Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices 57723 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b-4(f)(2). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 3See Phlx Rule 136(e)(1). 

providers to send their non-market 

maker flow to ISE. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose 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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 6 and Rule 19b-4(f)(2) 7

thereunder. At any time within 60 days 

of the filing of such 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–ISE–2008–71 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2008–71. 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 ISE. 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–ISE–2008–71 and should be 

submitted on or before October 24, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23410 Filed 10–2–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58658; File No. SR–Phlx– 

2008–64] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Adopt a 

Trading Halt Rule in Connection With 

the Dissemination of Net Asset Value 

and Disclosed Portfolio for Certain 

Derivative Securities Products 

September 26, 2008. 

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 18, 2008, NASDAQ OMX 

PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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 

The Exchange proposes to amend 

Phlx Rule 136 to state that the Exchange 

will halt trading in New Derivative 

Securities Products 3 listed on the 

Exchange for which a net asset value 

(and in the case of managed fund shares 

or actively managed exchange-traded 

funds, a ‘‘disclosed portfolio’’) is 

disseminated if the Exchange becomes 

aware that the net asset value and, if 

applicable, the disclosed portfolio is not 

being disseminated to all market 

participants at the same time. The text 

of the proposed rule change is available 

on the Exchange’s Website at http:// 

www.phlx.com/regulatory/ 

reg_rulefilings.aspx , at the Exchange’s 

principal office, 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to address trading halts for 

New Derivative Securities Products 

listed on the Exchange for which a net 

asset value and/or a disclosed portfolio 

is disseminated. Net asset values and 

disclosed portfolios, when applicable, 

are calculated daily and disseminated to 

all market participants at the same time. 

In this proposed rule change, the 

Exchange is amending its rules to state 

that the Exchange will halt trading in 

New Derivative Securities Products 

listed on the Exchange for which a net 

asset value and/or a disclosed portfolio 

mstockstill on PROD1PC66 with NOTICES

57724 Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices 

4See Securities Exchange Act Release No. 57806 

(May 9, 2008), 73 FR 28541 (May 16, 2008) (SR– 

Phlx–2008–34). 

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

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). 

9 Id. In addition, Rule 19b–4(f)(6)(iii) 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. The 

Exchange has satisfied this requirement. 

10 17 CFR 240.19b–4(f)(6)(iii). 

11See Securities Exchange Act Release No. 58111 

(July 7, 2008), 73 FR 40643 (July 15, 2008) (SR– 

Amex–2008–40, SR–NASDAQ–2008–046, SR– 

NYSE–2008–39, SR–NYSEArca–2008–50). 

12For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

is disseminated if the Exchange 

becomes aware that the net asset value 

or, if applicable, the disclosed portfolio 

is not being disseminated to all market 

participants at the same time. Also, the 

Exchange will maintain the trading halt 

until such time as the Exchange 

becomes aware that the net asset value 

and, if applicable, the disclosed 

portfolio is available to all market 

participants. In addition, the Exchange 

represents that in the event that the net 

asset value or the disclosed portfolio, as 

applicable, for a New Derivative 

Securities Product ceases to be 

disseminated altogether, the Exchange 

will halt trading in such New Derivative 

Securities Product. 

The Exchange notes that it recently 

filed a proposed rule change in which 

it adopted a rule, Phlx Rule 136(d)(4), 

stating that the Exchange would halt 

trading in New Derivative Securities 

Products trading on the Exchange 

pursuant to unlisted trading privileges, 

if the listing market notifies the 

Exchange that the net asset value and, 

if applicable, the disclosed portfolio is 

not being disseminated to all market 

participants at the same time.4 Also the 

Exchange is now proposing to clarify 

the rule text in Phlx Rule 136(d)(4) by 

changing the word ‘‘and’’ to ‘‘or’’ in the 

second half of the first sentence of that 

paragraph to make clear that the 

Exchange would halt trading upon 

notification by the listing market of the 

New Derivative Securities Product that 

either the net asset value or the 

disclosed portfolio is not being 

disseminated to all market participants 

at the same time. Consistent with the 

earlier proposed rule change, the 

Exchange now proposes to adopt a rule, 

Phlx Rule 136(c)(1)(B), stating that the 

Exchange will halt trading in New 

Derivative Securities Products listed on 

the Exchange for which a net asset value 

and/or a disclosed portfolio is 

disseminated if the Exchange becomes 

aware that the net asset value or, if 

applicable, the disclosed portfolio is not 

being disseminated to all market 

participants at the same time. As a 

consequence of the additional language 

proposed in Phlx Rule 136(c), the 

Exchange is renumbering the existing 

material to provide more clarity to the 

section. 

2.Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,6

particular, in that it is designed to 

promote just and equitable principles of 

trade, 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 

Exchange believes the proposed rule 

change is reasonably designed to 

prevent trading in certain New 

Derivative Securities Products when the 

availability of certain information is 

impaired. Specifically, the proposed 

rule change is intended to protect 

investors and the public interest when 

key information relating to the net asset 

value or the disclosed portfolio becomes 

unavailable or available only to some 

market participants, but not all 

participants, at the time of 

dissemination. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition 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 

No written comments were either 

solicited or 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 

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 7 and Rule 19b–4(f)(6) thereunder.8

A proposed rule change filed under 

19b–4(f)(6) normally does not become 

operative until 30 days after the date of 

filing.9 However, Rule 19b–4(f)(6)(iii) 10

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. Phlx requests that the 

Commission waive the 30-day operative 

delay and make the proposed rule 

change operative upon filing because 

this proposal raises no novel issues and 

is virtually identical to the rule 

proposals of the American Stock 

Exchange LLC (‘‘Amex’’), the NASDAQ 

Stock Market LLC (‘‘NASDAQ’’), the 

New York Stock Exchange LLC 

(‘‘NYSE’’) and NYSE Arca, Inc. (‘‘NYSE 

Arca’’), which were recently approved 

by the Commission.11 The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. The Commission therefore 

grants the Exchange’s request and 

designates the proposal to be operative 

upon filing.12

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–Phlx–2008–64 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2008–64. 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 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 73, No. 193 / Friday, October 3, 2008 / Notices 57725 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Nasdaq is submitting to the Commission in 

connection with this filing the list of indexes and 

ETFs that are currently (as of the date of this filing) 

included in the Nasdaq index dissemination 

service. This list changes frequently, and an up-todate list is available at: http:// 

www.nasdaqtrader.com/content/productsservices/ 

dataproducts/realtimeindexes/indexsymbols.pdf. 

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 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 

Number SR–Phlx–2008–64 and should 

be submitted on or before October 24, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23362 Filed 10–2–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58666; File No. SR– 

NASDAQ–2008–018] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change and 

Amendments No. 1 and 2 Thereto To 

Remove From Rule 7019 the Fees for 

Receiving Index Values 

September 26, 2008. 

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 12, 

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 prepared by Nasdaq. On 

September 5, 2008, Nasdaq filed 

Amendment No. 1 to the proposed rule 

change. On September 25, 2008, Nasdaq 

filed Amendment No. 2 to the proposed 

rule change. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change, 

as amended, from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq is proposing to remove from 

the Nasdaq Rule 7019 fees for receiving 

index values. Nasdaq’s rule book 

contains rules pertaining to ‘‘facilities’’ 

of the exchange, and indexes are not 

such ‘‘facilities’’ within the meaning of 

the Act. 

The text of the proposed rule change 

to Rule 7019 is below. Proposed 

deletions are in brackets. 

* * * * * 

7019. Market Data Distributor Fees 

(a) No change. 

(b) The charge to be paid by 

Distributors of the following Nasdaq 

Market Center real time data feeds shall 

be: 

Monthly direct access fee Monthly internal 

distributor fee 

Monthly external 

distributor fee 

Issue Specific Data: 

Dynamic Intraday ................................................................................................ .............................. .............................. ..............................

TotalView ............................................................................................................ $2,000 $1,000 $2,500 

OpenView ........................................................................................................... $1,000 $500 $1,250 

[Market Summary Statistics]: 

[Intraday] ............................................................................................................. [$500] [$50] [$1,500] 

[Real Time Index] 

(c) and (d) 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 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. 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq designs and licenses to 

financial product issuers and sponsors 

and to other interested parties a number 

of Nasdaq-proprietary securities 

indexes. Nasdaq also calculates the 

values of Nasdaq and, on occasion, nonNasdaq indexes and disseminates such 

values to subscribers. The Nasdaq 

indexes include broad market indexes, 

such as the Nasdaq-100 and the Nasdaq 

Composite, sectoral indexes, such as 

Nasdaq Biotechnology, Nasdaq 

Insurance or Nasdaq Transportation, 

international indexes, such as Nasdaq 

Israel and Nasdaq China, and custom 

co-branded indexes, such as Nasdaq 

Clean Edge. Some of these indexes 

include only those components that are 

listed on Nasdaq, while others may also 

include components listed on other 

exchanges. 

All market participants, both 

members and non-members of Nasdaq, 

are currently able to subscribe to 

Nasdaq’s index dissemination service. 

Subscribers currently also receive intraday asset values as well as certain oncea-day information for exchange traded 

funds (‘‘ETFs’’).3 The intra-day asset 

values for ETFs that Nasdaq 

disseminates can be calculated by 

Nasdaq itself (subject to negotiating an 

appropriate agreement on commercial 

mstockstill on PROD1PC66 with NOTICES