[Federal Register Volume 78, Number 35 (Thursday, February 21, 2013)]
[Notices]
[Pages 12116-12117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-03964]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68925; File No. SR-NASDAQ-2012-137]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Designation of a Longer Period for Commission Action on 
Proposed Rule Change, as Modified by Amendment Nos. 1 and 3 Thereto, To 
Establish the Market Quality Program

February 14, 2013.
    On December 7, 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 (``MQP'' 
or ``Program'') on a pilot basis. On December 20, 2012, the Exchange 
submitted Amendment No. 1 to the proposed rule change, which replaced 
and superseded the proposed rule change in its entirety. The proposed 
rule change, as modified by Amendment No. 1 thereto, was published for 
comment in the Federal Register on December 31, 2012.\3\ The Commission 
received two comment letters on the proposed rule change.\4\ On 
February 7, 2013, the Exchange submitted Amendment No. 2 to the 
proposed rule change. On February 8, 2013, the Exchange withdrew 
Amendment No. 2 \5\ and filed Amendment No. 3 to the proposed rule 
change.\6\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 68515 (Dec. 21, 2012), 
77 FR 77141 (Dec. 31, 2012).
    \4\ See Letter from Rey Ramsey, President & CEO, TechNet, dated 
January 22, 2013 and Letter from Daniel G. Weaver, Ph.D., Professor 
of Finance, Rutgers Business School, dated January 30, 2013.
    \5\ The Exchange withdrew Amendment No. 2 due to a technical 
error in the amendment.
    \6\ In Amendment No. 3, the Exchange clarified: (i) that the 
Exchange may limit on a Program-wide basis the number of Exchange-
Traded Funds (``ETFs'') per MQP Company that can participate in the 
MQP, and that the Exchange would not be limiting the number of 
actual shares issued by an MQP Company for a particular ETF 
participating in the Program; (ii) that the Exchange will provide in 
the monthly public report to the Commission relating to the MQP (a) 
information on the market quality of MQP Securities after they 
exceed the threshold and ``graduate'' from the Program pursuant to 
proposed Rule 5950(d)(1)(A), and (b) its analysis of the information 
to be included in the report and its assessment of the efficacy of 
the MQP; and (iii) that the Exchange will provide to the Commission 
data and analyses about comparable ETFs that are listed on the 
Exchange but that are not in the MQP, as well as any other MQP-
related data and analyses requested by Commission staff for the 
purpose of evaluating the efficacy of the MQP. Amendment No. 3 
provides clarification to the proposed rule change, and because it 
does not materially affect the substance of the proposed rule 
change, Amendment No. 3 does not require notice and comment. All 
terms relating to the MQP that are referred to, but not defined in, 
this Notice of Designation of a Longer Period for Commission Action 
are defined in the proposed rule change, as amended.

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[[Page 12117]]

    Section 19(b)(2) of the Act \7\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change--or 
within such longer period up to 90 days (i) as the Commission may 
designate if it finds the longer period to be appropriate and publishes 
its reasons for so finding or (ii) as to which the self-regulatory 
organization consents--the Commission shall either approve the proposed 
rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether the proposed rule change should be 
disapproved. The 45th day for this filing is February 14, 2013. The 
Commission is extending this 45-day period.
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    \7\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
the Commission has sufficient time to consider the proposed rule change 
and the comments received. The proposed rule change would, among other 
things, add new Rule 5950 to establish the Market Quality Program and 
exempt the Market Quality Program from NASDAQ Rule 2460 (Payment for 
Market Making).
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\8\ designates March 31, 2013, as the date by which the Commission 
should either approve or disapprove or institute proceedings to 
determine whether to disapprove the proposed rule change (File Number 
SR-NASDAQ-2012-137).
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    \8\ Id.
    \9\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03964 Filed 2-20-13; 8:45 am]
BILLING CODE 8011-01-P