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
13008 Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 

4On August 31, 2009, the Nasdaq Stock Market, 

LLC and NASDAQ OMX PHLX LLC (herein 

collectively referred to as ‘‘NASDAQ’’) entered into 

the ‘‘Options Order Protection and Locked/Crossed 

Market Plan’’ (‘‘Plan’’) amongst other Participants, 

which was approved by the Securities and 

Exchange Commission (‘‘SEC’’) pursuant to Section 

11A(a)(3)(B) of the Exchange Act and Rule 608, 

effective on August 28, 2009, Release No. 34–60582. 

section applies to position limits and 

maintaining and furnishing reports 

related to applicable position limits for 

options contracts. For minor rule 

violations of LOPR Reporting, the fine 

for a first offense would be $1,000; the 

fine for a second offense would be 

$2,500; and for any subsequent offense 

the fine would be $5,000. For minor rule 

violations of position limits, the fine for 

a first offense would be $500; for a 

second offense the fine would be 

$1,000; and for any subsequent offense 

the fine would be $2,500. The scope of 

this proposed subsection is substantially 

similar to and is applicable to the 

conduct covered by the MRVP provision 

of Rule 476A, Part 1C(i)(17) of the NYSE 

Amex Exchange (‘‘Amex’’). Specifically, 

Amex Rule 476A, Part 1C(i)(17), entitled 

‘‘Position Limit or Exercise Limit 

Violation. (Rule 904, 904C, 905, 905C, 

1107, 1108)’’ governs violations of 

position and exercise limits set forth in 

the enumerated Amex rules. 

Furthermore, proposed new subsection 

(d) references Chapter III, Sections 7, 8, 

and 9 of the Exchange Rules and also 

govern violations of position (Sections 7 

and 8) and exercise (Section 9) limits. 

Likewise, Amex Rule 476A, Part 

1C(i)(38), entitled ‘‘Reporting of options 

positions. (Rule 906(a) and 906C(a))’’ 

governs a failure to report options 

positions as set forth in Amex Rule 906 

(Reporting of Options Positions), which 

is similar to Exchange Rule Chapter III, 

Section 10 (Reports Related to Position 

Limits). Based on the similarity of rules 

between the Exchange and Amex and 

the overlap between NOM and Amex 

members, the Exchange believes that the 

proposal is non-controversial. 

Expiring Exercise Declaration Rule 

Violations 

Proposed new subsection (e) would 

govern minor violations regarding 

exercise of options contracts, allocation 

of exercise notices and delivery and 

payment of the underlying security set 

forth in Chapter VIII, Sections 1–3 of the 

Exchange’s Rules. For these minor rules 

violations by individuals, the fine for a 

first offense would be $500, the fine for 

a second offense would be $1,000, and 

for any subsequent offense the fine 

would be $2,500. For these minor rules 

violations by a firm, the fine for a first 

offense would be $1,000, the fine for a 

second offense would be $2,500, and for 

any subsequent offense the fine would 

be $5,000. The language of this 

proposed subsection is identical to and 

applicable to the conduct covered by the 

MRVP provision in Chapter X, Section 

2(f) of the rules of the rules of Boston 

Options Exchange (‘‘BOX’’). 

Audit Trail Submissions and Record 

Keeping Requirements Violations 

Proposed new subsection (f) would 

govern minor violations of the Audit 

Trail Submissions and Record Keeping 

Requirements set forth in Chapter V, 

Section 7 and Chapter IX, Sections 1–3 

of the Exchange’s Rules. These rules 

address the submission of audit trail 

information and require information to 

be recorded, retained and provided 

upon request by the Exchange’s 

Regulation or other applicable 

regulatory entity. For minor rules 

violations regarding the submission of 

audit trail information, the fine for a 

first offense would be $1,500, the fine 

for a second offense would be $3,000, 

and for any subsequent offense the fine 

would be $5,000. The proposed 

provision is substantially similar to and 

applicable to conduct covered by Rule 

10.12(h)(2) entitled ‘‘Failure to comply 

with order formal and system entry 

requirements of Rule 6.67’’ and Rule 

10.12(k)(i)(2) of the rules of the NYSE 

Arca, Inc. (‘‘NYSE Arca’’). Likewise, the 

fine amounts are mirror NYSE Arca for 

minor rules violations regarding 

recordkeeping requirements and 

requirements for providing records 

upon request—the fine for a first offense 

would be $2,000, the fine for a second 

offense would be $4,000, and for any 

subsequent offense the fine would be 

$5,000. The proposed provision is 

substantially similar to and applicable 

to conduct covered by Rule 10.12(j)(10) 

entitled ‘‘Failure to comply with the 

books and records requirements of Rule 

9.17’’ and Rule 10.12(k)(iii)(10) of the 

rules of NYSE Arca. 

Representation of Orders Violations 

Proposed new subsection (g) will 

govern minor violations of the rules 

regarding Representation of Orders set 

forth in Chapter VII, Section 12 of the 

Exchange Rules. These rules restrict 

options participant executions of 

principal orders they represent as agent 

unless proper exposure parameters are 

applied. For these minor rules 

violations, the fine for a first offense 

would be $1000, the fine for a second 

offense would be $2,500, and for any 

subsequent offenses the fine would be 

$5,000. This proposed provision is 

substantially similar to and applicable 

to the same conduct and fines covered 

by Rules 10.12(h)(34) entitled ‘‘Failure 

to satisfy the Order Exposure 

Requirements set forth in Rule 6.47A 

and its Commentary’’ and Rule 

10.12(k)(i)(34) of the rules of NYSE 

Arca. NYSE Arca Rule 6.47A governs 

requirements for exposed orders. 

Trade Reporting Violations 

Proposed new subsection (h) will 

govern minor violations of the Trade 

Reporting rules set forth in Chapter VI, 

Sections 14 and 15 of the Exchange 

Rules. These rules require that all 

transactions effected on the Exchange: 

(i) be submitted for clearance to The 

Options Clearing Corporation; (ii) that 

Options Participants report the name of 

the Clearing Participants; and (iii) the 

prompt reporting of any change in this 

identity to the Exchange. For these 

minor rules violations, the fine for a first 

offense would be $1,500, the fine for a 

second offense would be $3,000, and for 

any subsequent offense the fine would 

be $5,000. This proposed provision is 

substantially similar to and applicable 

to the same conduct and fines covered 

by Rule 10.12(h)(38) entitled ‘‘Failure to 

comply with the reporting duties of 

Rule 6.69)’’ of the rules of NYSE Arca. 

Specifically, NYSE Arca Rule 6.69(e) 

governs the submission of trade 

reporting information regarding clearing 

through The Options Clearing 

Corporation. 

Locked and Cross Market Violations 

Proposed new subsection (i) will 

govern Locked and Cross Market 

Violations as set forth in Chapter XII, 

Section 3 of the Exchange Rules. The 

Locked and Crossed Markets rules 

address violations of the rules regarding 

avoidance of Locked or Crossed 

Markets. For these minor rules 

violations, the fine for a first offense 

would be $500, the fine for a second 

offense would be $1,000, and for any 

subsequent offense the fine would be 

$2,500. The language of this proposed 

subsection is identical to and applicable 

to the conduct and fines covered by 

Rule 10.12(h)(35) entitled ‘‘Failure to 

avoid locking a market (Rule 6.95)’’ and 

10.12(k)(i)(35) of the rules of NYSE 

Arca. The underlying provisions of the 

Exchange and NYSE Arca rules are all 

based on the same provisions of the 

Options Order Protection and Locked/ 

Crossed Market Plan.4

Trade-Through Violations 

Proposed new subsection (j) would 

govern Trade-Through Violations that 

occur pursuant to Chapter XII, Section 

2(a) of the Exchange Rules. The TradeThrough Rules prevent market 


Emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 13009 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78f(b)(6). 

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

9 17 CFR 240.19b–4(f)(6). 

10See Securities Exchange Act Release No. 58092 

(July 3, 2008), 73 FR 40144 (July 11, 2008) at 40151, 

where the Securities and Exchange Commission 

acknowledges that ‘‘any increase in the number of 

proposed rule changes that may become effective 

upon filing with the Commission should improve 

the ability of SROs to amend their rules efficiently, 

particularly with respect to rules relating to trading 

systems and ‘‘copycat’’ proposals, which will 

enhance their ability to respond to competitive 

pressures by allowing them to file changes to their 

systems on an immediately-effective basis’’. 

participants from executing orders at 

prices that are inferior to other 

displayed quotations. For these minor 

rules violations, the fine for a First 

Offense would be $500, the fine for a 

second offense would be $1,000, and for 

any subsequent offense the fine would 

be $2,500. The language of this 

proposed subsection is substantially 

applicable to the conduct and fines 

covered by Rule 10.12(h)(29) entitled 

‘‘Failure to comply with the 

requirements for avoidance of tradethroughs set forth in Rule 6.94(a)’’ and 

Rule 10.12(k)(i)(29) of the rules of NYSE 

Arca. The underlying provisions of the 

Exchange and NYSE Arca rules are all 

based on the same provisions of the 

Options Order Protection and Locked/ 

Crossed Market Plan. 

Failure to Timely File Amendments to 

Form U4, Form U5 and Form BD 

Violations 

Proposed new subsection (k) would 

govern Failure to Timely File 

Amendments to Form U4, Form U5 and 

Form BD. Any member and/or 

participant organization that is required 

to file Form U4, Form U5 or Form BD 

pursuant to Section 1031 of the 

Exchange Rules, the Act, and/or the 

rules promulgated thereunder, is 

required to amend the applicable Form 

U4, Form U5 or Form BD to keep such 

forms current at all times. Members 

and/or participant organizations must 

amend Form U4, Form U5 and Form BD 

within thirty days after the filer knew of 

or should have known of the need for 

the amendment. For these minor rules 

violations, implemented on a running 

twelve (12) month period the fine for a 

first offense would be $500, the fine for 

a second offense would be $1,000, and 

for any subsequent offense the fine 

would be $2,000. The language of this 

proposed subsection is identical to and 

applicable to the conduct and fines 

covered by the MRVP provision in 

Chapter X, Section 2(e) of the rules of 

BOX, which addresses the same 

provisions. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,5

in general, and Section 6(b)(5) of the 

Act,6 in particular, because 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 mechanism of a free and 

open market and a national market 

system. The proposed rule change is 

consistent with the statute in that it 

directly addresses fraudulent and 

manipulative acts and practices by 

NOM members. 

The proposed rule change is 

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

Act 7 which provides that members and 

persons associated with members shall 

be appropriately disciplined for 

violation of the provisions of the rules 

of the exchange, by expulsion, 

suspension, limitation of activities, 

functions, and operations, fine, censure, 

being suspended or barred from being 

associated with a member, or any other 

fitting sanction. The establishment and 

modification of a MRVP directly 

addresses such requirement. 

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 

Pursuant to Section 19(b)(3)(A) of the 

Act 8 and Rule 19b–4(f)(6) thereunder,9

The [sic] Exchange has designated this 

proposal as one that effects a change 

that: (i) Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not become 

operative for thirty days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest. The Exchange has 

provided 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. 

The Exchange believes that the filing 

may appropriately be designated for 

filing under Rule 19b–4(f)(6) because 

the filing eliminates inconsistencies 

between the Exchange’s MRVP and 

those of other exchanges. The proposed 

rules of the Exchange are substantially 

similar to the rules of other exchanges. 

This similarity is the basis for the 

Exchange’s belief that the proposed rule 

change is non-controversial. Since no 

significant issues have been raised with 

this ‘‘copycat’’ filing, the Exchange 

believes that this filing will afford it the 

same operability regarding the MRVP as 

the other exchanges.10 In addition, the 

proposal will improve the regulation of 

NOM and its members, and enhance 

investor protection on the Exchange. 

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, as amended, 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–NASDAQ–2011–029 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–2011–029. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 


Emcdonald on DSK2BSOYB1PROD with NOTICES
13010 Federal Register / Vol. 76, No. 46 / Wednesday, March 9, 2011 / Notices 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62818 

(September 1, 2010), 75 FR 54665 (‘‘Notice’’). 

4See 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. 

5See Securities Exchange Act Release No. 63105 

(October 14, 2010), 75 FR 64772 (October 20, 2010) 

(‘‘Extension’’). 

6See Securities Exchange Act Release No. 63597 

(December 22, 2010), 75 FR 82098 (December 29, 

2010) (‘‘Amendment No. 1’’). 

7See Securities Exchange Act Release No. 63448 

(December 7, 2010), 75 FR 77036 (December 10, 

2010) (‘‘Order Instituting Proceedings’’). 

8See 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. 

9See 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. 

10 15 U.S.C. 78s(b)(2). 

11The 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. 

12See Order Instituting Proceedings, supra note 7 

at 77040. 

13 15 U.S.C. 78s(b)(2). 

14 17 CFR 200.30–3(a)(57). 

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 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–2011–029, and should be 

submitted on or before March 30, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5380 Filed 3–8–11; 8:45 am] 

BILLING CODE 8011–01–P 

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

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. 

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

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. 

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 


Emcdonald on DSK2BSOYB1PROD with NOTICES