Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Notices 11387 

5See FINRA Rules 7230A and 7230B. 

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). The Exchange also 

provided the Commission with 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 the proposed rule change as required by 

Rule 19b–4(f)(6). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

practices that are unfair to investors or 

hinder the functioning of a free and 

open market, even though those 

practices may not be illegal or violate a 

specific rule or regulation. Because of 

the regulatory importance of accurate 

information input into the Nasdaq 

Markets, Nasdaq believes rules that 

directly address members’ obligation to 

provide accurate information are 

warranted. The proposed rules make 

clear members’ obligation to input 

accurate information into the Nasdaq 

Markets, and that failure to do so would 

be considered a violation of Nasdaq 

rules. 

Nasdaq notes that FINRA has rules 

that require the accurate entry of certain 

trade information into its systems. For 

example, FINRA Rule 7330(d) requires 

FINRA members to report to the OTC 

Reporting Facility certain specific traderelated information. A failure to provide 

such information represents a violation 

of FINRA Rules, and may result in 

disciplinary action. FINRA has 

substantially similar requirements for 

other trade reporting systems it 

operates.5

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 amendments 

proposed herein will serve to promote 

the accuracy of information input into 

the Nasdaq Markets. Accurate 

information is necessary for the efficient 

and fair operation of the Nasdaq 

Markets, and will assist Nasdaq in 

surveilling the markets for fraudulent 

activity. 

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. 

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 

This 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 Act 8 and Rule 19b– 

4(f)(6) thereunder.9

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 

Number SR–NASDAQ–2009–014 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–2009–014. 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 the 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–2009–014 and 

should be submitted on or before April 

7, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5714 Filed 3–16–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59549; File No. SR– 

NASDAQ–2009–021] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

NASDAQ Stock Market LLC Regarding 

a Clerical Change to Nasdaq Rules 

March 10, 2009. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on March 4, 

2009, The NASDAQ Stock Market LLC 

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

Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by Nasdaq. Nasdaq proposes to 


dwashington3 on PROD1PC60 with NOTICES
11388 Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Notices 

3 17 CFR 240.19b–4(f)(3). 

4Changes are marked to the rules of The 

NASDAQ Stock Market LLC as set forth in SR– 

NASDAQ–2009–008. The proposed changes will be 

reflected in the NASDAQ Online manual found at 

http://nasdaq.complinet.com. 

5See Exchange Act Release No. 58298, 73 FR 

46695 (Aug. 11, 2008) (SR–NASDAQ–2008–055); 

Exchange Act Release No. 58081, 73 FR 39755 (July 

10, 2008) (SR–NASDAQ–2008–058). 

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)(3). 

make a clerical correction to the Nasdaq 

rulebook under Rule 19b–4(f)(3) 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 

Nasdaq proposes to make clerical 

corrections to Nasdaq Rule 7050. 

Nasdaq proposes to implement the 

proposed rule change immediately. 

The text of the proposed rule change 

is available on Nasdaq’s Web site 

(http://www.complinet.com/nasdaq), at 

Nasdaq’s principal office, and at the 

Commission’s Public Reference Room. 

The text of the proposed rule change 

is below. Proposed new language is 

underlined; proposed deletions are in 

[brackets].4

* * * * * 

7050. NASDAQ Options Market 

The following charges shall apply to 

the use of the order execution and 

routing services of the NASDAQ 

Options Market [by members] for all 

securities [that it trades]. 

(1) Fees for Execution of Contracts on 

the NASDAQ Options Market 

Except as specified below, the charge to member entering order that executes in the NASDAQ Options 

Market.

$0.45 per executed contract. 

For a pilot period ending July 31, 2009, charge for members or non-members entering order via the 

Options Intermarket Linkage that executes in the Nasdaq Options Market.

$0.45 per executed contract. 

Charge to members entering orders in options on QQQQ, SPY, DIA, IWM, AAPL BAC, C, GS, JPM, 

RIMM, XLE, XLF, and XOM with an account type ‘‘Customer’’ that executes and remove liquidity 

entered by another member.

No fee. 

Credit to member providing liquidity through the NASDAQ Options Market ............................................ $0.30 per executed contract. 

Credit to member providing liquidity using price-improving orders through the NASDAQ Options Market.$0.35 per executed contract. 

(2)–(4) 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, the 

self-regulatory organization 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 those 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 proposes to make clerical 

corrections to Nasdaq Rule 7050. 

Nasdaq proposes to modify the prefatory 

language of Rule 7050 to eliminate the 

phrases ‘‘by members’’ and ‘‘that it 

trades’’ to reflect the fact that Rule 7050 

contains fees applicable to nonmembers and to options that Nasdaq 

routes but does not trade. These changes 

had previously been proposed by 

Nasdaq, but were not reflected in 

subsequent Nasdaq filings.5

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 

change makes a minor clerical change to 

an existing Nasdaq rule. 

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. 

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 

Pursuant to Section 19(b)(3)(A) of the 

Act 8 and Rule 19b–4(f)(3) thereunder,9

Nasdaq has designated this proposal as 

one that is concerned solely with the 

administration of the self-regulatory 

organization. Accordingly, Nasdaq 

believes that its proposal should become 

immediately effective. 

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 


dwashington3 on PROD1PC60 with NOTICES
Federal Register / Vol. 74, No. 50 / Tuesday, March 17, 2009 / Notices 11389 

317 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(5). 

5Changes are marked to the rule text that appears 

in the electronic manual of Nasdaq found at 

http://www.complinet.com/nasdaq. 

6See Exchange Act Release No. 59421 (Feb. 19, 

2009) (accelerated approval of SR–Nasdaq–2009– 

005). 

Number SR–NASDAQ–2009–021 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–2009–021. 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 the filing will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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–2009–021 and should be 

submitted on or before April 7, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.3

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5715 Filed 3–16–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59557; File No. SR– 

NASDAQ–2009–017] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Modify the 

Processing of Orders on the NASDAQ 

Options Market 

March 11, 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 March 6, 

2009, 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. 

Pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(5) thereunder,4

Nasdaq has designated this proposal as 

one effecting a change in an existing 

order-entry or trading system of a selfregulatory organization. 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 filing a proposed rule 

change to offer the ‘‘WAIT’’ order 

modifier for use with orders entered 

into the NASDAQ Options Market 

(‘‘NOM’’). This modifier is designed to 

enhance compliance with the Order 

Exposure requirement set forth at 

Chapter VII, Section 12 of the NOM 

Rules. 

The text of the proposed rule change 

is available from Nasdaq’s Web site at 

http://cchwallstreet.com/nasdaqomx/ at 

Nasdaq’s principal office, and at the 

Commission’s Public Reference Room. 

Proposed new language is italicized; 

proposed deletions are in brackets.5

* * * * * 

Chapter VI, Trading Systems 

Sec. 1. Definitions 

The following definitions apply to 

Chapter VI for the trading of options 

listed on NOM. 

(a)–(f) No Change. 

(g) 

(1)–(4) No Change. 

(5) ‘‘WAIT’’ shall mean for orders so 

designated, that upon entry into the 

System, the order is held for one second 

without processing for potential display 

and/or execution. After one second, the 

order is processed for potential display 

and/or execution in accordance with all 

order entry instructions as determined 

by the entering party. 

(h) No Change. 

* * * * * 

Sec. 6. Acceptance of Quotes and 

Orders 

All bids or offers made and accepted 

on NOM in accordance with the NOM 

Rules shall constitute binding contracts, 

subject to applicable requirements of the 

Rules of the Exchange and the Rules of 

the Clearing Corporation. 

(a) General—A System order is an 

order that is entered into the System for 

display and/or execution as appropriate. 

Such orders are executable against 

marketable contra-side orders in the 

System. 

(1) All System Orders shall indicate 

limit price and whether they are a call 

or put and buy or sell. Systems Orders 

can be designated as Immediate or 

Cancel (‘‘IOC’’), Good-till-Cancelled 

(‘‘GTC’’), Day (‘‘DAY’’), [or] WAIT or 

Expire Time (‘‘EXPR’’). 

(2) No change. 

(b) 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 III 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 

On February 19, 2009, the Securities 

Exchange Commission approved 

Nasdaq’s proposal to reduce the Order 

Exposure requirement set forth at 

Chapter VII, Section 12 of the NOM 

Rules from three seconds to one 

second.6 Chapter VII, Section 12 

prohibits Options Participants from 

executing as principal orders they 


dwashington3 on PROD1PC60 with NOTICES