Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices 10541 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 60933 

(November 4, 2009), 74 FR 58334 (November 12, 

2009) (SR–FINRA–2008–067). 

4Nasdaq currently has rules under its 4000 series, 

so to mirror the changes made by FINRA as closely 

as possible, Nasdaq created a new Rule 4000A 

series. 

5See supra, note 3. 

6 15 U.S.C. 78o–5. 

7 15 U.S.C. 78f. 

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

submissions should refer to file number 

SR–DTC–2010–04 and should be 

submitted on or before March 29, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–4763 Filed 3–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61606; File No. SR– 

NASDAQ–2010–026] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Eliminate 

Erroneous Citations From Rule 9557 

March 1, 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 February 

24, 2010, 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 Substance of 

the Proposed Rule Change 

Nasdaq is proposing to eliminate 

erroneous citations found under Rule 

9557. The text of the proposed rule 

change is below. Proposed new 

language is in italics and proposed 

deletions are in brackets. 

9557. Procedures for Regulating 

Activities Under Rules 4110A[,] and 

4120A [and 4130A] Regarding a Member 

Experiencing Financial or Operational 

Difficulties 

(a) Notice of Requirements and/or 

Restrictions; Nasdaq Action 

Nasdaq Regulation staff may issue a 

notice directing a member to comply 

with the provisions of Rule 4110A[,] or 

4120A [or 4130A]or restrict its business 

activities, either by limiting or ceasing 

to conduct those activities consistent 

with Rule 4110A[,] or 4120A [or 4130A], 

if Nasdaq Regulation staff has reason to 

believe that a condition specified in 

Rule 4110A[,] or 4120A [or 4130A] 

exists. A notice served under this Rule 

shall constitute Nasdaq action. 

(b)–(f) No change. 

(g) Additional Requirements and/or 

Restrictions or the Removal or 

Reduction of Requirements and/or 

Restrictions; Letter of Withdrawal of the 

Notice 

(1) Additional Requirements and/or 

Restrictions 

If a member continues to experience 

financial or operational difficulty 

specified in Rule 4110A or 4120A [or 

4130A], notwithstanding an effective 

notice, Nasdaq Regulation staff may 

impose additional requirements and/or 

restrictions by serving an additional 

notice under paragraph (b) of this Rule. 

The additional notice shall inform the 

member that it may apply for relief from 

the additional requirements and/or 

restrictions by filing a written request 

for a letter of withdrawal of the notice 

and/or a written request for a hearing 

before the Office of Hearing Officers 

under Rule 9559. The procedures 

delineated in this Rule shall be 

applicable to such additional notice. 

(2) No change. 

(A)–(B) No change. 

(h) No change. 

* * * * * 

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. The text of these 

statements may be examined at the 

places specified in Item IV below, and 

is set forth in Sections A, B, and C 

below. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq is proposing to eliminate 

erroneous citations found under Rule 

9557. Many of Nasdaq’s rules are based 

on rules of Financial Industry 

Regulatory Authority (‘‘FINRA’’). Nasdaq 

endeavors to keep these common rules 

consistent with the analogous rules of 

FINRA, to the extent possible. FINRA 

recently adopted new consolidated 

financial responsibility rules found 

under a new FINRA Rule 4000 series.3

On January 20, 2010, Nasdaq filed a 

proposed rule change to make 

conforming changes to its rules, which 

included the adoption of a new Rule 

4000A series 4 and certain amendments 

to Rules 9557 and 9559.5 The proposed 

changes were immediately effective, and 

became operative on February 19, 2010. 

In adopting the new consolidated rules, 

FINRA eliminated Rule 3131 and in its 

place adopted a new Rule 4130 that 

concerns the regulation of activities of 

Section 15C members experiencing 

financial and/or operational difficulties 

and made conforming changes to 

citations found under FINRA Rule 9557. 

Section 15C of the Exchange Act 6

applies to government securities brokers 

and dealers, which does not apply to 

Nasdaq’s membership as no such class 

of membership exists under Nasdaq 

rules. As a consequence, Nasdaq did not 

adopt an analogous Rule 4130A. In 

revising citations in Rule 9557, 

however, Nasdaq inadvertently 

included erroneous references to Rule 

4130A. Accordingly, Nasdaq is 

proposing to eliminate the erroneous 

references to Rule 4130A found in Rule 

9557. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,7 in 

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

Act,8 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 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 change corrects certain 

erroneous citations inadvertently 

included in Rule 9557 when adopting 

the new Rule 4000A series. 

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. 


srobinson on DSKHWCL6B1PROD with NOTICES
10542 Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Notices 

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

10 17 CFR 240.19b–4(f)(6). 11 17 CFR 240.19b–4(f)(6)(iii). 12Nasdaq currently has rules under its 4000 

series, so to mirror the changes made by FINRA as 

closely as possible, Nasdaq created a new Rule 

4000A series. 

13See supra, note 3. 

14For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

15 17 CFR 200.30–3(a)(12). 

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

2Securities Exchange Act Release No. 61415 

(January 25, 2010), 75 FR 4896. 

3Rule 9 provides that except as NSCC may 

determine to be appropriate or necessary, NSCC 

will not examine the contents of the envelopes or 

verify the amounts of money shown on the credit 

list, and it shall not be responsible with respect 

thereto except to deliver the envelopes accepted by 

it to the authorized representatives of the members 

to whom they are addressed. 

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 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) 9 of the Act and Rule 19b– 

4(f)(6) thereunder.10

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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. Nasdaq has 

provided the Commission written notice 

of its intent to file the proposed rule 

change, along with a brief description 

and text of the proposed rule change, at 

least five business days prior to the date 

of filing of the proposed rule change. 

Nasdaq believes that the proposed 

rule change does not significantly affect 

the protection of investors or the public 

interest because it merely eliminates 

erroneous citations that, if left in the 

rule text, would cause investor 

confusion. 

Nasdaq requests that the Commission 

waive the 30-day pre-operative waiting 

period contained in Exchange Act Rule 

19b–4(f)(6)(iii).11 Nasdaq requests this 

waiver so that these corrections can be 

both immediately effective and 

operative, thus minimizing any 

confusion that may be caused by the 

erroneous citations. The Commission 

notes the proposed rule changes make 

technical non-substantive changes to 

Rule 9557. As noted above on January 

20, 2010, Nasdaq filed a proposed rule 

change to make conforming changes to 

its rules, which included adopting a 

new Rule 4000A series12 and certain 

amendments to Rules 9557 and 9559.13

The proposed changes were 

immediately effective and became 

operative on February 19, 2010. The 

Commission believes the earlier 

operative date is consistent with the 

protection of investors and the public 

interest because the proposed rule 

change permits Nasdaq to implement 

the rule without further delay and in a 

timely manner for the operative date of 

the financial responsibility rules.14

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–2010–026 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–2010–026. 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 Number SR–NASDAQ–2010–026 

and should be submitted on or before 

March 29, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–4734 Filed 3–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61618; File No. SR–NSCC– 

2010–01] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Order Approving 

Proposed Rule Change To Eliminate 

Guarantee of Payment in Connection 

With the Envelope Settlement Service 

March 1, 2010. 

I. Introduction 

On January 4, 2010, the National 

Securities Clearing Corporation 

(‘‘NSCC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

proposed rule change SR–NSCC–2010– 

01 pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’).1 The proposed rule change was 

published for comment in the Federal 

Register on January 29, 2010.2 No 

comment letters were received on the 

proposal. This order approves the 

proposal. 

II. Description 

NSCC’s the Envelope Settlement 

Service (‘‘ESS’’) allows an NSCC member 

to physically deliver through the 

facilities of NSCC a sealed envelope 3

containing securities and such other 

items as NSCC may permit from time to 

time to a specified receiving member. 

NSCC then delivers the envelope to the 

receiving member. ESS is provided for 


srobinson on DSKHWCL6B1PROD with NOTICES