[Federal Register Volume 77, Number 195 (Tuesday, October 9, 2012)]
[Notices]
[Pages 61452-61453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24733]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67961; File No. SR-NASDAQ-2012-043]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Designation of Longer Period for Commission Action on 
Proceedings To Determine Whether To Approve or Disapprove Proposed Rule 
Change, as Modified by Amendment No. 1 Thereto, To Establish the Market 
Quality Program

October 2, 2012.
    On March 23, 2012, The NASDAQ Stock Market LLC (``Exchange'' or 
``NASDAQ'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to establish the Market Quality Program. On March 
29, 2012, the Exchange submitted Amendment No. 1 to the proposed rule 
change.\3\ The proposed rule change, as modified by Amendment No. 1 
thereto, was published for comment in the Federal Register on April 12, 
2012.\4\ The Commission initially received fifteen comment letters on 
the proposed rule change.\5\ On May 18, 2012, pursuant to Section 
19(b)(2) of the Act,\6\ the Commission extended the time period for 
Commission action on the proposed rule change to July 11, 2012.\7\ The 
Commission subsequently received three additional comment letters on 
the proposed rule change and a response letter from the Exchange.\8\ On 
July 11, 2012, the Commission instituted proceedings to determine 
whether to approve or disapprove the proposed rule change, as modified 
by Amendment No. 1.\9\ The Commission thereafter received six comment 
letters and two response letters from the Exchange.\10\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, NASDAQ made a technical amendment to 
Item I of Exhibit 1 to delete an erroneous reference to the NASDAQ 
Options Market and replace it with a reference to NASDAQ.
    \4\ Securities Exchange Act Release No. 66765 (April 6, 2012), 
77 FR 22042.
    \5\ See Letter from Frank Choi, dated April 13, 2012; Letter 
from Christopher J. Csicsko, dated April 14, 2012; Letter from 
Jeremiah O'Connor III, dated April 14, 2012; Letter from Dezso J. 
Szalay, dated April 15, 2012; Letter from Kathryn Keita, dated April 
18, 2012; Letter; Letter from Anonymous, dated April 18, 2012; 
Letter from Mark Connell, dated April 19, 2012; Letter from Timothy 
Quast, Managing Director, Modern Networks IR LLC, dated April 26, 
2012; Letter from Daniel G. Weaver, Ph.D., Professor of Finance, 
Rutgers Business School, dated April 26, 2012; Letter from Amber 
Anand, Associate Professor of Finance, Syracuse University, dated 
April 29, 2012; Letter from Albert J. Menkveld, Associate Professor 
of Finance, VU University Amsterdam, dated May 2, 2012; Letter from 
James J. Angel, Associate Professor of Finance, Georgetown 
University, dated May 2, 2012; Letter from Ari Burstein, Senior 
Counsel, Investment Company Institute, dated May 3, 2012; Letter 
from Gus Sauter, Managing Director and Chief Investment Officer, 
Vanguard, dated May 3, 2012; and Letter from Leonard J. Amoruso, 
General Counsel, Knight Capital Group, Inc., dated May 4, 2012.
    \6\ 15 U.S.C. 78s(b)(2).
    \7\ See Securities Exchange Act Release No. 67022 (May 18, 
2012), 77 FR 31050 (May 24, 2012).
    \8\ See Letter from Gary L. Gastineau, Managing Member, ETF 
Consultants LLC, dated June 11, 2012; Letter from Rey Ramsey, 
President & CEO, TechNet, dated June 20, 2012; and Letter from 
Stuart J. Kaswell, Executive Vice President & Managing Director, 
General Counsel, Managed Funds Association, dated July 3, 2012. See 
Letter from Joan C. Conley, Senior Vice President & Corporate 
Secretary, NASDAQ, dated July 6, 2012.
    \9\ See Securities Exchange Act Release No. 67411, 77 FR 42052 
(July 17, 2012).
    \10\ See Letter from Joseph Cavatoni, Managing Director, and 
Joanne Medero, Managing Director, BlackRock, Inc., dated July 11, 
2012; Letter from Stanislav Dolgopolov, Assistant Adjunct Professor, 
UCLA School of Law, dated August 15, 2012; Letter from James E. 
Ross, Global Head, SPDR Exchange Traded Funds, State Street Global 
Advisors, dated August 16, 2012; Letter from Ari Burstein, Senior 
Counsel, Investment Company Institute, dated August 16, 2012; Letter 
from F. William McNabb, Chairman and Chief Executive Officer, 
Vanguard, dated August 16, 2012; and Letter from Andrew Stevens, 
Legal Counsel, IMC Chicago, LLC d/b/a IMC Financial Markets, dated 
August 16, 2012. See Letters from Joan C. Conley, Senior Vice 
President & Corporate Secretary, NASDAQ OMX LLC, dated August 30, 
2012 and Jurij Trypupenko, Esq., NASDAQ, dated September 7, 2012.
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    Section 19(b)(2) of the Act \11\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. The 
proposed rule change was published for notice and comment in the 
Federal Register on April 12, 2012. October 9, 2012 is 180 days from 
that date, and December 8, 2012 is 240 days from that date.
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    \11\ 15 U.S.C. 78s(b)(2).
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    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider this proposed 
rule change, the issues raised in the comment letters that have been 
submitted in response to the proposed rule change, including comment 
letters submitted in response

[[Page 61453]]

to the Order Instituting Proceedings, and the Exchange's responses to 
such comments.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\12\ designates December 8, 2012 as the date by which the 
Commission should either approve or disapprove the proposed rule change 
(File Number SR-NASDAQ-2012-043).
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    \12\ 15 U.S.C. 78s(b)(2).
    \13\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24733 Filed 10-5-12; 8:45 am]
BILLING CODE 8011-01-P