
[Federal Register Volume 78, Number 17 (Friday, January 25, 2013)]
[Notices]
[Pages 5529-5530]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01488]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68694; File No. SR-NASDAQ-2012-129]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Designation of a Longer Period for Commission Action on 
Proposed Rule Change To Establish the Retail Price Improvement Program 
on a Pilot Basis Until 12 Months From the Date of Implementation

January 18, 2013.
    On November 19, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to establish a Retail Price Improvement Program to 
attract additional retail order flow to the Exchange while also 
providing the potential for price improvement to such order flow. The 
proposed rule change was published for comment in the Federal Register 
on December 7, 2012.\3\ The Commission did not receive any comments on 
the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 68336 (December 3, 
2012), 77 FR 73097 (SR-NASDAQ-2012-129).
---------------------------------------------------------------------------

    In connection with the proposal, the Exchange requested exemptive 
relief from Rule 612 of Regulation NMS,\4\ which, among other things, 
prohibits a national securities exchange from accepting or ranking 
orders priced greater than $1.00 per share in an increment smaller than 
$0.01.\5\ On January 14, 2013, the Exchange submitted a letter 
requesting that the staff of the Division of Trading and Markets not 
recommend any enforcement action under Rule 602 of Regulation NMS (the 
``Quote Rule'') based on the Exchange's and its Members' participation 
in the Program.\6\
---------------------------------------------------------------------------

    \4\ 17 CFR 242.612 (the ``Sub-Penny Rule'').
    \5\ See Letter from Jeffrey Davis, Deputy General Counsel, The 
NASDAQ Stock Market LLC, to Elizabeth M. Murphy, Secretary, 
Commission, dated November 19, 2012).
    \6\ See Letter from Jeffrey Davis, Deputy General Counsel, The 
NASDAQ Stock Market LLC, to John Ramsay, Division of Trading and 
Markets, Commission, dated January 14, 2013.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \7\ provides that within 45 days of the 
publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day for this filing is January 21, 2013.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission is extending the 45-day time period for Commission 
action on the proposed rule change. The Commission finds that it is 
appropriate to designate a longer period to take action on the proposed 
rule change so that it has sufficient time to consider the Exchange's 
proposal, which would allow the Exchange to utilize non-displayed 
orders that offer price improvement to retail order flow potentially in 
sub-penny increments, as well as the Exchange's attendant requests for 
exemptive and no-action relief.
    Accordingly, pursuant to Section 19(b)(2) of the Act,\8\ the 
Commission designates March 7, 2013 as the date by which the Commission 
should either approve or disapprove, or institute proceedings to 
determine whether to

[[Page 5530]]

disapprove, the proposed rule change (File Number SR-NASDAQ-2012-129).
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority. \9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01488 Filed 1-24-13; 8:45 am]
BILLING CODE 8011-01-P


