Federal Register / Vol. 75, No. 24 / Friday, February 5, 2010 / Notices 6077 

75 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). 

4At present, all System routing tables include 

NASDAQ’s affiliate, NASDAQ OMX BX (‘‘BX’’). 

Thus, all routed orders have the opportunity to 

route to this venue, with the exception of DOT 

orders routed directly to the NYSE or NYSE Amex 

opening or closing processes and directed orders 

that are directed to route to venues other than BX. 

proposed rule change (SR–NASDAQ– 

2009–077) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.75

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2500 Filed 2–4–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61460; File No. SR– 

NASDAQ–2010–018] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ’s Order Routing Rule 

February 1, 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 

29, 2010, The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’ or the ‘‘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 Nasdaq. Nasdaq has 

designated the proposed rule change as 

constituting a 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 is filing this proposed 

rule change to amend Rule 4758 to 

describe available routing options in 

greater detail, to modify an existing 

routing option, and to add a new routing 

option. NASDAQ proposes to 

implement the rule change on February 

1, 2010. The text of the proposed rule 

change is available at http:// 

nasdaq.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 is amending Rule 4758, 

which describes its order routing 

processes, to describe existing order 

routing options with greater specificity, 

to modify an existing routing option, 

and to add a new routing option. 

Currently, routing options available 

through NASDAQ are all variations of 

three main routing options, known as 

DOT, STGY, and SCAN. Although the 

rule language for these routing options 

describes the available variations of the 

main options in general terms, 

NASDAQ believes that understanding of 

these options would be enhanced by 

describing the different versions as 

separately named routing options. 

NASDAQ is also amending Rule 4758 to 

include a definition of ‘‘System routing 

table,’’ defined as the proprietary 

process for determining the specific 

trading venues to which the NASDAQ 

System routes orders and the order in 

which it routes them. The definition 

reflects the fact that NASDAQ, like 

other trading venues, maintains 

different routing tables for different 

routing options and modifies them on a 

regular basis to reflect assessments 

about the destination markets. Such 

assessments consider factors such as a 

destination’s latency, fill rates, 

reliability, and cost. Accordingly, the 

definition specifies that NASDAQ 

reserves the right to maintain a different 

routing table for different routing 

options and to modify routing tables at 

any time without notice.4 All routing 

complies with the requirements of Rule 

611 of Regulation NMS. 

• DOT is a routing option for orders 

that the entering firm wishes to 

designate for participation in the NYSE 

or NYSE Amex opening or closing 

processes. DOT orders do not check the 

NASDAQ book prior to routing directly 

to NYSE or NYSE Amex. After 

attempting to execute at NYSE or NYSE 

Amex, DOT orders thereafter check the 

NASDAQ book for available shares and 

are then converted into SCAN or STGY 

orders, depending on the designation of 

the entering firm. If a DOT order 

designated to participate in the opening 

process is entered after 9:30 a.m., 

moreover, it will be converted into a 

SCAN or STGY order, depending on the 

designation of the entering firm. 

• DOTI is a routing option under 

which orders check the NASDAQ book 

and destinations on the DOTI System 

routing table and then are sent to NYSE 

or NYSE Amex. Such orders do not 

return to the NASDAQ book if they are 

not executed, but rather remain on the 

NYSE or NYSE Amex book until 

executed, cancelled, or expired. 

• STGY is a routing option under 

which orders check the NASDAQ book, 

check destinations on the STGY System 

routing table, and then return to the 

NASDAQ book. After returning to the 

NASDAQ book, a STGY order will 

subsequently route out to another 

market center if it posts a bid or offer 

that locks or crosses the STGY order. 

• SKNY is a form of STGY in which 

the entering party instructs the System 

to bypass any market centers included 

in the STGY System routing table that 

are not posting Protected Quotations 

within the meaning of Regulation NMS. 

• SCAN is a routing option under 

which orders check the NASDAQ book, 

check destinations on the SCAN System 

routing table, and then return to the 

NASDAQ book. After returning to the 

NASDAQ book, a SCAN order will not 

subsequently route out to another 

market center if it posts a bid or offer 

that locks or crosses the SCAN order. 

• SKIP is a form of SCAN in which 

the entering party instructs the System 

to bypass any market centers included 

in the SCAN System routing table that 

are not posting Protected Quotations 

within the meaning of Regulation NMS. 

• TFTY is a routing option that was 

formerly comprised within the 

definition of SCAN. TFTY orders 

currently do not check the NASDAQ 

book for available shares prior to routing 

to destinations on the TFTY System 

routing table. Thereafter, they return to 

the NASDAQ book and, like SCAN 

orders, do not route out again. TFTY is 

being modified by this proposed rule 


srobinson on DSKHWCL6B1PROD with NOTICES
6078 Federal Register / Vol. 75, No. 24 / Friday, February 5, 2010 / Notices 

5Securities Exchange Act Release No. 60570 

(August 26, 2009), 74 FR 45505 (September 2, 2009) 

(SR–NASDAQ–2009–079). 

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). In addition, Rule 19b– 

4(f)(6) 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. Nasdaq has satisfied this requirement. 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6). 

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). 

change to provide users the option of 

checking the NASDAQ book prior to 

routing out. 

• MOPP is a routing option formerly 

comprised within the definition of 

SCAN. MOPP orders route only to 

Protected Quotes, including the 

NASDAQ Market Center, but only for 

displayed size. If shares remain unexecuted after routing, they are posted 

to the NASDAQ book and do not route 

out again. 

• Directed Orders, as described in 

Rule 4751, are orders that are directed 

to an exchange other than NASDAQ as 

requested by the entering party without 

checking the NASDAQ book. Directed 

Orders must have a time-in-force of 

Immediate or Cancel and therefore do 

not post on the book of the market to 

which they route, nor do they return 

and post on NASDAQ. 

• NASDAQ is introducing the new 

SAVE routing option, under which a 

market participant may specify that an 

order will either (i) route to BX, check 

the NASDAQ book, and then route to 

other venues on the SAVE System 

routing table, or (ii) check the NASDAQ 

book first and then route to destinations 

on the SAVE System routing table. 

Under the second option, the applicable 

routing table includes BX, and as is the 

case with all market destinations, the 

placement of BX on the routing table 

depends on NASDAQ’s ongoing 

assessments of factors such as latency, 

fill rates, reliability, and cost. If shares 

remain un-executed after routing, they 

are posted to the NASDAQ book and do 

not route out again. 

NASDAQ is also removing specific 

references to order types and times-inforce in the routing rule with a general 

statement that routing options may be 

combined with all available order types 

and times-in-force, with the exception 

of order types and times-in-force whose 

terms are inconsistent with the terms of 

a particular routing option. Thus, for 

example, a good-till-cancelled order 

could not be combined with the DOT 

routing option, since a DOT-routed 

order is intended to execute in another 

market’s opening or closing process on 

a particular day. Finally, NASDAQ is 

removing obsolete language that had 

been added to Rule 4758 last year to 

reflect a commitment to distinguish 

‘‘flash’’ orders from NASDAQ’s 

protected quote. NASDAQ discontinued 

the use of flash orders shortly after it 

introduced them.5

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,6 in 

general, and with Sections 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 change to 

introduce the SAVE routing option and 

modify the TFTY routing option will 

provide market participants with greater 

flexibility in routing orders to low cost 

trading venues, including BX and other 

venues with low execution fees that are 

included on the System routing tables. 

The other modifications to Rule 4758 

will enhance the clarity of the rule. 

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. 

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 8 and Rule 19b– 

4(f)(6) thereunder.9

A proposed rule change filed 

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

Act 10 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 11

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. Nasdaq requests that the 

Commission waive the 30-day operative 

delay NASDAQ requests this waiver 

because it currently has the 

technological changes ready to support 

the proposed rule change, and believes 

that the benefits of greater flexibility 

and increased clarity that are expected 

from the rule change should not be 

delayed. The Commission believes that 

waiving the 30-day operative delay 12 is 

consistent with the protection of 

investors and the public interest and 

designates the proposal operative upon 

filing. 

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–NASDAQ–2010–018 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–2010–018. 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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 24 / Friday, February 5, 2010 / Notices 6079 

13 17 CFR 200.30–3(a)(12). 

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 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 publicly available. All 

submissions should refer to File 

Number SR–NASDAQ–2010–018 and 

should be submitted on or before 

February 26, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2501 Filed 2–4–10; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[PUBLIC NOTICE 6894] 

Culturally Significant Objects Imported 

for Exhibition 

Determinations: ‘‘Compass and Rule: 

Architecture as Mathematical Practice 

in England, 1500–1750’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, Delegation of Authority 

No. 236 of October 19, 1999, as 

amended, and Delegation of Authority 

No. 257 of April 15, 2003 [68 FR 19875], 

I hereby determine that the objects to be 

included in the exhibition ‘‘Compass 

and Rule: Architecture as Mathematical 

Practice in England, 1500–1750,’’ 

imported from abroad for temporary 

exhibition within the United States, are 

of cultural significance. The objects are 

imported pursuant to loan agreements 

with the foreign owners or custodians. 

I also determine that the exhibition or 

display of the exhibit objects at the Yale 

Center for British Art, New Haven, 

Connecticut, from on or about February 

18, 2010, until on or about May 30, 

2010, and at possible additional 

exhibitions or venues yet to be 

determined, is in the national interest. 

I have ordered that Public Notice of 

these Determinations be published in 

the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Paul W. 

Manning, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6469). The 

mailing address is U.S. Department of 

State, SA–5, L/PD, Fifth Floor (Suite 

5H03), Washington, DC 20522–0505. 

Dated: February 1, 2010. 

Maura M. Pally, 

Deputy Assistant Secretary for Professional 

and Cultural Exchanges, Bureau of 

Educational and Cultural Affairs, Department 

of State. 

[FR Doc. 2010–2551 Filed 2–4–10; 8:45 am] 

BILLING CODE 4710–05–P 


srobinson on DSKHWCL6B1PROD with NOTICES