Document ID: SEC-2011-1881-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2011-12-05T05:00Z

[Federal Register Volume 76, Number 233 (Monday, December 5, 2011)]
[Notices]
[Pages 75924-75926]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31110]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65851; File No. SR-NASDAQ-2011-157]

 Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Adopt the QView Service

November 30, 2011.
    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 November 22, 2011, The NASDAQ Stock Market LLC (``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 prepared by the Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to adopt QView, a new service that will 
provide subscribing member firms with increased transparency over their 
trading activity on the Exchange by allowing the member to track its 
Exchange order flow.
    The text of the proposed rule change is below. Proposed new 
language is in italics.

[[Page 75925]]

7058. QView

    QView is a web-based tool designed to give a subscribing member the 
ability to track its order flow on Nasdaq, and create both real-time 
and historical reports of such order flow. Members may subscribe to 
QView at no cost.
* * * * *

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

    In its filing with the Commission, the Exchange 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. The Exchange 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 Exchange is proposing to adopt a new Web-based, front-end 
application called QView, which will provide subscribing member firms 
with increased transparency over their trading activity on the Exchange 
by allowing the member to track its Exchange order flow.\3\ In 
particular, a QView subscriber would be able to track all of its 
trading activity on the Exchange through detailed order and execution 
summaries. QView will provide a subscribing member with statistics 
concerning the total number of executions, total volume, dollar value 
of executions, executions by symbol, add versus remove, buy versus 
sell, display versus non-display, number of open orders, use of routing 
strategies and liquidity code designation. The data provided by QView 
will be available to the subscribing member both in real-time and 
historically. Subscribing members will also be able export such data 
from QView to other systems.
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    \3\ A subscribing member possessing multiple MPIDs must 
designate the MPIDs for which it would like to receive QView 
information. A subscribing member, however, may elect to monitor 
only the activity occurring through certain ports associated with a 
subscribed MPID.
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    QView will also allow a subscriber to track executions and open 
orders in real-time using the QView dashboard. The QView dashboard 
allows a subscribing member to view its executions and open orders as 
an overall summary, with all totals displayed by quantity, share 
volume, or dollar value. In conjunction with NASDAQ TradeInfo,\4\ a 
QView subscriber will also be able to filter down to the specific order 
or execution information of the orders and executions provided in the 
QView dashboard. As such, QView provides both an overall summary of a 
subscribing member's activity, as well as detailed order and execution 
information, thus providing the member a comprehensive tool to track 
its trading activity.\5\
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    \4\ TradeInfo is an Internet-based tool that, among other 
things, allows users access to all of the NASDAQ order and execution 
information for their entire firm for both equities and options 
through a single interface. TradeInfo is offered complimentary as 
part of the NASDAQ Workstation or separately for a fee of $95 per 
user per month.
    \5\ For example, QView will inform a subscribing member of its 
executions in a particular day and provide a link to the details of 
those executions, which is provided by TradeInfo.
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    The Exchange is proposing to offer QView at no cost to members at 
this time.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b)(5) of the Act,\6\ which requires that the rules of an 
exchange be designed to prevent fraudulent and manipulative acts and 
practices, promote just and equitable principles of trade, foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, protect investors and the public interest. The 
Exchange believes the proposed rule change is consistent with these 
requirements because the proposed service provides subscribing members 
with a useful analytical tool with which they may access information 
concerning their order and trade activity occurring on the Exchange. 
With this information, subscribing members may more closely monitor and 
analyze such activity, and make more informed investment decisions. 
Accordingly, the Exchange believes that the proposed service will 
further goals of the Act by providing subscribing members with greater 
transparency with respect to their order activity on the Exchange. The 
Exchange notes that the QView service is similar to the services 
offered by the BATS exchange through its online member portal.\7\
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    \6\ 15 U.S.C. 78f(b)(5).
    \7\ See http://batstrading.com/resources/features/bats_exchange_webproducts.pdf.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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 \8\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \10\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6) permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange requests 
that the Commission waive the 30-day operative delay because it would 
permit the Exchange to offer the QView service on December 1, 2011, the 
beginning of the Exchange's next monthly rollout cycle for such 
services. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest and designates the proposal operative upon filing.\11\ Waiving 
the 30-day operative delay will enable the Exchange to make this web-
based tool

[[Page 75926]]

available to its members on December 1, 2011, providing members with a 
tool to track their order flow on the Exchange.
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ For purposes only of waiving the 30-day 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 the proposed rule 
change, the Commission summarily may temporarily suspend 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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

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 email to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2011-157 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2011-157. This 
file number should be included on the subject line if email 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 Web site viewing and 
printing 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 offices 
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-2011-157, and should be submitted on or before December 27, 
2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-31110 Filed 12-2-11; 8:45 am]
BILLING CODE 8011-01-P