Federal Register / Vol. 77, No. 13 / Friday, January 20, 2012 / Notices 3019 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 65877 

(December 2, 2011), 76 FR 76777. 

4See letter from Chris Killian, Managing Director, 

Securitization, Securities Industry and Financial 

Markets Association, to Elizabeth M. Murphy, 

Secretary, Commission, dated December 22, 2011. 

5 15 U.S.C. 78s(b)(2). 

6 15 U.S.C. 78s(b)(2). 

7 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66149; File No. SR–FINRA– 

2011–069] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Designation 

of a Longer Period for Commission 

Action on Proposed Rule Change 

Relating to Post-Trade Transparency 

for Agency Pass-Through MortgageBacked Securities Traded TBA 

January 13, 2012. 

On November 22, 2011, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) 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 

related to post-trade transparency for 

agency pass-through mortgage-backed 

securities traded ‘‘to be announced’’ 

(‘‘MBS TBA Transactions’’). The 

proposed rule change was published for 

comment in the Federal Register on 

December 8, 2011.3 The Commission 

received one comment letter on the 

proposal.4

Section 19(b)(2) of the Act 5 provides 

that, within 45 days of the publication 

of notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day for this filing 

is January 22, 2012. The Commission is 

extending this 45-day time period. 

The Commission finds that it is 

appropriate to designate a longer period 

within which to take action on the 

proposed rule change so that it has 

sufficient time to consider the proposed 

rule change, the comment received, and 

any response to the comment submitted 

by FINRA. The proposed rule change 

would, among other things, provide for 

post-trade transparency of MBS TBA 

Transactions that are reported to the 

Trade Reporting and Compliance Engine 

(‘‘TRACE’’). 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,6

designates March 7, 2012, as the date by 

which the Commission should either 

approve or disapprove or institute 

proceedings to determine whether to 

disapprove the proposed rule change. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–1026 Filed 1–19–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66153; File No. SR– 

NASDAQ–2012–009] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

Rules 4613(a)(2)(F) and (G) To Allow 

Exchange Market Makers To Opt Out of 

the Automated Quote Management 

Service 

January 13, 2012. 

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 January 

11, 2012, The NASDAQ Stock Market 

LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’) 

filed with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rules 4613(a)(2)(F) and (G) to reflect 

changes to the Automated Quote 

Management service that will allow 

market makers to opt out of the service. 

The text of the proposed rule change 

is below. Proposed new language is in 

italics; proposed deletions are in 

brackets. 

* * * * * 

4613. Market Maker Obligations 

A member registered as a Market 

Maker shall engage in a course of 

dealings for its own account to assist in 

the maintenance, insofar as reasonably 

practicable, of fair and orderly markets 

in accordance with this Rule. 

(a) Quotation Requirements and 

Obligations 

(1) No change. 

(2) Pricing Obligations. For NMS 

stocks (as defined in Rule 600 under 

Regulation NMS) a Market Maker shall 

adhere to the pricing obligations 

established by this Rule during Regular 

Trading Hours; provided, however, that 

such pricing obligations (i) shall not 

commence during any trading day until 

after the first regular way transaction on 

the primary listing market in the 

security, as reported by the responsible 

single plan processor, and (ii) shall be 

suspended during a trading halt, 

suspension, or pause, and shall not recommence until after the first regular 

way transaction on the primary listing 

market in the security following such 

halt, suspension, or pause, as reported 

by the responsible single plan processor 

(A)–(E) No change. 

(F) Quotation Creation and 

Adjustment. For each Issue in which a 

Market Maker is registered, the System 

shall, in the absence of a quotation that 

complies with this Rule entered by that 

Market Maker, automatically create a 

quotation for display to comply with 

this Rule. System-created compliant 

displayed quotations will thereafter be 

allowed to rest and not be further 

adjusted by the System unless the 

relationship between the quotation and 

its related National Best Bid or National 

Best Offer, as appropriate, shrinks to the 

greater of: (a) 4 percentage points, or, (b) 

one-quarter the applicable percentage 

necessary to trigger an individual stock 

trading pause as described in NASDAQ 

Rule 4120(a)(11), or expands to within 

that same percentage less 0.5%, 

whereupon the System will 

immediately re-adjust and display the 

Market Maker’s quote to the appropriate 

Designated Percentage set forth in 

section (D) above. Quotations originally 

entered by Market Makers which have 

not been modified by the System upon 

entry or after resting on the book shall 

be allowed to move freely towards the 

National Best Bid or National Best Offer, 

as appropriate, for potential execution. 

A Market Maker may opt out of this 

service at any time by informing Nasdaq 

of its desire to cease the service. Nasdaq 

will reinitiate service upon a Market 

Maker’s request. 

(G) Quotation Refresh After 

Execution. In the event of an execution 


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