Document ID: SEC-2008-1384-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2008-10-08T04:00Z

[Federal Register: October 8, 2008 (Volume 73, Number 196)]
[Notices]               
[Page 59009-59010]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08oc08-111]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58646; File No. SR-NASDAQ-2008-074]

 
Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by The NASDAQ Stock Market LLC To 
Remove Rule 6800 From the Nasdaq Rules

September 25, 2008.
    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 September 17, 2008, 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, which Items have 
been prepared by Nasdaq. Nasdaq has designated the proposed rule change 
as constituting a non-controversial rule change under Rule 19b-4(f)(6) 
under the Act,\3\ 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\ 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 remove from the Nasdaq rule book Rule 6800 
pertaining to Nasdaq's Mutual Fund Quotation Service (``MFQS''). The 
Commission recently approved Nasdaq's proposal to remove MFQS-related 
rules from the Nasdaq rule book, but reference to Rule 6800 was 
inadvertently omitted from Nasdaq's proposal.\4\ Nasdaq proposes to 
implement the proposed rule change immediately.
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    \4\ Securities Exchange Act Release No. 34-58392 (August 20, 
2008), 73 FR 50382 (August 26, 2008) (approving SR-NASDAQ-2008-019).
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    Nasdaq proposes to delete in its entirety Rule 6800 (titled Mutual 
Fund Quotation Service), showing this Rule in the rule book as 
``Reserved.'' The text of the proposed rule change is available on 
NASDAQ's Web site (http://nasdaqomx.cchwallstreet.com), 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 Commission recently approved Nasdaq's proposal to remove MFQS-
related rules from the Nasdaq rule book.\5\ In its proposal, Nasdaq 
stated its view that its rule book should not contain rules that do not 
pertain to ``facilities'' of the exchange and that

[[Page 59010]]

MFQS is not a ``facility'' within the meaning of the Act. In approving 
Nasdaq's proposal, the Commission found, based on representations made 
by Nasdaq, that MFQS does not appear to be a facility of a national 
securities exchange.
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    \5\ Id.
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    While Nasdaq's intent was to remove from its rule book all MFQS-
related rules, provisions of Rule 6800, which describe MFQS, were 
inadvertently omitted from the list of provisions marked for deletion. 
As a result, the fee-related provisions were removed, but the service 
description in Rule 6800 remained. Given Nasdaq's view that its rule 
book should not contain rules that do not pertain to ``facilities'' and 
given that all MFQS fee provisions have already been removed, Nasdaq 
proposes to delete Rule 6800. This proposal will have the effect of 
conforming Nasdaq's rule book to Nasdaq's stated policy regarding 
MFQS.\6\
2. Statutory Basis
    Nasdaq believes that MFQS is not a facility of a national 
securities exchange within the meaning of the Act and the terms of MFQS 
use are not rules that must be filed with the Commission under Section 
19(b)(1) of the Act \7\ and Rule 19b-4 thereunder.\8\ Therefore, 
removing the applicable provisions from the Nasdaq rule book would be 
consistent with the provisions of Section 6(b) of the Act.\9\
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    \6\ As stated in the Commission's order approving removal of the 
other MFQS provisions from the rule book, if Nasdaq were to propose 
to modify the operation of MFQS such that it would fall within the 
definition of a facility of an exchange in the Act (or to tie MFQS 
pricing to an exchange activity), Nasdaq would file a proposed rule 
change with the Commission. Id.
    \7\ 15 U.S.C. 78s(b)(1).
    \8\ 17 CFR 240.19b-4.
    \9\ 15 U.S.C. 78f(b).
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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 proposed 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 from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\ Nasdaq has requested that the Commission waive 
the 30-day pre-operative period for ``non-controversial'' proposals 
because removing Rule 6800 from the Nasdaq rule book is consistent with 
the recently approved removal of other MFQS-related provisions from the 
rule book. Waiving the 30-day pre-operative period contained in 
Exchange Act Rule 19b-4(f)(6)(iii)\12\ will allow Nasdaq to implement 
this change without unnecessary delay. In light of the foregoing, the 
Commission believes that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public 
interest.\13\ Accordingly, the Commission has determined to waive the 
operative delay, and the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act,\14\ and Rule 19b-4(f)(6) 
thereunder,\15\ with no operative delay.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ Id.
    \13\ For purposes only of waiving the operative date of this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the 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-2008-074 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2008-074. 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 on official 
business days between the hours of 10 a.m. and 3 p.m. Copies of such 
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-2008-074 and should be submitted on or before 
October 29, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-23836 Filed 10-7-08; 8:45 am]

BILLING CODE 8011-01-P