Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 6229 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 47954 

(May 30, 2003), 68 FR 34017 (June 6, 2003). See also 

IM–4613—Procedures for Allocation of Second 

Displayable MPIDs. 

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–2007–096 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2007–096. 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 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–2007–096 and should be 

submitted on or before February 22, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1832 Filed 1–31–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57212; File No. SR–

NASDAQ–2008–004] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change 

Related to Supplemental Market 

Participant Identifiers 

January 28, 2008. 

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 January 9, 

2008, 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 substantially 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 proposes to make permanent 

the pilot program that allows market 

makers and Electronic Communications 

Networks (‘‘ECNs’’) to obtain 

supplemental market participant 

identifiers (‘‘MPIDs’’). Nasdaq also 

proposes to remove any restrictions on 

the number of MPIDs market 

participants can request. The text of the 

proposed rule change is available at 

Nasdaq, the Commission’s Public 

Reference Room and 

nasdaq.complinet.com. 

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. 

Nasdaq 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 proposes to make permanent 

the pilot program incorporated in 

Nasdaq Rule 4613(a)(2) (‘‘Rule’’) that 

allows market makers and ECNs to 

obtain supplemental MPIDs. The pilot 

inadvertently was permitted to lapse on 

November 30, 2006. The Rule has 

operated as a temporary pilot since it 

was first adopted in June 2003 and 

although the pilot lapsed, Nasdaq 

continued to apply the procedures set 

forth in the Rule and the related 

interpretive material.3 The purpose of 

providing supplemental MPIDs is to 

provide quoting market participants a 

better ability to organize and manage 

diverse order flows from their customers 

and to route orders and quotes to 

Nasdaq’s listed trading facilities from 

different units/desks. To the extent that 

this flexibility provides increased 

incentives to provide liquidity to 

Nasdaq systems, Nasdaq believes that 

all market participants benefit. Because 

the Rule has benefited market makers 

and ECNs and has not had any negative 

impact on the Nasdaq market in the 

more than four years that it has been in 

place, Nasdaq believes the Rule should 

become permanent. 

Nasdaq also proposes to remove the 

current restriction in the Rule that limits 

the number of supplemental MPIDs that 

market makers and ECNs can request for 

displaying attributable quotes or orders. 

In accordance with the pilot program, 

market makers and ECNs may be issued 

a maximum of nine supplemental 

MPIDs. The reason for this restriction 

was a technological limitation that 

existed at the time the Rule was 

adopted, but this limitation no longer 

exists. Therefore, Nasdaq proposes to 

remove the restriction. 

In addition, Nasdaq proposes to 

remove IM–4613, which sets forth the 

procedures for allocating supplemental 

MPIDs. The removal of Nasdaq’s 

technological limitation on the number 

of MPIDs for a given security makes the 

procedures unnecessary. 

The decision to remove any 

restriction on the number of 

supplemental MPIDs must be balanced 

against the need to protect the integrity 

of the Nasdaq market. Accordingly, 

market makers and ECNs would be 

prohibited from using a supplemental 

MPID to accomplish indirectly what 

they are prohibited from doing directly 

through a single MPID. For example, 

members would not be permitted to use 

a supplemental MPID to avoid their 

Manning obligations under IM–2110–2, 

best execution obligations under Nasdaq 

Rule 2320, or their obligations under the 

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6230 Federal Register / Vol. 73, No. 22 / Friday, February 1, 2008 / Notices 

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

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

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 56974 

(December 17, 2007), 72 FR 72803. 

4See Securities Exchange Act Release No. 53652 

(April 13, 2006), 71 FR 20422 (April 20, 2006) 

(approving the Exchange’s RROT Program). 

Commission’s Order Handling Rules. 

Members would be required to continue 

to comply with the firm quote rule, the 

OATS rules, and the Commission’s 

order routing and execution quality 

disclosure rules. 

If it were determined that a 

supplemental MPID was being used 

improperly, Nasdaq would withdraw its 

grant of the supplemental MPID for all 

purposes for all securities. In addition, 

if a market maker or ECN were no longer 

to fulfill the conditions appurtenant to 

its primary MPID (e.g., by being placed 

into an unexcused withdrawal), it 

would not be permitted to use any 

supplemental MPID for any purpose in 

that security. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6(b) of the Act,4 in 

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

Act,5 in particular, in that it is designed 

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. There no longer remains 

any market or technological need to 

restrict the number of MPIDs market 

participants can request. 

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. 

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. 

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 

rule-comments@sec.gov. Please include 

File Number SR–NASDAQ–2008–004 

on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2008–004. 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 at (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 

Number SR–NASDAQ–2008–004 and 

should be submitted on or before 

February 22, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–1835 Filed 1–31–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–57181; File No. SR–Amex–

2007–132] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Order 

Approving a Proposed Rule Change as 

Modified by Amendment No. 1 Thereto 

To Include Volume Executed by 

Remote Quoting Towards the Earning 

of Remote Quoting Rights 

January 22, 2008. 

On November 30, 2007, the American 

Stock Exchange LLC (‘‘Amex’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Amex Rule 994–ANTE to 

include the volume executed remotely 

by specialists and registered options 

traders (‘‘ROTs) towards the earning of 

remote quoting rights in the Exchange’s 

remote registered options trader 

(‘‘RROT’’) program (‘‘RROT Program’’). 

On December 13, 2007, Amex filed 

Amendment No. 1 to the proposed rule 

change. The proposed rule change, as 

amended, was published for comment 

in the Federal Register on December 21, 

2007.3 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change, as 

amended. 

The Exchange’s RROT Program 

currently allows members or member 

organizations designated by the 

Exchange to be awarded remote quoting 

rights to enter bids and offers 

electronically from locations other than 

the trading crowd where the applicable 

options class is traded on the 

Exchange’s physical trading floor.4

ROTs and specialists are currently 

awarded remote quoting rights based on 

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