Document ID: SEC-2014-0543-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market, LLC
Posted Date: 2014-04-02T04:00Z

[Federal Register Volume 79, Number 63 (Wednesday, April 2, 2014)]
[Notices]
[Page 18601]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07358]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71827; File No. SR-NASDAQ-2012-129]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order 
Granting an Extension to Limited Exemption From Rule 612(c) of 
Regulation NMS in Connection With the Exchange's Retail Price 
Improvement Program

March 28, 2014.
    On February 15, 2013, the Commission issued an order pursuant to 
its authority under Rule 612(c) of Regulation NMS (``Sub-Penny Rule'') 
\1\ that granted the NASDAQ Stock Market LLC (``NASDAQ'') a limited 
exemption from the Sub-Penny Rule in connection with the operation of 
the Exchange's Retail Price Improvement Program (``Program'').\2\ The 
limited exemptions were granted concurrently with the Commission's 
approval of the Exchanges' proposals to adopt their respective Retail 
Liquidity Programs for one-year pilot terms.\3\ The exemption was 
granted coterminous with the effectiveness of the pilot Program; both 
the pilot Program and exemption are scheduled to expire on March 28, 
2014.
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 68937 (February 15, 
2013), 78 FR 12397 (February 22, 2013) (SR-NASDAQ-2012-129) (``RPI 
Approval Order'').
    \3\ See id.
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    The Exchange now seeks to extend the exemption until September 30, 
2014.\4\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Programs 
for six months, through September 30, 2014.\5\ In its request to extend 
the exemption, the Exchange notes that the Program was subject to 
gradual implementation. Accordingly, the Exchange has asked for 
additional time to allow it and the Commission to analyze more robust 
data concerning the Program, which the Exchange committed to provide to 
the Commission.\6\ For this reason and the reasons stated in the Order 
originally granting the limited exemption, the Commission finds that 
extending the exemption, pursuant to its authority under Rule 612(c) of 
Regulation NMS, is appropriate in the public interest and consistent 
with the protection of investors.
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    \4\ See Letter from John Yetter, Deputy General Counsel, The 
NASDAQ Stock Market LLC to Elizabeth M. Murphy, Secretary, 
Securities and Exchange Commission dated March 24, 2014.
    \5\ See SR-NASDAQ-2014-030.
    \6\ See RPI Approval Order, supra note 2, 78 FR at 12399.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a six-month extension of the 
limited exemption from Rule 612 of Regulation NMS that allows it to 
accept and rank orders priced equal to or greater than $1.00 per share 
in increments of $0.001, in connection with the operation of its Retail 
Price Improvement Program.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Exchange Act. Responsibility for compliance with 
any applicable provisions of the federal securities laws must rest with 
the persons relying on the exemption that are the subject of this 
Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(83).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-07358 Filed 4-1-14; 8:45 am]
BILLING CODE 8011-01-P