Document ID: SEC-2014-1513-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2014-09-10T04:00Z

[Federal Register Volume 79, Number 175 (Wednesday, September 10, 2014)]
[Notices]
[Page 53808]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-21520]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72987; File No. SR-NASDAQ-2014-020]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Designation of a Longer Period for Commission Action on 
Proceedings To Determine Whether To Approve or Disapprove a Proposed 
Rule Change Relating To Listing and Trading of Exchange-Traded Managed 
Fund Shares

September 4, 2014.
    On February 26, 2014, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange'') 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 adopt Nasdaq Rule 5745, which would govern the 
listing and trading of Exchange-Traded Managed Fund Shares (``ETMF 
Shares''), and to amend related references under Nasdaq Rules 4120, 
5615, IM-5615-4, and 5940. The proposed rule change was published for 
comment in the Federal Register on March 12, 2014.\3\ The Commission 
received four comment letters on the proposal.\4\ On April 23, 2014, 
pursuant to Section 19(b)(2) of the Act,\5\ the Commission designated a 
longer period within which to either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether to disapprove the proposed rule change.\6\ On June 9, 
2014, the Commission instituted proceedings under Section 19(b)(2)(B) 
of the Act \7\ to determine whether to approve or disapprove the 
proposed rule change.\8\ In response to the Order Instituting 
Proceedings, the Commission received one additional comment letter on 
the proposal.\9\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 71657 (Mar. 6, 
2014), 79 FR 14092.
    \4\ See Letters to the Commission from Christopher Davis, 
President, Money Management Institute, dated March 27, 2014; Robert 
Tull, President, Robert Tull & Co., dated March 31, 2014; Avi 
Nachmany, Co-Founder, Director of Research, E.V.P, Strategic 
Insight, dated April 1, 2014; and Eric Noll, President and Chief 
Executive Officer, ConvergEx Group, LLC, dated April 1, 2014.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 72007, 79 FR 24045 
(Apr. 29, 2014). The Commission determined that it was appropriate 
to designate a longer period within which to take action on the 
proposed rule change so that it had sufficient time to consider the 
proposed rule change. Accordingly, the Commission designated June 
10, 2014 as the date by which it should approve, disapprove, or 
institute proceedings to determine whether to disapprove the 
proposed rule change.
    \7\ 15 U.S.C. 78s(b)(2)(B).
    \8\ See Securities Exchange Act Release No. 72350, 79 FR 33959 
(Jun. 13, 2014) (``Order Instituting Proceedings''). Specifically, 
the Commission instituted proceedings to allow for additional 
analysis of the proposed rule change's consistency with Section 
6(b)(5) of the Act, which requires, among other things, that the 
rules of a national securities exchange be ``designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade,'' and ``to protect investors and the 
public interest.'' See id.
    \9\ See Letter to the Commission from Thomas E. Faust, Jr., 
Chairman and Chief Executive Officer, Eaton Vance Corporation, dated 
July 3, 2014.
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    Section 19(b)(2) of the Act \10\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. The 
proposed rule change was published for notice and comment in the 
Federal Register on March 12, 2014.\11\ The 180th day after publication 
of the notice of the filing of the proposed rule change in the Federal 
Register is September 8, 2014, and the 240th day after publication of 
the notice of the filing of the proposed rule change in the Federal 
Register is November 7, 2014.
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ See supra note 3 and accompanying text.
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    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider the proposed 
rule change, including the matters raised in the comment letters to the 
proposed rule change.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\12\ designates November 7, 2014 as the date by which the 
Commission shall either approve or disapprove the proposed rule change 
(File No. SR-NASDAQ-2014-020).
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    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(57).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-21520 Filed 9-9-14; 8:45 am]
BILLING CODE 8011-01-P