
[Federal Register: July 8, 2009 (Volume 74, Number 129)]
[Notices]               
[Page 32656-32657]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jy09-115]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 60203; File No. SR-NASDAQ-2009-053]

 
Securities Exchange Act of 1934; In the Matter of The NASDAQ 
Stock Market LLC

June 30, 2009.

Order of Summary Abrogation

    Notice is hereby given that the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(3)(C) of the Securities 
Exchange Act of 1934 (``Act''),\1\ is summarily abrogating a certain 
proposed rule change of The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'').
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    \1\ 15 U.S.C. 78s(b)(3)(C).
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    On June 24, 2009, NASDAQ filed SR-NASDAQ-2009-053. The proposed 
rule change establishes a four-month pilot program that would reduce 
transaction fees for members that trade equities on NASDAQ provided 
that they also make markets in options on the NASDAQ OMX PHLX, Inc. 
(``Phlx'') options exchange. The proposed rule change was immediately 
effective upon filing with the Commission pursuant to Section 
19(b)(3)(A) of the Act.\2\
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    \2\ 15 U.S.C. 78s(b)(3)(A).
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    Pursuant to Section 19(b)(3)(C) of the Act,\3\ at any time within 
60 days of the date of filing a proposed rule change pursuant to 
Section 19(b)(1) of the Act,\4\ the Commission may summarily abrogate 
the change in the rules of the self-regulatory organization and require 
that the proposed rule change be re-filed in accordance with the 
provisions of Section 19(b)(1) of the Act \5\ and reviewed in 
accordance with Section 19(b)(2) of the Act,\6\ 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.
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    \3\ 15 U.S.C. 78s(b)(3)(C).
    \4\ 15 U.S.C. 78s(b)(1).
    \5\ Id.
    \6\ 15 U.S.C. 78s(b)(2).
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    NASDAQ proposes to offer a reduced transaction fee for securities 
listed on NASDAQ and the New York Stock Exchange LLC (``NYSE'') only to 
member firms that: (1) Make markets in 400 or more options classes as a 
Specialist, Streaming Quote Trader, or Remote Streaming Quote Trader on 
Phlx; and (2) add average daily volume of 35 million shares of 
liquidity on NASDAQ. Member firms meeting these criteria would pay a 
reduced transaction fee of $0.0027 per share executed on NASDAQ for 
securities listed on NASDAQ or NYSE. The Commission is concerned about 
whether the proposal is consistent with the statutory requirements 
applicable to a national securities exchange under the Act, including, 
among other provisions, Section 6(b)(4) of the Act,\7\ which requires 
that the rules of a national securities exchange provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
its members and issuers and other parties

[[Page 32657]]

using its facilities; Section 6(b)(5) of the Act,\8\ which requires, 
among other things, that the rules of a national securities exchange 
not be designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers; and Section 6(b)(8) of the Act,\9\ which 
requires that the rules of a national securities exchange do not impose 
any burden on competition not necessary or appropriate in furtherance 
of the Act.
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    \7\ 15 U.S.C. 78f(b)(4).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ 15 U.S.C. 78f(b)(8).
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    Accordingly, the Commission believes that the procedures provided 
by Section 19(b)(2) of the Act \10\ will provide a more appropriate 
mechanism for determining whether the proposed rule change is 
consistent with the Act. Therefore, the Commission finds that it is 
appropriate in the public interest, for the protection of investors, 
and otherwise in furtherance of the purposes of the Act, to abrogate 
the proposed rule change.
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    \10\ Id.
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    It is therefore ordered, pursuant to Section 19(b)(3)(C) of the 
Act,\11\ that File No. SR-NASDAQ-2009-053, be and hereby is, summarily 
abrogated. If NASDAQ chooses to re-file the proposed rule change, it 
must do so pursuant to Sections 19(b)(1) \12\ and 19(b)(2) of the 
Act.\13\
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    \11\ 15 U.S.C. 78s(b)(3)(C).
    \12\ 15 U.S.C. 78s(b)(1).
    \13\ 15 U.S.C. 78s(b)(2).

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-15998 Filed 7-7-09; 8:45 am]

BILLING CODE 8010-01-P
