Federal Register / Vol. 74, No. 15 / Monday, January 26, 2009 / Notices 4491 

43 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). 

4 17 CFR 240.19b–4(f)(6)(iv). 

connection with private placements of 

securities by members and control 

entities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA 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 

The proposed rule change was 

published in Notice to Members 07–27 

(June 2007). Sixteen comments were 

received in response to Notice to 

Members 07–27. A copy of Notice to 

Members 07–27 is attached as Exhibit 2a 

to this rule filing. A list of the comment 

letters received in response to Notice to 

Members 07–27 is attached as Exhibit 2b 

to this rule filing. Copies of the 

comment letters received in response to 

Notice to Members 07–27 are attached 

as Exhibit 2c to this rule filing. The 

comments are summarized above. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date 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 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–FINRA–2008–020 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–FINRA–2008–020. 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, 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 FINRA. 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–FINRA–2008–020 and 

should be submitted on or before 

February 17, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.43

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–1466 Filed 1–23–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59259; File No. SR–BX– 

2009–003] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Establish a 

Post-Only Order 

January 15, 2009. 

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 

14, 2009, NASDAQ OMX BX, Inc. (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 

substantially prepared by the Exchange. 

The Exchange has filed this proposal 

pursuant to Exchange Act Rule 19b– 

4(f)(6) 3 and requests that the 

Commission waive the 30-day preoperative waiting period contained in 

Exchange Act Rule 19b–4(f)(6)(iii).4 If 

such waiver is granted by the 

Commission, this rule proposal, which 

is effective upon filing with the 

Commission, shall become immediately 

operative. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to establish a 

Post-Only Order. 

The text of the proposed rule change 

is below. Proposed new language is in 

italics. 

* * * * * 

4751. Definitions 

(a)–(e) No change. 

(f) No change. 

(1)–(8) No change. 

(9) ‘‘Post-Only Orders’’ are orders that 

if, at the time of entry, would lock an 

order on the System, the order will be 

re-priced and displayed by the System 

to one minimum price increment (i.e., 

$0.01 or $0.0001) below the current low 

offer (for bids) or above the current best 

bid (for offers). 

(g)–(j) No change. 

* * * * * 

4492 Federal Register / Vol. 74, No. 15 / Monday, January 26, 2009 / Notices 

5See Rule 11.9(c)(5) of the BATS Exchange and 

Rule 7.31 of NYSE Arca. The proposed Post-Only 

Order has functionalities similar to the NYSE Arca 

Adding Liquidity Only Order and the BATS Post 

Only Order. 

6See Rule 4751(f)(8). 

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). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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 satisfied this requirement. 

11For 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). 

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 

In order to provide enhanced 

functionality, the Exchange proposes to 

adopt an additional order type known as 

the Post-Only Order. A Post-Only Order 

is an order that does not remove 

liquidity from the System upon entry if 

it would lock an order on the 

Exchange’s system for trading cash 

equities (the ‘‘System’’). If, at the time 

of entry, a Post-Only Order would lock 

an order on the System it will be repriced and displayed by the System to 

one minimum price increment (i.e., 

$0.01 or $0.0001) below the current low 

offer (for bids) or above the current best 

bid (for offers). In the case of a PostOnly Order locking an order, the PostOnly Order will be repriced only once 

upon entry into the System. As with 

other Exchange orders, the Post-Only 

Order will not be routed away to other 

trading centers. 

An example of how the price sliding 

mechanism will work if the Post-Only 

Order locks an order on the System is 

as follows: 

• The System is displaying a $10.15 

offer. 

• A firm enters a Post-Only Order to 

buy at $10.15. 

• The incoming Post-Only Order will 

go on the book and display at $10.14. 

If the Post-Only Order would lock or 

cross a protected quote of another 

market center the post-only logic is not 

applicable and the order will be 

processed in the same manner as a Price 

to Comply Post Order. 

• Another market center is displaying 

a $10.15 offer. 

• A firm enters a Post-Only Order to 

buy at $10.15. 

• The incoming Post-Only Order will 

be accepted and display at $10.14. 

If the Post-Only Order would cross 

another order already on the System and 

the price improvement for executing the 

order is greater than the liquidity taker 

fee and higher than the rebate for being 

a liquidity provider, then the post-only 

logic is not applicable and the order will 

be processed and execute in the same 

manner as an order with a time-in-force 

of Immediate or Cancel (IOC). 

• The System is displaying a $10.15 

offer. 

• A firm enters a Post-Only Order to 

buy at $10.16. 

• The incoming Post-Only Order will 

execute at $10.15. 

The Exchange believes that the PostOnly Order type will increase the ability 

of market participants to control their 

provision or taking of market liquidity 

and thus better anticipate their trading 

costs. The Exchange notes that orders 

similar to the proposed Post-Only Order 

type are already in use by other market 

centers.5 In addition, the process for repricing Post-Only Orders is comparable 

to the existing re-pricing mechanism 

approved for use for Price to Comply 

Post Orders.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. 

Specifically, the Post-Only Order is 

designed to encourage displayed 

liquidity and to offer Exchange users 

greater discretion and flexibility to post 

liquidity on the Exchange. 

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. 

To the contrary, the Exchange believes 

that the Post-Only Order is designed to 

compete with orders already approved 

and in use at other national securities 

exchanges, thereby enhancing 

competition between the exchanges. 

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 rule does not: 

(i) Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; or (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 9 and Rule 

19b–4(f)(6) thereunder.10

The Exchange has asked the 

Commission to waive the operative 

delay to permit the proposed rule 

change to become operative prior to the 

30th day after filing. The Commission 

has determined that waiving the 30-day 

operative delay of the Exchange’s 

proposal is consistent with the 

protection of investors and the public 

interest because such waiver will enable 

the Exchange to encourage increased 

liquidity concurrent with the launch of 

cash equities trading by the Exchange.11

Therefore, the Commission designates 

the proposal operative upon filing. 

At any time within 60 days of the 

filing of such 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 

Federal Register / Vol. 74, No. 15 / Monday, January 26, 2009 / Notices 4493 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5Changes are marked to the rule text that appears 

in the electronic manual of Nasdaq found at 

http://nasdaqomx.cchwallstreet.com. 

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 

No. SR–BX–2009–003 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–BX–2009–003. 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, 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 available publicly. All 

submissions should refer to File No. 

SR–BX–2009–003 and should be 

submitted on or before February 17, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–1464 Filed 1–23–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59260; File No. SR– 

NASDAQ–2009–001] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Rule 

7050 Governing Pricing for Nasdaq 

Members Using the NASDAQ Options 

Market (‘‘NOM’’) 

January 15, 2009. 

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 9, 

2009, The NASDAQ Stock Market LLC 

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

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been prepared by Nasdaq. Nasdaq 

has filed the proposal pursuant to 

Section 19(b)(3)(A)(ii) of the Act 3 and 

Rule 19b–4(f)(2) thereunder,4 Nasdaq 

has designated this proposal as 

establishing or changing a due, fee, or 

other charge applicable only to 

members, which renders the proposed 

rule change effective upon filing. 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 

Nasdaq has filed a proposed rule 

change to modify Rule 7050 governing 

pricing for Nasdaq members using the 

NASDAQ Options Market (‘‘NOM’’), 

Nasdaq’s facility for executing and 

routing standardized equity and index 

options. Proposed new language is in 

italics; proposed deletions are in 

brackets.5

* * * * * 

7050. NASDAQ Options Market 

The following charges shall apply to 

the use of the order execution and 

routing services of the NASDAQ 

Options Market by members for all 

securities that it trades. 

(1) Fees for Execution of Contracts on 

the NASDAQ Options Market 

Except as specified below, the [C]c harge to member entering order that executes in the NASDAQ Options Market $0.45 per executed contract. 

For a pilot period ending July 31, 2009, charge for members or non-members entering order via the Options Intermarket Linkage that executes in the Nasdaq Options Market.$0.45 per executed contract. 

Charge to members entering orders in options on QQQQ, SPY, DIA and IWM with an account type ‘‘Customer’’ 

that executes and remove liquidity entered by another member.

No fee. 

Credit to member providing liquidity through the NASDAQ Options Market ................................................................ $0.30 per executed contract. 

Credit to member providing liquidity using price-improving orders through the NASDAQ Options Market ................. $0.35 per executed contract.