Document ID: SEC-2011-1066-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2011-07-25T04:00Z

[Federal Register Volume 76, Number 142 (Monday, July 25, 2011)]
[Notices]
[Page 44388]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18685]

[[Page 44388]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64916; File No. SR-NASDAQ-2011-010]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 

Notice of Designation of Longer Period for Commission Action on 

Proceedings To Determine Whether To Approve or Disapprove Proposed Rule 

Change To Link Market Data Fees and Transaction Execution Fees

 July 19, 2011.

    On January 10, 2011, 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 (``Exchange Act'' or ``Act'') \1\ and Rule 19b-4 

thereunder,\2\ a proposed rule change to discount certain market data 

fees and increase certain liquidity provider rebates for members that 

both (1) Execute specified levels of transaction volume on NASDAQ as a 

liquidity provider, and (2) purchase specified levels of market data 

from NASDAQ. The proposed rule change was published for comment in the 

Federal Register on January 27, 2011.\3\ The Commission suspended the 

proposed rule change and instituted proceedings to determine whether to 

approve or disapprove the proposed rule change in an order published in 

the Federal Register on February 3, 2011.\4\ The Commission has 

received three

    comment letters on the proposed rule change.\5\ The Exchange 

responded to these comments on April 4, 2011.\6\

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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. 63745 (January 20, 

2011) 76 FR 4970 (``Notice'').

    \4\ See Securities Exchange Act Release No. 63796 (January 28, 

2011) 76 FR 6165 (``Order Instituting Proceedings'').

    \5\ See Letter dated January 13, 2011 from William O'Brien, 

Chief Executive Officer, Direct Edge to Florence E. Harmon, Deputy 

Secretary, Commission; Letter dated January 31, 2011 from 

Christopher Nagy, Managing Director Order Strategy, and Richard P. 

Urian, Global Head of Market Data, TD Ameritrade Inc. to Elizabeth 

M. Murphy, Secretary, Commission; and Letter dated March 21, 2011 

from Ira D. Hammerman, Senior Managing Director and General Counsel, 

SIFMA, and Markham Erickson, Executive Director and General Counsel, 

NetCoalition to Elizabeth M. Murphy, Secretary, Commission.

    \6\ See Letter dated April 4, 2011 from Joan Conley, Senior Vice 

President, NASDAQ OMX Group, Inc. to Elizabeth M. Murphy, Secretary, 

Commission.

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    Section 19(b)(2) of the Act \7\ 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 the 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 January 27, 2011. July 26, 2011 is 180 days from 

that date, and September 23, 2011 is an additional 60 days from that 

date.

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    \7\ 15 U.S.C. 78s(b)(2).

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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 this proposed 

rule change, the issues raised in the comment letters that have been 

submitted in connection with this proposed rule change, and the 

Exchange's response to such issues in its response letter. 

Specifically, as the Commission noted in the Order Instituting 

Proceedings, the proposal raises issues such as whether a tying 

arrangement may not be consistent with the statutory requirements 

applicable to a national securities exchange and, in particular, 

whether the proposal may fail to satisfy the standards under the 

Exchange Act and the rules thereunder that require market data fees to 

be equitable, fair, and not unreasonably discriminatory.\8\

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    \8\ See Order Instituting Proceedings, supra note 4 at 6165.

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    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 

Act,\9\ designates September 23, 2011, as the date by which the 

Commission should either approve or disapprove the proposed rule 

change.

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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 

pursuant to delegated authority.\10\

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    \10\ 17 CFR 200.30-3(a)(57).

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Elizabeth M. Murphy,

Secretary.

[FR Doc. 2011-18685 Filed 7-22-11; 8:45 am]

BILLING CODE 8011-01-P