Document ID: SEC-2007-0300-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-02-28T05:00Z

[Federal Register: February 28, 2007 (Volume 72, Number 39)]
[Notices]               
[Page 9051-9052]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28fe07-104]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55329; File No. SR-NASDAQ-2007-008]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Clarify Opening Process for Nasdaq Market Center

February 21, 2007.
    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 February 12, 2007, 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 substantially by Nasdaq. The Exchange filed the 
proposal as a ``non-controversial'' proposed rule change pursuant to 
Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ 
which renders the proposal effective upon filing with the 
Commission.\5\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ Nasdaq has requested that the Commission waive the 5-day 
written notice of intention to file the proposed rule change. In 
addition, Nasdaq has asked the Commission to waive the 30-day 
operative delay. See Rule 19b-4(f)(6)(iii). 17 CFR 240.19b-
4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    Nasdaq is proposing to modify Rule 4752 to clarify that in the 
Nasdaq Market Center (``System''), securities listed on the New York 
and American Stock Exchanges, which are not subject to an opening 
cross, open for the pre-market session in the same manner as Nasdaq-
listed securities. The text of the proposed rule change is available at 
Nasdaq, the Commission's Public Reference Room, and http://www.nasdaq.complinet.com/nasdaq/display/index.html
.

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
    Nasdaq is proposing to modify Rule 4752 to clarify that in the 
Nasdaq Market Center (``System''), securities listed on the New York 
and American Stock Exchanges, which are not subject to an opening 
cross, open for the pre-market session in the same manner as Nasdaq-
listed securities. Specifically, at 7 a.m., the System adds to the 
Nasdaq book in time priority all eligible orders in accordance with 
each order's defined characteristics. At 9:25 a.m., the System opens 
all remaining unopened Quotes in accordance with each firm's 
instructions. As with Nasdaq securities, market participants quoting in 
NYSE/

[[Page 9052]]

Amex securities may instruct Nasdaq to open their quotes either at the 
price of the firm's quote when the quote was closed by the participant 
during the previous trading day or at a price and size entered by the 
participant between 7 a.m. and 9:24:59 a.m.
    This opening process is consistent with the opening process for 
NYSE/Amex securities that was utilized for such securities in Nasdaq's 
ITS/CAES system pursuant to NASD Rule 4707(d) with the exception that 
the NMC System opens at 7 a.m. rather than 7:30 a.m.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\6\ in general, and with Section 
6(b)(5) of the Act,\7\ 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. The proposed rule change 
clarifies certain terms in Nasdaq's rules.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq 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.

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 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 after the date of the filing, or such shorter time as the 
Commission may designate, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily abrogate the 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.
    A proposed rule change filed under Section 19b-4 of the Act 
normally does not become operative prior to 30 days after the date of 
the filing.\10\ However, Rule 19b-4(f)(6)(iii) permits the Commission 
to designate a shorter time if such action is consistent with the 
protection of investors and the public interest. Nasdaq has requested 
that the Commission waive the 30-day operative delay contained in Rule 
19b-4(f)(6)(iii) under the Act.\11\ Because the filing would conform 
the opening of trading in NYSE/Amex securities to the opening of 
trading in Nasdaq securities, thus streamlining the Nasdaq's opening 
process, the Commission believes waiver of the 30-day operative delay 
is consistent with the protection of investors and the public interest. 
Accordingly, the Commission designates the proposal to be effective and 
operative upon filing with the Commission.\12\
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    \10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to 
the Commission 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 filing of the 
proposed rule change, or such shorter time as designated by the 
Commission. The Commission has decided to waive the five-day pre-
filing notice requirement.
    \11\ Id.
    \12\ For purposes only of waiving the 30-day operative delay of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78C(F).
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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 rule-comments@sec.gov. Please include 

File Number SR-NASDAQ-2007-008 in the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2007-008. 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. Copies of such 
filing also will be available for inspection and copying at the 
principal office of Nasdaq. 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-2007-008 and 
should be submitted on or before March 21, 2007.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-3493 Filed 2-27-07; 8:45 am]

BILLING CODE 8010-01-P