80 FR 10562 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Postpone Implementation of Changes to Rules 4751(h) and 4754(b) Relating to the Closing Process
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 38 (February 26, 2015)
Federal Register Volume 80, Issue 38 (February 26, 2015)
| Page Range | 10562-10563 | |
| FR Document | 2015-03965 |
[Federal Register Volume 80, Number 38 (Thursday, February 26, 2015)] [Notices] [Pages 10562-10563] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-03965] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74342; File No. SR-NASDAQ-2015-014] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Postpone Implementation of Changes to Rules 4751(h) and 4754(b) Relating to the Closing Process February 20, 2015. 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 February 11, 2015, The NASDAQ Stock Market LLC (``NASDAQ'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to postpone implementation of changes to Rules 4751(h) and 4754(b) relating to the closing process. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, 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, 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 NASDAQ is proposing to delay implementation of changes to Rules 4751(h) and 4754(b) relating to the closing process, which are effective but not yet implemented. On December 16, 2014, the Exchange filed an immediately effective filing \3\ to amend the processing of the Closing Cross under Rule 4754(b) to adopt a ``Lockdown Period,'' the point at which NASDAQ will close the order book for participation in the Closing Cross. The Exchange also amended Rule 4751(h) to harmonize the processing of Market Hours Day orders \4\ and Good-til- market close orders \5\ upon initiation of the Lockdown Period. --------------------------------------------------------------------------- \3\ Securities Exchange Act Release No. 73943 (December 24, 2014), 80 FR 69 (January 2, 2015) (SR-NASDAQ-2014-123). \4\ See Rule 4751(h)(6). \5\ See Rule 4751(h)(8). --------------------------------------------------------------------------- The Exchange had originally anticipated implementing the changes in mid-February 2015, after the expiration of the 30 day operative delay provided by Rule 19b-4(f)(6)(iii) under the Act.\6\ The Exchange, however, has experienced unanticipated delay in the development of the changes to its systems, which has made the original implementation date unachievable. The Exchange believes it will be able to implement the changes on April 13, 2015, and is providing notice of the delay and new implementation date. --------------------------------------------------------------------------- \6\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of section 6 of the Act, in general, and with section 6(b)(5) of the Act, in particular, because it is designed to prevent fraudulent and manipulative acts and practices, 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 is not designed to permit unfair discrimination between customers, [[Page 10563]] issuers, brokers, or dealers. The Exchange believes that the changes NASDAQ is making to Rules 4751(h) and 4754(b) promote consistency and transparency in the process for handling orders in the closing process. Delaying implementation of the changes for brief period so that NASDAQ may implement the changes to its systems necessary to ensure that the Lockdown Period and processing of Market Hours Day and Good-til-market close orders are handled in the Closing Cross operate as planned promotes fair and orderly markets, the protection of investors and the public interest. 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.\7\ The Exchange believes that the proposal is irrelevant to competition because it is not driven by, and will have no impact on, competition. Specifically, the proposal is representative of the Exchange's efforts to harmonize and simplify the processing of orders during the closing process. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were either solicited or 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)(iii) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(iii). \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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so the Exchange may provide immediate notice of its intent to delay implementation of the closing process due to unanticipated system development issues. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will allow the Exchange to provide immediate notice of this delay. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposed rule change to be operative upon filing with the Commission.\12\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NASDAQ-2015-014 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. All submissions should refer to File Number SR-NASDAQ-2015-014. 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, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 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-2015-014 and should be submitted on or before March 19, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2015-03965 Filed 2-25-15; 8:45 am] BILLING CODE 8011-01-P
![10562 Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Notices
futures, or forwards with respect to For the Commission, by the Division of Exchange has prepared summaries, set
commodities. Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of
authority.52 the most significant aspects of such
(10) Under normal circumstances, the
Jill M. Peterson, statements.
combined total of corporate, sovereign,
Assistant Secretary.
non-agency and all other debt rated A. Self-Regulatory Organization’s
[FR Doc. 2015–03961 Filed 2–25–15; 8:45 am]
below investment grade will not exceed Statement of the Purpose of, and
BILLING CODE 8011–01–P
40% of the Fund’s net assets. The Sub- Statutory Basis for, the Proposed Rule
Adviser will strive to allocate below Change
investment grade securities broadly by 1. Purpose
SECURITIES AND EXCHANGE
industry and issuer in an attempt to
COMMISSION NASDAQ is proposing to delay
reduce the impact of negative events on
an industry or issuer. [Release No. 34–74342; File No. SR– implementation of changes to Rules
NASDAQ–2015–014] 4751(h) and 4754(b) relating to the
(11) Although there is no limit on the closing process, which are effective but
percentage of Fund assets that can be Self-Regulatory Organizations; The not yet implemented. On December 16,
used in connection with reverse NASDAQ Stock Market LLC; Notice of 2014, the Exchange filed an
repurchase agreements, the Portfolio Filing and Immediate Effectiveness of immediately effective filing 3 to amend
does not expect to engage, under normal Proposed Rule Change To Postpone the processing of the Closing Cross
circumstances, in reverse repurchase Implementation of Changes to Rules under Rule 4754(b) to adopt a
agreements with respect to more than 4751(h) and 4754(b) Relating to the ‘‘Lockdown Period,’’ the point at which
331⁄3% of its net assets. Closing Process NASDAQ will close the order book for
(12) Not more than 10% of the net February 20, 2015.
participation in the Closing Cross. The
assets of the Fund will be invested in Exchange also amended Rule 4751(h) to
Pursuant to section 19(b)(1) of the
unsponsored ADRs. With the exception harmonize the processing of Market
Securities Exchange Act of 1934
of unsponsored ADRs, all equity Hours Day orders 4 and Good-til-market
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
securities (i.e., common stocks, close orders 5 upon initiation of the
notice is hereby given that on February
Depositary Receipts, certain preferred Lockdown Period.
11, 2015, The NASDAQ Stock Market The Exchange had originally
securities, ETPs, and certain other LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
exchange-traded investment company anticipated implementing the changes
with the Securities and Exchange in mid-February 2015, after the
securities) in which the Portfolio or Commission (‘‘SEC’’ or ‘‘Commission’’)
Fund may invest will trade on markets expiration of the 30 day operative delay
the proposed rule change as described provided by Rule 19b–4(f)(6)(iii) under
that are members of ISG or that have in Items I and II below, which Items
entered into a comprehensive the Act.6 The Exchange, however, has
have been prepared by the Exchange. experienced unanticipated delay in the
surveillance agreement with the The Commission is publishing this
Exchange. development of the changes to its
notice to solicit comments on the systems, which has made the original
(13) A minimum of 100,000 Shares for proposed rule change from interested implementation date unachievable. The
the Fund will be outstanding at the persons. Exchange believes it will be able to
commencement of trading on the I. Self-Regulatory Organization’s implement the changes on April 13,
Exchange. Statement of the Terms of Substance of 2015, and is providing notice of the
This approval order is based on all of the Proposed Rule Change delay and new implementation date.
the Exchange’s representations, The Exchange proposes to postpone 2. Statutory Basis
including those set forth above and in implementation of changes to Rules
the Notice, and the Exchange’s NASDAQ believes that the proposed
4751(h) and 4754(b) relating to the rule change is consistent with the
description of the Fund. The closing process.
Commission notes that the Fund and the provisions of section 6 of the Act, in
The text of the proposed rule change general, and with section 6(b)(5) of the
Shares must comply with the is available on the Exchange’s Web site
requirements of NYSE Arca Equities Act, in particular, because it is designed
at http://nasdaq.cchwallstreet.com, at to prevent fraudulent and manipulative
Rule 8.600 to be initially and the principal office of the Exchange, and acts and practices, to promote just and
continuously listed and traded on the at the Commission’s Public Reference equitable principles of trade, to foster
Exchange. Room. cooperation and coordination with
For the foregoing reasons, the II. Self-Regulatory Organization’s persons engaged in regulating, clearing,
Commission finds that the proposed Statement of the Purpose of, and settling, processing information with
rule change is consistent with Section Statutory Basis for, the Proposed Rule respect to, and facilitating transactions
6(b)(5) of the Act 50 and the rules and Change in securities, to remove impediments to
regulations thereunder applicable to a and perfect the mechanism of a free and
national securities exchange. In its filing with the Commission, the
open market and a national market
Exchange included statements
system, and, in general, to protect
IV. Conclusion concerning the purpose of and basis for
investors and the public interest; and is
the proposed rule change and discussed
It is therefore ordered, pursuant to not designed to permit unfair
any comments it received on the
rmajette on DSK2VPTVN1PROD with NOTICES
Section 19(b)(2) of the Exchange Act,51 discrimination between customers,
proposed rule change. The text of these
that the proposed rule change (SR– statements may be examined at the 3 Securities Exchange Act Release No. 73943
NYSEArca–2014–143) be, and it hereby places specified in Item IV below. The (December 24, 2014), 80 FR 69 (January 2, 2015)
is, approved. (SR–NASDAQ–2014–123).
52 17 CFR 200.30–3(a)(12). 4 See Rule 4751(h)(6).
50 15 U.S.C. 78f(b)(5). 1 15 U.S.C. 78s(b)(1). 5 See Rule 4751(h)(8).
51 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. 6 17 CFR 240.19b–4(f)(6)(iii).
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![Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Notices 10563
issuers, brokers, or dealers. The to Rule 19b–4(f)(6)(iii),11 the only one method. The Commission will
Exchange believes that the changes Commission may designate a shorter post all comments on the Commission’s
NASDAQ is making to Rules 4751(h) time if such action is consistent with the Internet Web site (http://www.sec.gov/
and 4754(b) promote consistency and protection of investors and the public rules/sro.shtml). Copies of the
transparency in the process for handling interest. The Exchange has asked the submission, all subsequent
orders in the closing process. Delaying Commission to waive the 30-day amendments, all written statements
implementation of the changes for brief operative delay so the Exchange may with respect to the proposed rule
period so that NASDAQ may implement provide immediate notice of its intent to change that are filed with the
the changes to its systems necessary to delay implementation of the closing Commission, and all written
ensure that the Lockdown Period and process due to unanticipated system communications relating to the
processing of Market Hours Day and development issues. The Commission proposed rule change between the
Good-til-market close orders are believes that waiving the 30-day Commission and any person, other than
handled in the Closing Cross operate as operative delay is consistent with the those that may be withheld from the
planned promotes fair and orderly protection of investors and the public public in accordance with the
markets, the protection of investors and interest because it will allow the provisions of 5 U.S.C. 552, will be
the public interest. Exchange to provide immediate notice available for Web site viewing and
of this delay. Therefore, the Commission printing in the Commission’s Public
B. Self-Regulatory Organization’s
hereby waives the 30-day operative Reference Room, 100 F Street NE.,
Statement on Burden on Competition
delay and designates the proposed rule Washington, DC 20549, on official
NASDAQ does not believe that the change to be operative upon filing with business days between the hours of
proposed rule change will result in any the Commission.12 10:00 a.m. and 3:00 p.m. Copies of such
burden on competition that is not At any time within 60 days of the filing also will be available for
necessary or appropriate in furtherance filing of the proposed rule change, the inspection and copying at the principal
of the purposes of the Act, as amended.7 Commission summarily may office of the Exchange. All comments
The Exchange believes that the proposal temporarily suspend such rule change if received will be posted without change;
is irrelevant to competition because it is it appears to the Commission that such the Commission does not edit personal
not driven by, and will have no impact action is: (i) Necessary or appropriate in identifying information from
on, competition. Specifically, the the public interest; (ii) for the protection submissions. You should submit only
proposal is representative of the of investors; or (iii) otherwise in information that you wish to make
Exchange’s efforts to harmonize and furtherance of the purposes of the Act. available publicly. All submissions
simplify the processing of orders during If the Commission takes such action, the should refer to File Number SR–
the closing process. Commission shall institute proceedings NASDAQ–2015–014 and should be
C. Self-Regulatory Organization’s to determine whether the proposed rule submitted on or before March 19, 2015.
Statement on Comments on the should be approved or disapproved.
For the Commission, by the Division of
Proposed Rule Change Received From IV. Solicitation of Comments Trading and Markets, pursuant to delegated
Members, Participants or Others authority.13
Interested persons are invited to
No written comments were either submit written data, views and Jill M. Peterson,
solicited or received. arguments concerning the foregoing, Assistant Secretary.
III. Date of Effectiveness of the including whether the proposed rule [FR Doc. 2015–03965 Filed 2–25–15; 8:45 am]
Proposed Rule Change and Timing for change is consistent with the Act. BILLING CODE 8011–01–P
Commission Action Comments may be submitted by any of
the following methods:
Because the foregoing proposed rule
change does not: (i) Significantly affect Electronic Comments DEPARTMENT OF STATE
the protection of investors or the public • Use the Commission’s Internet
interest; (ii) impose any significant comment form (http://www.sec.gov/
burden on competition; and (iii) become [Public Notice 9046]
rules/sro.shtml); or
operative for 30 days from the date on • Send an email to rule-comments@ Determination by the Secretary of
which it was filed, or such shorter time sec.gov. Please include File Number SR– State Relating to Iran Sanctions
as the Commission may designate, it has NASDAQ–2015–014 on the subject line.
become effective pursuant to section This notice is to inform the public
19(b)(3)(A)(iii) of the Act 8 and Paper Comments that the Secretary of State determined
subparagraph (f)(6) of Rule 19b–4 • Send paper comments in triplicate on February 19, 2015, pursuant to
thereunder.9 to Brent J. Fields, Secretary, Securities Section 1245(d)(4)(D) of the National
A proposed rule change filed under and Exchange Commission, 100 F Street Defense Authorization Act for Fiscal
Rule 19b–4(f)(6) 10 normally does not NE., Washington, DC 20549. Year 2012 (NDAA), (Pub. L. 112–81), as
become operative prior to 30 days after All submissions should refer to File amended, that as of February 19, 2015,
the date of the filing. However, pursuant Number SR–NASDAQ–2015–014. This each of the following countries:
file number should be included on the Belgium, the Czech Republic, France,
7 15 U.S.C. 78f(b)(8). subject line if email is used. To help the Germany, Greece, Italy, the Netherlands,
8 15 U.S.C. 78s(b)(3)(A)(iii).
Commission process and review your Poland, Spain, Sri Lanka, and the
rmajette on DSK2VPTVN1PROD with NOTICES
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give comments more efficiently, please use United Kingdom have significantly
the Commission written notice of its intent to file reduced their crude oil purchases from
the proposed rule change at least five business days 11 17 CFR 240.19b–4(f)(6)(iii). Iran, or have maintained their crude oil
prior to the date of filing of the proposed rule 12 For purposes only of waiving the operative purchases from Iran at zero, over the
change, or such shorter time as designated by the delay for this proposal, the Commission has
Commission. The Exchange has satisfied this
preceding 180-day period.
considered the proposed rule’s impact on
requirement. efficiency, competition, and capital formation. See
10 17 CFR 240.19b–4(f)(6). 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12).
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Document Created: 2015-12-18 13:05:46
Document Modified: 2015-12-18 13:05:46
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 10562 |
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