Document ID: SEC-2006-1372-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-10-24T04:00Z

[Federal Register: October 24, 2006 (Volume 71, Number 205)]
[Notices]               
[Page 62325-62329]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24oc06-95]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54613; File No. SR-NASDAQ-2006-043]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify the Operations of Its Recently-Approved ``Single Book'' 
Execution System

October 17, 2006.
    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 October 10, 2006, 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. Nasdaq has filed the proposal 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. 
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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to modify the operations of its recently-approved 
``Single Book'' execution system.\5\ Nasdaq states that, through 
quality control and testing, and feedback from the trading community, 
it has identified five modifications to the operation and rules 
governing the Single Book system that would improve the fair and 
orderly operation of the Nasdaq market.
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    \5\ Securities Exchange Act Release No. 54155 (July 14, 2006), 
71 FR 41291 (July 20, 2006) (File No. SR-NASDAQ-2006-001) (approving 
the ``Single Book Proposal''). See also Securities Exchange Act 
Release No. 53583 (March 31, 2006), 71 FR 19573 (April 14, 2006) 
(File No. SR-NASDAQ-2006-001) (``Single Book Proposal'').
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    Specifically, Nasdaq is proposing five changes: (1) Establishing a 
Pegged Order based upon changes to the Nasdaq Market Center inside, an 
order type that is currently available in the Nasdaq Market Center; (2) 
clarifying how certain order routing strategies would operate with 
respect to the New York Stock Exchange (``NYSE'') and American Stock 
Exchange (``Amex'') markets; (3) eliminating vestigial references to 
individual Nasdaq market

[[Page 62326]]

participants--as opposed to the Nasdaq exchange--participating in the 
ITS system; (4) adopting the adjustment of open orders process 
currently approved and in use in the Nasdaq Market Center, rather than 
the one currently used in the INET system; and (5) reflecting the 
changes to the Nasdaq rules that have been approved since the Single 
Book Proposal was approved on July 14, 2006.
    Nasdaq has designated this proposal as non-controversial. Nasdaq 
has requested that the Commission waive the 30-day pre-operative 
waiting period contained in that rule. Nasdaq states that, if such 
waiver is granted by the Commission, this rule proposal, which is 
effective upon filing with the Commission, would become operative upon 
the launch of the Single Book execution system (which Nasdaq currently 
expects to occur on October 16, 2006), pursuant to Exchange Act Rule 
19b-4(f)(6). Below is the text of the proposed rule change. Proposed 
new language is italicized and proposed deletions are in [brackets].
* * * * *

4120. Trading Halts

    (a) No Change.
    (b) Procedure for Initiating a Trading Halt.
    (1)-(6) No Change.
    (7)(A) A trading halt initiated under Rule 4120(a)(1), (4), (5) or 
(6) shall be terminated when Nasdaq releases the security for trading. 
Prior to terminating the halt, there will be a 5-minute [Quotation] 
Display. Only Period during which market participants may enter 
quotations and orders in that security in Nasdaq systems. At the 
conclusion of the 5-minute [Quotation] Display Only Period, the 
security shall be released for trading unless Nasdaq extends the 
[Quotation] Display Only Period for an additional 1-minute period 
pursuant to subparagraph (C) below. There shall be a period of between 
zero and 15 seconds (randomly selected) at which point the [Quotation] 
Display Only Period shall end and trading shall resume pursuant to Rule 
[4703] 4753.
    (B) A trading halt initiated under Rule 4120(a)(7) shall be 
terminated when Nasdaq releases the security for trading. Prior to 
terminating the halt, there will be a 15-minute [Quotation] Display 
Only Period during which market participants may enter quotes and 
orders in that security in Nasdaq systems. At the conclusion of the 15-
minute [Quotation] Display Only Period, the security shall be released 
for trading unless Nasdaq extends the [Quotation] Display Only Period 
for one, two or three additional 5-minute [Quotation] Display Only 
Periods pursuant to subparagraph (C) below. At the conclusion of the 
[Quotation] Display Only Period(s), there shall be an additional delay 
of between zero and 15 seconds (randomly selected) and then trading 
shall resume pursuant to Rule [4703] 4753.
    (C) If at the end of a [Quotation] Display Only Period, Nasdaq 
detects a Liquidity Imbalance in the security, Nasdaq will extend the 
[Quotation] Display Only Period as permitted under subparagraphs (A) 
and (B) above. Liquidity Imbalances shall be established when: (1) the 
Current Reference Prices, as defined in Rule 4752(a)(2)(A), 
disseminated 15 seconds and immediately prior to the end of the Display 
Only Period differ by greater than (i) 10 percent or (ii) 50 cents 
(whichever is greater), or (2) all buy or sell market orders will not 
be executed in the cross.
    [1. The Inside Match Prices, as defined in Rule 4703(a)(2), 
disseminated 15 seconds and immediately prior to the end of the 
Quotation Only Period differ by greater than (i) 10 percent or (ii) 50 
cents (whichever is greater); or
    2. The Halt Cross would execute at a price at which higher-priced 
marketable orders to buy or lower-priced marketable orders to sell 
would remain unexecuted.]
    (8) No Change.
* * * * *

4751. Definitions

    (a)-(e) No Change.
    (f) The term ``Order Type'' shall mean the unique processing 
prescribed for designated orders that are eligible for entry into the 
System, and shall include:
    (1)-(3) No Change.
    (4) ``Pegged Orders'' are orders that, after entry, has their price 
automatically adjusted by the System in response to changes in either 
the Nasdaq Market Center inside bid or offer or bids or offers in the 
national market system, as appropriate. A Pegged Order can specify that 
its price will equal the inside quote on the same side of the market 
(``Primary Peg'') or the opposite side of the market (``Market Peg''). 
A Pegged Order may have a limit price beyond which the order shall not 
be executed. In addition, Pegged Orders may also establish their 
pricing relative to the appropriate bids or offers by the selection of 
one or more offset amounts that will adjust the price of the order by 
the offset amount selected. A new timestamp is created for the order 
each time it is automatically adjusted.
    (5)-(8) No Change.
    (g)-(i) No Change.
* * * * *

4758. Order Routing

    (a) Order Routing Process
    (1) The Order Routing Process shall be available to Participants 
from 7:00 a.m. until 8:00 p.m. Eastern Time, and shall route orders as 
described below:
    (A) Exchange-Listed Routing Options. The System provides four 
routing options for orders in exchange-listed securities. Of these 
four, only DOT is available for orders ultimately sought to be directed 
to either the New York Stock Exchange (``NYSE'') or the American Stock 
Exchange (``AMEX''). The System also allows firms to send individual 
orders to the NYSE Direct + System, and to elect to have orders not be 
sent to the AMEX. Except as noted below in SPDY, routed pegged orders 
in securities listed on another exchange, the System will consider the 
quotations of accessible markets. The four System routing options for 
NYSE and/or Amex listed orders are:
    (i) No Change.
    (ii) Reactive Electronic Only (``STGY'')--under this option, after 
checking the System for available shares, orders are sent to other 
available market centers for potential execution, per entering firm's 
instructions. When checking the book, the System will seek to execute 
at the price it would send the order to a destination market center. If 
shares remain un-executed after routing, they are posted on the book 
[and are not sent to the NYSE or AMEX]. Once on the book, should the 
order subsequently be locked or crossed by another accessible market 
center, the System shall route the order to the locking or crossing 
market center for potential execution in order to resolve the locked or 
crossed market. With the exception of the Minimum Quantity order type, 
all time-in-force parameters and order types may be used in conjunction 
with this routing option. This process is one of the routing strategies 
allowed by the System for all securities.
    (iii) Electronic Only Scan (``SCAN'')--under this option, after 
checking the System for available shares, orders are sent to other 
available market centers for potential execution, per entering firm's 
instructions. When checking the book, the System will seek to execute 
at the price it would send the order to a destination market center. If 
shares remain un-executed after routing, they are posted on the book 
[and are not sent to the NYSE or AMEX]. Once on the book, should the 
order subsequently be locked or crossed by another market center, the 
System will not route the order to the locking or crossing market 
center. With the exception of the Minimum Quantity order type, all 
time-

[[Page 62327]]

in-force parameters and order types may be used in conjunction with 
this routing option. This process is one of the routing strategies 
allowed by the System for all securities and shall be used for routing 
ITS Commitments.
    (iv) Aggressive Electronic Only (``SPDY'')--under this option, 
after checking the System for available shares, orders are sent to 
other available market centers for potential execution, per entering 
firm's instructions. When checking the book, the System will seek to 
execute at the price it would send the order to a destination market 
center. If shares remain un-executed after routing, they are posted on 
the book [and are not sent to the NYSE or AMEX]. Once on the book, 
should the order subsequently be locked or crossed by another 
accessible market center, the System shall route the order to the 
locking or crossing market center for potential execution in order to 
resolve the locked or crossed market. Market orders with the SPDY 
designation will, during a locked or crossed market, have their price 
adjusted by the System to match the best price displayed on the same 
side of the market as the market order (i.e., a buy order to the bid, a 
sell to the offer). If the order is for a security eligible for a de 
minimis exception to the trade-through rule set forth in Section 8 
(d)(i) of the ITS Plan, the System will ignore AMEX prices when 
adjusting the SPDY order during a locked or crossed market. With the 
exception of the Minimum Quantity order type, all time-in-force 
parameters and order types may be used in conjunction with this routing 
option. This process is one of the routing strategies allowed by the 
System for all securities.
    (B)-(C) No Change.
* * * * *

4759. ITS Commitments

    Until such time as Nasdaq withdraws from the ITS Plan, Quotes and 
Orders that are eligible for ITS will be processed by the System and 
routed to the appropriate Non-Nasdaq Participant Market as an ITS 
Commitment in accordance with the requirements of the ITS Plan and all 
applicable Nasdaq rules. Nasdaq shall participate in the ITS Plan as 
set forth below.
    (a) No Change.
    (b) Inbound ITS Commitments
    (1) If the ITS Commitment contains an obvious error, the Nasdaq 
Market Center will decline it. For purposes of this Rule, a transaction 
may have an obvious error in any term, such as price, number of shares 
or other unit of trading, or identification of the security[, or if a 
specific commitment to trade has been executed with the wrong Nasdaq 
Market Maker].
    (2)-(3) No Change.
    (c) Outbound Commitments: Any ``commitment to trade,'' which is 
transmitted by [an ]Nasdaq [Participant ]to another Non-Nasdaq ITS 
Participant Market through ITS, shall be firm and irrevocable for the 
period of thirty seconds following transmission by the sender. All such 
commitments to trade shall, at a minimum:
    (1)-(6) No Change.
    (d) No Change.
* * * * *

4761. Adjustment of Open Quotes and/or Orders

    [The Nasdaq Market Center will automatically purge all open quotes 
and/or orders in all Nasdaq Market Center eligible securities resident 
in the system in response to issuer corporate actions related to a 
dividend, payment or distribution, on the ex-date of such actions, 
except where a cash dividend or distribution is less than one cent 
($0.01).]
    The Nasdaq Market Center will automatically adjust the price and/or 
size of open quotes and/or orders in all Nasdaq Market Center eligible 
securities (unless otherwise noted) resident in the system in response 
to issuer corporate actions related to a dividend, payment or 
distribution, on the ex-date of such actions, except where a cash 
dividend or distribution is less than one cent ($0.01), as follows:
    (a) Quotes--All bid and offer side quotes shall be purged from the 
system.
    (b) Sell Orders--Sell side orders in Nasdaq-listed and NYSE-listed 
securities shall not be adjusted by the system and must be modified, if 
desired, by the entering party, except for reverse splits where such 
sell side orders shall be purged from the system. Sell side orders in 
Amex-listed securities shall be adjusted in accordance with the 
procedures set forth below for Buy Orders in the event of a Stock 
Dividend or Stock Split.
    (c) Buy Orders--Buy side orders shall be adjusted by the system 
based on the particular corporate action impacting the security (i.e. 
cash dividend, stock dividend, both, stock split, reverse split) as set 
forth below:
    (1) Odd lot orders in ITS Securities that result from partial 
execution rather than order entry shall be canceled rather than 
adjusted.
    (2) Cash Dividends: Buy side order prices shall be first reduced by 
the dividend amount and the resulting price will then be rounded down 
to the nearest penny unless marked ``Do Not Reduce''.
    (3) Stock Dividends and Stock Splits: Buy side order prices shall 
be determined by first rounding up the dollar value of the stock 
dividend or split to the nearest penny. The resulting amount shall then 
be subtracted from the price of the buy order. Unless marked ``Do Not 
Increase'', the size of the order shall be increased by first, (A) 
multiplying the size of the original order by the numerator of the 
ratio of the dividend or split, then (B) dividing that result by the 
denominator of the ratio of the dividend or split, then (C) rounding 
that result to the next lowest share.
    (4) Dividends Payable in Either Cash or Securities at the Option of 
the Stockholder: Buy side order prices shall be reduced by the dollar 
value of either the cash or securities, whichever is greater. The 
dollar value of the cash shall be determined using the formula in 
paragraph (2) above, while the dollar value of the securities shall be 
determined using the formula in paragraph (3) above. If the stockholder 
opts to receive securities, the size of the order shall be increased 
pursuant to the formula in subparagraph (3) above.
    (5) Combined Cash and Stock Dividends/Split: In the case of a 
combined cash dividend and stock split/dividend, the cash dividend 
portion shall be calculated first as per section (1) above, and stock 
portion thereafter pursuant to sections (2) and/or (3) above.
    (6) Reverse Splits: All orders (buy and sell) shall be cancelled 
and returned to the entering firm.
    (d) Open buy and sell orders that are adjusted by the system 
pursuant to the above rules, and that thereafter continuously remain in 
the system, shall retain the time priority of their original entry.
* * * * *

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.

[[Page 62328]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On July 14, 2006, the Commission approved SR-NASDAQ-2006-001,\6\ a 
proposal to create an integrated execution facility--the ``Single 
Book''--from Nasdaq's three current facilities: The Nasdaq Market 
Center; \7\ the Brut ECN; and the INET ECN. Nasdaq states that, through 
quality control and testing, and feedback from the Nasdaq community, it 
has identified five minor modifications to the operation and rules 
governing the Single Book that would improve the fair and orderly 
operation of the Nasdaq market.
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    \6\ See supra note 5.
    \7\ References to the Nasdaq Market Center refer to the current 
NASDAQ execution system as opposed to the future execution system.
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    (1) Nasdaq is proposing to modify Nasdaq Rule 4751(f)(4) to re-
establish a Pegged Order based upon changes to the Nasdaq Market Center 
inside, an order type that is currently available in the Nasdaq Market 
Center.\8\ As stated in Amendment 1 to the Single Book Proposal, Nasdaq 
originally focused on providing order types then available in the INET 
system, including Pegged Orders pegged to quotes and orders in the 
national market system other than in Nasdaq.\9\ Nasdaq has determined 
that the having the ability to choose between Pegged Order based upon 
changes to the Nasdaq inside quotation or changes to the national best 
bid or offer would be a valuable tool for Nasdaq participants and that 
it would be relatively simple to revise this order type in the Single 
Book. Nasdaq states that the proposed Pegged Order would operate 
exactly as it is currently approved in the Nasdaq Market Center.
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    \8\ See Nasdaq Rule 4701(mm).
    \9\ See Nasdaq Rule 4951(q) and Single Book Proposal at 19592.
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    (2) Nasdaq is proposing to eliminate language from Nasdaq Rule 
4758(a)(1)(A)(ii), (iii), and (iv) that Nasdaq states improperly 
indicates that orders in NYSE and Amex securities will not be routed to 
the NYSE and Amex. In fact, after NYSE and Amex have implemented their 
anticipated electronic trading platforms, Nasdaq states that those 
routing strategies--STGY, SCAN, and SPDY--may result in an order being 
routed to those markets. However, as stated in paragraph (a)(1)(A) of 
that rule, only the DOT routing strategy is used for orders that are 
directed by a participant to those markets. In addition, Nasdaq is 
proposing to add language to paragraph (a)(1)(A)(iii) stating that the 
SCAN routing strategy would be used to route Intermarket Trading System 
(``ITS'') commitments to the appropriate ITS exchanges.
    (3) When Nasdaq begins operating as a national securities exchange 
for the purposes of trading NYSE and Amex securities, it will do so as 
a consolidated whole rather than as a collection of individual market 
participants. In the Single Book Proposal, Nasdaq systematically 
eliminated most references to individual market participant conduct in 
the System. It appears, however, that Nasdaq failed to eliminate 
several vestigial references in Nasdaq Rule 4759(c) to individual 
Nasdaq market participants--as opposed to the Nasdaq exchange--
participating in the ITS system. Nasdaq is proposing to eliminate those 
references now, without otherwise changing that rule or Nasdaq's 
obligations under the ITS Plan.
    (4) In the Single Book Proposal, Nasdaq proposed to adopt via 
Nasdaq Rule 4761 the INET process of purging open orders when a 
corporate event such as a stock split or dividend occurred, and to 
abandon the Nasdaq Market Center methodology for adjusting such open 
orders. After further dialogue with industry participants, Nasdaq has 
determined that many Nasdaq members prefer the current Nasdaq Market 
Center methodology for adjusting open orders rather than purging them 
because those members have not programmed their systems to adjust such 
orders themselves. By adopting the existing Nasdaq Market Center rule, 
Nasdaq Rule 4715, Nasdaq states that it would be relieving members of 
the burden of reprogramming their systems because the adjustment of 
orders will occur automatically within Nasdaq's system. Nasdaq believes 
it can modify this rule without burdening any of its other members 
because members that do not want Nasdaq to adjust their open orders in 
the event of a corporate action can choose simply to cancel their open 
orders at the end of the trading day.
    (5) On July 28, 2006, Nasdaq submitted SR-NASDAQ-2006-019 which 
modified, among others, Nasdaq Rule 4120.\10\ Nasdaq states that these 
modifications took effect on August 1, 2006, when Nasdaq began 
operating as a national securities exchange. In order to create a 
fully-transparent record of the development of the Nasdaq rule manual, 
Nasdaq believes it is necessary to demonstrate how the current rule, 
including the changes established in SR-NASDAQ-2006-019, differ from 
the rule approved in the Single Book Proposal and how the current rule 
would change when the Single Book system is implemented. Therefore, 
Nasdaq is proposing to modify the Nasdaq rule currently in effect to 
reflect changes that have already been approved in connection with the 
Single Book Proposal or that are required for use when the Single Book 
System is operational. Nasdaq states that the proposed changes to 
Nasdaq Rule 4120 are designed to re-establish the rule language already 
approved with respect to the Single Book Proposal and are therefore 
non-substantive.
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    \10\ Securities Exchange Act Release No. 54248 (July 31, 2006), 
71 FR 44738 (August 7, 2006) (File No. SR-NASDAQ-2006-019).
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of section 6 of the Act,\11\ in general, and with 
sections 6(b)(5) of the Act,\12\ in particular, in that the proposal is 
designed 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; 
and are not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers, or to regulate by virtue of any authority 
conferred by the Act matters not related to the purposes of the Act or 
the administration of the exchange.
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    \11\ 15 U.S.C. 78f.
    \12\ 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.

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

    The foregoing proposed rule change is subject to section 
19(b)(3)(A)(iii) of the

[[Page 62329]]

Act \13\ and Rule 19b-4(f)(6) thereunder \14\ because the proposal: (i) 
Does not significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) does not become operative prior to 30 days after the date of 
filing or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest; 
provided that Nasdaq has given the Commission 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 states that it would make this 
rule proposal operative upon the launch of the Single Book system.
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
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    Nasdaq has satisfied the five-day pre-filing requirement and has 
requested that the Commission waive the 30-day pre-operative delay. 
Nasdaq states that it has carefully planned a detailed and thorough 
testing and roll-out schedule for the Single Book system, and has 
coordinated that schedule with numerous industry participants. Nasdaq 
states that to disrupt that schedule would cause substantial 
inconvenience for all involved and delay the launch of a process that 
Nasdaq believes would dramatically improve the Nasdaq Stock Market, 
whereas a delay would benefit none. The Commission believes that this 
proposal contains modifications to the Single Book rules that provide 
useful clarifications or represent modifications substantially similar 
to rules currently in effect at Nasdaq. The Commission believes that 
waiving the 30-day pre-operative delay is consistent with the 
protection of investors and the public interest because such waiver 
would permit Nasdaq to begin operation of its Single Book system under 
its current roll-out schedule. For this reason, the Commission 
designates the proposed rule change to be effective upon filing with 
the Commission.\15\ The Commission notes that Nasdaq intends to make 
the proposed rule changes operative upon the launch of the Single Book 
execution system.
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    \15\ For the purposes only of waiving the 30-day pre-operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 
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-2006-043 on 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-2006-043. 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 the 
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-2006-043 and should be submitted on or before 
November 14, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E6-17734 Filed 10-23-06; 8:45 am]

BILLING CODE 8011-01-P