19044 Federal Register / Vol. 77, No. 61 / Thursday, March 29, 2012 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 email to rulecomments@sec.gov. Please include File 

Number SR–PHLX–2012–37 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–PHLX–2012–37. This file 

number should be included on the 

subject line if email 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 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–PHLX– 

2012–37, and should be submitted on or 

before April 19, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7571 Filed 3–28–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66652; File No. SR– 

NASDAQ–2012–038] 

Self-Regulatory Organizations; the 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

4120 

March 23, 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 March 19, 

2012, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘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 Substance of 

the Proposed Rule Change 

NASDAQ is proposing to amend Rule 

4120 to adopt a modification in the 

process for initiating trading of a 

security that is the subject of an initial 

public offering (an ‘‘IPO’’) on NASDAQ. 

The text of the proposed rule change is 

available at http://nasdaq.cchwallstreet.

com/, at the Exchange’s principal office, 

on the Commission’s Web site at 

http://www.sec.gov/, 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NASDAQ is proposing to make a 

minor modification to its process for 

commencing trading of a security that is 

the subject of an IPO on NASDAQ. Rule 

4120(a)(7) provides that trading in an 

IPO security is halted until the security 

is released for trading. Rule 

4120(c)(7)(B) establishes the process for 

lifting the halt and commencing trading. 

Under that rule, prior to terminating the 

halt, there is a 15-minute Display-Only 

Period during which market 

participants may enter quotes and 

orders into the NASDAQ Market Center. 

At the conclusion of the Display-Only 

Period, trading commences through the 

halt cross process provided for in Rule 

4753. However, if at the end of a 

Display-Only Period, NASDAQ detects 

an order imbalance in the security, the 

halt may be extended for up to six 

additional Display-Only Periods of five 

minutes each. 

Under the current process, quotes and 

orders in the IPO security may not be 

entered until the commencement of the 

Display-Only Period. However, 

NASDAQ believes that the quality of its 

process for commencing IPO trading 

would be enhanced by allowing market 

participants to begin entering orders at 

7 a.m., to be held and not displayed 

until the beginning of the Display-Only 

Period. Specifically, NASDAQ believes 

that this change will provide for a 

greater number of orders being entered 

prior to commencement of trading, 

resulting in a higher level of order 

interaction at the open. 

To effect this change, NASDAQ 

proposes amending Rule 4120(c)(7)(B) 

to provide that beginning at 7 a.m., 

market participants may enter Market 

Hours Day Orders (‘‘MDAY Orders’’) in 

a security that is the subject of an IPO 

on NASDAQ and designate such orders 

to be held until the beginning of the 

Display-Only Period. Such orders will 

be held in an undisplayed state until the 

beginning of the Display-Only Period, at 

which time they will be entered into the 

system. Market participants may cancel 

orders entered in this manner in the 

same way they would cancel any other 

order. Orders entered prior to the 

Display-Only Period will be cancelled 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 77, No. 61 / Thursday, March 29, 2012 / Notices 19045 

3 15 U.S.C. 78f. 

4 15 U.S.C. 78f(b)(5). 

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 240.19b–4(f)(6). 

7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(2). 

2 17 CFR 240.19b–4. 

back to the entering participant unless 

they are designated for holding. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,3 in 

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

Act,4 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. Specifically, NASDAQ 

believes that the proposed rule change 

will result in a greater number of orders 

being entered prior to commencement of 

trading of IPO securities, resulting in a 

higher level of order interaction at the 

open. Thus, NASDAQ believes that the 

change will remove impediments to and 

perfect the mechanism of a free and 

open market. 

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. 

NASDAQ believes that the proposed 

rule change will result in a greater 

number of orders being entered prior to 

commencement of trading of IPO 

securities, resulting in a higher level of 

order interaction at the open. NASDAQ 

believes that this change will enhance 

competition by increasing its 

attractiveness as a venue for trading IPO 

securities. 

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 

The proposed rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) of the Act 5 and paragraph 

(f)(6) of Rule 19b–4 thereunder,6 in that 

the proposed rule change: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) does not become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest; provided the selfregulatory organization has given 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, or such 

shorter time as designated by the 

Commission. 

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 email to rule-comments@

sec.gov. Please include File No. SR– 

NASDAQ–2012–038 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–2012–038. This file 

number should be included on the 

subject line if email 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 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–NASDAQ– 

2012–038 and should be submitted on 

or before April 19, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–7526 Filed 3–28–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66646; File No. SR–CME– 

2012–06] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing of Proposed Rule 

Change To Amend Certain Credit 

Default Swap Clearing Rules 

Regarding Guaranty Fund Allocations, 

Amendments to Daily Submission 

Deadline, Holiday Accrual Processing 

and PAI Payment Timeline 

March 22, 2012. 

Pursuant to Section 19(b)(2) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder 2

notice is hereby given that on March 9, 

2012, Chicago Mercantile Exchange Inc. 

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

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which items 

have been prepared primarily by CME. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

mstockstill on DSK4VPTVN1PROD with NOTICES