[Federal Register Volume 77, Number 250 (Monday, December 31, 2012)]
[Notices]
[Pages 77168-77171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31236]



[[Page 77168]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68512; File No. SR-NASDAQ-2012-142]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing of Proposed Rule Change with Respect to the Amendment 
of the By-Laws of its Parent Corporation, The NASDAQ OMX Group, Inc.

December 21, 2012.
    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 December 19, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``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 by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes a rule change with respect to the amendment 
of the by-laws of its parent corporation, The NASDAQ OMX Group, Inc. 
(``NASDAQ OMX'' or the ``Corporation''). The text of the proposed rule 
change is available at http://nasdaq.cchwallstreet.com, at NASDAQ's 
principal office, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NASDAQ OMX is proposing amendments to provisions of its By-Laws 
pertaining to the compositional requirements of the NASDAQ OMX Board. 
The changes are primarily focused on amending the definition of 
``Industry Director'' (and ``Industry committee member'') \3\ to make 
the definition less restrictive, but in a manner that NASDAQ believes 
will continue to serve the purpose of ensuring that members and member 
organizations of Self-Regulatory Subsidiaries \4\--the self-regulatory 
organizations owned by NASDAQ OMX--do not have disproportionate 
influence on its governance. In making the change, NASDAQ OMX is 
adapting concepts already approved by the Commission in its review of 
the Independence Policy of the NYSE Euronext Board of Directors (the 
``Independence Policy'').\5\ The proposed rule change also makes 
several other changes to provisions pertaining to the Board's 
compositional requirements and categorization of Directors.
---------------------------------------------------------------------------

    \3\ The term ``committee member'' in the By-Laws refers to 
membership in the committees authorized under Section 4.13 of the 
By-Laws, such as the Executive Committee and the Audit Committee. 
Under the By-Laws and the Delaware General Corporation Law, all 
members of committees with the power and authority to act on behalf 
of the Board in the management of the business and affairs of NASDAQ 
OMX must themselves be Directors. Accordingly, the definitions of 
``Industry Director'' and ``Industry committee member'' are 
coterminous as applied to any member of these committees. The By-
Laws do not presently contemplate any committees with non-Director 
members.
    \4\ The By-Laws define each of NASDAQ, NASDAQ OMX BX, Inc. 
(``BX''), NASDAQ OMX PHLX LLC (``Phlx''), the Boston Stock Exchange 
Clearing Corporation (``BSECC''), and the Stock Clearing Corporation 
of Philadelphia (``SCCP'') as a ``Self-Regulatory Subsidiary''.
    \5\ Securities Exchange Act Release No. 51217 (February 16, 
2005), 70 FR 9688 (February 28, 2005) (SR-NYSE-2004-54); Securities 
Exchange Act Release No. 55293 (February 14, 2007), 72 FR 8033 
(February 22, 2007) (SR-NYSE-2006-120); Securities Exchange Act 
Release No. 67564 (August 1, 2012), 77 FR 47161) (SR-NYSE-2012-17; 
SR-NYSEArca-2012-59; SR-NYSEMKT-2012-07).
---------------------------------------------------------------------------

Definitions

    The By-Laws require Directors to be assigned to certain defined 
categories, based on their current and past affiliations.\6\ 
Specifically, Directors may be categorized as ``Industry Directors,'' 
``Non-Industry Directors,'' ``Public Directors,'' and/or ``Staff 
Directors.'' Currently, an Industry Director is defined as a Director 
who:

    \6\ As discussed above, the categories also govern the 
classification of members of committees of NASDAQ OMX, as provided 
for in the By-Laws.
---------------------------------------------------------------------------

    (1) Is or has served in the prior three years as an officer, 
director, or employee of a broker or dealer, excluding an outside 
director or a director not engaged in the day-to-day management of a 
broker or dealer;
    (2) Is an officer, director (excluding an outside director), or 
employee of an entity that owns more than ten percent of the equity 
of a broker or dealer, and the broker or dealer accounts for more 
than five percent of the gross revenues received by the consolidated 
entity;
    (3) Owns more than five percent of the equity securities of any 
broker or dealer, whose investments in brokers or dealers exceed ten 
percent of his or her net worth, or whose ownership interest 
otherwise permits him or her to be engaged in the day-to-day 
management of a broker or dealer;
    (4) Provides professional services to brokers or dealers, and 
such services constitute 20 percent or more of the professional 
revenues received by the Director or 20 percent or more of the gross 
revenues received by the Director's firm or partnership;
    (5) Provides professional services to a director, officer, or 
employee of a broker, dealer, or corporation that owns 50 percent or 
more of the voting stock of a broker or dealer, and such services 
relate to the director's, officer's, or employee's professional 
capacity and constitute 20 percent or more of the professional 
revenues received by the Director or 20 percent or more of the gross 
revenues received by the Director's firm or partnership; or
    (6) has a consulting or employment relationship with or provides 
professional services to the Corporation or any affiliate\7\ thereof 
(including any Self-Regulatory Subsidiary) or to the Financial 
Industry Regulatory Authority (``FINRA'') (or any predecessor) or 
has had any such relationship or provided any such services at any 
time within the prior three years.

    \7\ NASDAQ OMX is adding a definition of ``affiliate'' as 
follows: ``An `affiliate' of, or a person `affiliated' with, a 
specified person, is a person that directly, or indirectly through 
one or more intermediaries, controls, or is controlled by, or is 
under common control with, the person specified.'' The definition is 
identical to the definition of the term in SEC Rule 12b-2, 17 CFR 
240.12b-2.
---------------------------------------------------------------------------

    Thus, the current definition focuses on a Director's affiliation 
with any broker-dealer, regardless of whether the broker-dealer is a 
member or member organization of a Self-Regulatory Subsidiary. The 
definition also features a three-year ``look-back'' period during which 
a Director formerly associated with a broker-dealer would continue to 
be deemed an Industry Director. In lieu of this definition, NASDAQ OMX 
is proposing to adopt a definition that focuses on whether a Director 
is affiliated with a member or a member organization of a Self-
Regulatory Subsidiary. Under the revised definition, an Industry 
Director will be defined as a Director who:
    (1) Is, or within the last year was, or has an immediate family 
member \8\ who

[[Page 77169]]

is, or within the last year was, a member of a Self-Regulatory 
Subsidiary; \9\
---------------------------------------------------------------------------

    \8\ NASDAQ OMX is adding a definition of ``immediate family 
member'' as follows: ``Immediate family member' means a person's 
spouse, parents, children and siblings, whether by blood, marriage 
or adoption, or anyone residing in such person's home.'' The 
definition is identical to the definition of ``family member'' 
contained in NASDAQ listing standards, as provided in NASDAQ Rule 
5605.
    \9\ This provision would apply to an individual that was a 
member of Phlx, the only Self-Regulatory Subsidiary that allows 
natural persons to become members.
---------------------------------------------------------------------------

    (2) Is, or within the last year was, employed by a member or a 
member organization of a Self-Regulatory Subsidiary; \10\
---------------------------------------------------------------------------

    \10\ A broker-dealer that is admitted to membership in Phlx is 
referred to as a ``member organization;'' broker-dealers admitted to 
membership in the other Self-Regulatory Subsidiaries are referred to 
as ``members.''
---------------------------------------------------------------------------

    (3) Has an immediate family member who is, or within the last year 
was, an executive officer of a member or a member organization\11\ of a 
Self-Regulatory Subsidiary;
---------------------------------------------------------------------------

    \11\ An ``Executive Officer'' of a member or member organization 
means those officers covered in Rule 16a-1(f) under the Act, as if 
the member or member organization were an issuer within the meaning 
of such Rule. 17 CFR 240.16a-1(f).
---------------------------------------------------------------------------

    (4) Has within the last year received from any member or member 
organization of a Self-Regulatory Subsidiary more than $100,000 per 
year in direct compensation, or received from such members or member 
organizations in the aggregate an amount of direct compensation that in 
any one year is more than 10 percent of the Director's annual gross 
compensation for such year, excluding in each case director and 
committee fees and pension or other forms of deferred compensation for 
prior service (provided such compensation is not contingent in any way 
on continued service); or
    (5) Is affiliated, directly or indirectly, with a member or member 
organization of a Self-Regulatory Subsidiary.
    NASDAQ OMX believes that the change is warranted to ensure that the 
definition of Industry Director is appropriately focused on the 
mitigation of potential conflicts of interest associated with Directors 
who are currently or were very recently employed by members or member 
organizations of Self-Regulatory Subsidiaries, or that otherwise have 
material affiliations with such members or member organizations. The 
current definition covers individuals who are employed by broker-
dealers that are not members of Self-Regulatory Subsidiaries, or who 
retired from service at a broker-dealer more than one, but less than 
three years in the past. NASDAQ OMX and the Exchange believe that by 
deeming such potential Directors to be Industry Directors, the current 
By-Laws unnecessarily restrict highly qualified individuals with 
extensive knowledge of the financial services industry from serving on 
the Board.
    In addition to this change, NASDAQ OMX is also proposing the 
following additional changes to the definitions applicable to 
categories of Directors:
    (1) NASDAQ OMX proposes a new definition of ``Staff Director.'' 
Currently, the definition of ``Staff Director'' is included within the 
definition of ``Industry Director,'' and is defined as ``any two 
officers of the Corporation, selected at the sole discretion of the 
Board, amongst those officers who may be serving as Directors.'' By 
virtue of being designated as Staff Directors, these Directors are not 
considered to be Industry Directors for purposes of the compositional 
requirements of the By-Laws. Instead, NASDAQ OMX proposes a separate 
definition of ``Staff Director'' as ``an officer of the Corporation 
that is serving as a Director.'' \12\ As discussed below, however, 
Section 4.3 of the By-Laws is to be amended to provide that only one 
Staff Director may serve on the Board, unless the Board consists of ten 
or more Directors, in which case no more than two Staff Directors may 
serve. Thus, the change will further restrict the number of possible 
Staff Directors in instances where the Board is smaller than ten 
Directors, while retaining the current limit for a larger Board.
---------------------------------------------------------------------------

    \12\ The definition of ``Industry Director'' will continue to 
exclude Staff Directors, who might otherwise be considered Industry 
Directors by virtue of affiliation with NASDAQ Exchange Services LLC 
and NASDAQ Options Services, LLC, registered broker-dealers that are 
members or NASDAQ and BX and member organizations of Phlx.
---------------------------------------------------------------------------

    (2) NASDAQ OMX is adopting a new definition of ``Issuer Director'' 
and ``Issuer committee member''. The By-Laws currently provide that the 
number of ``Non-Industry Directors'' (i.e., Directors who are not 
Industry Directors) must equal or exceed the number of Industry 
Directors, and shall include at least one ``issuer representative,'' 
unless the Board consists of ten or more Directors, in which case it 
must include at least two issuer representatives. NASDAQ OMX and the 
Exchange believe that requiring the representation of issuers on the 
Board is consistent with the goal of promoting a diversity of 
viewpoints and skills among Directors and the requirement of Section 
6(b)(3) of the Act \13\ to provide for representation of issuers among 
the directors of a national securities exchange. The term ``issuer 
representative'' is not directly defined in the By-Laws, but is 
implicitly defined in the definition of ``Non-Industry Director'' as 
``an officer, director, or employee of an issuer of securities listed 
on a national securities exchange operated by any Self-Regulatory 
Subsidiary.'' The new proposed definition is ``a Director (excluding 
any Staff Director) or committee member who is an officer or employee 
of an issuer of securities listed on a national securities exchange 
operated by any Self-Regulatory Subsidiary, excluding any Director or 
committee member who is a director of such an issuer but is not also an 
officer or employee of such an issuer.'' The exclusion of Staff 
Directors from the definition is necessary because NASDAQ OMX is listed 
on NASDAQ, but the purposes of the By-Laws in requiring issuer 
representation to promote a diversity of viewpoints among Directors 
would not be well served by deeming Staff Directors also to be Issuer 
Directors. The definition is also being changed to exclude persons who 
are directors of issuers but not also officers or employees. This 
change is intended to make it clear that a Director is not barred from 
being considered a Public Director \14\ merely because the Director 
serves as an independent director of another listed company.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b)(3).
    \14\ The definition of Public Director is discussed below.
---------------------------------------------------------------------------

    (3) The definition of ``Public Director'' and ``Public committee 
member'' is being restated as follows: ``a Director or committee member 
who (1) Is not an Industry Director or Industry committee member, (2) 
is not an Issuer Director or Issuer committee member, and (3) has no 
material business relationship with a member or member organization of 
a Self-Regulatory Subsidiary, the Corporation or its affiliates, or 
FINRA.'' The definition currently covers a person who ``has no material 
business relationship with a broker or dealer, the Corporation or its 
affiliates, or FINRA.'' Thus, the changes make it clear that any 
Industry Director or Issuer Director would not be considered a Public 
Director. As noted above, however, an independent director of an issuer 
of securities listed on NASDAQ could be considered a Public Director. 
In addition, in keeping with the change to the definition of Industry 
Director discussed above, the final clause of the definition is being 
revised to focus on the existence of a material business relationship 
with a member or member organization of a Self-Regulatory Subsidiary, 
rather than any broker or dealer. Thus, for example, a Director that 
had a material business relationship with a non-U.S. broker or dealer 
that was not a member or a member organization of a Self-Regulatory

[[Page 77170]]

Subsidiary might be eligible to be a Public Director.
    (4) The definition of ``Non-Industry Director'' or ``Non-Industry 
committee member'' is proposed to be amended to cover any ``Director 
(excluding any Staff Director) or committee member who is (1) A Public 
Director or Public committee member; (2) an Issuer Director or Issuer 
committee member; or (3) any other individual who would not be an 
Industry Director or Industry committee member.'' The revised 
definition is generally consistent with the current definition, but 
reflects the adoption of a definition for ``Issuer Director or Issuer 
committee member''.
    (5) NASDAQ OMX is making conforming changes to the letter 
designations of paragraphs in Article I of the By-Laws.
    Qualifications of Directors
    NASDAQ OMX is proposing to amend Section 4.3 of the By-Laws, which 
governs the qualifications and compositional requirements of the Board 
of Directors, to (i) Increase the required number of Public Directors 
from one to two, (ii) replace the requirement to include at least one 
issuer representative (or at least two issuer representatives if the 
Board consists of ten or more Directors) with a requirement to include 
at least one, but no more than two, Issuer Directors, and (iii) provide 
that the number of Staff Directors may not exceed one, unless the Board 
consists of ten or more Directors, in which case the number may not 
exceed two. The section will continue to require that the number of 
Non-Industry Directors equals or exceeds the number of Industry 
Directors. Although these changes will not significantly modify the 
Board's compositional requirements, they will continue to ensure a 
diversity of representation among Industry, Staff, Issuer, and Public 
Directors, will place more stringent caps on the number of Issuer and 
Staff Directors, and will increase the requirement for Public 
Directors. NASDAQ OMX also proposes to make a conforming change to add 
the term ``Issuer Director'' to Section 4.8 and Section 4.13(h), which 
govern the filling of vacancies on the Board and the determination of 
Directors' qualifications by NASDAQ OMX's Secretary.
    The changes to the compositional requirements imposed specifically 
by the By-Laws do not alter in any respect the compositional 
requirements imposed by NASDAQ listing standards on NASDAQ OMX as a 
public company. Specifically, NASDAQ Rule 5605 requires that the board 
of directors of a company listed on NASDAQ must have a majority of 
directors that are ``independent'' within the meaning of that rule. As 
provided in NASDAQ Rule 5605(a)(2) with respect to a company listed on 
NASDAQ (a ``Company''), '' `Independent Director' means a person other 
than an Executive Officer \15\ or employee of the Company or any other 
individual having a relationship which, in the opinion of the Company's 
board of directors, would interfere with the exercise of independent 
judgment in carrying out the responsibilities of a director.'' The rule 
goes on to provide that directors having certain defined relationships 
with a Company may not be considered independent. Thus, while Staff 
Directors are clearly not independent within the meaning of Rule 5605, 
other Directors may or may not be considered independent, depending on 
the specific facts of their relationship to NASDAQ OMX. The proposed 
rule change does not alter in any respect the obligations of the NASDAQ 
OMX Board under NASDAQ Rule 5605.
---------------------------------------------------------------------------

    \15\ NASDAQ Rule 5605(a)(1) provides that '' `Executive Officer' 
means those officers covered in Rule 16a-1(f) under the Act.'' 17 
CFR 240.16a-1(f).
---------------------------------------------------------------------------

Composition of Executive Committee

    NASDAQ OMX is proposing a minor amendment to the compositional 
requirements of its Executive Committee. Currently, Section 4.13(d) of 
the By-Laws provides that the percentage of Public Directors on the 
Executive Committee must be at least as great as the percentage of 
Public Directors on the whole Board. As noted above, however, the By-
Laws currently require only one Public Director on the whole Board (a 
requirement that NASDAQ OMX is proposing to raise to two Public 
Directors). Thus, the By-Laws currently reflect a standard under which 
voluntary inclusion of additional Public Directors on the full Board 
translates into a requirement to include ever increasing numbers of 
Public Directors on the Executive Committee, even though the 
requirements for the full Board itself may be satisfied with only one 
Public Director. Accordingly, NASDAQ OMX is proposing to make the 
requirements consistent by requiring at least two Public Directors on 
the Executive Committee.

Composition of the Audit Committee

    Earlier this year, the Commission approved changes to the 
provisions of NASDAQ OMX's By-Laws pertaining to the composition of the 
Management Compensation Committee of its Board of Directors. NASDAQ OMX 
is now proposing comparable changes to the compositional requirements 
of its Audit Committee. Specifically, NASDAQ OMX is proposing to amend 
Section 4.13(g) to replace a requirement that the Audit Committee be 
composed of a majority of Non-Industry Directors with a requirement 
that the number of Non-Industry Directors on the committee equal or 
exceed the number of Industry Directors. Thus, in the case of a 
committee composed of four Directors, the current By-Law provides that 
only one Director may be an Industry Director, while the amended By-Law 
would allow up to two Directors to be Industry Directors. The proposed 
compositional requirement for the committee with regard to the balance 
between Industry Directors and Non-Industry Directors would be the same 
as that already provided for in the By-Laws with respect to the 
Executive Committee, the Nominating and Governance Committee, the 
Management Compensation Committee, and the full Board of Directors.
    NASDAQ OMX and the Exchange believe that the change will provide 
greater flexibility to NASDAQ OMX with regard to populating a committee 
that includes Directors with relevant expertise and that is not 
excessively large in relation to the size of the full Board of 
Directors, while continuing to ensure that Directors associated with 
members and member organizations of the Self-Regulatory Subsidiaries do 
not exert disproportionate influence of the governance of NASDAQ OMX. 
As required by Section 10A of the Act,\16\ SEC Rule 10A-3 
thereunder,\17\ and NASDAQ Rule 5605(c), the committee would continue 
at all times to be composed solely of Directors who are independent 
within the meaning of those provisions.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78j-1.
    \17\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\18\ in general, and with 
Sections 6(b)(1) and (b)(5) of the Act,\19\ in particular, in that the 
proposal enables NASDAQ to be so organized and to have the capacity to 
be able to carry out the purposes of the Act and to comply with and 
enforce compliance by members and persons associated with members with 
provisions of the Act, the rules and regulations thereunder, and NASDAQ 
rules, and is designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation

[[Page 77171]]

and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f.
    \19\ 15 U.S.C. 78f(b)(1), (5).
---------------------------------------------------------------------------

    In particular, NASDAQ believes that the change to the definition of 
Industry Director is warranted to ensure that it is appropriately 
focused on the mitigation of potential conflicts of interest associated 
with Directors who are currently or were very recently employed by 
members or member organizations of Self-Regulatory Subsidiaries, or 
that otherwise have material affiliations with such members or member 
organizations, without unnecessarily restricting highly qualified 
individuals with extensive knowledge of the financial services industry 
from serving on the Board. NASDAQ further believes that the other 
definitional changes and the changes to the compositional requirements 
of the NASDAQ OMX Board and the Executive Committee will enhance the 
clarity of these provisions and promote a diversity of backgrounds and 
viewpoints on the NASDAQ OMX Board. The Exchange believes that these 
changes will collectively promote the capacity of the NASDAQ OMX Board 
to fulfill its responsibilities.
    With respect to the proposed changes to the Audit Committee's 
compositional requirements, NASDAQ believes that the change will 
provide greater flexibility to NASDAQ OMX with regard to populating a 
committee that includes Directors with relevant expertise and that is 
not excessively large in relation to the size of the full Board of 
Directors, while continuing to ensure that Directors associated with 
members and member organizations of Self-Regulatory Subsidiaries do not 
exert disproportionate influence of the governance of NASDAQ OMX. The 
change would not affect NASDAQ OMX's compliance with Section 10A of the 
Act,\20\ SEC Rule 10A-3 thereunder,\21\ and NASDAQ Rule 5605(c), as the 
committee would continue at all times to be composed solely of 
Directors who are independent within the meaning of those provisions.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78j-1.
    \21\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

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 [sic] the Act. Specifically, the Exchange 
believes that the By-Laws of its holding company, NASDAQ OMX, do not 
directly affect competition between the Exchange and others that 
provide the same goods and services as the Exchange, since they do not 
affect the availability or pricing of such goods and services. To the 
extent that the proposed change to the By-Laws may be construed to have 
any bearing on competition, the Exchange believes that the change will 
promote competition between the Exchange and the subsidiaries of NYSE 
Euronext, since the change will allow NASDAQ OMX to have greater 
flexibility in the selection of its Directors in a manner similar to 
the flexibility available to NYSE Euronext under its Independence 
Policy.

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 Exchange consents, the Commission shall: (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 protected]. Please include 
File Number SR-NASDAQ-2012-142 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-NASDAQ-2012-142. 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 20549-1090, on official business days between the hours 
of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be 
available for inspection and copying at the principal offices of the 
Exchange. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
NASDAQ-2012-142, and should be submitted on or before January 22, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
---------------------------------------------------------------------------

    \22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-31236 Filed 12-28-12; 8:45 am]
BILLING CODE 8011-01-P