Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices 53989 

7 Id. 

8 Id. The February 2009 Adopting Release 

specified a compliance date of 180 days after 

publication in the Federal Register. 

9See Securities Exchange Release No. 60451 

(August 5, 2009) 74 FR 40246 (August 11, 2009) 

(‘‘August 5, 2009 Notice’’). 

10See Securities Exchange Release No. 61050 

(November 23, 2009) 74 FR 63831 (December 4, 

2009) (‘‘November 2009 Adopting Release’’). 

11See November 2009 Adopting Release at 63834. 

12See November 2009 Adopting Release at 63834. 

13See List of XBRL Tags available at [Web site 

url]. 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 61052 

(November 23, 2009), 74 FR 62857 (December 1, 

2009) (SR–FINRA–2009–066). 

public on the NRSRO’s corporate 

Internet Web site in eXtensible Business 

Reporting Language (‘‘XBRL’’) format.7

The rule provides that in preparing the 

XBRL disclosure, an NRSRO must use 

the List of XBRL Tags as specified on 

the Commission’s Internet Web site.8

The Commission established a 

compliance date of August 10, 2009 for 

this provision. On August 5, 2009, the 

Commission provided notice that an 

NRSRO subject to the disclosure 

provisions of paragraph (d) (now 

paragraph (d)(2)) of Rule 17g–2 could 

satisfy the requirement to make publicly 

available ratings history information in 

an XBRL format by using an XBRL 

format or any other machine-readable 

format, until such time as the 

Commission provides further notice.9

The Commission today is providing 

notice that a List of XBRL Tags has been 

published on the Commission’s Internet 

Web site and that NRSROs shall 

commence publishing the information 

required by Rule 17g–2(d)(2) in XBRL 

format using the List of the XBRL Tags 

beginning no later than November 1, 

2010. 

On November 23, 2009, the 

Commission further amended Rule 17g– 

2 to add paragraph (d)(3), which 

requires that an NRSRO must make 

publicly available on its corporate 

Internet Web site ratings action histories 

for all credit ratings initially determined 

on or after June 26, 2007 in an 

interactive data file that uses a machinereadable format.10 In the case of issuerpaid credit ratings, each new ratings 

action is required to be reflected in such 

publicly disclosed histories no later 

than twelve months after it is taken; in 

the case of ratings actions that are not 

issuer-paid, each new ratings action is 

required to be reflected no later than 

twenty-four months after it is taken.11

Rule 17g–2(d)(3) provides that an 

NRSRO may use any machine-readable 

format to make this data publicly 

available until 60 days after the date on 

which the Commission publishes a List 

of XBRL Tags for NRSROs on its 

Internet Web site, at which point the 

NRSRO is required to make the 

information available in XBRL format 

using the List of XBRL Tags for NRSROs 

as published by the Commission on its 

Internet Web site.12 Today, the 

Commission is providing notice that the 

List of XBRL Tags has been published 

on the Commission’s Internet Web 

site.13

The publication of the List of XBRL 

Tags on the Commission’s Internet Web 

site automatically triggers the 60-day 

time frame for compliance with Rule 

17(g)(2)(d)(3) using an XBRL format. 

However, for purposes of establishing a 

uniform compliance date for Rule 17g– 

2(d)(2) and Rule 17g–2(d)(3), the 

Commission will require that NRSROs 

make the information required under 

Rule 17g–2(d)(3) available on its 

corporate website in XBRL format using 

the List of XBRL Tags beginning no later 

than November 1, 2010. 

The relief provided by the August 5, 

2009 Notice is superseded by this 

Notice. 

Dated: August 27, 2010. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–21887 Filed 9–1–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62771; File No. SR– 

NASDAQ–2010–102] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

2260 To Reflect Changes to 

Corresponding FINRA Rule 

August 26, 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 August 

16, 2010, The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

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 

The Exchange proposes to amend 

NASDAQ Rule 2260 and IM–2260 to 

reflect recent changes to a 

corresponding rule of the Financial 

Industry Regulatory Authority 

(‘‘FINRA’’). The text of the proposed rule 

change is available at http:// 

nasdaq.cchwallstreet.com, at the 

Exchange’s principal office, at the 

Commission’s Public Reference Room, 

and on the Commission’s Web site at 

http://www.sec.gov. 

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 

Many of NASDAQ’s rules are based 

on rules of FINRA (formerly the 

National Association of Securities 

Dealers (‘‘NASD’’)). During 2008, FINRA 

embarked on an extended process of 

moving rules formerly designated as 

‘‘NASD Rules’’ into a consolidated 

FINRA rulebook. In many cases, FINRA 

has renumbered these rules, and in 

some cases has substantively amended 

them. Accordingly, NASDAQ has 

initiated a process of modifying its 

rulebook to ensure that NASDAQ rules 

corresponding to FINRA/NASD rules 

continue to mirror them as closely as 

practicable. 

This filing addresses NASDAQ Rule 

2260 and IM–2260, which incorporates 

the guidance previously contained in 

the corresponding NASD Rules relating 

to the forwarding of proxy and other 

materials by members and the rates of 

reimbursement for such actions. In SR– 

FINRA–2009–066,3 FINRA combined 

NASD Rule 2260 and IM–2260 into 

FINRA Rule 2251 without material 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
53990 Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices 

4The Commission notes that, as part of those 

changes, FINRA deleted references to NASD Rule 

2430. Since FINRA Rule 2251 no longer references 

NASD Rule 2430, and Nasdaq is conforming its rule 

to reflect the current FINRA rule, Nasdaq is also 

proposing to delete references to Nasdaq Rule 2430. 

5NASDAQ intends to make a separate rule filing 

to incorporate changes required to this Rule by 

Section 957 of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act. 

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). 

10 17 CFR 240.19b–4(f)(6). When filing a proposed 

rule change pursuant to Rule 19b–4(f)(6) under the 

Act, an Exchange is required to give 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. The Exchange has 

met this requirement. 

11For the purposes only of waiving the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

amendment to the substance of the rule. 

FINRA also made minor clarifying 

changes and other changes primarily to 

reflect the new formatting and 

terminology conventions of the 

Consolidated FINRA Rulebook.4

NASDAQ proposes to similarly combine 

NASDAQ Rule 2260 and IM–2260 into 

new NASDAQ Rule 2251, which will 

continue to incorporate the 

requirements of the corresponding 

FINRA rule.5

2. Statutory Basis 

The Exchange 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 changes will conform 

NASDAQ rules to recent changes made 

to the corresponding FINRA rules, to 

promote application of consistent 

regulatory standards. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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 

The foregoing rule change has become 

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

of the Act 8 and Rule 19b–4(f)(6) 9

thereunder in that it effects a change 

that: (i) Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, 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.10 Nasdaq has requested 

that the Commission waive the 30-day 

operative delay. 

The Commission has considered the 

Exchange’s request to waive the 30-day 

operative delay. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. As noted above, Nasdaq rules 

cross-reference certain NASD rules that 

no longer exist, and have been updated 

in the consolidated FINRA rulebook. 

The proposed rule change will update 

certain of the references in the 

Exchange’s rules that are outdated. The 

Commission also notes that these 

changes have previously been approved 

by the Commission for FINRA. The 

Commission believes that allowing this 

rule change to become immediately 

operative will facilitate the purpose of 

this rule change—namely, to eliminate 

any potential confusion arising from the 

existing rule’s outdated cross-references. 

Based on the foregoing, the Commission 

finds that waiving the 30-day operative 

delay period is consistent with the 

protection of investors and the public 

interest, and the proposal is therefore 

deemed operative upon filing.11

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. 

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–2010–102 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–2010–102. 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 website 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 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– 

NASDAQ–2010–102 and should be 

submitted on or before September 23, 

2010. 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices 53991 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–21929 Filed 9–1–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62772; File No. SR–ISE– 

2010–91] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing of Proposed Rule 

Change To Adopt a Pilot Program To 

List Additional Expiration Months for 

Each Class of Options Opened for 

Trading on the Exchange 

August 26, 2010. 

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 August 

25, 2010, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or ‘‘ISE’’) 

filed with the Securities and Exchange 

Commission (the ‘‘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 ISE is proposing to amend its 

rules to adopt a pilot program to list 

additional expiration months for each 

class of options opened for trading on 

the Exchange. The text of the proposed 

rule change is provided below (italics 

indicate additions; [brackets] indicate 

deletions): 

Rule 504. Series of Options Contracts 

Open for Trading 

* * * * * 

Supplementary Material to Rule 504 

.01–.07 No Change 

.08 Additional Expiration Months 

Pilot Program (‘‘Pilot Program’’). For a 

Pilot Program expiring on [insert date 12 

months from the next full month from 

approval], the Exchange may select up 

to 20 options classes for which it may 

list up to two (2) additional expiration 

months in addition to the expiration 

months the Exchange currently lists 

pursuant to Rule 504(e). Additional 

expiration months listed pursuant to 

this Supplementary Material .08 will be 

the nearest months that were not 

previously listed. The Exchange may 

also list additional expiration months 

for option classes that are selected by 

other securities exchanges that employ 

a similar program under their respective 

rules. 

* * * * * 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

The Exchange proposes to amend its 

rules to adopt a pilot program to list 

additional expiration months for each 

class of options opened for trading on 

the Exchange. 

Pursuant to ISE Rule 504(e), the 

Exchange currently opens four 

expiration months for each class of 

options open for trading on the 

Exchange: the first two being the two 

nearest months, regardless of the 

quarterly cycle on which that class 

trades; the third and fourth being the 

next two months of the quarterly cycle 

previously designated by the Exchange 

for that specific class. For example, if 

the Exchange listed in late May a new 

equity option on a January-April-JulyOctober quarterly cycle, the Exchange 

would list the two nearest term months 

(June and July) and the next two 

expiration months of the cycle (October 

and January). When the June series 

expires, the Exchange would add the 

August series as the next nearest month. 

And when the July series expire, the 

Exchange would add the September 

series as the next month of the cycle. 

The Exchange believes that there is 

market demand for a greater number of 

expiration months. The Exchange 

therefore proposes to adopt a pilot 

program pursuant to which it will list 

up to an additional two expiration 

months, for a total of six expiration 

months for each class of options open 

for trading on the Exchange. The 

proposal will become effective on a 

pilot basis for a period twelve months 

to commence on the next full month 

after approval is received to establish 

the pilot program. Under the proposal, 

the additional months listed pursuant to 

the pilot program will result in four 

consecutive expiration months plus two 

months from the quarterly cycle. For 

example, for option classes in the 

January cycle that have expiration 

months of June, July, October, and 

January, the Exchange would 

additionally list the August and 

September series. For option classes in 

the February quarterly cycle that have 

expiration months of October, 

November, February and May, the 

Exchange would additionally list the 

December and January series. Under the 

proposal, no additional LEAP series will 

be created. 

The Exchange seeks to limit the 

proposed rule change to the 20 most 

actively traded options classes. By 

limiting the pilot to a small number of 

classes, the Exchange will be able to 

gauge interest in the pilot while limiting 

any additional demands on system 

resources. ISE estimates that this pilot 

could add up to six or seven percent to 

current quote traffic, although changes 

in market maker quoting behavior will 

likely reduce that increase by up to half. 

The Exchange believes that a limited 

pilot is a prudent step to determine 

actual market demand for additional 

expiration months. 

If the Exchange were to propose an 

extension or an expansion of the pilot 

program, or should the Exchange 

propose to make the pilot program 

permanent, ISE will submit, along with 

any filing proposing such amendments 

to the pilot program, a pilot program 

report (‘‘Report’’) that will provide an 

analysis of the pilot program covering 

the first nine months of the pilot 

program and shall submit the Report to 

the Commission at least sixty (60) days 

prior to the expiration date of the pilot 

program. The Report will include, at a 

minimum: (1) Data and written analysis 

on the open interest and trading volume 

in the classes for which additional 

expiration months were opened; (2) an 

assessment of the appropriateness of the 

option classes selected for the pilot 

program; (3) an assessment of the 

impact of the pilot program on the 

capacity on ISE, OPRA and on market 

data vendors (to the extent data from 

market data vendors is available); (4) 

any capacity problems or other 

problems that arose during the 

operation of the pilot program and how 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1