Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 28841 

7The Commission believes that a 10-day 

comment period is reasonable, given the urgency of 

the matter. It will provide adequate time for 

comment. 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3NMS stock means any NMS security other than 

an option. See SEC Rule 600 of Regulation NMS. 

4See Securities Exchange Act Release No. 58753 

(October 8, 2008), 73 FR 61177 (October 15, 2008) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2008–048). 

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–2010–061 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Nasdaq–2010–061. 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 publicly available. All 

submissions should refer to File 

Number SR–Nasdaq–2010–061 and 

should be submitted on or before June 

3, 2010.7

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12422 Filed 5–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62133; File No. SR–FINRA– 

2010–025] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change To Amend 

FINRA Rule 6121 (Trading Halts Due to 

Extraordinary Market Volatility) 

May 19, 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 May 18, 

2010, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by FINRA. 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 

FINRA is proposing to amend FINRA 

Rule 6121 (Trading Halts Due to 

Extraordinary Market Volatility) to 

permit FINRA to halt trading by FINRA 

members otherwise than on an exchange 

where a primary listing market has 

issued a trading pause due to 

extraordinary market conditions. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

In October 2008, FINRA adopted 

FINRA Rule 6121 (Trading Halts Due to 

Extraordinary Market Volatility) to 

permit FINRA to halt over-the-counter 

(‘‘OTC’’) trading of NMS stocks 3 if other 

major U.S. securities markets initiate 

market-wide trading halts in response to 

their rules or extraordinary market 

conditions or if otherwise directed by 

the SEC.4 This proposed rule change 

was designed to further the goal of 

coordinated self-regulatory organization 

(‘‘SRO’’) action to address potentially 

destabilizing market volatility, 

consistent with the circuit breaker 

trading halt authority of the exchanges. 

On May 18, 2010, several national 

securities exchanges filed new rules 

with the Commission to provide the 

exchanges with authority to issue 

trading pauses for individual securities 

if the price of such security moves 10% 

or more from a sale in a preceding fiveminute period. These changes would 

provide uniform market-wide trading 

pause standards for individual 

securities in the S&P 500® Index that 

experience a rapid price movement. 

Consistent with the exchanges’ 

proposals and in consultation with the 

staff of the Commission, FINRA is 

proposing to amend FINRA Rule 6121 to 

add new Supplementary Material .01 to 

provide that if a primary listing market 

has issued an individual stock trading 

pause under its rules, FINRA will halt 

trading otherwise than on an exchange 

in that security until trading has 

resumed on the primary listing market. 

If, however, trading has not resumed on 

the primary listing market and ten 

minutes have passed since the 

individual stock trading pause message 

has been received from the responsible 

single plan processor or the primary 

listing market has issued notice that it 

cannot resume trading for a reason other 

than a significant imbalance, FINRA 

may permit the resumption of trading 

otherwise than on an exchange if 

trading has commenced on at least one 

other national securities exchange. 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

28842 Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 

5 15 U.S.C. 78o–3(b)(6). 

6The Commission notes that the exchange has 

requested accelerated approval of the filing. 

7The Commission believes that a 10-day 

comment period is reasonable, given the urgency of 

the matter. It will provide adequate time for 

comment. 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Consistent with the exchanges, FINRA 

is proposing that this rule be 

implemented as a pilot set to end on 

December 10, 2010, so that the markets 

may assess the effect of the new rules on 

the markets. During this pilot period, 

the rule would be in effect only with 

respect to securities included in the S&P 

500® Index. 

FINRA has requested that the 

Commission approve the proposed rule 

change on an accelerated basis, so that 

it may become operative on June 7, 

2010, and fully rolled out across all 

eligible securities by June 14, 2010. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,5 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change is consistent with 

the trading pause rules of other SROs 

and will promote the goal of investor 

protection by further providing for a 

coordinated means to address 

potentially destabilizing market 

volatility. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA 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 were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 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 such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved.6

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–2010–025 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–2010–025. 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 

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 available publicly. All 

submissions should refer to File 

Number SR–FINRA–2010–025 and 

should be submitted on or before June 

3, 2010.7

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12426 Filed 5–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62130; File No. SR–CHX– 

2010–10] 

Self-Regulatory Organizations; 

Proposed Rule Change by Chicago 

Stock Exchange, Inc.; Notice of Filing 

of Proposed Rule Change To Establish 

a Trading Halt for Individual Stocks 

Contained in the Standard & Poor’s 

500 Index 

May 19, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on May 19, 

2010, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ or the ‘‘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 CHX. 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 

CHX proposes to amend Article 20, 

Rule 2 to amend its rules to create 

circuit breakers regarding the trading of 

individual securities. The text of this 

proposed rule change is available on the 

Exchange’s Web site at (http:// 

www.chx.com) and in 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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES