Federal Register / Vol. 75, No. 227 / Friday, November 26, 2010 / Notices 72855 

30SFAA and Travelers. 

31Akin Bay. 

32Travelers. 

33Travelers. 

34 IBI. 

35 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

coverage than the member’s minimum 

required coverage under the rule. The 

parent organization’s bond must contain 

a rider that provides for the subsidiary 

broker-dealer’s coverage by enumerating 

the requirements of the FINRA rule and 

providing for, at a minimum, the 

subsidiary’s minimum required 

coverage. Accordingly, FINRA does not 

propose to amend the proposed rule in 

this respect as it is unnecessary. 

Two commenters urged FINRA to 

maintain an exemption from the fidelity 

bond requirements for one-person 

firms.30 The commenters noted that 

FINRA could be requiring coverage that 

is not available in the marketplace, 

since the alter ego concept applies to 

fidelity bond claims for these entities. 

As noted above in the Purpose section 

of this rule filing, many one-person 

firms currently maintain fidelity bond 

coverage notwithstanding the 

exemption in NASD Rule 3020, and 

claims are likely to be paid based on a 

facts-and-circumstances analysis, not on 

a firm’s size or structure. As such, 

FINRA is not proposing any changes to 

the original proposal in this respect. 

One commenter noted that the 

proposed rule serves no purpose to 

investors of the financial markets in its 

application to small firms that do not 

hold customer funds, execute 

transactions in securities on public 

markets, or engage in trading or 

underwriting (e.g., a firm that solely 

provides corporate financial advisory 

services for fee income).31

FINRA believes that all members of 

SIPC should maintain fidelity bond 

coverage. FINRA does not agree with the 

commenter’s assessment, since any firm 

could be the target of malfeasance of one 

of its employees. Thus, FINRA is not 

proposing to incorporate an exemption 

for these small firms. 

One commenter encouraged FINRA to 

incorporate a requirement for an 

insuring agreement for Computer 

Theft.32 FINRA did not amend the 

proposal to add this insuring agreement 

at this time; however, FINRA 

understands that this coverage is 

already included in most basic riders 

obtained by members at no extra cost, so 

a member will likely obtain this 

coverage automatically as part of its 

fidelity bond coverage. 

One commenter supported increased 

deductible thresholds; however, the 

commenter suggested deleting the 

haircut provision because the proposed 

rule may discourage a firm from 

pursuing or accepting higher 

deductibles if it has to take a haircut in 

its net capital computation for 

deductibles over 10 percent.33 Another 

commenter suggested that the annual 

review requirement is duplicitous and 

unnecessary and that the proposed rule 

should speak solely to minimum bond 

requirements for members.34 The 

commenter noted that fidelity bond 

reviews should be triggered by changes 

in a firm’s net capital requirement and 

not subject to an annual requirement, 

since the firm would likely review how 

any changes in net capital affect all 

aspects of the firm when such changes 

occur. FINRA did not make any 

amendments to the proposal in these 

areas as these concepts have not been 

substantively amended from the legacy 

NASD rule, and FINRA believes that 

they are achieving their intended 

purposes. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

the proposed rule change, or (B) 

institute proceedings to determine 

whether the proposed rule change 

should be 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–2010–059 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–2010–059. 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 

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 will 

also 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 publicly available. All 

submissions should refer to File 

Number SR–FINRA–2010–059 and 

should be submitted on or before 

December 17, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.35

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29727 Filed 11–24–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63341; File No. SR– 

NASDAQ–2010–147] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Two 

Aspects of the Rules and Operation of 

The NASDAQ Options Market 

November 18, 2010. 

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 November 

10, 2010, The NASDAQ Stock Market 


srobinson on DSKHWCL6B1PROD with NOTICES
72856 Federal Register / Vol. 75, No. 227 / Friday, November 26, 2010 / Notices 

3 17 CFR 240.19b–4(f)(6). 

4See. e.g., BATS Exchange Rule 21.1(e) (‘‘The 

term ‘‘Order Size’’ shall mean the number of 

contracts up to 999,999 associated with the Order’’); 

CBOE Regulatory Circular RG 10–43 (March 26, 

2010) at https://www.cboe.org/publish/RegCir/ 

RG10-043.pdf. 

5See NASDAQ Options Port Request Form at 

http://www.nasdaqtrader.com/content/ 

AdministrationSupport/AgreementsTrading/ 

options_portrequest.pdf. 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(5). 

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

9 17 CFR 240.19b–4(f)(6). 

LLC (the ‘‘Exchange’’ or ‘‘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 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 Substance of 

the Proposed Rule Change 

The Exchange is filing this proposed 

rule change to modify two aspects of the 

rules and operation of the NASDAQ 

Options Market (‘‘NOM’’): (1) To 

eliminate the Closing Cross set forth in 

Chapter VI, Section 9 of the rules; and 

(2) to increase the maximum order size 

from 9,999 to 999,999 contracts in 

Chapter VI, Section 1 of the rules. The 

text of the proposed rule change is 

available at http:// 

nasdaq.cchwallstreet.com/, at 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 NASDAQ Options Market 

(‘‘NOM’’), the options trading facility of 

The NASDAQ Stock Market LLC, has 

been fully operational for just over two 

years. After assessing NOM’s 

performance, NASDAQ has identified 

two minor changes to NOM’s operation: 

(1) Eliminating the Closing Cross set 

forth in Chapter VI, Section 9 of the 

rules; and (2) increasing the maximum 

order size from 9,999 to 999,999 

contracts in Chapter VI, Section 1 of the 

rules. NASDAQ believes that neither of 

these changes will have a material 

impact on the operation of NOM or of 

NOM members. 

1. Eliminating the NOM Closing Cross 

NASDAQ’s proposal to transport the 

closing cross from NASDAQ’s equities 

market to NOM was intended to 

determine whether a standard closing 

cross could aid price discovery and 

liquidity in a derivative product. 

Although a few market participants 

experimented with the NOM Closing 

Cross just after launch, the Closing 

Cross never attracted meaningful 

liquidity. The Closing Cross has not 

been used by any market participant in 

any options class for quite some time. 

Accordingly, NASDAQ is proposing to 

eliminate that functionality from the 

technology and from the rule book 

(Chapter VI, Section 9) governing NOM. 

2. Increasing the Maximum Order Size 

NASDAQ members have requested 

the ability to enter orders into the 

system of greater than 9,999 contracts. 

The existing limit on order size was a 

technological constraint that can easily 

be modified. Accordingly, NASDAQ 

proposes to modify the system and 

downstream processes and data feeds to 

accept orders of up to 999,999 contracts. 

Following this change, NOM will match 

the maximum order size currently in 

place at other options exchanges.4

NASDAQ has safeguards in place to 

protect the market from inadvertent 

entry of large orders. Each member that 

requests connectivity through an order 

entry port is required to specify the 

maximum order size for its individual 

port.5 NASDAQ sets the default 

maximum order size at 2,500 contracts. 

Members are permitted to deviate from 

the default maximum order size but 

NASDAQ members are required to have 

processes and procedures in place to 

ensure the proper entry and monitoring 

of orders entered into NASDAQ 

systems. Prior to implementing this 

change, NASDAQ will issue an alert to 

members to ensure that they have 

policies and procedures in place to 

employ the new functionality in a 

prudent fashion. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,6 in 

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

Act,7 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 rule 

changes should enhance the NOM 

market as described above based on 

NASDAQ’s experience operating NOM 

for two years. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose 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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

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 from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act8 and Rule 19b– 

4(f)(6) thereunder.9

At any time within 60 days of the 

filing of such 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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 227 / Friday, November 26, 2010 / Notices 72857 

10The text of the proposed rule change is 

available on Exchange’s Web site at http:// 

nasdaq.cchwallstreet.com/, on the Commission’s 

Web site at http://www.sec.gov, at NASDAQ, and at 

the Commission’s Public Reference Room. 11 17 CFR 200.30–3(a)(12). 

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–2010–147 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–2010–147. 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,10 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 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–2010–147 and should be 

submitted on or before December 17, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29721 Filed 11–24–10; 8:45 am] 

BILLING CODE 8011–01–P 

SUSQUEHANNA RIVER BASIN 

COMMISSION 

Notice of Public Hearing and 

Commission Meeting 

AGENCY: Susquehanna River Basin 

Commission. 

ACTION: Notice of public hearing and 

Commission meeting. 

SUMMARY: The Susquehanna River Basin 

Commission will hold a public hearing 

as part of its regular business meeting 

on December 16, 2010, in Aberdeen, 

Md. At the public hearing, the 

Commission will consider: (1) Action on 

certain water resources projects; (2) 

compliance matters involving two 

projects; and (3) the rescission of a 

docket approval. Details concerning the 

matters to be addressed at the public 

hearing and business meeting are 

contained in the SUPPLEMENTARY

INFORMATION section of this notice. 

DATES: December 16, 2010, at 8:30 a.m. 

ADDRESSES: Hilton Garden Inn 

Aberdeen, 1050 Beards Hill Road, 

Aberdeen, MD 21001. 

FOR FURTHER INFORMATION CONTACT: 

Richard A. Cairo, General Counsel, 

telephone: (717) 238–0423, ext. 306; fax: 

(717) 238–2436; e-mail: rcairo@srbc.net 

or Stephanie L. Richardson, Secretary to 

the Commission, telephone: (717) 238– 

0423, ext. 304; fax: (717) 238–2436; email: srichardson@srbc.net. 

SUPPLEMENTARY INFORMATION: In 

addition to the public hearing and its 

related action items identified below, 

the business meeting also includes 

actions or presentations on the 

following items: (1) Presentations on 

Climate Change Initiatives to Protect the 

Chesapeake Bay; (2) hydrologic 

conditions in the basin; (3) FY–2012 

funding of the Susquehanna Flood 

Forecast and Warning System; (4) 

ratification/approval of grants/contracts; 

(5) a Record Retention and Destruction 

Policy; (6) the FY–2010 Audit Report; 

(7) a proposed FY–2011 Capital Budget; 

(8) acquisition of new headquarters 

facilities; (9) a recommendation for new 

independent auditors; and (10) 

amendment of Commission By-Laws. 

The Commission will also hear Legal 

Counsel’s report. 

Public Hearing—Compliance Matters 

1. Project Sponsor: Chesapeake 

Appalachia, LLC. Withdrawal ID: 

Susquehanna River—Hicks (Docket No. 

20091201), Great Bend Township, 

Susquehanna County, Pa. 

2. Project Sponsor: J–W Operating 

Company. Pad ID: Pardee & Curtin 

Lumber Co. C–12H, Shippen Township, 

Cameron County, Pa. 

Public Hearing—Projects Scheduled for 

Action 

1. Project Sponsor and Facility: 

Anadarko E&P Company LP (Pine 

Creek—3), Watson Township, Lycoming 

County, Pa. Application for surface 

water withdrawal of up to 0.720 mgd. 

2. Project Sponsor: Aqua 

Pennsylvania, Inc. Project Facility: 

Monroe Manor Water System, Monroe 

Township, Snyder County, Pa. 

Application for groundwater 

withdrawal of up to 0.415 mgd from 

Well 6. 

3. Project Sponsor and Facility: East 

Resources Management, LLC 

(Cowanesque River), Westfield 

Township, Tioga County, Pa. 

Application for surface water 

withdrawal of up to 0.375 mgd. 

4. Project Sponsor and Facility: EXCO 

Resources (PA), LLC (West Branch 

Susquehanna River), Curwensville 

Borough, Clearfield County, Pa. 

Application for surface water 

withdrawal of up to 2.000 mgd. 

5. Project Sponsor: Hughesville-Wolf 

Township Joint Municipal Authority. 

Project Facility: Wastewater Treatment 

Plant, Wolf Township, Lycoming 

County, Pa. Application for withdrawal 

of treated wastewater effluent of up to 

0.249 mgd. 

6. Project Sponsor and Facility: 

Leonard & Jean Marie Azaravich 

(Meshoppen Creek), Springville 

Township, Susquehanna County, Pa. 

Application for surface water 

withdrawal of up to 0.249 mgd. 

7. Project Sponsor and Facility: LHP 

Management, LLC (Fishing Creek— 

Clinton Country Club), Bald Eagle 

Township, Clinton County, Pa. 

Modification to increase surface water 

withdrawal up to 0.999 mgd (Docket No. 

20090906). 

8. Project Sponsor and Facility: Linde 

Corporation (Lackawanna River), Fell 


srobinson on DSKHWCL6B1PROD with NOTICES