filings.aspx, at the MSRB’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 

MSRB included statements concerning 


Emcdonald on DSK2BSOYB1PROD with NOTICES
13006 Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 

5See Exchange Act Release No. 63025 (Sep. 30, 

2010), 75 FR 61806 (Oct. 6, 2010). 6 15 U.S.C. 78o–4(b)(2)(B) 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 In addition, Rule 19b–4(f)(6)(iii) requires a selfregulatory 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. 

9See Section 19(b)(3)(C) of the Act, 15 U.S.C. 

78s(b)(3)(C). 

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 Board 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 make changes to MSRB 

Rule A–3(i) as are necessary and 

appropriate to retain a 21 member Board 

of Directors, including 11 public 

members and 10 regulated 

representatives, consistent with current 

MSRB transitional Rule A–3(i) and the 

requirements of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act, Public Law 111–203, 124 Stat. 1376 

(2010) (the ‘‘Dodd-Frank Act’’).5

Transitional Rule A–3(i), adopted on 

September 30, 2010 to comply with the 

Board composition requirements of 

Section 975 of the Dodd-Frank Act, 

established a two-year transition period 

for achieving a permanent Board 

structure under the new composition 

requirements of the Dodd-Frank Act and 

envisioned a series of further 

amendments to the rule during the 

transition period in furtherance thereof. 

The transitional period commenced on 

October 1, 2010 and concludes on 

September 30, 2012. The proposed rule 

change consists of amendments to 

MSRB Rule A–3(i) to provide for a 

three-year term for the class of five 

Board members—two public and three 

representing MSRB regulated entities— 

who will commence service on October 

1, 2011. The amendments to Rule A–3(i) 

provide that the next class of Board 

members will consist of two public 

members and three members 

representing any category of regulated 

entity, including broker-dealers, bank 

dealers, and municipal advisors. The 

rule change further provides that the 

new class of five members of the Board 

of Directors will serve a three-year term. 

The rule would state explicitly that 

five new members would be elected to 

the Board of Directors, although implicit 

in the rule, since five Board members 

are retiring as of September 30, 2010, 

and the MSRB must maintain a Board of 

Directors of 21 members during the 

transitional period. Further, the rule 

would state explicitly that two of the 

five new members would be public 

directors and three would be 

representative of MSRB regulated 

entities. While also implicit in Rule A– 

3(i), the rule change would make clear 

that the three industry positions may be 

filled by representatives of brokerdealers, bank dealers or municipal 

advisors, since the retiring industry 

members are representative of brokerdealers or bank dealers. Finally, the rule 

change would provide that the new 

class of five directors would have a 

three-year term. While the directors 

have historically served three-year 

terms, the most recent Board class, 

elected at the start of the transitional 

period, was elected for a two-year term. 

Thus, this proposed rule change is 

intended to establish a three-year term 

for the five new Board members who 

will commence service on October 1, 

2011, consistent with Section 15B(b)(1) 

of the Securities Exchange Act of 1934 

and prior Board practice. The proposed 

rule change would amend MSRB Rule 

A–3(i) in order to provide for the 

election of a new five member class for 

a three-year term commencing on 

October 1, 2011. Of the five new 

members, two would be members of the 

public and three would be regulated 

representatives who are representative 

of and associated with brokers, dealers, 

municipal securities dealers or 

municipal advisors. 

2. Statutory Basis 

The MSRB has adopted the proposed 

rule change pursuant to Section 

15B(b)(2)(B) 6 of the Act, which provides 

that the MSRB’s rules shall: 

establish fair procedures for the nomination 

and election of members of the Board and 

assure fair representation in such 

nominations and elections of public 

representatives, broker dealer 

representatives, bank representatives, and 

advisor representatives. 

The MSRB believes that the proposed 

rule change is consistent with the Act, 

as amended by the Dodd-Frank Act, in 

that it would provide for the 

maintenance of a 21 member Board with 

a majority of public members and have 

fair representation of broker-dealers, 

bank dealers, and municipal advisors, 

consistent with MSRB Rule A–3(i) as 

approved by the SEC. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The MSRB 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, since it is solely 

concerned with the administration of 

the MSRB and, in any event, provides 

for fair representation on the Board of 

public representatives, broker dealer 

representatives, bank dealer 

representatives and municipal advisor 

representatives. 

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 on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The MSRB represented that the 

proposed rule change qualifies for 

immediate effectiveness pursuant to 

Section 19(b)(3)(A)(iii) of the Act 7

because it: (i) Does not significantly 

affect the protection of investors or the 

public interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not become operative for 30 

days after filing or such shorter time as 

the Commission may designate 

consistent with the protection of 

investors and the public interest.8 The 

MSRB provided the required written 

notice of its intention to file the 

proposed rule change to the 

Commission on February 10, 2011, and 

the proposed rule change will become 

operative on April 1, 2011, which is 

more than 30 days after the filing of the 

proposed rule change. 

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.9

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: 


Emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 13007 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19–b4. 3See Exchange Section 9200 Series Rules. 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–MSRB–2011–02 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–MSRB–2011–02. 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 website 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 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the MSRB’s offices. 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–MSRB–2011–02 and should 

be submitted on or before March 30, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5279 Filed 3–8–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64032; File No. SR– 

NASDAQ–2011–029] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify the 

Minor Rules Violation Plan of the 

Nasdaq Options Market With Respect 

to Standardized Options 

March 4, 2011. 

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 February 

18, 2011, 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 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 the Substance 

of the Proposed Rule Change 

NASDAQ proposes to modify the 

Minor Rules Violation Plan with respect 

to standardized options as set forth in 

Chapter X, Section 7 of the Nasdaq 

Options Market (‘‘NOM’’) rules. 

The text of the proposed rule change 

is available at http:// 

nasdaq.cchwallstreet.com/, at 

NASDAQ’s principal office, on the 

Commission’s Web site at http:// 

www.sec.gov, 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, 

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 these 

statements may be examined at the 

places specified in Item IV below. 

NASDAQ 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 Minor Rules Violation Plan 

(‘‘MRVP’’) fosters compliance with 

applicable rules and also helps to 

reduce the number and extent of rule 

violations committed by Options 

Participants and associated persons. The 

MRVP is particularly useful in reducing 

both the number and extent of rule 

violations because the text of the rule, 

located at Chapter X, Section 7, enables 

staff to promptly impose a limited but 

meaningful financial penalty soon after 

the violations are detected. The prompt 

imposition of a financial penalty helps 

to quickly educate and improve the 

conduct of Options Participants and 

associated persons that have engaged in 

inadvertent or otherwise minor 

violations of the Exchange’s rules, 

particularly those parties who may not 

pay attention to mere warnings that they 

are violating Exchange rules. By 

promptly imposing a meaningful 

financial penalty for such violations, the 

MRVP focuses on correcting conduct 

before it gives rise to more serious 

enforcement action. 

The Exchange believes its proposal 

places the Exchange on par with all 

other options exchanges. Currently, all 

options exchanges have entered into a 

plan pursuant to Rule 17d–2 of the Act 

(the ‘‘Plan’’) to agree to allocate 

regulatory responsibility for certain 

rules common to all options exchanges. 

Adding the proposed rules to the 

Exchange’s minor rule plan promotes 

consistency with the minor rule 

violations plans of the other exchanges, 

particularly with respect to rule [sic] 

that are classified as common rules 

pursuant to the Plan. 

In light of recent amendments to 

Exchange rules, the Exchange is 

proposing to make amendments to the 

MVRP as described in greater detail 

below. While the MRVP will continue to 

be used for inadvertent and occasional 

rule violations, serious violations of 

Exchange rules will continue to be 

addressed through formal enforcement 

action.3

LOPR Reporting and Position Limit 

Violations 

Proposed new subsection (d) of 

Chapter X, Section 7 will govern minor 

violations of the rules regarding Large 

Option Position Report (‘‘LOPR’’) 

Reporting and Position Limits as set 

forth in Chapter III, Sections 7–10. This 


Emcdonald on DSK2BSOYB1PROD with NOTICES