52522 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Notices 

5 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). 

Room, on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of such filing will also 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 No. SR–ISE–2009– 

74 and should be submitted on or before 

November 3, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24500 Filed 10–9–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60794; File No. SR– 

NASDAQ–2009–084] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Potential Payment Amounts Available 

Under Nasdaq Rule 4626 

October 6, 2009. 

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 

September 25, 2009, The NASDAQ 

Stock Market 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 effecting a 

change described 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 with the 

Commission a proposed rule change to 

modify potential payment amounts 

available under Nasdaq Rule 4626. 

Nasdaq will implement the proposed 

rule change effective November 1, 2009. 

The text of the proposed rule change is 

below. Proposed new language is in 

italics and proposed deletions are in 

brackets. 

* * * * * 

4626. Limitation of Liability 

(a) No Change. 

(b) Nasdaq, subject to the express 

limits set forth below, may compensate 

users of the Nasdaq Market Center for 

losses directly resulting from the 

systems’ actual failure to correctly 

process an order, Quote/Order, message, 

or other data, provided the Nasdaq 

Market Center has acknowledged receipt 

of the order, Quote/Order, message, or 

data. 

[(1) For one or more claims made by 

a single market participant related to the 

use of the Nasdaq Market Center on a 

single trading day, Nasdaq’s liability 

shall not exceed the larger of $100,000, 

or the amount of any recovery obtained 

by Nasdaq under any applicable 

insurance policy.] 

[(2) For the aggregate of all claims 

made by all market participants related 

to the use of the Nasdaq Market Center 

on a single trading day, Nasdaq’s 

liability shall not exceed the larger of 

$250,000, or the amount of the recovery 

obtained by Nasdaq under any 

applicable insurance policy.] 

[(3)] (1) For the aggregate of all claims 

made by all market participants related 

to the use of the Nasdaq Market Center 

during a single calendar month, 

Nasdaq’s liability shall not exceed the 

larger of $500,000, or the amount of the 

recovery obtained by Nasdaq under any 

applicable insurance policy. 

[(4)] (2) In the event all of the claims 

arising out of the use of the Nasdaq 

Market Center cannot be fully satisfied 

because in the aggregate they exceed the 

maximum amount of liability provided 

for in this Rule, then the maximum 

amount will be proportionally allocated 

among all such claims arising [on a 

single trading day, or] during a single 

calendar month [, as applicable]. 

[(5)] (3) All claims for compensation 

pursuant to this Rule shall be in writing 

and must be submitted no later than [the 

opening of trading] 12 p.m. ET on the 

next business day following the day on 

which the use of the Nasdaq Market 

Center gave rise to such claims. Nothing 

in this rule shall obligate Nasdaq to seek 

recovery under any applicable 

insurance policy. 

* * * * * 

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 

Currently, Nasdaq provides a limited 

exception to its general limitation of 

liability rules that allows for the 

payment of claims to users for order 

processing failures in the Nasdaq 

Market Center. Nasdaq proposes to 

modify its process for allocating such 

payments and extend the time period 

for users to submit such claims. Under 

the proposal, Nasdaq will eliminate the 

$100,000 and $250,000 daily caps on 

liability and consider all such claims on 

a monthly basis subject to the already 

existing $500,000 monthly liability cap. 

If the total amount of all claims from all 

users in a calendar month exceeds the 

$500,000 monthly liability cap, the 

$500,000 maximum monthly dollar 

amount will be proportionally allocated 

among all such claims as set forth in the 

current rule. 

Nasdaq is also proposing to extend, 

until 12 noon ET on the next business 

day following the day on which the use 

of the Nasdaq Market Center gives rise 

to a claim, the time period during which 

claims seeking compensation must be 

submitted. 

As Nasdaq analyzes total eligible 

liability claims on a per-month lookback basis, the proposal, in effect, 

would allow Nasdaq an increased 

capability to compensate a market 

participant(s) up to the monthly cap of 

$500,000 even though the losses 

occurred on a single day or were across 

multiple days for a single participant. 

The expansion of time to make such 

compensation claims likewise increases 

the ability of market participants to 

submit claims in a timely manner. 

Finally, Nasdaq notes that other market 

centers have rules in place to provide 


erowe on DSK5CLS3C1PROD with NOTICES
Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Notices 52523 

4See NYSE Arca Equities Rule 13.2 and ISE Rule 

705. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 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. Nasdaq has satisfied this requirement. 9 17 CFR 200.30–3(a)(12). 

limited compensation for system 

malfunctions.4

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,5 in 

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

Act,6 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. As Nasdaq analyzes total 

eligible liability claims on a per-month 

look-back basis, the proposal, in effect, 

would allow Nasdaq an increased 

capability to compensate a market 

participant(s) up to the monthly cap of 

$500,000 even though the losses 

occurred on a single day or were across 

multiple days for a single participant. 

The expansion of time to make such 

compensation claims likewise increases 

the ability of market participants to 

submit claims in a timely manner. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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 on the proposed 

rule change 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 19(b)(3)(A) 

of the Act7 and Rule 19b–4(f)(6)8

thereunder. 

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. 

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–2009–084 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–2009–084. 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 inspection and copying 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–2009–084 and should be 

submitted on or before November 3, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24515 Filed 10–9–09; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Delegation of Authority 175–5] 

Changes to and Further Assignment of 

Functions Under Section 208 of Title 

18 of the United States Code 

AGENCY: Department of State. 

ACTION: Changes to and further 

assignment of functions. 

SUMMARY: Delegations of Authority No. 

175 and 245–1 delegated authority from 

the Secretary of State to the Deputy 

Secretary of State and the Deputy 

Secretary of State for Management and 

Resources all authorities vested in the 

Secretary of State, to include issuing 

waivers pursuant to 18 U.S.C. 208 to 

Department of State employees. In 2003, 

the Deputy Secretary of State 

redelegated authority to the Legal 

Adviser to issue certain waivers under 

18 U.S.C. 208(b)(1) and (3). In 2006, the 

Deputy Secretary of State delegated to 

the Legal Adviser and the Under 

Secretary for Management the authority 

to issue financial interest waiver 

determinations to (1) Seventh Floor 

principals when the waiver is 

applicable for a specific activity, when 

a principal is seeking employment by an 

international organization, or when the 

waiver does not exceed six months; and 

(2) other Department employees 

(including advisory committee 

members) under any circumstances. 

This notice informs the public of the 

further delegation of authority from the 

Deputy Secretary for Management and 

Resource to the Legal Adviser and the 

Under Secretary for Management to 

issue all waivers under 18 U.S.C. 


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