20760 Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices 

11The current FINRA rulebook consists of (1) 

FINRA rules; (2) NASD rules; and (3) rules 

incorporated from NYSE (‘‘Incorporated NYSE 

rules’’) (together, the NASD Rules, and Incorporated 

NYSE Rules are referred to as the ‘‘Transitional 

Rulebook’’). While the NASD rules generally apply 

to all FINRA member firms, the Incorporated NYSE 

rules apply only to those members of FINRA that 

are also members of the NYSE (‘‘Dual Members’’). 

The FINRA rules apply to all FINRA members, 

unless such rules have a more limited application 

by their terms. For more information about the 

rulebook consolidation process, see Information 

Notice, March 12, 2008 (Rulebook Consolidation 

Process). 

12For the purposes only of waiving the operative 

date 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). 13 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. 63207 

(October 28, 2010), 75 FR 67788. 

4See Securities Exchange Act Release No. 63508 

(December 9, 2010), 75 FR 78300 (December 15, 

2010). 

5See Letter from Edward H. Smith, Jr. to Florence 

E. Harmon, Deputy Secretary, Commission, dated 

January 18, 2011. 

6See Securities Exchange Act Release No. 63804 

(January 31, 2011), 76 FR 6506 (February 4, 2011). 

7 15 U.S.C. 78s(b)(2)(B)(ii)(I). 

8 15 U.S.C. 78s(b)(2)(B)(ii)(II). 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. 

Because FINRA is delaying the 

implementation of Rules 2090 and 2111 

only, FINRA requests that the 

Commission waive the 30-day operative 

delay so that this proposed rule change 

may become operative upon filing. 

SR–FINRA–2010–039 would amend 

and convert existing NYSE and NASD 

know your customer and suitability 

rules into the consolidated FINRA 

rulebook 11 and, to the extent 

implementation of SR–FINRA–2010– 

039 is postponed, FINRA members 

remain subject to those existing NYSE 

and NASD know-your-customer and 

suitability obligations. Further, the 

delay in the implementation date will 

allow firms additional time to better 

prepare procedures and systems and 

better educate associated persons and 

supervisors to comply with the 

requirements of new FINRA Rules 2090 

and 2111. For these reasons, the 

Commission believes it is consistent 

with the protection of investors and the 

public interest to waive the 30-day 

operative delay, and hereby grants such 

waiver.12

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 rulecomments@sec.gov. Please include File 

Number SR–FINRA–2011–016 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–FINRA–2011–016. 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 

FINRA. 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–FINRA–2011–016 and 

should be submitted on or before May 

4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8873 Filed 4–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64259; File No. SR– 

NASDAQ–2010–134] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Designation of Longer Time Period for 

Commission Action on Proceedings To 

Determine Whether To Approve or 

Disapprove Proposed Rule Change To 

Adopt Additional Criteria for Listing 

Commodity Stockpiling Companies 

That Have Indicated That Their 

Business Plan Is To Buy and Hold 

Commodities 

April 8, 2011. 

On October 15, 2010, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’),1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

adopt additional criteria for listing 

commodity stockpiling companies 

(‘‘CSCs’’) that have indicated that their 

business plan is to buy and hold 

commodities. The proposed rule change 

was published for comment in the 

Federal Register on November 3, 2010.3

The Commission received no comments 

on the proposal. The Commission 

subsequently extended the time period 

in which to either approve the proposed 

rule change, disapprove the proposed 

rule change, or to institute proceedings 

to determine whether to disapprove the 

proposed rule change, to February 1, 

2011.4 The Commission received one 

comment letter on the proposal.5 On 

January 31, 2011, the Commission 

issued an order instituting proceedings 

to determine whether to disapprove the 

proposed rule change.6

Section 19(b)(2) of the Act 7 provides 

that not later than 180 days after the 

date of publication of notice of the filing 

of a proposed rule change, the 

Commission shall issue an order 

approving or disapproving the proposed 

rule change. Section 19(b)(2) of the Act 8

further provides that the Commission 

may extend the period for issuance of 

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Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices 20761 

9The proposed rule change was published for 

notice and comment in the Federal Register on 

November 3, 2010. See supra note 2. The 180th date 

from publication in the Federal Register is May 2, 

2011 and an additional 60-days from that date 

would extend the time period to July 1, 2011. 

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

11 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3The rebate for displayed quotes/orders for such 

members is the basic rate of $0.0020 per share 

executed, unless the member otherwise qualifies for 

a more favorable rebate with respect to its displayed 

quotes/orders. 

4Securities Exchange Act Release No. 63648 

(January 5, 2011), 76 FR 2178 (January 12, 2011) 

(SR–NASDAQ–2011–003). 

5NASDAQ is, however, modifying the wording of 

the existing tier in Rule 7018 to improve its clarity. 

The changes do not result in any substantive 

changes to the applicability of the tier. 

the order approving or disapproving the 

proposed rule change by not more than 

60 days if the Commission determines 

that a longer period is appropriate and 

publishes the reasons for such 

determination, or the self-regulatory 

organization that filed the proposed rule 

change consents to the longer period. 

The Commission is extending the 180- 

day time period for the issuance of an 

order approving or disapproving the 

proposed rule change for an additional 

60 days.9 The Commission finds that it 

is appropriate to designate a longer 

period within which to issue an order 

approving or disapproving the proposed 

rule change so that the Commission has 

sufficient time to consider the 

Exchange’s proposal and whether it is 

consistent with the Act. The proposal 

would establish, for the first time, 

standards for listing securities of 

companies whose business plan is to 

buy and hold commodities. 

Accordingly, pursuant to Section 

19(b)(2) of the Act,10 the Commission 

designates July 1, 2011 as the date by 

which the Commission shall issue an 

order either approving or disapproving 

the proposed rule change (File Number 

SR–NASDAQ–2010–134). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8872 Filed 4–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64246; File No. SR– 

NASDAQ–2011–048] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for Members Using the NASDAQ 

Market Center 

April 7, 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 April 1, 

2011, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’) 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 pricing 

for NASDAQ members using the 

NASDAQ Market Center. NASDAQ will 

implement the proposed change on 

April 1, 2011. 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, 

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 

NASDAQ is amending Rule 7018 to 

make modifications to its pricing 

schedule for execution of quotes/orders 

through the NASDAQ Market Center of 

securities priced at $1 or more. Under 

the pricing schedule, NASDAQ offers a 

credit to liquidity providers, with the 

size of the credit varying based on a 

range of parameters specified in the fee 

schedule. The lowest liquidity provider 

rebate is $0.0020 per share executed for 

displayed quotes/orders and $0.0010 

per share executed for non-displayed 

quotes/orders. One means by which 

members may currently receive a higher 

liquidity rebate is focused on the use of 

non-displayed quotes/orders: members 

providing 3 million shares or more of 

liquidity through one or more MPID 

using non-displayed quotes/orders 

receive a rebate of $0.0015 per share 

executed, rather than the basic rebate of 

$0.0010 per share executed, with 

respect to those quotes/orders.3

Effective April 1, 2011, NASDAQ will 

eliminate this rebate provision. As 

NASDAQ noted when it introduced this 

rebate provision in January 2011,4

NASDAQ believes that transparent 

markets should be encouraged wherever 

possible, but NASDAQ does offer 

members the option of providing 

liquidity through non-displayed quotes/ 

orders in order to allow it to compete 

better with alternative trading systems 

that operate as dark pools. Accordingly, 

it was NASDAQ’s expectation that the 

rebate tier might encourage some 

members that use dark pools extensively 

to make greater use of non-displayed 

liquidity on NASDAQ. Because such a 

response did not occur, NASDAQ has 

decided to eliminate the tier. NASDAQ 

notes that the tier’s elimination will not 

impact any members, because there are 

no members that currently qualify for 

the tier that do not also qualify for the 

same rebate for non-displayed quotes/ 

orders (and a higher rebate for displayed 

quotes/orders) under another volumebased pricing tier. 

Second, NASDAQ is introducing a 

new rebate tier for members that are 

active in both the NASDAQ Market 

Center and the NASDAQ Options 

Market. Currently, a member is eligible 

to receive an enhanced rebate of $0.0029 

per share executed for displayed quotes/ 

orders and of $0.0015 per share 

executed for non-displayed quotes/ 

orders if it achieves certain specified 

levels of activity in both markets. The 

required levels of monthly activity are 

an average daily volume of more than 10 

million shares of liquidity provided 

through the NASDAQ Market Center 

and an average daily volume of more 

than 130,000 options contracts accessed 

or provided through the NASDAQ 

Options Market. In each case, the 

member may achieve the required 

volume levels through one or more of its 

market participant identifiers (‘‘MPIDs’’). 

While retaining this tier,5 NASDAQ is 

proposing to add an additional tier for 

a market participant with (i) shares of 

liquidity provided through the 

NASDAQ Market Center in all securities 

during the month equal to 1% or more 

of the average total consolidated volume 

reported to all consolidated transaction 

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