[Federal Register: May 30, 2008 (Volume 73, Number 105)]
[Notices]
[Page 31174-31177]
[DOCID:fr30my08-101]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57862; File No. SR-NYSE-2008-41]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Exchange Rule 15 (Pre-Opening Indications) and Exchange Rule
123C (Market on the Close Policy and Expiration Procedures)

May 23, 2008.
    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 May 16, 2008, the New York Stock Exchange LLC (``NYSE'' or
``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 substantially prepared by the Exchange.
The Exchange has designated the proposed rule change as a ``non-
controversial'' rule change pursuant to section 19(b)(3)(A) of the Act
\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposed rule
change effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Exchange Rule 15 (Pre-Opening
Indications) and Exchange Rule 123C (Market On The Close Policy And
Expiration Procedures) to allow Exchange systems to disseminate a data
feed of real-time order imbalances that accumulate prior to the opening
of trading on the Exchange and prior to the close of trading on the
Exchange. The text of the proposed rule change is available at http://
www.nyse.com, the Exchange, and 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, NYSE 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. NYSE 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
    Currently NYSE OpenBook is a packaged suite of data feed products.
In addition to the current NYSE OpenBook data feed (``NYSE OpenBook
Realtime''), for no additional charge, the Exchange makes available to
NYSE OpenBook recipients a separate data feed containing NYSE
quotations (``NYSE BestQuote'').\5\ NYSE BestQuote allows customers to
see additional market interest that is not displayed in the NYSE limit
order book and that, therefore, is not available in NYSE OpenBook.
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    \5\ The Exchange added NYSE BestQuote to the NYSE OpenBook
Realtime package in October 2006. See Securities Exchange Act
Release No. 54594 (October 12, 2006), 71 FR 61819 (October 19, 2006)
(SR-NYSE-2006-81).
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    Pursuant to a separate filing, the Exchange intends to add to NYSE
OpenBook a new category of information regarding order imbalances prior
to the market opening and closing auctions (``Order Imbalance
Information'').\6\ Order Imbalance Information is a data feed of real-
time order imbalances that accumulate prior to the opening of trading
on the Exchange and prior to the close of trading on the Exchange.
Through this filing, the NYSE seeks to include Order Imbalance
Information as supplemental information that may be disseminated by
Exchange systems prior to the opening and closing transaction.
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    \6\ See Securities Exchange Act Release No. 57861, (May 23,
2008) (SR-NYSE-2008-42).
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Background Publication of Order Imbalance Information Prior to Open and
Close
    On December 20, 2007, the NYSE amended Exchange Rule 15 to re-
establish procedures for the publication of pre-opening price
information, according to the framework established by the national
market system plan (``Linkage Plan'').\7\ The rule change was sought by
the Exchange in response to customer and market participant requests
for the information.
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    \7\ See Securities Exchange Act Release No. 57003 (December 20,
2007), 72 FR 73949 (December 28, 2007) (SR-NYSE-2007-112). The
Linkage Plan became effective on October 1, 2006 and operated
concurrently with the existing Intermarket Trading System (``ITS'')
Plan until March 5, 2007, at which time the ITS Plan terminated and
SEC Rule 611 (the Order Protection Rule) of Reg. NMS became
operative. See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005). The Linkage Plan terminated on
June 30, 2007.
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Exchange Rule 15
    Currently, pursuant to Exchange Rule 15 the specialist publishes a
pre-opening price indication whenever the specialist, in arranging the
opening transaction in a subject security, anticipates that the price
of the opening transaction will be at a price that is different from
the previous day's closing price on the NYSE by more than the
``applicable price change.'' The applicable price is generally based on
the NYSE closing price. Exchange Rule 15 provides five price groupings
that establish the applicable price change parameters as follows:

------------------------------------------------------------------------
                                                        Applicable price
                Exchange closing price                   change  (more
                                                             than)
------------------------------------------------------------------------
Under $20.00.........................................              $0.50
$20-$49.99...........................................               1.00
$50.00-$99.99........................................               2.00
$100-$500............................................               5.00
Above $500...........................................               1.5%
------------------------------------------------------------------------

    Exchange Rule 15 sets forth a different method for determining pre-
opening indications in American Depositary Receipts (``ADRs'').\8\
Where the trading day of the underlying security in the primary foreign
market concludes after trading on the NYSE for the previous day has
ended, the specialists, when arranging an opening transaction on the
NYSE, uses the closing price of the primary foreign market of the
underlying security to determine whether such opening transaction
represents a change of more than the ``applicable price change.'' In
instances where the underlying security of an ADR is still trading on
its primary foreign market at the time the specialist is arranging the
opening of such ADR on the NYSE, a specialist is required to look at
the last sale price of the underlying security in the primary foreign
market and issue a pre-opening indication if the anticipated opening
price of the ADR is not on parity with the last sale price of the
underlying security. The pre-opening indication is based on the change
in parity between the anticipated opening price of the ADR and the last
sale price of the underlying security on the primary foreign market.
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    \8\ See the NYSE glossary, which defines an ADR as ``[a] receipt
that is issued by a U.S. depository bank which represents shares of
a foreign corporation held by the bank. * * * ADRs are quoted in
U.S. dollars and trade just like any other stock. * * *''
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Exchange Rule 123C
    Rule 123C \9\ (Market on the Close Policy and Expiration
Procedures) contains requirements with respect to operation of the
Exchange's market concerning market-on-close (``MOC'') and limit-on-
close (``LOC'') orders as well as order entry and imbalance publication
requirements. Rule 123C defines MOC and LOC orders. A MOC order is a
market order that is to be executed in its entirety at the closing
price. If not executed due to a trading halt or because of its terms,
(e.g., buy minus or sell plus), this type of order will be cancelled.
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    \9\ The Exchange's Market-On-Close/Limit-On-Close Policy has
been codified as Rule 123C. See Securities Exchange Act Release No.
46579 (October 1, 2002), 67 FR 63004 (October 9, 2002) (SR-NYSE-
2002-31).
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    Rule 123C defines a LOC order as one that is entered for execution
at the closing price, provided that the closing price is at or within
the limit specified. LOC orders are prioritized on the specialist's
book by time of entry and go behind all other orders on the specialist
book at that price regardless of when such other orders are received.
LOC orders with prices that are better than the closing price in the
subject security are guaranteed an execution unless there is a trading
halt in the security. LOC orders limited at the closing price are not
guaranteed an execution.
    Rule 123C \10\ requires that all MOC and LOC orders be entered by
3:40 p.m. in any stock on any trading day, unless entered to offset a
published imbalance, or on either side of the market if a regulatory
halt is in effect at 3:40 p.m. or occurs after that time. Floor brokers
representing MOC/LOC orders in any stock must communicate their
irrevocable MOC/LOC interest to the specialist by 3:40 p.m. In
addition, Rule 123C prohibits the cancellation of MOCs and LOCs after
3:40 p.m., except in the case of legitimate error (e.g., side, size,
symbol, price, or duplication of an order) or when a regulatory trading
halt is in effect at or occurs after 3:40 p.m.
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    \10\ On May 19, 2004 the SEC approved amendments to Exchange
Rule 123C subject to technology upgrades to the electronic entry
systems for MOC and LOC orders. See Securities Exchange Act Release
No. 49682 (May 11, 2004), 69 FR 28969 (May 19, 2004); SR-NYSE-2004-
09. The approval further provided the Exchange would notify the
Commission and Exchange membership of the implementation of such
electronic entry systems. Id. To date the technological upgrades
required to implement the previously approved amendments to Exchange
Rule 123C have not been completed. The Exchange intends to formally
submit a revised proposal to the Commission in order to modify its
closing procedures.

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    Between 3:40 and 3:50 p.m., MOC/LOC orders are irrevocable, except
to correct a legitimate error or when a regulatory trading halt is in
effect at or occurs after 3:40 p.m.
    In the case of a regulatory halt, MOC orders may be entered until
3:50 p.m. or until the stock reopens, whichever occurs first, even if
an imbalance publication occurred prior to the regulatory halt.
Cancellation or reductions in size of MOC/LOC orders after 3:50 p.m.
are not permitted for any reason, including in case of legitimate
error.
Proposed Exchange System Dissemination of Order Imbalance Information
    The Exchange proposes to include Order Imbalance Information as
supplemental information that may be disseminated by Exchange systems
prior to opening and closing transactions pursuant to Exchange Rules 15
and 123C respectively.
    The Exchange plans to distribute the Order Imbalance Information in
real-time at specified intervals prior to the opening and closing
transactions. The Order Imbalance Information disseminated by the
Exchange will include the publication time, imbalance side, imbalance
quantity, paired quantity and symbol for each security.
Order Imbalance Information Prior to the Opening Transaction
    The Order Imbalance Information disseminated prior to the opening
transaction will include all interest eligible for execution in the
opening transaction of the security in Exchange systems. The previous
trading day's closing price on the NYSE in the security will serve as
the reference price for the Order Imbalance Information disseminated
prior to the opening transaction. The Order Imbalance Information
disseminated prior to the opening transaction indicates to market
participants the number of shares that would be required to equalize
buy and sell interest (i.e. flat) at the reference.
    The Exchange plans to distribute the Order Imbalance Information at
specified intervals prior to the opening. Order Imbalances disseminated
prior to the opening will be disseminated as follows:
     Every five minutes between 8:30 a.m. Eastern Time (``ET'')
and 9 a.m. ET.
     Every minute between 9 a.m. ET and 9:20 a.m. ET.
     Every 15 seconds between 9:20 a.m. ET and the opening (or
9:35 a.m. ET if the opening is delayed).
Order Imbalance Information Prior to the Closing Transaction
    The Order Imbalance Information disseminated prior to the closing
transaction will include all the same information used in Exchange Rule
123C(5)(Publication of MOC Imbalances).\11\ Order Imbalance Information
disseminated prior to the close will use the last sale in the security
on the NYSE prior to dissemination of the Order Imbalance Information
as its reference price to indicate the number of shares required to
close ``flat.''
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    \11\ Exchange Rule 123C(5) provides in pertinent part: Imbalance
publications will include MOC orders as well as marketable LOC
orders. In that regard, LOC orders to buy at a price higher than the
last sale price are to be included with the buy MOC orders; LOC
orders to sell at a price lower than the last sale price are to be
included with the sell MOC orders. LOC orders with a limit equal to
the last sale price would not be included in the imbalance
calculation. * * *
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    Similar to the dissemination of Order Imbalance Information prior
to the open, Order Imbalance Information disseminated prior to the
close will be distributed at specified intervals. Order Imbalances
disseminated prior to the close will be disseminated as follows:
     Every fifteen seconds between 3:40 p.m. ET and 3:50 p.m.
ET.
     Every five seconds between 3:50 p.m. ET and 4 p.m. ET.
    On any day that the scheduled close of trading on the NYSE is
earlier than 4 p.m. ET, the dissemination of Order Imbalance
Information prior to the closing transaction will commence 20 minutes
before the scheduled closing time. Order Imbalance Information will be
disseminated every fifteen seconds for approximately 10 minutes.
Thereafter, the Order Imbalance Information will be disseminated every
five seconds until the scheduled closing time.
    The data feed containing the Order Imbalance Information is in
addition to the Publication of MOC Imbalances pursuant Exchange Rule
123C(5) that is disseminated by the specialist in his or her assigned
security at 3:40 p.m. and 3:50 p.m. The Order Imbalance Information
will be published through OpenBook. The mandatory publications
published by the specialist pursuant to NYSE Rule 123C will be included
in both the Order Imbalance Information data feed and on the
Consolidated Tape. Only mandatory indications published pursuant to
123C control whether a party may enter offsetting interest.
Conclusion
    The Exchange believes that the amendments to NYSE Rules 15 and 123C
effectively provide useful information to the marketplace especially in
situations involving price changes based on order imbalances.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under section 6(b)(5) \12\ that an Exchange have rules that
are designed to promote just and equitable principles of trade, 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. This amendment to Exchange Rules 15
and 123C supports the system of a free and open market and serves to
protect investors and the public interest by providing market
participants with supplemental market information prior to the
execution of the opening and closing transactions on the NYSE.
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    \12\ 15 U.S.C. 78f(b)(5).
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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
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.

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: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6)
thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \15\ permits the Commission to

designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay set
forth in Rule 19b-4(f)(6)(iii) under the Act, which would make the rule
change operative upon filing.
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    \15\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of 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. NYSE has satisfied the pre-filing notice
requirement.
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    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because such waiver would immediately allow the Exchange to disseminate
this supplemental information prior to the execution of the opening and
closing transactions on the NYSE. Accordingly, the Commission
designates the proposal to be operative upon filing with the
Commission.\16\
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    \16\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 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 may summarily abrogate 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.

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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSE-2008-41 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2008-41. This file
number should be included on the subject line if e-mail 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 inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, 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 office of the NYSE. 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-NYSE-2008-41 and should be
submitted on or before June 20, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-12075 Filed 5-29-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: March 12, 2007 (Volume 72, Number 47)]
[Notices]
[Page 11019-11020]
[DOCID:fr12mr07-95]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL07-40-000]

Californians for Renewable Energy, Inc. (CARE), Complainant v.
California Public Utilities Commission, Pacific Gas and Electric
Company, Metcalf Energy Center and the Los Medanos Energy Center, LLC,
Respondents; Notice of Complaint

March 5, 2007.
    Take notice that on March 2, 2007, Californians for Renewable
Energy, Inc. (CARE) tendered for filing pursuant to section 206 of the
Federal Power Act a complaint against the California Public Utilities
Commission (CPUC) for its action on February 15, 2007 authorizing
Pacific Gas Electric Company (PG&E) to enter into a power purchase
agreement with Metcalf Energy Center, LLC and the Los Medanos Energy
Center, LLC, in alleged violation of the ``filed rate doctrine''. CARE
requests the contract be subject to the Commission's review under the
December 19, 2006 opinions by the U.S. Court of Appeals for the Ninth
Circuit in a pair of opinions--Public Utility Dist. No. 1 v. FERC 471
F.3d 1053 (9th Cir. 2006) and Public Utility commission of the State of

California v. FERC, 2006 U.S. App. LEXIS 31140 (9th Cir. De. 19, 2006)
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. The Respondent's
answer and all interventions, or protests must be filed on or before
the comment date. The Respondent's answer, motions to intervene, and
protests must be served on the Complainants.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. Eastern Time on March 22, 2007.

Philis J. Posey,
Acting Secretary.
[FR Doc. E7-4337 Filed 3-9-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 86, Number 26 (Wednesday, February 10, 2021)]
[Notices]
[Pages 8937-8938]
[FR Doc No: 2021-02707]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91056; File No. SR-NASDAQ-2020-028]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Withdrawal of a Proposed Rule Change, as Modified by
Amendment No. 1, To Amend IM-5101-1 (Use of Discretionary Authority) To
Apply Additional or More Stringent Criteria to an Applicant or Listed
Company Based on Considerations Related to the Company's Auditor or
When a Company's Business Is Principally Administered in a Jurisdiction
That Is a Restrictive Market

February 4, 2021.
    On May 19, 2020, The Nasdaq Stock Market LLC (``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 amend IM-
5101-1 (Use of Discretionary Authority) to deny listing or continued
listing or to apply additional and more stringent criteria to an
applicant or listed company based on considerations related to the
company's auditor or when a company's business is principally
administered in a jurisdiction that has secrecy laws, blocking
statutes, national security laws, or other laws or regulations
restricting access to information by regulators of U.S.-listed
companies in such jurisdiction. The proposed rule change was published
for comment in the Federal Register on June 8, 2020.\3\ On July 20,
2020, pursuant to Section 19(b)(2) of the Act,\4\ the Commission
designated a longer period within which to approve the proposed rule
change, disapprove the proposed rule change, or institute proceedings
to determine whether to disapprove the proposed

rule change.\5\ On September 2, 2020, the Commission instituted
proceedings under Section 19(b)(2)(B) of the Act \6\ to determine
whether to approve or disapprove the proposed rule change.\7\ On
November 6, 2020, the Exchange filed Amendment No. 1 to the proposed
rule change, which replaced and superseded the proposed rule change as
originally filed.\8\ On December 2, 2020, the Commission extended the
period for consideration of the proposed rule change to February 3,
2021.\9\ On February 1, 2021, the Exchange withdrew the proposed rule
change (SR-NASDAQ-2020-028).
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 88987 (June 2,
2020), 85 FR 34774. Comments on the proposed rule change can be
found on the Commission's website at: https://www.sec.gov/comments/sr-nasdaq-2020-028/srnasdaq2020028.htm.
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 89344, 85 FR 44951
(July 24, 2020). The Commission designated September 6, 2020 as the
date by which the Commission shall approve or disapprove, or
institute proceedings to determine whether to approve or disapprove,
the proposed rule change.
    \6\ 15 U.S.C. 78s(b)(2)(B).
    \7\ See Securities Exchange Act Release No. 89739, 85 FR 55708
(September 9, 2020).
    \8\ Amendment No. 1 is available at https://www.sec.gov/comments/sr-nasdaq-2020-028/srnasdaq2020028.htm.
    \9\ See Securities Exchange Act Release No. 90549, 85 FR 79048
(December 8, 2020).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-02707 Filed 2-9-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: March 19, 2007 (Volume 72, Number 52)]
[Notices]
[Page 12786-12787]
[DOCID:fr19mr07-46]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC07-549B-000; FERC-549B]

Commission Information Collection Activities, Proposed
Collection; Comment Request; Extension

March 13, 2007.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice.

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SUMMARY: In compliance with the requirements of section 3506(c)(2)(a)
of the Paperwork Reduction Act of 1995 (Pub. L. 104-13), the Federal
Energy Regulatory Commission (Commission) is soliciting public comment
on the specific aspects of the information collection described below.

DATES: Comments on the collection of information are due May 22, 2007.

ADDRESSES: Copies of sample filings of the proposed collection of
information can be obtained from the Commission's Web site (http://www.ferc.gov/docs-filing/eforms.asp#549b
) or from the Federal Energy

Regulatory Commission, Attn: Michael Miller, Office of the Executive
Director, ED-34, 888 First Street, NE., Washington, DC 20426. Comments
may be filed either in paper format or electronically. Those parties
filing electronically do not need to make a paper filing. For paper
filing, the original and 14 copies of such comments should be submitted
to the Secretary of the Commission, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426 and refer to
Docket No. IC07-549B-000.
    Documents filed electronically via the Internet must be prepared in
WordPerfect, MS Word, Portable Document Format, or ASCII format. To
file the document, access the Commission's Web site at http://www.ferc.gov
 and click on ``Make an e-Filing'' and then follow the

instructions for each screen. First time users will have to establish a
user name and password. The Commission will send an automatic
acknowledgement to the sender's e-mail address upon receipt of
comments.
    All comments may be viewed, printed or downloaded remotely via the
Internet through FERC's homepage using the eLibrary link. For user
assistance, contact<EMAIL_ADDRESS>or toll-free at (866)
208-3676 or for TTY, contact (202)
    502-8659.

FOR FURTHER INFORMATION CONTACT: Michael Miller may be reached by
telephone at<PHONE_NUMBER>, by fax at<PHONE_NUMBER>, and by e-mail at
<EMAIL_ADDRESS>

SUPPLEMENTARY INFORMATION: The information collected under the
requirements of FERC-549B ``Gas Pipeline Rates: Capacity Information''
(OMB Control No. 1902-0169) includes both the Index of Customers Report
under 18 CFR 284.13(c) and capacity reporting requirements under 18 CFR
284.13(b) and 284.13(d). This information is used by the Commission to
implement the statutory provisions of sections 4, 5, and 16 of the
Natural Gas Act (NGA), 15 U.S.C. 717c0717o, Pub. L. 75-688, 52 Stat.
822 and 830 and Title III of the NGPA, 15 U.S.C. 3301-3432, Pub. L. 95-
621.

Capacity Reports

    On April 4, 1992 in Order No. 636, the Commission established a
capacity release mechanism under which shippers could release firm
transportation and storage capacity on either a short or long term
basis to other shippers wanting to obtain capacity. Pipelines posted
available firm and interruptible capacity information on their
electronic bulletin boards (EBBs) to inform potential shippers. On
September 11, 1992, in Order No. 636A, the Commission determined,
through staff audits, that the efficiency of the capacity release
mechanism could be enhanced by standardizing the content and format of
capacity release information and the methods by which shippers access
this information, posted to EBBs.
    On April 4, 1995 through Order No. 577 (RM95-5-000), the Commission
amended Sec.  284.243(h) of its regulations to allow shippers the
ability to release capacity without having to comply with the
Commission's advance posting and bidding requirements.
    To create greater substitution between different forms of capacity
and to enhance competition across the pipeline grid, on February 25,
2000 in Order No. 637, the Commission revised its capacity release
regulations regarding scheduling, segmentation and flexible receipt
point rights, penalties, and reporting requirements. This resulted in
more reliable capacity information and price data being available that
shippers needed to make informed decisions in a competitive market as
well as to improve shipper's and the Commission's availability to
monitor marketplace behavior.

Index of Customers

    In Order No. 581 issued September 28, 1995 the Commission
established

the Index of Customers (IOC) information requirement. The Index of
Customers had two functions, first, for annualizing capacity held on
pipelines and second, for providing capacity information to the market.
The Index of Customers information aids the capacity release system by
enabling shippers to identify and locate those holding capacity rights
that shippers may want to acquire. The information was required to be
posted on the pipeline's EBB and filed on electronic media with the
Commission. The first Index contained, for all firm customers under
contract as of the first day of the calendar quarter, the full legal
name of the shipper, the rate schedule number for which service is
contracted, the contract effective and expiration dates, and contract
quantities.
    In Order No. 637, the Commission required the following additional
information: the receipt and delivery points held under contract as of
the first day of the calendar quarter, the full legal name of the
shipper, the rate schedule for which the capacity is held; the common
transaction point codes; the contract number; a shipper identification
number, such as DUNS; an indication whether the contract includes
negotiated rates; the names of any agents or asset managers that
control capacity in a pipeline rate zone; and any affiliate
relationship between the pipeline and the holder of capacity. The Index
is now provided through a quarterly filing on electronic media to the
Commission and is posted on pipelines' Internet Web sites.
    Action: The Commission is requesting a three-year extension of the
current expiration date, with no changes to the existing collection of
data.
    Burden Statement: Public reporting burden for this collection is
estimated as:

----------------------------------------------------------------------------------------------------------------
                                                                     Number of
                                                                   responses per  Average burden   Total annual
               Number of respondents annually  (1)                  respondent       hours per     burden hours
                                                                        (2)        response  (3)
----------------------------------------------------------------------------------------------------------------
Capacity Reports &..............................................
IOC: 103........................................................               6             291         179,838
                                                                               4               3           1,236
                                                                 -----------------------------------------------
    Total.......................................................  ..............  ..............         181,704
----------------------------------------------------------------------------------------------------------------

    Estimated cost burden to respondents is as follows:

Capacity Reports: 179,838 hours/2080 work hours per year x $122,137 =
$10,560,038;
Index of Customers (IOC): 1,236 hours/2080 work hours per year x
$122,137 = $72,578;
Total Costs = $102,632,616.

    The estimated annual cost per respondent is:

Capacity Reports = $ 102,525;
Index of Customers = $ 705.

    The reporting burden includes the total time, effort, or financial
resources expended to generate, maintain, retain, disclose, or provide
the information including: (1) Reviewing instructions; (2) developing,
acquiring, installing, and utilizing technology and systems for the
purposes of collecting, validating, verifying, processing, maintaining,
disclosing and providing information; (3) adjusting the existing ways
to comply with any previously applicable instructions and requirements;
(4) training personnel to respond to a collection of information; (5)
searching data sources; (6) completing and reviewing the collection of
information; (7) transmitting, or otherwise disclosing the information;
and (8) requesting e.g. waiver or clarification of requirements.
    The estimate of cost for respondents is based upon salaries for
professional and clerical support, as well as direct and indirect
overhead costs. Direct costs include all costs directly attributable to
providing this information, such as administrative costs and the cost
for information technology. Indirect or overhead costs are costs
incurred by an organization in support of its mission. These costs
apply to activities, which benefit the whole organization rather than
any one particular function or activity.
    Comments are invited on: (1) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility and clarity of the information to be collected; and (4) ways to
minimize the burden of the collection of information on those who are
to respond, including the use of appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology e.g. permitting electronic submission of
responses.

Philis J. Posey,
Acting Secretary.
[FR Doc. E7-4989 Filed 3-16-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register: November 14, 2008 (Volume 73, Number 221)]
[Rules and Regulations]
[Page 67359-67361]
[DOCID:fr14no08-1]

========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.

========================================================================

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2008-0342; Directorate Identifier 2007-NM-305-AD;
Amendment 39-15706; AD 2008-22-10]
RIN 2120-AA64

Airworthiness Directives; Airbus Model A318, A319, A320, and A321
Series Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for the
products listed above. This AD results from mandatory continuing
airworthiness information (MCAI) originated by an aviation authority of
another country to identify and correct an unsafe condition on an
aviation product. The MCAI describes the unsafe condition as:

    During planned maintenance visit on one A320 aircraft, a cross
connection of the fire extinguishing circuit system was identified.
In case of fire, this cross connection will activate (discharge) the
wrong forward or aft cargo compartment fire extinguisher bottle.
    Failure to activate the correct bottle when required is
classified as potentially catastrophic.

* * * * *
    We are issuing this AD to require actions to correct the unsafe
condition on these products.

DATES: This AD becomes effective December 19, 2008.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of December 19,
2008.

ADDRESSES: You may examine the AD docket on the Internet at http://
www.regulations.gov or in person at the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Tim Dulin, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
227-2141; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would apply to the specified products.
That NPRM was published in the Federal Register on March 25, 2008 (73
FR 15681). That NPRM proposed to correct an unsafe condition for the
specified products. The MCAI states:

    During planned maintenance visit on one A320 aircraft, a cross
connection of the fire extinguishing circuit system was identified.
In case of fire, this cross connection will activate (discharge) the
wrong forward or aft cargo compartment fire extinguisher bottle.
    Failure to activate the correct bottle when required is
classified as potentially catastrophic.
    For the reasons described above, this AD requires a one-time
inspection and check of the cargo firing circuit continuity to
confirm the correct connection of the dedicated wires between the
discharge pushbutton switches and the relevant cargo bottle.

Corrective action includes modifying the wiring connection on plug
1505VC-A. You may obtain further information by examining the MCAI in
the AD docket.

Comments

    We gave the public the opportunity to participate in developing
this AD. We considered the comment received.

Request To Revise Applicability

    Northwest Airlines (NWA) requests that we revise the applicability
of the NPRM to state that the AD applies only to those airplanes
produced before February 28, 2007 that have fewer than 8,000 total
flight hours and that have not had Airbus A318/A319/A320/A321
Maintenance Review Board Report (MRBR) Task 26.23.00/03 and 26.23.00/
07, or Airbus Service Bulletin A320-26A1068, dated March 19, 2007,
accomplished.
    We disagree that the applicability needs to be clarified. Paragraph
(c), ``Applicability,'' of the NPRM already excludes airplanes on which
the MRBR tasks have been performed. Paragraph (f), ``Actions and
Compliance,'' gives credit for airplanes on which the service bulletin
has been accomplished before the effective date of this AD. These
exclusions are valid no matter the number of total flight hours on the
airplane. We have not changed the AD in this regard.

Clarifications of the AD

    We have clarified the applicability to include a reference to the
German standard airworthiness certificate or original German export
certificate of airworthiness. The applicability of the NPRM referred
only to the French standard airworthiness certificate or original
French export certificate of airworthiness. Some of the airplanes
affected by this AD were produced in Germany.
    We have removed the reference to Airbus A318/A319/A320/A321 MRBR
Task 26.23.00/03 or 26.23.00/07 in paragraph (f) of this AD to be
consistent with FAA policy and Office of the Federal Register
regulations. We may consider approving the use of Airbus A318/A319/
A320/A321 MRBR Task 26.23.00/03 or 26.23.00/07 as an alternative method
of compliance with this AD, as provided by paragraph (g)(1) of this AD.

Conclusion

    We reviewed the available data, including the comment received, and
determined that air safety and the public interest require adopting the
AD with the changes described previously. We determined that these
changes will not increase the economic burden on any operator or
increase the scope of the AD.

Differences Between This AD and the MCAI or Service Information

    We have reviewed the MCAI and related service information and, in
general, agree with their substance. But we might have found it
necessary to use different words from those in the MCAI to ensure the
AD is clear for U.S. operators and is enforceable. In making these
changes, we do not intend to differ substantively from the information

provided in the MCAI and related service information.
    We might also have required different actions in this AD from those
in the MCAI in order to follow our FAA policies. Any such differences
are highlighted in a NOTE within the AD.

Costs of Compliance

    We estimate that this AD will affect 679 products of U.S. registry.
We also estimate that it will take about 6 work-hours per product to
comply with the basic requirements of this AD. The average labor rate
is $80 per work-hour. Based on these figures, we estimate the cost of
this AD to the U.S. operators to be $325,920, or $480 per product.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, section 44701: General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify this AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this AD and placed it in the AD docket.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://
www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains the NPRM, the regulatory evaluation,
any comments received, and other information. The street address for
the Docket Operations office (telephone<PHONE_NUMBER>) is in the
ADDRESSES section. Comments will be available in the AD docket shortly
after receipt.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new AD:

2008-22-10 Airbus: Amendment 39-15706. Docket No. FAA-2008-0342;
Directorate Identifier 2007-NM-305-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective December
19, 2008.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Airbus Model A318, A319, A320, and A321
series airplanes, certificated in any category, all certified
models; all serial numbers which have received an original French or
German (as applicable) standard airworthiness certificate or
original French or German (as applicable) export certificate of
airworthiness prior to February 28, 2007, and have been fitted with
a cargo compartment fire extinguisher bottle installed in
production, or in service by an Airbus service bulletin; except
airplanes on which Airbus A318/A319/A320/A321 Maintenance Review
Board Report (MRBR) Task 26.23.00/03 or 26.23.00/07 has been
performed.

Subject

    (d) Air Transport Association (ATA) of America Code 26: Fire
Protection.

Reason

    (e) The mandatory continuing airworthiness information (MCAI)
states:
    During planned maintenance visit on one A320 aircraft, a cross
connection of the fire extinguishing circuit system was identified.
In case of fire, this cross connection will activate (discharge) the
wrong forward or aft cargo compartment fire extinguisher bottle.
    Failure to activate the correct bottle when required is
classified as potentially catastrophic.
    For the reasons described above, this AD requires a one-time
inspection and check of the cargo firing circuit continuity to
confirm the correct connection of the dedicated wires between the
discharge pushbutton switches and the relevant cargo bottle.

Corrective action includes modifying the wiring connection on plug
1505VC-A.

Actions and Compliance

    (f) Within 600 flight hours after the effective date of this AD,
unless already done, perform the inspection and continuity check of
the cargo firing circuit and, before next flight, do applicable
corrective actions, in accordance with the Accomplishment
Instructions of Airbus Mandatory Service Bulletin A320-26A1068,
Revision 01, dated July 19, 2007. Actions done before the effective
date of this AD in accordance with Airbus Service Bulletin A320-
26A1068, dated March 19, 2007, are considered acceptable for
compliance with the requirements of this AD.

FAA AD Differences

    Note 1: This AD differs from the MCAI and/or service information
as follows: No differences.

Other FAA AD Provisions

    (g) The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
has the authority to approve AMOCs for this AD, if requested using
the procedures found in 14 CFR 39.19. Send information to ATTN: Tim
Dulin, Aerospace Engineer, International Branch, ANM-116, Transport
Airplane Directorate, FAA, 1601 Lind Avenue, SW., Renton, Washington
98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Before
using any approved AMOC on any airplane to which the AMOC applies,
notify your appropriate principal inspector (PI) in the FAA Flight
Standards District Office (FSDO), or lacking a PI, your local FSDO.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.
    (3) Reporting Requirements: For any reporting requirement in
this AD, under the provisions of the Paperwork Reduction Act, the
Office of Management and Budget (OMB) has approved the information
collection requirements and has assigned OMB Control Number 2120-
0056.

Related Information

    (h) Refer to MCAI European Aviation Safety Agency (EASA)
Airworthiness Directive 2007-0249, dated September 24, 2007; and
Airbus Mandatory Service Bulletin A320-26A1068, Revision 01, dated
July 19, 2007; for related information.

Material Incorporated by Reference

    (i) You must use Airbus Mandatory Service Bulletin A320-26A1068,
Revision 01, excluding Appendix 01, dated July 19, 2007, to do the
actions required by this AD, unless the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact
Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France;
telephone +33 5 61 93 33 33; Internet http://www.airbus.com.
    (3) You may review copies at the FAA, Transport Airplane
Directorate, 1601 Lind Avenue, SW., Renton, Washington; or at the
National Archives and Records Administration (NARA). For information
on the availability of this material at NARA, call<PHONE_NUMBER>,
or go to: http://www.archives.gov/federal_register/code_of_
federal_regulations/ibr_locations.html.

    Issued in Renton, Washington, on October 9, 2008.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
 [FR Doc. E8-25640 Filed 11-13-08; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 212 (Wednesday, November 2, 2011)]
[Notices]
[Pages 67787-67790]
[FR Doc No: 2011-28348]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65645; File No. SR-FINRA-2011-059]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change To Adopt
FINRA Rule 3230 (Telemarketing) in the FINRA Consolidated Rulebook

October 27, 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 October 13, 2011, Financial Industry Regulatory Authority, Inc.
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc.
(``NASD'')) filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been substantially prepared by
FINRA. 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

    FINRA is proposing to adopt NASD Rule 2212 (Telemarketing) as FINRA
Rule 3230 (Telemarketing) in the consolidated FINRA rulebook, subject
to certain amendments. The proposed rule change would delete
Incorporated NYSE Rule 440A (Telephone Solicitation) and Incorporated
NYSE Rule Interpretation 440A/01. Additionally, the proposed rule
change would adopt provisions that are substantially similar to the
telemarketing rules of the Federal Trade Commission (``FTC'').
    The text of the proposed rule change is available on FINRA's Web
site at http://www.finra.org, at the principal office of FINRA, 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, FINRA 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. FINRA 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
    As part of the process of developing a new consolidated rulebook
(``Consolidated FINRA Rulebook''),\3\ FINRA is proposing to adopt NASD
Rule 2212 (Telemarketing) as FINRA Rule 3230 (Telemarketing) with
changes discussed below. The proposed rule change would delete
Incorporated NYSE Rule 440A \4\ (Telephone Solicitation) and
Incorporated NYSE Rule Interpretation 440A/01 as they are, in main
part, duplicative of NASD Rule 2212. However, as further described
below, the proposed rule change would incorporate certain provisions of
NYSE Rule 440A and its Interpretation into new FINRA Rule 3230.
Further, the proposed rule change adds provisions that are
substantially similar to FTC rules that prohibit deceptive and other
abusive telemarketing acts or practices as described below.
---------------------------------------------------------------------------

    \3\ The current FINRA rulebook consists of (1) FINRA Rules; (2)
NASD Rules; and (3) rules incorporated from NYSE (``Incorporated
NYSE Rules'') (together, the NASD Rules and Incorporated NYSE Rules
are referred to as the ``Transitional Rulebook''). While the NASD
Rules generally apply to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that are also members of
the NYSE (``Dual Members''). The FINRA Rules apply to all FINRA
members, unless such rules have a more limited application by their
terms. For more information about the rulebook consolidation
process, see Information Notice, March 12, 2008 (Rulebook
Consolidation Process).
    \4\ For convenience, the proposed rule change refers to
Incorporated NYSE Rules as NYSE Rules.
---------------------------------------------------------------------------

    NASD Rule 2212 and NYSE Rule 440A are similar rules that require
members to maintain do-not-call lists, limit the hours of telephone
solicitations, and prohibit members from using deceptive and abusive
acts and practices in connection with telemarketing. The Commission
directed FINRA and NYSE to enact these telemarketing rules in
accordance with the Telemarketing Consumer Fraud and Abuse Prevention
Act of 1994 (``Prevention Act'').\5\ The Prevention Act requires the
Commission to promulgate or direct any national securities exchange or
registered securities association to promulgate, rules substantially
similar to the FTC rules to prohibit deceptive and other abusive
telemarketing acts or practices.\6\
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 6101-6108.
    \6\ 15 U.S.C. 6102.
---------------------------------------------------------------------------

    In 2003, the FTC and the Federal Communications Commission
(``FCC'') established requirements for sellers and telemarketers to
participate in the national do-not-call registry.\7\ Pursuant to the
Prevention Act, the Commission requested that FINRA and NYSE amend
their telemarketing rules to include a requirement that their members
participate in the national do-not-call registry. In 2004, the
Commission approved amendments to NASD Rule 2212 requiring member firms
to participate in the national do-not-call registry.\8\ The following
year, the Commission approved amendments to NYSE Rule 440A, which were
similar to the NASD rule amendments, but included additional provisions
regarding the use of caller identification information, pre-recorded
messages, telephone facsimiles, and computer advertisements.\9\
---------------------------------------------------------------------------

    \7\ See 68 FR 4580 (January 29, 2003); 68 FR 44144 (July 25,
2003); CG Docket No. 02-278, FCC 03-153, (adopted June 26, 2003;
released July 3, 2003).
    \8\ See Securities Exchange Act Release No. 49055 (January 12,
2004), 69 FR 2801 (January 20, 2004) (approval order).
    \9\ See Securities Exchange Act Release No. 52579 (October 7,
2005), 70 FR 60119 (October 14, 2005) (approval order).
---------------------------------------------------------------------------

    As mentioned above, the Prevention Act requires the Commission to
promulgate, or direct any national securities exchange or registered
securities association to promulgate, rules substantially similar to
the FTC rules to prohibit deceptive and other abusive telemarketing
acts or practices.\10\ Earlier this year, Commission staff directed
FINRA to conduct a review of its telemarketing rule and propose rule
amendments that provide protections that are at least as strong as
those provided by the FTC's

telemarketing rules.\11\ Commission staff had concerns ``that the SRO
[self-regulatory organization] rules overall have not kept pace with
the FTC's rules, and thus may no longer meet the standards of the
Prevention Act.'' \12\
---------------------------------------------------------------------------

    \10\ See supra note 6.
    \11\ See Letter from Robert W. Cook, Director, Division of
Trading and Markets, SEC, to Richard G. Ketchum, Chairman and Chief
Executive Officer, FINRA, dated May 10, 2011.
    \12\ Id.
---------------------------------------------------------------------------

Proposed FINRA Rule 3230
    The proposed rule change would adopt NASD Rule 2212 into the
Consolidated FINRA Rulebook as FINRA Rule 3230 (Telemarketing) in the
consolidated FINRA rulebook, subject to certain amendments. The
proposed rule change would incorporate certain unique aspects of NYSE
Rule 440A and its Interpretation. Additionally, the proposed rule
change would make amendments and adopt provisions that are
substantially similar to rules promulgated by the FTC pursuant to the
Prevention Act.
    First, the proposed rule change would adopt into new FINRA Rule
3230 similar caller identification information provisions contained in
NYSE Rule 440A(h). These provisions provide that members engaging in
telemarketing must transmit caller identification information and are
explicitly prohibited from blocking caller identification information.
The telephone number provided must permit any person to make a do-not-
call request during normal business hours. Inclusion of these caller
identification information provisions in the proposed rule will not
create any new obligations on broker-dealers as they are already
subject to identical provisions under FCC regulations.\13\
---------------------------------------------------------------------------

    \13\ See 47 CFR 64.1601.
---------------------------------------------------------------------------

    The proposed rule change would not incorporate the additional
provisions in NYSE Rule 440A regarding pre-recorded messages and the
use of telephone facsimile or computer advertisements.\14\ Similar
provisions were never adopted by the FTC under the Prevention Act and
thus are not required to be part of SEC or SRO rules. Moreover, these
provisions in the NYSE rule are duplicative of similar FCC regulations
that are applicable to broker-dealers.\15\
---------------------------------------------------------------------------

    \14\ See NYSE Rule 440A(e), (g), (j)(3), (6), (8).
    \15\ See 47 CFR 64.1200.
---------------------------------------------------------------------------

    Second, the proposed rule change would adopt a provision that is
similar to NYSE Rule Interpretation 440A/01 as Supplementary Material.
The provision reminds firms that the rule does not affect the
obligation of any member or person associated with a member that
engages in telemarketing to comply with relevant state and federal laws
and rules, including the rules of the FCC relating to telemarketing
practices and the rights of telephone consumers. The proposed rule
change would not incorporate the remainder of NYSE Rule Interpretation
440A/01 because the requirement for a member to make and maintain a
list of persons who do not want to receive telephone solicitations is
duplicative of an existing provision in the NASD rule.\16\
---------------------------------------------------------------------------

    \16\ See NASD Rule 2212(d)(6).
---------------------------------------------------------------------------

    Third, the proposed rule change, as directed by the Commission
staff, would make amendments and adopt provisions that are
substantially similar to FTC rules that prohibit deceptive and other
abusive telemarketing acts or practices as described below.
Maintenance of Do-Not-Call Lists
    Proposed FINRA Rule 3230(d)(6) would maintain the requirement in
NASD Rule 2212(d)(6) that a member making an outbound telephone call
must maintain a record of a caller's request not to receive further
calls. However, the proposed rule change would delete the requirement
that a member honor a firm-specific do-not-call request for five years
from the time the request is made. Commission staff directed FINRA to
delete this provision because the time for which the firm-specific opt-
out must be honored under the FTC's Telemarketing Sales Rule \17\ is
indefinite, rather than five years as currently provided in the
rule.\18\
---------------------------------------------------------------------------

    \17\ See 16 CFR 310.
    \18\ See supra note 11.
---------------------------------------------------------------------------

Wireless Communications
    NASD Rule 2212(e) states that the provisions set forth in the rule
are applicable to members telemarketing or making telephone
solicitations calls to wireless telephone numbers. Proposed FINRA Rule
3230(e) would clarify that the application of the rule also applies to
persons associated with a member making outbound telephone calls to
wireless telephone numbers.
Outsourcing Telemarketing
    NASD Rule 2212(f) states that if a member uses another entity to
perform telemarketing services on its behalf, the member remains
responsible for ensuring compliance with all provisions contained in
the rule. Proposed FINRA Rule 3230(f) would clarify that members must
consider whether the entity or person that a member uses for
outsourcing, must be appropriately registered or licensed, where
required.
Unencrypted Consumer Account Numbers
    Proposed FINRA Rule 3230(h) would prohibit a member or person
associated with a member from disclosing or receiving, for
consideration, unencrypted consumer account numbers for use in
telemarketing. The proposed rule change is substantially similar to the
FTC's provision regarding unencrypted consumer account numbers.\19\ The
FTC provided a discussion of the provision when it was adopted pursuant
to the Prevention Act.\20\ Additionally, the proposed rule change would
define ``unencrypted'' as not only complete, visible account numbers,
whether provided in lists or singly, but also encrypted information
with a key to its decryption. The proposed definition is substantially
similar to the view taken by the FTC.\21\
---------------------------------------------------------------------------

    \19\ See 16 CFR 310.4(a)(6).
    \20\ See FTC, Telemarketing Sales Rule, 68 FR 4580 (January 29,
2003) at 4615.
    \21\ See id. at 4616.
---------------------------------------------------------------------------

Submission of Billing Information
    Proposed FINRA Rule 3230(i) would require, for any telemarketing
transaction, a member or person associated with a member to obtain the
express informed consent of the person to be charged, and to be charged
using the identified account. If the telemarketing transaction involves
preacquired account information and a free-to-pay conversion feature,
the member or person associated with a member would have to: (1) Obtain
from the customer, at a minimum, the last four digits of the account
number to be charged; (2) obtain from the customer an express agreement
to be charged and to be charged using the identified account number;
and (3) make and maintain an audio recording of the entire
telemarketing transaction. For any other telemarketing transaction
involving preacquired account information, the member or person
associated with a member would have to: (1) Identify the account to be
charged with sufficient specificity for the customer to understand what
account will be charged; and (2) obtain from the customer an express
agreement to be charged and to be charged using the identified account
number. The proposed rule change is substantially similar to the FTC's
provision regarding the submission of billing information.\22\ The FTC
provided a discussion of the provision when it was adopted pursuant to
the Prevention Act.\23\
---------------------------------------------------------------------------

    \22\ See 16 CFR 310.4(a)(7).
    \23\ See FTC, supra note 20, at 4615.

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

Abandoned Calls
    Proposed FINRA Rule 3230(j) would prohibit a member or person
associated with a member from abandoning any outbound telemarketing
call. The abandoned calls prohibition would be subject to a ``safe
harbor'' under proposed subparagraph (j)(2) that requires: (1) The
member or person associated with a member to employ technology that
ensures abandonment of no more than three percent of all calls answered
by a person, measured over the duration of a single calling campaign,
if less than 30 days, or separately over each successive 30-day period
or portion thereof that the campaign continues; (2) the member or
person associated with a member, for each telemarketing call placed,
allows the telephone to ring for at least 15 seconds or four rings
before disconnecting an unanswered call; (3) whenever a person
associated with a member is not available to speak with the person
answering the telemarketing call within two seconds after the person's
completed greeting, the member or person associated with a member
promptly plays a recorded message stating the name and telephone number
of the member or person associated with a member on whose behalf the
call was placed; and (4) the member to maintain records documenting
compliance with the ``safe harbor.'' The proposed rule change is
substantially similar to the FTC's provisions regarding abandoned
calls.\24\ The FTC provided a discussion of the provisions when they
were adopted pursuant to the Prevention Act.\25\
---------------------------------------------------------------------------

    \24\ See 16 CFR 310.4(b)(1)(iv); see also 16 CFR 310.4(b)(4).
    \25\ See FTC, supra note 20, at 4641.
---------------------------------------------------------------------------

Prerecorded Messages
    Proposed FINRA Rule 3230(k) would prohibit a member or person
associated with a member from initiating any outbound telemarketing
call that delivers a prerecorded message without a person's express
written agreement to receive such calls. The proposed rule change also
would require that all prerecorded telemarketing calls provide
specified opt-out mechanisms so that a person can opt out of future
calls. The prohibition would not apply to a prerecorded message
permitted for compliance with the ``safe harbor'' for abandoned calls
under proposed subparagraph (j)(2). The proposed rule change is
substantially similar to the FTC's provisions regarding prerecorded
messages.\26\ The FTC provided a discussion of the provisions when they
were adopted pursuant to the Prevention Act.\27\
---------------------------------------------------------------------------

    \26\ See 16 CFR 310.4(b)(1)(v).
    \27\ See Federal Trade Commission, Telemarketing Sales Rule, 73
FR 51164 (August 29, 2008).
---------------------------------------------------------------------------

Credit Card Laundering
    Proposed FINRA Rule 3230(l) would prohibit credit card laundering,
the practice of depositing into the credit card system a sales draft
that is not the result of a credit card transaction between the
cardholder and the member. Except as expressly permitted, the proposed
rule change would prohibit a member or person associated with a member
from: (1) Presenting to or depositing into, the credit card system for
payment, a credit card sales draft generated by a telemarketing
transaction that is not the result of a telemarketing credit card
transaction between the cardholder and the member; (2) employing,
soliciting, or otherwise causing a merchant, or an employee,
representative or agent of the merchant, to present to or to deposit
into the credit card system for payment, a credit card sales draft
generated by a telemarketing transaction that is not the result of a
telemarketing credit card transaction between the cardholder and the
merchant; or (3) obtaining access to the credit card system through the
use of a business relationship or an affiliation with a merchant, when
such access is not authorized by the merchant agreement or the
applicable credit card system. The proposed rule change is
substantially similar to the FTC's provisions regarding credit card
laundering.\28\ The FTC provided a discussion of the provisions when
they were adopted pursuant to the Prevention Act.\29\
---------------------------------------------------------------------------

    \28\ See 16 CFR 310.2.
    \29\ See Federal Trade Commission, Telemarketing Sales Rule, 60
FR 43842 (August 23, 1995) at 43852.
---------------------------------------------------------------------------

Definitions
    Proposed FINRA Rule 3230(m) would adopt definitions that are
substantially similar to the FTC's definitions.\30\ The proposed rule
change would adopt substantially similar definitions of ``acquirer,''
\31\ ``billing information,'' \32\ ``caller identification service,''
\33\ ``cardholder,'' \34\ ``charitable contribution,'' \35\ ``credit,''
\36\ ``credit card,'' \37\ ``credit card sales draft,'' \38\ ``credit
card system,'' \39\ ``customer,'' \40\ ``donor,'' \41\ ``free-to-pay
conversion,'' \42\ ``merchant,'' \43\ ``merchant agreement,'' \44\
``outbound telephone call,'' \45\ ``person'' \46\ and ``preacquired
account information.'' \47\ Additionally, the proposed rule change
amends the definition of ``telemarketing'' to track the FTC definition
and deletes the reference to ``telephone solicitation.'' The FTC
provided a discussion of each definition when they were adopted
pursuant to the Prevention Act.\48\
---------------------------------------------------------------------------

    \30\ See 16 CFR 310.2.
    \31\ See 16 CFR 310.2(a).
    \32\ See 16 CFR 310.2(c).
    \33\ See 16 CFR 310.2(d).
    \34\ See 16 CFR 310.2(e).
    \35\ See 16 CFR 310.2(f).
    \36\ See 16 CFR 310.2(h).
    \37\ See 16 CFR 310.2(i).
    \38\ See 16 CFR 310.2(j).
    \39\ See 16 CFR 310.2(k).
    \40\ See 16 CFR 310.2(l).
    \41\ See 16 CFR 310.2(n).
    \42\ See 16 CFR 310.2(p).
    \43\ See 16 CFR 310.2(s).
    \44\ See 16 CFR 310.2(t).
    \45\ See 16 CFR 310.2(v).
    \46\ See 16 CFR 310.2(w).
    \47\ See 16 CFR 310.2(x).
    \48\ See FTC, supra note 29, at 43843; see also FTC, supra note
20, at 4587.
---------------------------------------------------------------------------

Technical and Conforming Changes
    The proposed rule change also would make a number of minor
technical and conforming changes. First, proposed FINRA Rule 3230(m)
would renumber and make minor technical changes to the terms ``account
activity,'' ``broker-dealer of record'' and ``established business
relationship.'' Second, proposed FINRA Rule 3230 would amend paragraphs
(a), (b) and (c) by replacing the term ``telephone solicitation'' with
the term ``outbound telephone call.'' Third, proposed FINRA Rule
3230(d) would replace the term ``telemarketing call'' with the term
``outbound telephone call.'' Fourth, the proposed rule change would
update a reference to an ``established business relationship'' in
subparagraph (a)(1)(A). Finally, the proposed rule change would amend
paragraph (b) to clarify that a signed, written agreement may be
obtained electronically under the E-Sign Act.
    FINRA will announce the implementation date of the proposed rule
change in a Regulatory Notice to be published no later than 90 days
following Commission approval. The implementation date will be no later
than 180 days following Commission approval.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\49\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in

general, to protect investors and the public interest. FINRA believes
that the proposed rule change will protect investors and the public
interest by continuing to prohibit deceptive and other abusive
telemarketing acts or practices.
---------------------------------------------------------------------------

    \49\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA 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.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) As the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be 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<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2011-059 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-FINRA-2011-059. 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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of FINRA. 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-FINRA-2011-059 and should be
submitted on or before November 23, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\50\
---------------------------------------------------------------------------

    \50\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-28348 Filed 11-1-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: June 12, 2008 (Volume 73, Number 114)]
[Notices]
[Page 33477-33479]
[DOCID:fr12jn08-114]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57924; File No. SR-NASDAQ-2008-048]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Modifying Pricing for Nasdaq Members Using the Nasdaq Market Center

June 5, 2008.
    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 May 30, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared substantially by Nasdaq.
Nasdaq has designated this proposal as one establishing or changing a
member due, fee, or other charge imposed by Nasdaq under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Nasdaq proposes to modify pricing for Nasdaq members using the
Nasdaq Market Center. Nasdaq will implement this rule change on June 2,
2008. The text of the proposed rule change is available at http://
www.nasdaq.com, the principal offices of the Exchange, and 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, Nasdaq 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. Nasdaq 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 increase the liquidity provider credit paid
to high volume liquidity providers with respect to their transactions
in securities listed on exchanges other than Nasdaq and the New York
Stock Exchange (``Tape B Securities''). At the same time, Nasdaq is
proposing to eliminate its market data revenue sharing program for
executions of Tape B Securities occurring on Nasdaq. Finally, Nasdaq is
proposing to delete Nasdaq Rule 7024, which formerly established a
revenue sharing program for market participants trading on Nasdaq's
discontinued SuperMontage trading system.
    Currently, members that provide an average daily volume through the
Nasdaq Market Center in all securities during the month of more than 35
million shares of liquidity provided receive a credit of $0.0028 per
share for executions against displayed liquidity and $0.0015 per share
for executions against non-displayed liquidity. For executions in Tape
B Securities only, Nasdaq is increasing the credit for executions
against displayed liquidity to $0.0031.
    As is currently the case, members with an average daily volume
through the Nasdaq Market Center in all securities during the month of
more than 20 million shares of liquidity provided (but that do not
qualify for the higher credit described in the preceding sentence) will
receive a credit of $0.0025 per share for executions against displayed
liquidity and $0.001 per share for executions against non-displayed
liquidity; and other members will receive a credit of $0.002 per share
for executions against displayed liquidity and $0.001 per share for
executions against non-displayed liquidity.
    At the same time, Nasdaq is eliminating its program for market data
revenue sharing in Tape B securities. Currently, Nasdaq pays to
liquidity providers in Tape B Securities 50% of the market data revenue
associated with transactions in Tape B Securities executed through the
Nasdaq Market

Center. Nasdaq believes that by focusing incentives for liquidity
provision solely on direct transaction credits and away from market
data revenue sharing, Nasdaq will enhance the transparency of its
pricing. Nasdaq believes that market participants will prefer this
approach because revenue sharing is paid on an estimated monthly basis
with a quarterly ``true-up'', and therefore the value of revenue
sharing is difficult for market participants to predict in advance. As
a result of the change, Nasdaq will no longer share market data revenue
with its market participants. Revenue sharing with firms reporting
over-the-counter trades to the FINRA/NASDAQ Trade Reporting Facility
will continue, however, as provided by NASD Rule 7001B.
    These changes reflect the continued extent of competition among
transaction execution venues for all securities, including Tape B
Securities. Notably, NYSE Arca has recently submitted a proposed rule
change to reduce Tape B Securities execution and routing fees for
market participants with high volumes of order execution, routing and
liquidity provision.\5\ Nasdaq believes that by increasing the
liquidity provider credit for market participants with high volumes of
liquidity provision while simplifying pricing through the elimination
of market data revenue sharing, Nasdaq will attract higher levels of
liquidity and transparency to its market, notwithstanding pricing
changes by competing venues.
---------------------------------------------------------------------------

    \5\ SR-NYSEArca-2008-53.
---------------------------------------------------------------------------

    Finally, Nasdaq is deleting Rule 7024, which is now obsolete and
may be removed from the Nasdaq rulebook. The rule provided for sharing
a percentage of operating revenue, as determined by the Nasdaq Board of
Directors, with ``Nasdaq Quoting Market Participants,'' as defined in
former Rule 4701. Rule 4701 defined categories of participants in
Nasdaq's former SuperMontage execution system, which ended operations
in 2006.\6\ Accordingly, the rule became obsolete at that time, and
revenue sharing under the rule was discontinued.
---------------------------------------------------------------------------

    \6\ Securities Exchange Act Release No. 54155 (July 14, 2006),
71 FR 41291 (July 20, 2006) (SR-NASDAQ-2006-001).
---------------------------------------------------------------------------

2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(4) of the Act,\8\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system
which Nasdaq operates or controls.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The impact of the changes upon the net fees paid by a particular
market participant will depend upon a number of variables, including
its monthly volume, the order types it uses, and the prices of its
quotes and orders (i.e., its propensity to add or remove liquidity).
Nasdaq notes that it operates in a highly competitive market in which
market participants can readily direct order flow to competing venues
if they deem fee levels at a particular venue to be excessive. Although
the proposed rule change may increase net charges for market
participants that trade Tape B Securities through Nasdaq but that do
not provide high levels of liquidity, Nasdaq believes that its fees
remain competitive with those charged by other venues and therefore
continue to be reasonable and equitably allocated to those members that
opt to direct orders to Nasdaq rather than competing venues.

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.

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

    The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-
4(f)(2) \10\ thereunder, because it establishes or changes a due, fee,
or other charge imposed on members by Nasdaq. Accordingly, the proposal
is effective upon filing with the Commission.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.

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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2008-048 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2008-048. This
file number should be included on the subject line if e-mail 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 inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, 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 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 publicly available. All
submissions should refer to File Number SR-NASDAQ-2008-048 and should
be submitted on or before July 3, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-13158 Filed 6-11-08; 8:45 am]

BILLING CODE 8010-01-P