Document ID: SEC-2012-0898-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The NASDAQ Stock Market LLC
Posted Date: 2012-06-08T04:00Z

[Federal Register Volume 77, Number 111 (Friday, June 8, 2012)]
[Notices]
[Pages 34110-34114]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-13895]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67105; File No. SR-NASDAQ-2012-065]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Strike Price Intervals and Position Limits for OSX, SOX, 
and HGX

June 4, 2012.
    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 May 24, 2012, 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 
prepared by NASDAQ. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASDAQ is filing with the Commission a proposal for the NASDAQ 
Options Market (``NOM'' or ``Exchange'') to amend Chapter XIV (Index 
Rules), Sections 7 (Position Limits for Industry and Micro Narrow-Based 
Index Options) and 11 (Terms of Index Options Contracts) to copy into 
NOM rules the established rules of another options exchange regarding 
strike price intervals and position limits for options on the PHLX Oil 
Service Sector\SM\ (OSX\SM\), the PHLX Semiconductor Sector\SM\ 
(SOX\SM\), and the PHLX Housing Sector\TM\ (HGX\SM\) (together the 
``Specified Indexes'').\3\ The Exchange also proposes to amend Chapter 
XIV, Sections 2 (Definitions) and 11 to add the names of the Specified 
Indexes to lists of index reporting authorities, European-style 
indexes, and $2.50-eligible index options.
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    \3\ Options on Specified Indexes that will be listed and traded 
on NOM subsequent to this proposal will be identical to the same 
Specified Index options that are listed and traded on NASDAQ OMX 
Phlx LLC (``Phlx''). Specified Index options will have the same 
specifications whether listed on NOM or Phlx.
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    The text of the proposed rule change is available from NASDAQ's Web 
site at http://nasdaq.cchwallstreet.com/Filings/, at NASDAQ'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, NASDAQ 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. NASDAQ 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
    The purpose of this proposed rule change is to amend Chapter XIV 
(Index Rules), Sections 7 and 11 to copy into NOM rules the established 
rules of another options exchange regarding strike price intervals and 
position limits for options on OSX, SOX, and HGX. The proposed rule 
change would allow NOM to list and trade options on these three 
Specified Indexes.\4\ The Exchange also proposes to amend Chapter XIV, 
Sections 2 and 11 to add the names of the Specified Indexes to lists of 
index reporting authorities, European-style indexes, and $2.50-eligible 
index options.
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    \4\ The options will be listed pursuant to Rule 19b-4(e) of the 
Act. 17 CFR 240.19b-4(e). Rule 19b-4(e) enables an exchange to list 
an option pursuant to generic listing standards set forth in the 
rules of such exchange and, within five business days after the 
commencement of trading of the option, to file Form 19b-4(e) with 
the Commission to indicate the listing.
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    The rule changes proposed herein in respect of position limits and 
strike price intervals are based almost verbatim on the established 
rules of another options market and self regulatory organization 
(``SRO''), Phlx. The proposed rule changes are based on Phlx Rules 
1001A (Position Limits) and 1101A (Terms of Option Contracts).\5\
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    \5\ See Securities Exchange Act Release Nos. 61590 (February 25, 
2010), 75 FR 9988 (March 4, 2010) (SR-Phlx-2009-113) (order 
approving 54,000, 72,000, and 94,500 contract position limits for 
options on OSX, SOX, and HGX); 53243 (February 7, 2006), 71 FR 7607 
(February 13, 2006) (SR-Phlx-2005-43) (order approving no less than 
$2.50 strike price intervals for options on OSX, SOX, and HGX, if 
the strike price is less than $200); and 60840 (October 20, 2009), 
74 FR 55593 (October 28, 2009) (SR-Phlx-2009-77) (order approving $1 
strike price intervals for options on OSX, SOX, and HGX).

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[[Page 34111]]

Background
    Options on the narrow-based indexes \6\ known as PHLX Oil Service 
Sector, PHLX Semiconductor Sector, and PHLX Housing Sector, when listed 
on NOM subsequent to this proposal, will be identical to options on 
these Specified Indexes that are currently listed and trading on 
Phlx.\7\ Thus, options on the Specified Indexes that will be listed and 
traded on NOM will, like on Phlx, remain European style \8\ (PHLX Oil 
Service Sector and PHLX Housing Sector options) and American style 
(PHLX Semiconductor Sector options), and will be A.M.-settled.\9\
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    \6\ The term ``narrow-based index'' and ``industry index'' is 
defined in Chapter XIV, Section 2(i) as an index designed to be 
representative of a particular industry or a group of related 
industries.
    \7\ The contract specifications for the PHLX Oil Service Sector, 
the PHLX Semiconductor Sector, and the PHLX Housing Sector can be 
found at https://www.nasdaqtrader.com/micro.aspx?id=phlxsectorscontractspecs. A listing of the components 
of the respective Specified Indexes can be found at https://indexes.nasdaqomx.com/weighting.aspx?IndexSymbol=XSOX&menuIndex=0.
    \8\ The term ``European-style index option'' is defined in 
Chapter XIV, Section 2(g) as an option on an industry or market 
index (a market index is a broad-based index) that can be exercised 
only on the last business day prior to the day it expires.
    \9\ The term ``A.M.-settled index option'' is defined in Chapter 
XIV, Section 2(c) as an index options contract for which the current 
index value at expiration shall be determined as provided in Section 
11(a)(5) of Chapter XIV.
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    The PHLX Oil Service Sector (OSX) is a price-weighted index 
composed of fifteen companies that provide oil drilling and production 
services, oil field equipment, support services and geophysical/
reservoir services.\10\ OSX provides exposure to the dynamic oil 
industry. When investors want information and investment opportunities 
specific to the oil industry they very often turn to the PHLX Oil 
Service Sector and the OSX options traded thereon.\11\ The PHLX Oil 
Service Sector has served as an important market indicator and OSX 
options as a viable trading and investing vehicle in respect of the oil 
services sector.\12\
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    \10\ The Exchange understands that OSX expansion and weighting 
changes are being evaluated, and intends to make equivalent changes. 
See Securities Exchange Act Release No. 64478 (May 12, 2011), 76 FR 
28840 (May 18, 2011) (SR-Phlx-2011-28) (approval order allowing 
expanding number of OSX components and changing to modified 
capitalization-weighting).
    \11\ Other currently available investment products that evaluate 
the oil industry, albeit differently from OSX, include Market 
Vectors Oil Service ETF (OIH), iShares Dow Jones U.S. Oil Equipment 
& Services Index Fund (IEZ), SPDR S&P Oil & Gas Equip & Services ETF 
(XES), and PowerShares Dynamic Oil Services Portfolio (PXJ).
    \12\ During 2011, OSX has traded an average of 7,374 contracts 
per month and has traded as much as 11,498 contracts in a day 
(October 4, 2011). As of December 31, 2011, there were 13,771 
contracts of open interest in OSX.
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    The PHLX Semiconductor Sector (SOX) is a modified capitalization-
weighted index composed of thirty companies primarily involved in the 
design, distribution, manufacture, and sale of semiconductors.\13\ SOX 
provides exposure to the fast-growing (yet extremely volatile) 
semiconductor industry. When investors want information and investment 
opportunities specific to semiconductors, they look most often to the 
SOX.\14\ Indeed, the popularity of SOX is reflected in its trading 
volumes.\15\ It has been observed that a rise or decline in the SOX 
usually precedes a similar move in the broader technology market. As 
such, SOX has served as a leading indicator for technology stocks. 
Recognizing the market-leading aspects of the PHLX Semiconductor 
Sector, the Exchange is proposing a rule change that would allow SOX 
options to trade on NOM.
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    \13\ See Securities Exchange Act Release No. 61796 (March 29, 
2010), 75 FR 16887 (April 2, 2010) (SR-Phlx-2010-20) (order 
approving expanding SOX components to thirty).
    \14\ Other currently available investment products that evaluate 
the semiconductor market, albeit differently from SOX, include 
Market Vectors Semiconductor ETF (SMH) and iShares S&P North 
American Technology Sector Index Fund (IGM).
    \15\ During 2011, SOX has traded an average of 8,839 contracts 
per month and has traded as much as 7,259 contracts in a day 
(January 13, 2011). As of December 31, 2011, there were 4,077 
contracts of open interest in SOX.
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    The PHLX Housing Sector (HGX) is a modified capitalization-weighted 
index composed of nineteen companies whose primary lines of business 
are directly associated with the U.S. housing construction market.\16\ 
The index composition encompasses residential builders, suppliers of 
aggregate, lumber and other construction materials, manufactured 
housing and mortgage insurers. HGX is currently composed of many of the 
largest housing-related stocks (e.g., Hovnanian ENT Inc., KB Home, 
Ryland Group, Inc., Toll Brothers, Inc., and Weyerhaeuser Company). HGX 
has developed into a respected index providing exposure to the housing 
sector for hedging and trading purposes.
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    \16\ See Securities Exchange Act Release No. 52512 (September 
27, 2005), 70 FR 57919 (October 4, 2005) (SR-Phlx-2005-50) (notice 
of filing and immediate effectiveness to reduce the value of HGX 
options by half). HGX is listed on Phlx per Form 19b-4(e).
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    The options on Specified Indexes will be listed on NOM pursuant to 
the generic Rule 19b-4(e) initial listing standards (``generic 
standards'') for narrow-based indexes and will be identical to the 
options on Specified Indexes that are already listed and trading on 
Phlx. The generic standards are found in Section 6(b) of Chapter XIV 
and discuss, among other things, weighting methodologies, market 
capitalization, trading volume, component weighting and concentration, 
that each component security must be an ``NMS stock'' as defined in 
Rule 600 of Regulation NMS of the Act, reporting, and rebalancing.\17\
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    \17\ Subsection (c) of Section 6 discusses maintenance listing 
criteria once an option is listed on the Exchange pursuant to 19b-
4(e) generic listing standards.
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    The Exchange notes that this rule change proposal does not propose 
or make any changes to the NOM generic listing standards. The proposal 
does no more than almost verbatim copy the language regarding position 
limits and strike price intervals that are in use on Phlx for the same 
options on Specified Indexes.
Proposed Position Limits
    Position limits on NOM are currently discussed in Section 7 of 
Chapter XIV. Section 7 states that NOM options traders (known as 
Options Participants) shall comply with the applicable rules of CBOE 
with respect to position limits for narrow based index options traded 
on NOM and also on the CBOE, or with the applicable rules of NOM for 
industry index options traded on NOM but not traded on the CBOE. 
Because Specified Index options are not traded on CBOE, the Exchange 
is, as noted, copying the Phlx position limits for options on the 
Specified Indexes into its rules.\18\ The position limits proposed by 
the Exchange are exactly the same 54,000, 72,000, and 94,500 contract 
position limits that have been established and in use for years on Phlx 
for options on Specified Indexes per Phlx Rule 1001A.
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    \18\ The Exchange notes that independently of the proposed 
specific OSX, SOX, and HGX rule position limits (or strike price 
intervals) copied from Phlx rules through this proposal, by virtue 
of Section 7 of Chapter XIV, CBOE position limit rules and processes 
(e.g., hedge exemptions, firm facilitation exemptions) will continue 
to apply to Exchange members.
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    Thus, the Exchange proposes to copy the Phlx position limits into 
proposed Section 7(d) of Chapter XIV to state that options on Specified 
Index position limits will be:

[[Page 34112]]

    (1) 54,000 contracts for options on the PHLX Oil Service Sector, 
PHLX Semiconductor Sector, and PHLX Housing Sector, if the Exchange 
determines, at the time of a review conducted pursuant to this Section 
7, that any single underlying stock accounted, on average, for 30% or 
more of the index value during the 30-day period immediately preceding 
the review; or
    (2) 72,000 contracts for options on the PHLX Oil Service Sector, 
PHLX Semiconductor Sector, and PHLX Housing Sector, if the Exchange 
determines, at the time of a review conducted pursuant to this Section 
7, that any single underlying stock accounted, on average, for 20% or 
more of the index value or that any five underlying stocks together 
accounted, on average, for more than 50% of the index value, but that 
no single stock in the group accounted, on average, for 30% or more of 
the index value, during the 30-day period immediately preceding the 
review; or
    (3) 94,500 contracts for options on the PHLX Oil Service Sector, 
PHLX Semiconductor Sector, and PHLX Housing Sector if the Exchange 
determines that the conditions specified above which would require the 
establishment of a lower limit have not occurred.\19\
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    \19\ By operation of Section 9 of Chapter XIV, the exercise 
limits for options on Specified Indexes are the same as the position 
limits.
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    In addition, the Exchange proposes to add Section 7(e) setting 
forth the procedure to be followed at the time of a review pursuant to 
Section 7(d).\20\ The proposed review procedure is, like the proposed 
position limits for OSX, SOX, and HGX in Section 7, copied from Phlx 
Rule 1001A.
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    \20\ Proposed Section 7(e) states: (e) The Exchange shall make 
the determinations required by subparagraph (d) of this Section 7 
with respect to options on each industry index at the commencement 
of trading of such options on the Exchange and thereafter review the 
determination semi-annually on January 1 and July 1. (1) If the 
Exchange determines, at the time of a semi-annual review, that the 
position limit in effect with respect to options on a particular 
industry index is lower than the maximum position limit permitted by 
the criteria set forth in subparagraph (d) of this Section 7, the 
Exchange may affect an appropriate position limit increase 
immediately. If the Exchange determines, at the time of a semi-
annual review, that the position limit in effect with respect to 
options on a particular industry index exceeds the maximum position 
limit permitted by the criteria set forth in subparagraph (d) of 
this Section 7, the Exchange shall reduce the position limit 
applicable to such options to a level consistent with such criteria; 
provided, however, that such a reduction shall not become effective 
until after the expiration date of the most distantly expiring 
option series relating to such particular industry index, which is 
open for trading on the date of the review; and provided further 
that such a reduction shall not become effective if the Exchange 
determines, at the next succeeding semi-annual review, that the 
existing position limit applicable to such options is consistent 
with the criteria set forth in subparagraph (d) of this Section 7.
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    The proposed Specified Index option position limits are, as noted, 
identical to the position limits for the same Specified Index options 
that have been listed and traded on Phlx for years. The Exchange is 
doing nothing more than directly transferring the position limits from 
Phlx Rule 1001A to proposed new Section 7(d) and (e) of Chapter XIV in 
the NOM rules, without change.\21\
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    \21\ As with all direct transfers of language from the rule set 
of one exchange to another, non-substantive formatting changes are 
made to conform the new rule language to the structure of the 
existing rule set.
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Proposed Strike Price Increments
    Section 11(c) of Chapter XIV currently states that the interval 
between strike prices will be no less than $5.00. Section 11(c) also 
states that for the classes of index options that are listed in the 
rule the interval between strike prices will be no less than $2.50 if 
the strike price is less than $200.\22\ Currently, options on the 
Specified Indexes are listed and traded on Phlx at $1 strike price 
intervals and the Exchange proposes to transfer the strike price 
interval rule language from Phlx to NOM.
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    \22\ The Exchange proposes to add the Specified Indexes to the 
list of $2.50-eligible index options that are already noted in 
Section 11(c).
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    Specifically, the Exchange proposes to copy the Phlx $1 strike 
price interval rule almost verbatim from Phlx Rule 1101A into proposed 
Section 11(i) of Chapter XIV as follows: The interval between strike 
prices of series of options on the PHLX Oil Service Sector, PHLX 
Semiconductor Sector, and PHLX Housing Sector (which are known in the 
proposed rule as the ``$1 Indexes'') will be $1 or greater, subject to 
the immediately following conditions:
    (1) Regarding initial series, the Exchange may list such series at 
$1 or greater strike price intervals for each $1 Index, and will list 
at least two strike prices above and two strike prices below the 
current value of each $1 Index at about the time a series is opened for 
trading on the Exchange. The Exchange shall list strike prices for each 
$1 Index that are within 5 points from the closing value of each $1 
Index on the preceding day.
    (2) Regarding additional Series, such series of the same class of 
each $1 Index may be opened for trading on the Exchange when the 
Exchange deems it necessary to maintain an orderly market, to meet 
customer demand or when each underlying $1 Index moves substantially 
from the initial exercise price or prices. To the extent that any 
additional strike prices are listed by the Exchange, such additional 
strike prices shall be within thirty percent (30%) above or below the 
closing value of each $1 Index. The Exchange may also open additional 
strike prices that are more than 30% above or below each current $1 
Index value provided that demonstrated customer interest exists for 
such series, as expressed by institutional, corporate or individual 
customers or their brokers.\23\
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    \23\ Market-Makers trading for their own account shall not be 
considered when determining customer interest under this provision. 
In addition to the initial listed series, the Exchange may list up 
to sixty (60) additional series per expiration month for each series 
in $1 Indexes.
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    (3) The Exchange shall not list LEAPS on $1 Indexes at intervals 
less than $2.50.
    The Exchange also proposes to add a delisting policy to Section 
11(i) of Chapter XIV.\24\ The proposed delisting policy is almost 
verbatim from Phlx Rule 1101A.
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    \24\ The proposed delisting policy states: with respect to each 
$1 Index added pursuant to the above paragraphs, the Exchange will 
regularly review series that are outside a range of five (5) strikes 
above and five (5) strikes below the current value of each $1 Index, 
and in each $1 Index may delist series with no open interest in both 
the put and the call series having a: (A) strike higher than the 
highest strike price with open interest in the put and/or call 
series for a given expiration month; and (B) strike lower than the 
lowest strike price with open interest in the put and/or call series 
for a given expiration month. Notwithstanding the delisting policy, 
customer requests to add strikes and/or maintain strikes in $1 Index 
options eligible for delisting may be granted.
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    The proposed $1 strike price interval rule is, as discussed, 
identical to the $1 strike price interval rule that is in effect for 
the same Specified Index options that have been listed and traded on 
Phlx for years. The Exchange is doing nothing more than directly 
transferring the $1 strike price interval rule text language from Phlx 
Rule 1101A to proposed Section 11 of Chapter XIV of the NOM rules, 
without change.
Contract Specifications
    The contract specifications for the Specified Index options that 
will be listed and traded on NOM are identical to the same three 
narrow-based Specified Index options that are currently listed and 
traded on Phlx.\25\ Specified Index options that will be traded on NOM 
will be Europen [sic]-style (PHLX Oil Service Sector and PHLX Housing 
Sector options) and American style (PHLX Semiconductor Sector options), 
and will be A.M. cash-settled. The Exchange's general trading hours for 
options (9:30 a.m. to 4 p.m. ET), will apply to options on the

[[Page 34113]]

Specified Indexes.\26\ Exchange rules that are applicable to the 
trading of options on indexes on the Exchange will continue to apply to 
the trading of options on the three Specified Indexes.\27\
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    \25\ See supra note 8.
    \26\ See Section 2 of Chapter VI. However, option contracts on 
fund shares or broad-based indexes may trade until 4:15 p.m. ET.
    \27\ For rules applicable to index options specifically, see 
Chapter XIV of the NOM rules. For trading rules applicable to 
options trading in general, see Chapter I et seq.
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    The strike price intervals for Specified Index options contracts 
will be no less than $5.00 generally, no less than $2.50 if the strike 
price is below $200, and $1 if certain conditions are met.\28\ The 
minimum increment size for series trading below $3 will be $0.05, and 
for series trading at or above $3 will be $0.10.\29\ The Exchange's 
margin rules will be applicable.\30\ The Exchange intends to list 
options on Specified Indexes in up to three months from the March, 
June, September, December cycle plus two additional near-term months 
(that is, as many as five months at all times).\31\ The trading of 
Specified Index options will continue to be subject to the same rules 
that govern the trading of all of the Exchange's index options, 
including sales practice rules, margin requirements, and trading rules.
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    \28\ See proposed Section 11(c) and (i) of Chapter XIV.
    \29\ See Section 5 of Chapter VI.
    \30\ See Chapter XIII.
    \31\ See Section 11 to Chapter XIV.
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Surveillance and Capacity
    The Exchange represents that it has an adequate surveillance 
program in place for options traded on the Specified Indexes and 
intends to apply those same program procedures that it applies to the 
Exchange's current equity and index options. Trading of Specified Index 
options on the Exchange will be subject to FINRA's surveillance 
procedures for derivative products.\32\ The Exchange may obtain 
information via the Intermarket Surveillance Group (``ISG'') from other 
exchanges that are members or affiliates of the ISG \33\; and from 
public and non-public data sources such as, for example, Bloomberg. In 
addition, the major futures exchanges are affiliated members of the 
ISG, which allows for the sharing of surveillance information for 
potential intermarket trading abuses.
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    \32\ FINRA surveils trading on the Exchange pursuant to a 
regulatory services agreement. The Exchange is responsible for 
FINRA's performance under this regulatory services agreement.
    \33\ For a list of the current members and affiliate members of 
ISG, see www.isgportal.com.
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    The Exchange represents that it has the necessary systems capacity 
to support listing and trading Specified Index options.
Housekeeping Changes
    In terms of technical housekeeping changes, the Exchange proposes 
to simply add the names of the Specified Indexes to the current lists 
of indexes in two sections of Chapter XIV. The first such proposed 
change is to add the names of the Specified Indexes to Supplementary 
Material to Section 2, which currently has a list of indexes for which 
NASDAQ is the index reporting authority. And the second proposed change 
is to add the names of the Specified Indexes to Section 11: OSX and HGX 
to subsection (a)(4), which currently has a list of European-style 
indexes; and OSX, SOX, and HGX to subsection (a)(5), which currently 
has a list of A.M.-settled index options.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \34\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \35\ 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 Exchange believes that by copying into its rules the same 
exact position limits and strike price intervals that are used on 
another options exchange for trading options on the PHLX Oil Service 
Sector, the PHLX Semiconductor Sector, and the PHLX Housing Sector, it 
will enable the listing and trading of Specified Index options on the 
Exchange. This will give traders, investors, and public customers 
expanded flexibility and opportunity to closely tailor their investment 
and hedging decisions.
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    \34\ 15 U.S.C. 78f(b).
    \35\ 15 U.S.C. 78f(b)(5).
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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

    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: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, 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 \36\ and Rule 19b-4(f)(6) 
thereunder.\37\
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    \36\ 15 U.S.C. 78s(b)(3)(A).
    \37\ 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. NASDAQ has fulfilled this requirement.
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    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 email to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2012-065 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-2012-065. This 
file number should be included on the subject line if email 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

[[Page 34114]]

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-NASDAQ-2012-065 and should be submitted 
on or before June 29, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\38\
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    \38\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-13895 Filed 6-7-12; 8:45 am]
BILLING CODE 8011-01-P