5822 Federal Register / Vol. 75, No. 23 / Thursday, February 4, 2010 / Notices 

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

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

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

7 17 CFR 240.19b–4(f)(6)(iii). 

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

TotalView can be created by any vendor 

that receives the real time data feed and, 

as such, is not exclusively created 

through the Exchange. 

ModelView is designed to facilitate 

more efficient trading activity in the 

Nasdaq Market Center in an 

environment where trading and orderrouting become increasingly automated, 

and broker-dealers, institutional traders 

and technology providers are constantly 

seeking to improve the quality of 

information upon which trading and 

order-routing decisions are made. The 

incremental data in ModelView helps 

customers give better visibility into data 

not previously available. 

Specifically, ModelView provides the 

aggregate amount of both displayed and 

reserve size liquidity in the Nasdaq 

Market Center at each price level. With 

this information, developers of 

automated trading and order-routing 

models improve their Nasdaq trading 

efficiency, and the providers of liquidity 

to the Nasdaq Market Center find greater 

fill rates and execution quality. 

ModelView protects the anonymity of 

the trading strategies of Nasdaq Market 

Center participants while improving the 

execution quality of their orders. Also, 

ModelView does not contain explicit or 

implicit information regarding the 

identity of market participants trading 

in Nasdaq at the relevant time. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 4 in general, and furthers the 

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

in 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 

proposed change is designed to clarify 

the applicability of Nasdaq’s rules. 

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 

The Exchange believes that the 

foregoing proposed rule change may 

take effect upon filing with the 

Commission pursuant to Section 

19(b)(3)(A) 6 of the Act and Rule 19b– 

4(f)(6)(iii) thereunder 7 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 if 

consistent with the protection of 

investors and the public interest. In 

addition, at least five days prior to the 

instant filing, the Exchange provided 

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 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. 

The Exchange believes that this 

proposal qualifies for immediate 

effectiveness as a ‘‘non-controversial’’ 

rule change under paragraph (f)(6) of 

Rule 19b–4.8

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–2010–010 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–2010–010. 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. 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–2010–010 and 

should be submitted on or before 

February 25, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2329 Filed 2–3–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61429; File No. SR– 

NASDAQ–2010–009] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, To Amend 

Its Financial Responsibility Rules To 

Reflect Changes to Corresponding 

FINRA Rules 

January 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 January 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 23 / Thursday, February 4, 2010 / Notices 5823 

3 17 CFR 240.19b–4(f)(6). 

4Securities Exchange Act Release No. 60933 

(November 4, 2009), 74 FR 58334 (November 12, 

2009) (SR–FINRA–2008–067). 5FINRA also eliminated NASD Rule 3131 and 

adopted FINRA Rule 4130 in its place. NASD Rule 

3131 concerned the regulation of members 

registered with the SEC pursuant to Section 15C of 

the Exchange Act. NASDAQ does not have such a 

class of membership, and as such, did not adopt 

NASD Rule 3131 and is not proposing to adopt, or 

incorporate by reference, FINRA Rule 4130. 

6For example, FINRA Rule 9557(c)(5) references 

‘‘FINRA staff’’ whereas proposed NASDAQ Rule 

9557(c)(5) references instead ‘‘Nasdaq Regulation 

staff.’’ 

7 15 U.S.C. 78f. 

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

21, 2010, The NASDAQ Stock Market 

LLC (the ‘‘Exchange’’ or ‘‘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 prepared by the Exchange. The 

Exchange filed Amendment No. 1 on 

January 22, 2010. 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, 

as amended. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing this proposed 

rule change to delete Rule 3130 and IM– 

3130, to adopt a new Rule 4000A series, 

and to amend Rules 9557 and 9559 to 

conform NASDAQ’s rules to recent 

changes to the rules of the Financial 

Industry Regulatory Authority 

(‘‘FINRA’’). The Exchange will 

implement the proposed rule change 

thirty days after the date of the filing. 

The text of the proposed rule change is 

available at http:// 

nasdaqomx.cchwallstreet.com, 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 

NASDAQ proposes certain 

conforming changes to its rules 

concerning members’ financial 

responsibilities in light of changes made 

to the rules of FINRA. 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 most cases, FINRA 

has renumbered these rules, and in 

some cases has substantively amended 

them. Accordingly, NASDAQ also 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. In some cases, it is not 

possible for the rule numbers of 

NASDAQ rules to mirror corresponding 

FINRA rules, because existing or 

planned NASDAQ rules make use of 

those numbers. However, wherever 

possible, NASDAQ plans to update its 

rules to reflect changes to corresponding 

FINRA rules. 

This filing addresses changes to 

NASDAQ rules to conform them to 

FINRA’s new consolidated financial 

responsibility rules.4 These rules 

establish criteria that promote the 

permanency of member’s capital, 

requiring the review and approval of 

material financial transactions and 

establishing criteria intended to identify 

member firms approaching financial 

difficulty and to monitor their financial 

and operational condition. FINRA’s new 

financial responsibility rules 

incorporate many of the provisions of 

the prior NASD and NYSE rules, but 

streamlined and reorganized the 

provisions. FINRA also tiered many 

provisions to apply only to those firms 

that clear or carry customer accounts. 

Currently, NASDAQ Rule 3130 and 

IM–3130 incorporate by reference old 

NASD Rule 3130 and IM–3130. These 

rules concerned FINRA’s authority to 

regulate the activities of members 

experiencing financial or operational 

difficulties. In adopting the new 

financial responsibility rules, FINRA 

eliminated NASD Rule 3130 and IM– 

3130, and replaced them with several 

rules that represented a consolidation of 

the old NASD and NYSE rules 

concerning financial responsibility. As a 

consequence, NASDAQ is also deleting 

Rule 3130 and IM–3130, and replacing 

them with new rules found under a new 

Rule 4000A series.5 These new 

NASDAQ rules incorporate by reference 

the analogous newly-adopted financial 

responsibility rules of FINRA found in 

FINRA Rules 4110, 4120, 4140 and 

4521. Consistent with current NASDAQ 

Rule 3130(b), NASDAQ is proposing to 

make clear in proposed Rules 4110A, 

4120A and 4140A that references to 

Rule 9557 are to NASDAQ’s Rule 9557. 

FINRA also revised FINRA Rule 9557 

(Procedures for Regulating Activities 

Under FINRA Rules 4110, 4120 and 

4130 Regarding a Member Experiencing 

Financial or Operational Difficulties) 

and FINRA Rule 9559 (Hearing 

Procedures for Expedited Proceedings 

Under the Rule 9550 Series). FINRA 

Rules 9557 and 9559 address service of 

notice to member firms that are 

experiencing financial or operational 

difficulties and the related hearing 

procedures. FINRA made a number of 

conforming revisions to Rules 9557 and 

9559 in light of several of the new 

financial responsibility rules. NASDAQ 

Rules 9557 and 9559 mirror the 

analogous rules of FINRA in substance, 

with only minor technical differences.6

As such, NASDAQ is proposing to make 

the same changes Rules 9557 and 9559 

as FINRA made to its Rules 9557 and 

9559, with minor technical differences. 

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 Sections 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 

NASDAQ rules to recent changes made 

to 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 


srobinson on DSKHWCL6B1PROD with NOTICES
5824 Federal Register / Vol. 75, No. 23 / Thursday, February 4, 2010 / Notices 

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). In addition, Rule 19b– 

4(f)(6)(iii) requires that a self-regulatory 

organization submit to 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 Commission notes that NASDAQ 

has satisfied the five-day pre-filing notice 

requirement. 

12For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

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

13For purposes of calculating the 60-day 

abrogation period, the Commission considers the 

proposed rule change to have been filed on January 

21, 2010, the date Nasdaq filed Amendment No. 1. 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

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 9 and Rule 19b– 

4(f)(6) thereunder.10

A proposed rule change filed under 

19b–4(f)(6) normally does not become 

operative prior to 30 days after the date 

of filing. However, Rule 19b– 

4(f)(6)(iii) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. The Commission 

believes that the earlier operative date is 

consistent with the protection of 

investors and the public interest 

because the proposed rule change 

permits Nasdaq to implement the rule 

without further delay and in time for the 

operative date of FINRA’s financial 

responsibility rules.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.13

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–2001–004 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–2010–009. 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 

offices 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–2010–009, and 

should be submitted on or before 

February 25, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2331 Filed 2–3–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61433; File No. SR–ISE– 

2010–04] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Correct Inconsistencies in 

Certain Execution Rules 

January 27, 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 January 

13, 2010, the International Securities 

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

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change as described in Items I, II, 

and III 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 correct 

inconsistencies in certain of its 

execution rules. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.ise.com), at the principal office of 

the Exchange, 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 

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 


srobinson on DSKHWCL6B1PROD with NOTICES