Federal Register / Vol. 75, No. 195 / Friday, October 8, 2010 / Notices 62443 

14 15 U.S.C. 78f(b). 

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

16 15 U.S.C. 78s(b)(3)(A). 

17 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. The Exchange has satisfied this 

requirement. 

18For 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). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

of the Act 14 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 15

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, and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that this proposal is in keeping with 

those principles by providing data that 

is administrative in nature or that is 

used to attract liquidity to the Exchange 

in response to an auction. 

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 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, the 

proposed rule change has become 

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

of the Act 16 and Rule 19b–4(f)(6) 17

thereunder. 

The Exchange has asked the 

Commission to waive the 30-day 

operative delay and designate the 

proposed rule change to become 

operative during the week of October 

11, 2010. The Exchange has represented 

that it is important to the Exchange’s 

internal technology roll-out to be able to 

have SQF 6.0 in place by this time in 

order for other technological plans to be 

implemented. The Exchange has also 

represented that the proposed rule 

change is a non-controversial system 

change to data and would not affect the 

execution of trades. The Exchange has 

argued that the prompt implementation 

of the proposal would extend the 

benefits and new features of SQF 6.0 to 

its users promptly. On the basis of the 

Exchange’s representations, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission designates the proposed 

rule change as operative on October 11, 

2010.18

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–Phlx–2010–124 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–Phlx–2010–124. 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 website (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, 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–2010–124 and should 

be submitted on or before October 29, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–25395 Filed 10–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63028; File No. SR– 

NASDAQ–2010–099] 

Self-Regulatory Organizations; 

NASDAQ Stock Market LLC; Order 

Approving a Proposed Rule Change To 

Adopt a Definition of Professional and 

Require That All Professional Orders 

Be Appropriately Marked 

October 1, 2010. 

I. Introduction 

On August 6, 2010, The NASDAQ 

Stock Market (‘‘NASDAQ’’), filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to amend Chapter I, Section 1 

(Definitions) of the rules of the Nasdaq 

Options Market (‘‘NOM’’) to adopt a 

definition of ‘‘Professional’’ and require 

that all Professional orders be 

appropriately marked by NOM 


erowe on DSK5CLS3C1PROD with NOTICES
62444 Federal Register / Vol. 75, No. 195 / Friday, October 8, 2010 / Notices 

3See Securities Exchange Act Release No. 62724 

(August 16, 2010), 75 FR 51509 (‘‘Notice’’). 

4A member of NOM is known as a Participant. 

Some participants are also members of other 

options exchanges such as, for example, 

International Securities Exchange, LLC (‘‘ISE’’), 

Chicago Board Options Exchange, Incorporated 

(‘‘CBOE’’), and NASDAQ OMX PHLX LLC (‘‘Phlx’’). 

See Notice, supra note 3. See also Chapter I, Section 

1(a)(40) of the NOM Rules. 

5Public Customer is defined in Chapter I, Section 

1(a)(48) as a person that is not a broker or dealer 

in securities. 

6The Exchange intends to require Participants to 

identify Professional orders submitted 

electronically by identifying them in the customer 

type field, and will notify Participants via an 

Options Trader Alert (‘‘OTA’’) or Options Regulatory 

Alert (‘‘ORA’’) regarding this requirement. 

7According to NASDAQ, Participants will be 

required to conduct a quarterly review and make 

any appropriate changes to the way in which they 

are representing orders within five business days 

after the end of each calendar quarter. While 

Participants will only be required to review their 

accounts on a quarterly basis, if during a quarter 

NOM identifies a customer for which orders are 

being represented as other than Professional orders 

but that has averaged more than 390 orders per day 

during a month, NOM will notify the Participant 

and the Participant will be required to change the 

manner in which it is representing the customer’s 

orders within five business days. This is similar to 

the process of other options exchanges that have 

adopted a Professional designation. See, e.g., 

Securities Exchange Act Release No. 61802 (March 

30, 2010), 75 FR 17193 (April 5, 2010) (SR–Phlx– 

2010–05). 

8See Notice, supra note 3. 

9The Professional definition proposed by NOM 

comports with the Professional designation that has 

been implemented by Phlx, CBOE, ISE, and NYSE 

Amex LLC (‘‘NYSE Amex’’). See Securities 

Exchange Act Release Nos. 61802 (March 30, 2010), 

75 FR 17193 (April 5, 2010) (SR–Phlx–2010–05); 

61198 (December 17, 2009), 74 FR 68880 (December 

29, 2009) (SR–CBOE–2009–078); 59287 (January 23, 

2009), 74 FR 5694 (January 30, 2009) (SR–ISE– 

2006–26); and 61818 (March 31, 2010), 75 FR 17457 

(April 6, 2010) (SR–NYSEAmex–2010–18). 

10According to NASDAQ, NOM only accepts 

orders that are marked as customer, firm, market 

maker, or away market maker orders. 

11See, e.g., Chapter VI, Section 11 and Chapter 

XII. 

12 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

13See supra note 9. 

14 15 U.S.C. 78s(b)(2). 

15 17 CFR 200.30–3(a)(12). 

Participants (‘‘NOM Rules’’). The 

proposed rule change was published for 

comment in the Federal Register on 

August 20, 2010.3 The Commission 

received no comment letters on the 

proposed rule change. This order 

approves the proposed rule change. 

II. Description 

Under the proposal, new Chapter I, 

Section 1(a)(48) will state that the term 

‘‘Professional’’ means any person or 

entity that (i) is not a broker or dealer 

in securities, and (ii) places more than 

390 orders in listed options per day on 

average during a calendar month for its 

own beneficial account(s). A 

Participant 4 or a Public Customer 5 may, 

without limitation, be a Professional. 

Moreover, in order to properly represent 

orders entered on the Exchange 

according to the new definition, a 

Participant will be required to 

appropriately mark all Professional 

orders.6 To comply with this 

requirement, Participants will be 

required to review their Public 

Customers’ activity on at least a 

quarterly basis to determine whether 

orders that are not for the account of a 

broker-dealer should be represented as 

Professional orders.7 The Exchange will 

issue a notice to Participants via OTA or 

ORA outlining the procedures for the 

implementation of the proposal. 

The professional order designation 

rule will apply to NOM members, 

including NASDAQ Options Services 

LLC (‘‘NOS’’). NOS is NOM’s exclusive 

order router for all orders that come 

through the Exchange.8 Under the 

proposal, NOS, a member of several 

exchanges that have rules requiring a 

Professional designation, will be able to 

route Professional orders to those 

options exchanges that require 

Professional orders to be designated as 

such.9

The Professional definition will not 

revise the Exchange’s price/time order 

entry (priority) rules. For example, 

unlike other options exchanges with the 

Professional designation, the proposed 

rule change does not affect on NOM the 

priority of orders designated as 

Professional. Instead, the proposal is 

intended to make certain that 

Participants mark Professional orders 

properly regardless of whether the order 

is entered on NOM or routed to another 

options exchange that has the 

Professional designation. Moreover, 

when the proposed Professional 

designation is in place, NOM will be 

able to accept orders that are marked as 

Professional.10

The designation of an order as 

Professional will not result in any 

different treatment of such orders for 

purposes of NOM rules concerning 

away market protection. That is, all nonbroker-dealer orders, including those 

orders that meet the definition of 

Professional, will continue to be treated 

equally for purposes of NOM’s away 

market protection rules.11

III. Discussion and Commission’s 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.12 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act, which requires, 

among other things, that the rules of a 

national securities exchange be 

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, and not be designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Commission notes that NOM’s 

proposed definition of Professional and 

requirement that Professional orders be 

properly marked are consistent with the 

rules of other exchanges relating to 

Professional orders, which previously 

were approved by the Commission.13

The Commission notes that the proposal 

will not amend NOM’s price/time order 

entry (priority) rules with respect to the 

treatment of orders submitted to NOM. 

The proposal in effect allows NOM to 

accept orders marked as Professional 

and, if necessary to comply with its 

order protection rules, to route them via 

NOS to an away market that maintains 

the Professional order designation, in 

accordance with that exchange’s order 

marking requirements. The Commission 

believes that conforming NOM’s rules to 

those of the other exchanges that have 

the Professional order designation will 

reduce disparate rules in this area and 

may help reduce regulatory arbitrage. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,14 that the 

proposed rule change (SR–NASDAQ– 

2010–099) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–25420 Filed 10–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 7200] 

60-Day Notice of Proposed Information 

Collection: Form DS–3057, Medical 

Clearance Update, OMB 1405–0131 

ACTION: Notice of request for public 

comments. 

SUMMARY: The Department of State is 

seeking Office of Management and 

Budget (OMB) approval for the 


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