53992 Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(5). 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

ISE addressed such problems; (5) any 

complaints that ISE received during the 

operation of the pilot program and how 

ISE addressed them; and (6) any 

additional information that would assist 

the Commission in assessing the 

operation of the pilot program. 

Finally, the Exchange represents that 

it has the necessary systems capacity to 

support new options series that will 

result from the introduction of 

additional expiration months listed 

pursuant to this proposed rule change. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 3 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and furthers the 

objectives of Section 6(b)(5) 4 in 

particular, in that it 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 facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system in a 

manner consistent with the protection 

of investors and the public interest. In 

particular, the Exchange believes listing 

additional near-term expiration months 

will offer investors more variety in 

trading options series that were 

previously not available. The Exchange 

believes this proposed rule change will 

also generate additional volume in these 

option classes without significantly 

taxing system resources. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate 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 or disapprove 

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 rulecomments@sec.gov. Please include File 

Number SR–ISE–2010–91 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–ISE–2010–91. 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 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–ISE– 

2010–91 and should be submitted on or 

before September 23, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–21930 Filed 9–1–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62774; File No. SR–BX– 

2010–058] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; 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 thereunder,2

notice is hereby given that on August 

17, 2010, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’ or ‘‘BX’’) 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 Exchange has 

designated the proposed rule change as 

constituting a non-controversial rule 

change under Rule 19b–4(f)(6) 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 

The Exchange proposes to amend BX 

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. 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices 53993 

4Securities Exchange Act Release No. 61052 

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

2009) (SR–FINRA–2009–066). 

5The 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 BX is conforming its rule to 

reflect the current FINRA rule, BX is also proposing 

to delete references to Nasdaq Rule 2430. 

6BX 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. 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

11 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. 

12For 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). 

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 the Exchange’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, BX has initiated a 

process of modifying its rulebook to 

ensure that BX rules corresponding to 

FINRA/NASD rules continue to mirror 

them as closely as practicable. 

This filing addresses BX 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–2009–066,4 FINRA combined 

NASD Rule 2260 and IM–2260 into 

FINRA Rule 2251 without material 

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.5 The 

Exchange proposes to similarly combine 

BX Rule 2260 and IM–2260 into new BX 

Rule 2251, which will continue to 

incorporate the requirements of the 

corresponding FINRA rule.6

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,7

in general, and with Section 6(b)(5) of 

the Act,8 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 the 

Exchange’s 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 9 and Rule 19b–4(f)(6) 10

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.11 The Exchange 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, BX rules crossreference 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.12

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–BX–2010–058 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
53994 Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Changes are marked to the rule text that appears 

in the electronic manual of Nasdaq found at http:// 

nasdaqomx.cchwallstreet.com. 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–BX–2010–058. 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 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–BX– 

2010–058 and should be submitted on 

or before September 23, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–21931 Filed 9–1–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62782; File No. SR– 

NASDAQ–2010–107] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Modify the Eligibility Criteria for the 

Second Compliance Period for a Bid 

Price Deficiency on the Nasdaq Capital 

Market 

August 27, 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 August 

25, 2010, The NASDAQ Stock Market 

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

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 the Substance 

of the Proposed Rule Change 

Nasdaq proposes to modify the 

eligibility criteria for a company to 

receive a second compliance period for 

a bid price deficiency on the Nasdaq 

Capital Market. The text of the proposed 

rule change is below. Proposed new 

language is in italics; proposed 

deletions are in brackets.3

* * * * * 

5810. Notification of Deficiency by 

the Listing Qualifications Department 

When the Listing Qualifications 

Department determines that a Company 

does not meet a listing standard set forth 

in the Rule 5000 Series, it will 

immediately notify the Company of the 

deficiency. As explained in more detail 

below, deficiency notifications are of 

four types: 

(1)–(4) No change. 

Notifications of deficiencies that 

allow for submission of a compliance 

plan or an automatic cure or compliance 

period may result, after review of the 

compliance plan or expiration of the 

cure or compliance period, in issuance 

of a Staff Delisting Determination or a 

Public Reprimand Letter. 

(a)–(b) No change. 

IM–5810–1 No change. 

(c) Types of Deficiencies and 

Notifications 

The type of deficiency at issue 

determines whether the Company will 

be immediately suspended and delisted, 

or whether it may submit a compliance 

plan for review or is entitled to an 

automatic cure or compliance period 

before a Staff Delisting Determination is 

issued. In the case of a deficiency not 

specified below, Staff will issue the 

Company a Staff Delisting 

Determination or a Public Reprimand 

Letter. 

(1)–(2) No change. 

IM–5810–2 No change. 

(3) Deficiencies for which the Rules 

Provide a Specified Cure or Compliance 

Period 

With respect to deficiencies related to 

the standards listed in (A)—(E) below, 

Staff’s notification will inform the 

Company of the applicable cure or 

compliance period provided by these 

Rules and discussed below. If the 

Company does not regain compliance 

within the specified cure or compliance 

period, the Listing Qualifications 

Department will immediately issue a 

Staff Delisting Determination letter. 

(A) Bid Price 

A failure to meet the continued listing 

requirement for minimum bid price 

shall be determined to exist only if the 

deficiency continues for a period of 30 

consecutive business days. Upon such 

failure, the Company shall be notified 

promptly and shall have a period of 180 

calendar days from such notification to 

achieve compliance. Compliance can be 

achieved during any compliance period 

by meeting the applicable standard for 

a minimum of 10 consecutive business 

days during the applicable compliance 

period, unless Staff exercises its 

discretion to extend this 10 day period 

as discussed in Rule 5810(c)(3)(F). 

(i) Global Select Market and Global 

Market 

If a Company listed on The Nasdaq 

Global Market has not been deemed in 

compliance prior to the expiration of the 

180 day compliance period, it may 

transfer to The Nasdaq Capital Market, 

provided that it meets the applicable 

market value of publicly held shares 

requirement for continued listing and all 

other applicable requirements for initial 

listing on the Capital Market [, other 

than the minimum] (except for the bid 

price requirement) based on the 

Company’s most recent public filings 

and market information and notifies 

Nasdaq of its intent to cure this 

deficiency. [A Company listed on The 

Nasdaq Global Market transferring to 

The Nasdaq Capital Market must pay 

any applicable entry fees set forth in 

Rule 5920(a). The Company may also 

request a hearing to remain on The 

Nasdaq Global Market pursuant to the 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1