Document ID: SEC-2008-0584-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The NASDAQ Stock Market LLC
Posted Date: 2008-04-17T04:00Z

[Federal Register: April 17, 2008 (Volume 73, Number 75)]
[Notices]               
[Page 21003-21007]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ap08-110]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57654; File No. SR-NASDAQ-2008-028]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Order Granting Accelerated Approval of Proposed 
Rule Change to Trade Options on the Full and Reduced Values of the 
Nasdaq 100 Index

April 11, 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 March 28, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been substantially prepared by the Exchange. 
This order provides notice of the proposed rule change and approves it 
on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to trade options on the full and reduced values of 
the Nasdaq 100 Index (``Index''). Nasdaq also proposes to list and 
trade long-term options on full and reduced values of the Index. 
Options on the Index will be cash-settled and have European-style 
exercise provisions. The text of the proposed rule change is available 
on Nasdaq's Web site (http://www.nasdaq.complinet.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 III 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 proposes to list and trade cash-settled, European-style, 
index options on the full and reduced values of the Nasdaq 100 Index, a 
stock index calculated and maintained by Nasdaq.\3\ Specifically, the 
Exchange proposes to list options based upon the full value of the 
Nasdaq 100 Index (``Full-size Nasdaq 100 Index'' or ``NDX'') as well as 
one-tenth of the value of the Nasdaq 100 Index (``Mini Nasdaq 100 
Index'' or ``MNX''). The options on NDX and MNX listed on NASDAQ will 
be identical to those already listed on multiple exchanges.
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    \3\ A description of the Index is available on Nasdaq's Web site 
at http://dynamic.nasdaq.com/dynamic/nasdaq100_activity.stm.
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    Nasdaq is filing the proposed rule change because options on the 
Nasdaq 100 Index will not otherwise qualify for listing on the NASDAQ 
Option Market (``NOM'') due to the component weightings of the Nasdaq 
100 Index. Specifically, Chapter XIV, section 3(b)(8) of the NOM rules 
currently requires that no component of a broad-based index account for 
more than ten percent of the weight of the index.\4\ Therefore, like 
the six other options exchanges that currently trade options on the 
Nasdaq 100 Index, Nasdaq is seeking approval to list and trade Nasdaq 
100 Index options under the conditions and according to the standards 
set forth below.
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    \4\ See Securities Exchange Act Release No. 57478 (March 12, 
2008); 73 FR 14521 (March 18, 2008).
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Index Design and Composition

    The Nasdaq 100 Index, launched in January 1985, represents the 
largest non-financial domestic and international issues listed on 
Nasdaq based on market capitalization. The Index reflects companies 
across major industry groups, including computer hardware and software, 
telecommunications, retail/wholesale trade, and biotechnology.
    The Index is calculated using a modified capitalization-weighted 
methodology. The value of the Index equals the aggregate value of the 
Index share weights of each of the component securities multiplied by 
each security's respective official closing price on Nasdaq, divided by 
the Divisor. The Divisor serves the purpose of scaling such aggregate 
value (otherwise in the trillions) to a lower order of magnitude which 
is more desirable for Index reporting purposes. If trading in an Index 
security is halted while the market is open, the last Nasdaq traded 
price for that security is used for all index computations until 
trading resumes. If trading is halted before the market is open, the 
previous day's official closing price is used. Additionally, the Index 
ordinarily is calculated without regard to dividends on component 
securities. The modified capitalization-weighted methodology is 
expected to retain, in general, the economic attributes of 
capitalization weighting, while providing enhanced diversification. To 
accomplish this, Nasdaq reviews the composition of the Index quarterly 
and adjusts the weighting of Index components using a proprietary 
algorithm, if certain pre-established weight distribution requirements 
are not met.
    Nasdaq has certain eligibility requirements for inclusion in the 
Index.\5\ For example, to be eligible for inclusion in the Index, a 
component security must be exclusively listed on the Nasdaq Global 
Select or Nasdaq

[[Page 21004]]

Global Market, or dually listed on a national securities exchange prior 
to January 1, 2004.\6\ Only one class of security per issuer is 
considered for inclusion in the Index.
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    \5\ The initial eligibility criteria and continued eligibility 
criteria are available on Nasdaq's Web site at http://
dynamic.nasdaq.com/dynamic/nasdaq100--activity.stm.
    \6\ In the case of spin-offs, the operating history of the spin-
off will be considered. Additionally, if a component security will 
otherwise qualify to be in the top 25% of securities included in the 
Index by market capitalization for the six prior consecutive months, 
it will be eligible if it had been listed for one year.
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    Additionally, the issuer of a component security cannot be a 
financial or investment company and cannot currently be involved in 
bankruptcy proceedings. Criteria for inclusion also require the average 
daily trading volume of a component security to be at least 200,000 
shares on Nasdaq. If a component security is of a foreign issuer, based 
on its country of incorporation, it must have listed options or be 
eligible for listed-options trading. In addition, the issuer of a 
component security must not have entered into any definitive agreement 
or other arrangement which will likely result in the security no longer 
being Index eligible. An issuer of a component security also must not 
have annual financial statements with an audit opinion that is 
currently withdrawn.
    As of December 31, 2007, the following were characteristics of the 
Index:
     The total capitalization of all components of the Index 
was $2.35 trillion;
     Regarding component capitalization, (a) the highest 
capitalization of a component was $333.05 billion (Microsoft Corp.), 
(b) the lowest capitalization of a component was $2.872 billion 
(Tellabs, Inc.), (c) the mean capitalization of the components was 
$23.53 billion, and (d) the median capitalization of the components was 
$8.71 billion;
     Regarding component price per share, (a) the highest price 
per share of a component was $691.48 (Google Inc.), (b) the lowest 
price per share of a component was $3.03 (Sirius Satellite Radio Inc.), 
(c) the mean price per share of the components was $55.05, and (d) the 
median price per share of the components was $35.10;
     Regarding component weightings, (a) the highest weighting 
of a component was 13.75% (Apple Inc.), (b) the lowest weighting of a 
component was 0.09% (Tellabs, Inc.), (c) the mean weighting of the 
components was 1.00%, (d) the median weighting of the components was 
0.53%, and (e) the total weighting of the top five highest weighted 
components was 33.93% (Apple Inc., Microsoft Corporation, Google Inc., 
QUALCOMM Incorporated, and Research in Motion Limited.);
     Regarding component available shares, (a) the most 
available shares of a component was 8.11 billion shares (Microsoft 
Corp.), (b) the least available shares of a component was 22.68 million 
shares (Baidu.com, Inc.), (c) the mean available shares of the 
components was 577.60 million shares, and (d) the median available 
shares of the components was 211.69 million shares;
     Regarding the six-month average daily volumes of the 
components, (a) the highest six-month average daily volume of a 
component was 65.63 million shares (Microsoft Corp.), (b) the lowest 
six-month average daily volume of a component was 553,240 shares (Henry 
Schein, Inc.), (c) the mean six-month average daily volume of the 
components was 9.10 million shares, (d) the median six-month average 
daily volume of the components was 3.37 million shares, (e) the average 
of six-month average daily volumes of the five most heavily traded 
components was 285.37 million shares (Microsoft Corp., Intel Corp., Sun 
Microsystems, Inc., Cisco Systems, Inc., and Level 3 Communications, 
Inc.), and (f) 100% of the components had a six-month average daily 
volume of at least 50,000; and
     Regarding option eligibility, (a) 99.3% of the components 
were options eligible, as measured by weighting, and (b) 96.0% of the 
components were options eligible, as measured by number.

Index Calculation and Index Maintenance

    In recent years, the value of the Full-size Nasdaq 100 Index has 
increased significantly, such that the value of the Index stood at 
2084.93, as of December 31, 2007. As a result, the premium for the 
Full-size Nasdaq 100 Index options also has increased. The Exchange 
believes that this has caused Full-size Nasdaq 100 Index options to 
trade at a level that may be uncomfortably high for retail investors. 
The Exchange believes that listing options on reduced values will 
attract a greater source of customer business than if the options were 
based only on the full value of the Index. The Exchange further 
believes that listing options on reduced values will provide an 
opportunity for investors to hedge, or speculate on, the market risk 
associated with the stocks comprising the Index. Additionally, by 
reducing the values of the Index, investors will be able to use this 
trading vehicle while extending a smaller outlay of capital. The 
Exchange believes that this should attract additional investors and, in 
turn, create a more active and liquid trading environment.\7\
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    \7\ Options trading on MNX have generated considerable interest 
from investors, as measured by its robust trading volume on multiple 
exchanges.
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    The Full-size Nasdaq 100 Index and the Mini Nasdaq 100 Index levels 
are calculated continuously, using the last sale price for each 
component stock in the Index, and are disseminated every 15 seconds 
throughout the trading day.\8\ The Full-size Nasdaq-100 Index level 
equals the current market value of component stocks multiplied by 125 
and then divided by the stocks' market value of the adjusted base 
period. The adjusted base period market value is determined by 
multiplying the current market value after adjustments times the 
previous base period market value and then dividing that result by the 
current market value before adjustments. To calculate the value of the 
Mini Nasdaq 100 Index, the full value of the Index is divided by ten. 
To maintain continuity for the Index's value, the divisor is adjusted 
periodically to reflect events such as changes in the number of common 
shares outstanding for component stocks, company additions or 
deletions, corporate restructurings, or other capitalization changes.
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    \8\ Full-size Nasdaq 100 Index and Mini Nasdaq 100 Index levels 
are disseminated through the Nasdaq Index Dissemination Services 
(``NIDS'') during normal Nasdaq trading hours (9:30 a.m. to 4 p.m. 
ET). The Index is calculated using Nasdaq prices (not consolidated) 
during the day and the official closing price for the close. The 
closing value of the Index may change until 5:15 p.m. ET due to 
corrections to the NOCP of the component securities. In addition, 
the Index is published daily on Nasdaq's website and through major 
quotation vendors such as Reuters and Thomson's ILX.
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    The settlement values for purposes of settling both Full-size 
Nasdaq 100 Index (``Fullsize Settlement Value'') and Mini Nasdaq 100 
Index (``Mini Settlement Value'') are calculated based on a volume-
weighted average of prices reported in the first five minutes of 
trading for each of the component securities on the last business day 
before the expiration date (``Settlement Day'').\9\ The Settlement Day 
is normally the Friday preceding ``Expiration Saturday.'' \10\ If a 
component security in the Index does not trade on Settlement Day, the 
closing price from the previous trading day will be used to calculate 
both the Full-size Settlement Value and Mini Settlement Value.\11\ 
Accordingly, trading in options on the Index will

[[Page 21005]]

normally cease on the Thursday preceding an Expiration Saturday. Nasdaq 
monitors and maintains the Index. Nasdaq is responsible for making all 
necessary adjustments to the Index to reflect component deletions; 
share changes; stock splits; stock dividends; stock price adjustments 
due to restructuring, mergers, or spin-offs involving the underlying 
components; and other corporate actions. Some corporate actions, such 
as stock splits and stock dividends, require simple changes to the 
available shares outstanding and the stock prices of the underlying 
components.
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    \9\ The aggregate exercise value of the option contract is 
calculated by multiplying the Index value by the Index multiplier, 
which is 100.
    \10\ For any given expiration month, options on the Nasdaq 100 
Index will expire on the third Saturday of the month.
    \11\ Full-size Settlement Values and Mini Settlement Values are 
disseminated by CBOE.
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    The component securities are evaluated on an annual basis, except 
under extraordinary circumstances which may result in an interim 
evaluation, as follows: securities listed on Nasdaq that meet its 
eligibility criteria are ranked by market value using closing prices as 
of the end of October and publicly available total shares outstanding 
as of the end of November. Eligible component securities which are 
already in the Index and ranked in the top 100 (based on market value) 
are retained in the Index. Component securities that are ranked from 
101 to 125 are also retained, provided that those securities that were 
ranked in the top 100 eligible securities as of the previous ranking 
review or was added to the Index subsequent to the previous ranking 
review. Securities not meeting such criteria are replaced. The 
replacement securities chosen are those Index-eligible securities not 
currently in the Index that have the largest market capitalization.
    Generally, the list of annual additions and deletions to the Index 
is publicly announced in early December. Changes to the Index are made 
effective after the close of trading on the third Friday in December. 
Moreover, if at any time during the year a component security is 
determined by Nasdaq to become ineligible for continued inclusion in 
the Index based on the continued eligibility criteria, that component 
security will be replaced with the largest market capitalization 
component not currently in the Index that met the eligibility criteria 
described earlier.
    Nasdaq will monitor the Index on a quarterly basis and file a 
proposed rule change with the Commission pursuant to Rule 19b-4 if: (i) 
The number of securities in the Index drops by one-third or more; (ii) 
10% or more of the weight of the Index is represented by component 
securities having a market value of less than $75 million; (iii) less 
than 80% of the weight of the Index is represented by component 
securities that are eligible for options trading pursuant to Chapter 
IV, Section 3 of the NOM Rules; (iv) 10% or more of the weight of the 
Index is represented by component securities trading less than 20,000 
shares per day; or (v) the largest component security accounts for more 
than 25% of the weight of the Index or the largest five components in 
the aggregate account for more than 50% of the weight of the Index.
    Nasdaq also will notify the Commission's Division of Trading and 
Markets if Nasdaq determines to cease maintaining and calculating the 
Index, or if the Index values are not disseminated every 15 seconds by 
a widely available source. NASDAQ has represented that, if the Index 
ceases to be maintained or calculated, or if the Index values are not 
disseminated every 15 seconds by a widely available source, it will not 
list any additional series for trading and will limit all transactions 
in such options to closing transactions only for the purpose of 
maintaining a fair and orderly market and protecting investors.

Contract Specifications

    The proposed contract specifications are identical to the contract 
specifications of NDX and MNX options that are currently listed on 
other exchanges. The Index is a broad-based index, as defined in 
Chapter XIV, section 2(l) of the NOM rules. Options on the Nasdaq 100 
Index are European-style and A.M. cash-settled. The Exchange's standard 
trading hours for index options (9:30 a.m. to 4:15 p.m. ET), as set 
forth in Chapter VI, section 2 of the NOM rules, will apply to options 
on the Nasdaq 100 Index. Exchange rules that are applicable to the 
trading of options on broad-based indexes will apply to both NDX and 
MNX.\12\ Specifically, the trading of NDX and MNX options will be 
subject to, among others, Exchange rules governing margin requirements 
and trading halt procedures for index options.
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    \12\ See Chapter VI of the NOM Rules.
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    For NDX, the Exchange proposes to establish aggregate position and 
exercise limits at 75,000 contracts on the same side of the market. The 
Full-size Nasdaq Index contracts will be aggregated with Mini Nasdaq 
100 Index contracts, where ten Mini Nasdaq 100 Index contracts equal 
one Full-size Nasdaq 100 Index contract.\13\
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    \13\ The position limits proposed by the Exchange for Nasdaq 100 
Index options are identical to those established by CBOE and ISE.
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    Nasdaq will apply broad-based index margin requirements for the 
purchase and sale of options on the Index. Accordingly, purchases of 
put or call options with nine months or less until expiration must be 
paid for in full. Writers of uncovered put or call options will be 
required to deposit or maintain 100% of the option proceeds, plus 15% 
of the aggregate contract value (current index level x $100), less any 
out-of-the-money amount, subject to a minimum of the option proceeds 
plus 10% of the aggregate contract value for call options and a minimum 
of the option proceeds plus 10% of the aggregate exercise price amount 
for put options.
    Nasdaq will set strike price intervals at least 2\1/2\ points for 
certain near-the-money series in near-term expiration months when the 
Full-size Nasdaq 100 Index or Mini Nasdaq 100 Index is at a level below 
200, and 5 point strike price intervals for other options series with 
expirations up to one year, and at least 10 point strike price 
intervals for longer-term options. The minimum tick size for series 
trading below $3 is $0.05, and for series trading at or above $3 is 
$0.10. Based on the current index levels, the Nasdaq plans to set 
strike price intervals of 5 points and 2\1/2\ points for NDX and MNX, 
respectively.
    The Exchange will list options on both the Full-size Nasdaq 100 
Index and the Mini Nasdaq 100 Index in the three consecutive near-term 
expiration months plus up to three successive expiration months in the 
March cycle. For example, consecutive expirations of January, February, 
March, plus June, September, and December expirations will be listed. 
The trading of any long-term Nasdaq 100 Index options will be subject 
to the same rules that govern the trading of all the Exchange's index 
options, including sales practice rules, margin requirements, and 
trading rules.

Surveillance and Capacity

    Nasdaq represents that it has an adequate surveillance program in 
place for options traded on the Index and intends to apply those same 
program procedures that it applies to the Exchange's other index 
options. Additionally, the Exchange is a member of the Intermarket 
Surveillance Group (``ISG'') under the Intermarket Surveillance Group 
Agreement, dated June 20, 1994.\14\ The ISG members work together to 
coordinate surveillance and investigative information sharing in the 
stock and options markets. In addition, the major futures exchanges are 
affiliated members of the ISG, which allows for the sharing of 
surveillance

[[Page 21006]]

information for potential intermarket trading abuses.
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    \14\ A list of the current members and affiliate members of ISG 
can be found at http://www.isgportal.com.
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    The Exchange represents that it has the necessary systems capacity 
to support new options series that will result from the introduction of 
NDX and MNX. The Exchange has provided the Commission with system 
capacity information to support its system capacity representations.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6 of the Act \15\ in general, and with section 6(b)(5) in 
particular,\16\ in that it will permit the trading of options on the 
Full-size Nasdaq 100 Index and Mini Nasdaq 100 Index pursuant to rules 
designed to prevent fraudulent and manipulative acts and practices and 
to promote just and equitable principles of trade.
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    \15\ 15 U.S.C. 78f.
    \16\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose 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

    The Exchange does not believe that the proposed rule change would 
impose any inappropriate burden on competition. To the contrary, Nasdaq 
notes that it will be the seventh options market to trade options on 
the Nasdaq 100 Index, further enhancing an already-competitive market.

III. 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 No. SR-NASDAQ-2008-028 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-2008-028. 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, 100 F Street, 
NE., Washington, DC 20549, 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 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-2008-028 and should 
be submitted on or before May 8, 2008.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the Proposed Rule Change

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
exchange.\17\ In particular, the Commission believes that the proposal 
is consistent with section 6(b)(5) of the Act,\18\ which requires that 
the rules of an exchange be designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, 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 Commission notes that 
it has approved the listing and trading of options on the Nasdaq 100 
Index on other exchanges.\19\ The Commission presently is not aware of 
any regulatory issue that should cause it to revisit that earlier 
finding or preclude the trading of such options on the NOM.
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    \17\ In approving this rule change, the Commission notes that it 
has considered the proposal's impact on efficiency, competition, and 
capital formation. See 15 U.S.C. 78c(f).
    \18\ See, 15 U.S.C. 78f(b)(5).
    \19\ See, e.g., Securities Exchange Act Release No. 51121 
(February 1, 2005), 70 FR 6476 (February 7, 2005); Securities 
Exchange Act Release No. 33428 (January 5, 1994), 59 FR 1576 
(January 11, 1994).
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    In approving this proposal, the Commission has specifically relied 
on the following representations made by the Exchange:
    1. Nasdaq will notify the Commission's Division of Trading and 
Markets if Nasdaq determines to cease maintaining and calculating the 
Index, or if the Index values are not disseminated every 15 seconds by 
a widely available source. If the Index ceases to be maintained or 
calculated, or if the Index values are not disseminated every 15 
seconds by a widely available source, Nasdaq will not list any 
additional series for trading and will limit all transactions in such 
options to closing transactions only for the purpose of maintaining a 
fair and orderly market and protecting investors.
    2. Nasdaq has an adequate surveillance program in place for options 
traded on the Index and intends to apply those same program procedures 
that it applies to the Exchange's other index options.
    3. Nasdaq has the necessary systems capacity to support new options 
series that will result from the introduction of NDX and MNX; and 
Nasdaq has provided the Commission with system capacity information to 
support its system capacity representations.
    The Commission further notes that in approving this proposal, it 
relied on the Exchange's discussion of how Nasdaq currently calculates 
the Index. If the manner in which Nasdaq calculates the Index were to 
change substantially, this approval order might no longer be effective.
    In addition, the Commission believes that the position limits for 
these new options are reasonable and consistent with the Act. The 
Commission previously has found identical provisions for NDX and MNX 
options to be consistent with the Act.\20\
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    \20\ See e.g., Securities Exchange Act Release No. 51121 
(February 1, 2005), 70 FR 6476 (February 7, 2005); Securities 
Exchange Act Release No. 44156 (April 6, 2001), 66 FR 19261 (April 
13, 2001).
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    The Commission finds good cause for approving this proposal before 
the thirtieth day after the publication of notice thereof in the 
Federal Register. Because options on the Nasdaq 100 Index already trade 
on another

[[Page 21007]]

exchange, accelerating approval of Nasdaq's proposal should benefit 
investors by creating, without undue delay, additional competition in 
the market for these options.

V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\21\ that the proposed rule change (SR-NASDAQ-2008-028), is hereby 
approved.
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    \21\ 21 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E8-8269 Filed 4-16-08; 8:45 am]

BILLING CODE 8010-01-P