Federal Register / Vol. 76, No. 80 / Tuesday, April 26, 2011 / Notices 23351 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Chapter I, Section 1(a)(33). 

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

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 the 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–2011–052 and 

should be submitted on or before May 

17, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9970 Filed 4–25–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64312; File No. SR– 

NASDAQ–2011–053] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Adopt an 

Order Price Protection Feature 

April 20, 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 14, 

2011, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or the ‘‘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 the Exchange. 

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 

Commission a proposal for the 

NASDAQ Options Market (‘‘NOM’’) to 

amend Chapter VI, Trading Systems, to 

adopt new Section 18, Order Price 

Protection. 

This change is scheduled to be 

implemented on NOM on or about 

August 1, 2011; the Exchange will 

announce the implementation schedule 

by Options Trader Alert, once the 

rollout schedule is finalized. 

The text of the proposed rule change 

is available at 

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 

The purpose of the proposed rule 

change is to address risks to market 

participants of human error in entering 

orders at unintended prices. To that 

end, the Exchange has developed a 

program known as Order Price 

Protection (‘‘OPP’’), which would 

prevent certain orders from executing or 

being placed on the book at prices 

outside pre-set standard limits. The 

System would reject such orders rather 

than executing them automatically. The 

operation of the OPP, which is very 

similar to PHLX Rule 1080.07, would be 

set forth in new Section 18 of Chapter 

VI. 

The OPP feature would prevent 

certain day limit, good til cancelled or 

immediate or cancel orders at prices 

outside of certain pre-set limits from 

being accepted by the System. OPP 

would apply to all options, but would 

not apply to market orders or 

Intermarket Sweep Orders. OPP would 

be operational each trading day after the 

opening until the close of trading, 

except during trading halts. The 

Exchange would also be able to 

temporarily deactivate OPP from time to 

time on an intraday basis at its 

discretion if it determined that volatility 

warranted deactivation. Participants 

would be notified of intraday OPP 

deactivation due to volatility and any 

subsequent intraday reactivation by the 

Exchange through the issuance of 

system status messages. 

The OPP will help Participants 

control risk by checking each order, 

before it is accepted into the System, 

against certain parameters established 

by new Chapter VI, Section 18. It would 

compare price instructions on the order 

against the current contraside National 

Best Bid Offer (‘‘NBBO’’),3 and would 

automatically reject the order if it is 

priced outside the range established in 

Section 18. 

The range of permissible orders 

depends on whether the contra-side of 

an incoming order is greater than $1.00, 

or equal to or less than $1.00. If the 

NBBO on the contra-side of an incoming 

order were greater than $1.00, orders 

with a limit more than 50% through 

such contra-side NBBO would be 

rejected by the System upon receipt. For 

example, if the NBBO on the offer side 

were $1.10, an order to buy options for 

more than $1.65 would be rejected. 

Similarly, if the NBBO on the bid side 

were $1.10, an order to sell options for 

less than $0.55 would be rejected. 

If the NBBO on the contra-side of an 

incoming order were less than or equal 

to $1.00, orders with a limit more than 

100% through such contra-side NBBO 

would be rejected by the System upon 

receipt. For example, if the NBBO on 

the offer side were $1.00, an order to 

buy options for more than $2.00 would 

be rejected. However, if the NBBO of the 

bid side of an incoming order to sell 

were less than or equal to $1.00, the 

OPP limits set forth above would result 

in all incoming sell orders being 

accepted regardless of their limit. 

Like the PHLX’s OPP, NOM’s will be 

available for Participants’ orders, but 

not for market making. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 4 in general, and furthers the 


srobinson on DSKHWCL6B1PROD with NOTICES
23352 Federal Register / Vol. 76, No. 80 / Tuesday, April 26, 2011 / Notices 

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

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). 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. 8 17 CFR 200.30–3(a)(12). 

objectives of Section 6(b)(5) of the Act 5

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, by mitigating risks to 

market participants of human error in 

entering orders at clearly unintended 

prices. 

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 

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 after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 6 and Rule 19b– 

4(f)(6) 7 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. 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–2011–053 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–2011–053. 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 the 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–2011–053 and 

should be submitted on or before May 

16, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9971 Filed 4–25–11; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 7400] 

U.S. Advisory Commission on Public 

Diplomacy; Notice of Meeting 

The U.S. Advisory Commission on 

Public Diplomacy will hold a public 

meeting from 9 a.m. to 11 a.m. on May 

12, 2011, in Conference Room 1107 of 

the State Department’s Harry S Truman 

building at 2201 C Street, NW. 

The Commission will hear an update 

on the ‘‘strategic framework’’ on public 

diplomacy released in March 2010 and 

discuss whether U.S. Public diplomacy 

is striking the right balance when 

engaging youth, elite, online or offline 

audiences. The Commission welcomes 

commentary from the public on these 

and other topics relevant to its mission. 

This meeting is open to the public, 

the State Department, Defense 

Department, Congress, and other 

organizations. Seating is limited. To 

attend or request further information, 

contact the Commission at (202) 203– 

7463 or pdcommission@state.gov by 5 

p.m. on May 9, 2011. Please arrive for 

the meeting by 8:45 a.m. 

As access to the Department of State 

is controlled, members of the public 

wishing to attend the meeting must 

notify the Commission, no later than 5 

p.m., May 9, 2011, providing the 

information below. If notified after this 

date, the Department’s Bureau of 

Diplomatic Security may not be able to 

complete the necessary processing 

required to attend the meeting. Any 

person requesting reasonable 

accommodation should notify the 

Commission by the same date. 

Each member of the public wishing to 

attend the meeting should provide: his/ 

her name, company or organizational 

affiliation; phone number; date of birth; 

and identifying data such as driver’s 

license number, U.S. Government ID, or 

U.S. Military ID, to the Commission. A 

RSVP list will be provided to 

Diplomatic Security. One of the 

following forms of valid photo 

identification will be required for 

admission to the Department of State 

building: U.S. driver’s license, passport, 

U.S. Government ID or other valid photo 

ID. Personal data is requested pursuant 


srobinson on DSKHWCL6B1PROD with NOTICES