Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices 20747 

18For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

change does not raise any issues that 

were not previously considered by the 

Commission in its approval of the 

NYSE’s Assets and Equities Test and 

does not otherwise raise any new 

regulatory issues. The Commission also 

notes that the NYSE’s proposal to adopt 

the Assets and Equity Test listing 

standard, with the applicable 

adjustments noted above, was subject to 

full notice and comment, and the 

Commission received no comments on 

the NYSE’s rule proposal. For these 

reasons, the Commission designates, 

consistent with the protection of 

investors and the public interest, that 

the proposed rule change become 

operative immediately upon filing.18

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend the 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 

No. SR–NASDAQ–2011–050 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 No. 

SR–NASDAQ–2011–050. 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 

NASDAQ. 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 No. SR–NASDAQ– 

2011–050 and should be submitted on 

or before May 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8914 Filed 4–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64262; File No. SR– 

NASDAQ–2011–047] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Conform 

Rules 2360, 2361, 2370, 6951 to FINRA 

Rule Changes 

April 8, 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 (‘‘SEC’’ or 

‘‘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 is filing with the Securities 

Commission [sic] a proposal for 

NASDAQ to amend NASDAQ Rules 

2360 (Approval Procedures for DayTrading Accounts); 2361 (Day-Trading 

Risk Disclosure Statement); 2370 

(Borrowing From or Lending to 

Customers); and 6951 (Definitions) to 

make non-substantive changes that 

reflect recent changes to corresponding 

rules of the Financial Industry 

Regulatory Authority (‘‘FINRA’’). 

The text of the proposed rule change 

is available from NASDAQ’s Web site at 

http://nasdaq.cchwallstreet.com/ 

Filings/, 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 

The Exchange is not making any 

substantive changes to the content of its 

rules. The purpose of this proposal is to 

update NASDAQ Rules 2360, 2361, 

2370, and 6951 to reflect proper crossreferences to corresponding FINRA 

rules. 

Many of NASDAQ’s rules are based 

on rules of FINRA (formerly the 

National Association of Securities 

Dealers (‘‘NASD’’)). During 2008, FINRA 

embarked on an extended process of 

moving rules formerly designated as 

‘‘NASD Rules’’ into a consolidated 

FINRA rulebook. In most cases, FINRA 

has renumbered these rules, and in 

some cases has substantively amended 

them. Accordingly, NASDAQ also 

proposes to initiate a process of 

modifying its rulebook to ensure that 

NASDAQ rules corresponding to 

FINRA/NASD rules continue to mirror 

them as closely as practicable. In some 

cases, it will not be possible for the rule 

mstockstill on DSKH9S0YB1PROD with NOTICES

20748 Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices 

3See Securities Exchange Release No. 61059 

(November 24, 2009), 74 FR 62847 (December 1, 

2009) (SR–FINRA–2009–059) (notice of filing and 

immediate effectiveness). See also Securities 

Exchange Release No. 59432 (February 23, 2009), 74 

FR 9121 (March 2, 2009) (SR–FINRA–2009–005) 

(notice of filing and immediate effectiveness 

regarding, among other things, updated rule crossreferences and other non-substantive technical 

changes to FINRA Rules 2360 and 2370). 

4See Securities Exchange Release No. 61537 

(February 18, 2010), 75 FR 8772 (February 25, 

2010)(SR–FINRA–2009–095)(order approving, 

among other things, adoption of NASD Rule 2370 

as FINRA Rule 3240). 

5See Securities Exchange Release No. 59432 

(February 23, 2009), 74 FR 9121 (March 2, 2009) 

(SR–FINRA–2009–005) (notice of filing and 

immediate effectiveness). 

6See Securities Exchange Release No. 56726 

(October 31, 2007), 72 FR 62719 (November 6, 2007) 

(SR–NYSE–2007–96) (notice of filing and 

immediate effectiveness). 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6) requires a self-regulatory 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. The Exchange has satisfied this 

requirement. 

numbers of NASDAQ rules to mirror 

corresponding FINRA rules, because 

existing or planned NASDAQ rules 

make use of those numbers. However, 

wherever possible, NASDAQ plans to 

update its rules to reflect changes to 

corresponding FINRA rules. 

In SR–FINRA–2009–059,3 FINRA 

adopted, with minor changes, NASD 

Rules 2360 and 2361 regarding day 

trading into the FINRA consolidated 

rulebook as FINRA Rules 2130 and 

2270, respectively. FINRA Rules 2130 

and 2270, like former NASD Rules 2360 

and 2361, define day-trading strategy 

and focus on members’ obligations to 

disclose to non-institutional customers 

the basic risks of engaging in a daytrading strategy and to assess the 

appropriateness of day-trading strategies 

for such customers. FINRA Rule 2130 

creates an obligation on members that 

promote a day-trading strategy regarding 

account-opening approval procedures 

for non-institutional customers. FINRA 

Rule 2270 creates an obligation on such 

members to disclose to non-institutional 

customers the unique risks of engaging 

in a day-trading strategy. NASDAQ is, 

by this filing, updating the references in 

its Rules 2360 and 2361 from NASD 

Rules 2360 and 2361 to FINRA Rules 

2130 and 2270. 

NASDAQ is similarly updating the 

reference in its Rule 2370 from NASD 

Rule 2370 to FINRA Rule 3240. In SR– 

FINRA–2009–095,4 FINRA adopted, 

with minor changes, NASD Rule 2370 

regarding borrowing from or lending to 

customers into the FINRA consolidated 

rulebook as FINRA Rule 3240, and 

added record retention requirements. 

FINRA Rule 3240, like former NASD 

Rules 2370, focuses in general on the 

appropriateness of particular lending 

arrangements between FINRA member 

broker-dealers and their registered 

persons and customers (to the extent 

permitted by the member) and the 

potential for conflicts of interests 

between both the registered person and 

his or her customer and the registered 

person and the member with which he 

or she is associated. 

Additionally, in SR–FINRA–2009– 

005,5 FINRA renumbered crossreferences in its rules from NYSE Rule 

80A to NYSE Rule 132B on the basis of 

a New York Stock Exchange (‘‘NYSE’’ or 

NYSE Euronext’’) rule proposal.6 In that 

proposal, NYSE rescinded its Rule 80A 

regarding index arbitration [sic] 

restrictions and repositioned the 

definitions of ‘‘index arbitrage’’ and 

‘‘program trading’’ into NYSE Rule 132B. 

Because NASDAQ Rule 6951 refers in 

its definitions of index arbitrage and 

program trading to Rule 80A, NASDAQ 

is, by this filing, updating the references 

in its Rule 6951 from NYSE Rule 80A 

to 132B. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,7

in general, and with Sections 6(b)(5) of 

the Act,8 in particular, in that the 

proposal 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 regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. The 

proposed changes will conform 

NASDAQ Rules 2360, 2361, 2370, and 

6951 to recent changes made to several 

corresponding FINRA rules, to promote 

application of consistent regulatory 

standards. 

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. 

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 

The Exchange believes that the 

foregoing proposed rule change may 

take effect upon filing with the 

Commission pursuant to Section 

19(b)(3)(A) 9 of the Act and Rule 19b– 

4(f)(6)(iii) thereunder 10 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. 

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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–NASDAQ–2011–047 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–2011–047. This 

file number should be included on the 

subject line if e-mail is used. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices 20749 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4 . 3 17 CFR 240.19b–4 (f)(6). 

4See Securities Exchange Release No. 61059 

(November 24, 2009), 74 FR 62847 (December 1, 

2009)(SR–FINRA–2009–059)(notice of filing and 

immediate effectiveness). See also Securities 

Exchange Release No. 59432 (February 23, 2009), 74 

FR 9121 (March 2, 2009)(SR–FINRA–2009– 

005)(notice of filing and immediate effectiveness 

regarding, among other things, updated rule crossreferences and other non-substantive technical 

changes to FINRA Rules 2360 and 2370). 

5BX is also deleting obsolete references in Rules 

2360, 2361, and 2370 regarding FINRA being in the 

in the process of consolidating certain NASD rules 

into a new FINRA rulebook. 

6See Securities Exchange Release No. 61537 

(February 18, 2010), 75 FR 8772 (February 25, 

2010)(SR–FINRA–2009–095)(order approving, 

Continued 

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 offices 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–2011–047, and 

should be submitted on or before May 

4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8913 Filed 4–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64261; File No. SR–BX– 

2011–021] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Rules 2360, 2361, 2370, and 6951 To 

Reflect Changes to Corresponding 

FINRA Rules 

April 8, 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, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’ or ‘‘BX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated the proposed rule change as 

constituting a non-controversial rule 

change under Rule 19b–4 (f)(6) under 

the Act,3 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 the Substance 

of the Proposed Rule Change 

The Exchange is filing this proposed 

rule change to amend BX Rules 2360 

(Approval Procedures for Day-Trading 

Accounts); 2361 (Day-Trading Risk 

Disclosure Statement); 2370 (Borrowing 

From or Lending to Customers); and 

6951 (Definitions) to make nonsubstantive changes that reflect recent 

changes to corresponding rules of the 

Financial Industry Regulatory Authority 

(‘‘FINRA’’). 

The text of the proposed rule change 

is available at http:// 

nasdaqomxbx.cchwallstreet.com, the 

Exchange’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 Exchange is not making any 

substantive changes to the content of its 

rules. The purpose of this proposal is to 

update BX Rules 2360, 2361, 2370, and 

6951 to reflect proper cross-references to 

corresponding FINRA rules. 

BX based many of its rules on those 

of The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’). Similarly, many of 

NASDAQ’s rules are based on rules of 

FINRA (formerly the National 

Association of Securities Dealers 

(‘‘NASD’’)). As a consequence, many of 

BX’s rules closely mirror those of 

FINRA. During 2008, FINRA embarked 

on an extended process of moving rules 

formerly designated as ‘‘NASD Rules’’ 

into a consolidated FINRA rulebook. In 

most cases, FINRA has renumbered 

these rules, and in some cases has 

substantively amended them. 

Accordingly, BX also proposes to 

initiate a process of modifying its 

rulebook to ensure that BX rules 

corresponding to FINRA/NASD rules 

continue to mirror them as closely as 

practicable. In some cases, it will not be 

possible for the rule numbers of BX 

rules to mirror corresponding FINRA 

rules, because existing or planned BX 

rules make use of those numbers. 

However, wherever possible, BX plans 

to update its rules to reflect changes to 

corresponding FINRA rules. 

In SR–FINRA–2009–059,4 FINRA 

adopted, with minor changes, NASD 

Rules 2360 and 2361 regarding day 

trading into the FINRA consolidated 

rulebook as FINRA Rules 2130 and 

2270, respectively. FINRA Rules 2130 

and 2270, like former NASD Rules 2360 

and 2361, define day-trading strategy 

and focus on members’ obligations to 

disclose to non-institutional customers 

the basic risks of engaging in a daytrading strategy and to assess the 

appropriateness of day-trading strategies 

for such customers. FINRA Rule 2130 

creates an obligation on members that 

promote a day-trading strategy regarding 

account-opening approval procedures 

for non-institutional customers. FINRA 

Rule 2270 creates an obligation on such 

members to disclose to non-institutional 

customers the unique risks of engaging 

in a day-trading strategy. BX is, by this 

filing, updating the references in its 

Rules 2360 and 2361 from NASD Rules 

2360 and 2361 to FINRA Rules 2130 and 

2270. 

BX is similarly updating the reference 

in its Rule 2370 from NASD Rule 2370 

to FINRA Rule 3240.5 In SR–FINRA– 

2009–095,6 FINRA adopted, with minor 

mstockstill on DSKH9S0YB1PROD with NOTICES