[Federal Register Volume 79, Number 80 (Friday, April 25, 2014)]
[Notices]
[Pages 23036-23039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09393]



[[Page 23036]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71978; File No. SR-NASDAQ-2014-039]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Listing PHLX Proprietary Products

April 21, 2014.
    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 April 10, 2014, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') 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 prepared by NASDAQ. 
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 the 
Substance of the Proposed Rule Change

    NASDAQ proposes to amend certain rules in order to permit the 
trading of options overlying NASDAQ OMX PHLX LLC (``Phlx'') proprietary 
indexes and Phlx U.S. Dollar-Settled Foreign Currencies on The NASDAQ 
Options Market (``NOM''), NASDAQ's facility for executing and routing 
standardized equity and index options. The Exchange is proposing to 
amend the following NOM Rules: Chapter I, Section 1 (Definitions), 
Chapter III, Section 7 (Position Limits), Section 9 (Exercise Limits), 
Chapter IV, Section 3 (Criteria for Underlying Securities), Section 6 
(Series of Options Contracts Open for Trading), Section 9 (U.S. Dollar-
Settled Foreign Currency Option Closing Settlement Value), Chapter VI, 
Section 4 (Meaning of Premium Quotes and Orders), Chapter VIII, Section 
3 (Delivery and Payment), Chapter XIV, Section 5 (Position Limits for 
Broad-Based Index Options), Section 7 (Position Limits for Industry and 
Micro-Narrow Based Index Options) and Section 11 (Terms of Index 
Options Contracts).
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nasdaq.cchwallstreet.com, at the principal 
office of the Exchange, 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
    The purpose of the proposed rule change is to amend NOM's Rules to 
include provisions to permit the trading of options overlying Phlx 
proprietary indexes on NOM \3\ and Phlx U.S. Dollar-Settled Foreign 
Currencies.\4\ Today, Phlx has various rules which pertain to the 
listing of options overlying Phlx proprietary indexes and U.S. Dollar-
Settled Foreign Currencies. The Exchange proposes to list these Phlx 
proprietary products on the Exchange in the same manner and with the 
same terms as these options are traded on Phlx.
---------------------------------------------------------------------------

    \3\ Today, Phlx lists the following proprietary indexes on its 
market: SIG Oil Exploration & Production Index\TM\ (EPX\SM\); PHLX 
Semiconductor Sector\SM\ (SOX\SM\); PHLX Housing Sector\TM\ 
(HGX\SM\); PHLX Oil Service Sector\SM\ (OSX\SM\); Phlx Utility 
Sector\SM\ (UTY\SM\); and PHLX Gold/Silver Sector\SM\ (XAU\SM\).
    \4\ Today, Phlx lists the following proprietary U.S. Dollar-
Settled Foreign Currencies: XDA (Australian Dollar); XDB (British 
Pound); XDC (Canadian Dollar); XDE (Euro); XDN (Japanese Yen); XDS 
(Swiss Franc); and XDZ (New Zealand Dollar).
---------------------------------------------------------------------------

Phlx Proprietary Indexes

Position Limits
    The Exchange is proposing to amend various NOM Rules to permit the 
listing of Phlx proprietary indexes. The Exchange is proposing to amend 
Chapter XIV, which pertains to indexes, specifically at Section 5 
regarding position limits. The Exchange is proposing to add the phrase 
``or any PHLX proprietary product'' to Section 5(a)(2) to provide that 
Options Participants must comply with Phlx position limit rules 
relating to broad-based index options when transacting options 
overlying Phlx proprietary products. The Exchange is proposing a 
similar amendment to Section 7 relating to micro-narrow based indexes. 
Options Participants would be required to comply with Phlx position 
limits relating to micro-narrow index options when transacting options 
overlying Phlx proprietary products. Exemptions from position limits 
would continue to be available to Options Participants pursuant to 
Chapter XIV, Section 8 pertaining to exemptions from position limits to 
replicate relevant Phlx rules which grant its members certain 
exemptions.
Definition
    The Exchange is also proposing to amend Chapter I, Section 1 which 
contains definitions to include the definition of closing index value. 
Specifically, the Exchange is adding the following definition for 
closing index value: ``the [t]erm `closing index value' in respect of a 
particular index means the current index value calculated at the close 
of business on the day of exercise, or, if the day of exercise is not a 
trading day, on the last trading day before exercise (P.M.-settled), 
unless the settlement value of the index is based on the opening price 
of each component issue on the primary market (A.M.-settled).'' This 
definition is the same definition that appears in Phlx Rules.\5\
---------------------------------------------------------------------------

    \5\ See Phlx Rule 1000A(a)(8).
---------------------------------------------------------------------------

Listing of Long-Term Index Options
    Finally, the Exchange proposes to amend Chapter XIV, Section 11 to 
amend the Terms of Index Options Contracts to amend the text related to 
Long Term Index Options Series. Today, NOM may list long-term index 
options series that expire from twelve to sixty months from the date of 
issuance. The Exchange proposes to amend this timeframe to mirror the 
timeframe for Phlx index options which is nine to sixty months at 
Chapter XIV, Section 11(b)(1).\6\ In addition, the Exchange proposes to 
amend Chapter XIV, Section 11(b)(1)(i) to state that ``Strike price 
interval, bid/ask differential and continuity rules shall not apply to 
such options series until the time to expiration is less than nine (9) 
months.'' Today, the timeframe is twelve months. The Exchange is 
conforming this text to the amendment in Section 11(b)(1).
---------------------------------------------------------------------------

    \6\ See Phlx Rule 1101A.
---------------------------------------------------------------------------

Phlx U.S. Dollar-Settled Foreign Currencies

Position Limits
    The Exchange is proposing to amend various NOM Rules to permit the 
listing of Phlx proprietary U.S. Dollar-Settled Foreign Currencies. The 
Exchange is proposing to amend Chapter III, which pertain to indexes, 
specifically at

[[Page 23037]]

Section 7 regarding position limits. The Exchange is proposing to amend 
the rule to provide that no Options Participant shall make, for any 
account in which it has an interest or for the account of any Customer, 
an opening transaction on any exchange if the Options Participant has 
reason to believe that as a result of such transaction the Options 
Participant or its Customer would, acting alone or in concert with 
others, directly or indirectly exceed the applicable position limit 
fixed from time to time by Phlx with respect to U.S. Dollar-Settled 
Foreign Currency Options.'' \7\ The Exchange is proposing a similar 
amendment to Section 9 related to Exercise Limits.\8\ These amendments 
would permit the Exchange to list these U.S. Dollar-Settled Foreign 
Currencies with the same position and exercise limits as exist on Phlx 
today.
---------------------------------------------------------------------------

    \7\ See proposed Rule at Chapter III, Section 7(a)(iv).
    \8\ See proposed Rule at Chapter III, Section 9(a)(iv).
---------------------------------------------------------------------------

Listing Criteria
    The Exchange is proposing to amend Chapter IV, Section 3(n) to list 
the criteria for underlying securities for U.S. Dollar-Settled Foreign 
Currency Options. This criteria is the same as the criteria for listing 
proprietary currencies on Phlx.\9\ Specifically, the Exchange proposes 
to add the following criteria: the British pound, the Swiss franc, the 
Canadian dollar, the Australian dollar, the Japanese yen, the U.S. 
dollar, the Mexican peso, the Euro, the Brazilian real, the Chinese 
yuan, the Danish krone, the New Zealand dollar, the Norwegian krone, 
the Russian ruble, the South African rand, the South Korean won, and 
the Swedish krona may be approved as underlying foreign currencies for 
options transactions by the Exchange, subject to any approval criteria 
the Exchange may deem necessary or appropriate in the interests of 
maintaining a fair and orderly market or for the protection of 
investors. In the event that any of the sovereign governments or the 
European Economic Community's European Monetary System issuing any of 
the above-mentioned currencies should issue a new currency intended to 
replace one of the above-mentioned currencies as the standard unit of 
the official medium of exchange of such government, such new currency 
also may be approved as an underlying foreign currency for options 
transactions by the Exchange, subject to any approval criteria the 
Exchange may deem necessary or appropriate in the interests of 
maintaining a fair and orderly market or for the protection of 
investors. Options trading in such new currency may occur 
simultaneously with options trading in any of the above-mentioned 
currencies; provided, however, that the Exchange shall withdraw its 
approval of options transactions in the currency which is intended to 
be replaced by such new currency as expeditiously as it deems 
consistent with the maintenance of a fair and orderly market or the 
protection of investors. The Exchange may determine to withdraw 
approval of an underlying foreign currency whenever it deems such 
withdrawal advisable in the public interest or for the protection of 
investors. In the event that the Exchange effects such a withdrawal, 
the Exchange shall not open for trading any additional series of 
options of the class covering that underlying foreign currency.
---------------------------------------------------------------------------

    \9\ See Phlx Rules 1009(c) and 1010 at Commentary .06.
---------------------------------------------------------------------------

    The Exchange proposes to amend the Supplementary Material to 
Chapter IV, Section 6 by adding new Supplementary Material .09 with 
listing qualifications for U.S. Dollar-Settled Foreign Currency options 
which are identical to those listing criteria on Phlx.\10\ 
Specifically, within each class of approved U.S. Dollar-Settled Foreign 
Currency options, the Exchange may open for trading series of options 
expiring in consecutive calendar months (``consecutive month series'') 
and series of options expiring at three-month intervals (``cycle month 
series''), as provided in Supplementary Material at .09. Prior to the 
opening of trading in any series of U.S. Dollar-Settled Foreign 
Currency Options, the Exchange shall fix the expiration month and 
exercise price of option contracts included in each such series.
---------------------------------------------------------------------------

    \10\ See Rule 1012(a)(iii) and Commentary .06 and .07 to Rule 
1012. See also Rule 1000(b)(16).
---------------------------------------------------------------------------

    The Supplementary Material to proposed Chapter IV, Section 6(A) 
[sic] states, with respect to each class of U.S. Dollar-Settled Foreign 
Currency options, series of options having up to four consecutive 
expiration months may be opened for trading simultaneously, with the 
shortest-term series initially having no more than two months to 
expiration. Additional consecutive month series of the same class may 
be opened for trading on the Exchange at or about the time a prior 
consecutive month series expires, and the expiration month of each such 
new series shall normally be the month immediately succeeding the 
expiration month of the then outstanding consecutive month series of 
the same class of options having the longest remaining time to 
expiration.
    Supplementary Material to proposed Chapter IV, Section 6(B) [sic] 
states, the Exchange may designate one expiration cycle for each class 
of U.S. Dollar-Settled Foreign Currency option. An expiration cycle 
shall consist of four calendar months (``cycle months'') occurring at 
three-month intervals. With respect to any particular class of U.S. 
Dollar-Settled Foreign Currency option, series of options expiring in 
the four cycle months designated by the Exchange for that class may be 
opened for trading simultaneously, with the shortest-term series 
initially having approximately three months to expiration. Additional 
cycle month series of the same class may be opened for trading on the 
Exchange at or about the time a prior cycle month series expires, and 
the expiration month of each such new series shall normally be 
approximately three months after the expiration month of the then 
outstanding cycle month series of the same class of options having the 
longest remaining time to expiration.
    The Supplementary Material to proposed Chapter IV, Section 6(C) 
[sic] states, the Exchange may list, with respect to any U.S. Dollar-
Settled Foreign Currency, options having up to three years from the 
time they are listed until expiration. There may be up to ten options 
series, options having up to thirty-six months from the time they are 
listed until expiration. There may be up to six additional expiration 
months. Strike price interval, bid/ask differential and continuity 
Rules shall not apply to such options series until the time to 
expiration is less than nine months. For each expiration month opened 
for trading of U.S. Dollar-Settled Foreign Currency options, in 
addition to the strike prices listed by the Exchange pursuant to 
Supplementary Material .09 to proposed Chapter IV, Section 6, the 
Exchange shall also list a single strike price of $0.01. Additional 
series of options of the same class may be opened for trading on the 
Exchange as the market price of the underlying foreign currency moves 
substantially from the initial exercise price or prices. The opening of 
a new series of options on the Exchange shall not affect any other 
series of options of the same class previously opened.
    The Exchange may initially list exercise strike prices for each 
expiration of U.S. Dollar-Settled Foreign Currency options on 
currencies within a 40 percent band around the current Exchange Spot 
Price at fifty cent ($.50) intervals. Thus, if the Exchange Spot Price 
of the Euro were at $100.00, the Exchange would list strikes in $.50 
intervals up to $120.00 and down to $80.00, for a total of eighty-one 
strike prices available for trading. As the

[[Page 23038]]

Exchange Spot Price for U.S. Dollar-Settled Foreign Currency options 
moves, the Exchange may list new strike prices that, at the time of 
listing, do not exceed the Exchange Spot Price by more than 20 percent 
and are not less than the Exchange Spot Price by more than 20 percent. 
For example, if at the time of initial listing, the Exchange Spot Price 
of the Euro is at $100.00, the strike prices the Exchange will list 
will be $80.00 to $120.00. If the Exchange Spot Price then moves to 
$105.00, the Exchange may list additional strikes at the following 
prices: $105.50 to $126.00. The exercise price of each series of U.S. 
Dollar-Settled Foreign Currency options opened for trading on the 
Exchange normally shall be fixed at a price per unit which is 
reasonably close to the current Exchange Spot Price per unit of the 
underlying foreign currency in the foreign exchange market at or before 
the time such series of options is first opened for trading on the 
Exchange, as determined by finding the arithmetic mean of Exchange Spot 
Prices.
    The Exchange defines the term ``Exchange Spot Price'' similar to 
the Phlx Rule 1000(b)(16), ``in respect of an option contract on a 
foreign currency means the cash market spot price, for the sale of one 
foreign currency for another, quoted by various foreign exchange 
participants for the sale of a single unit of such foreign currency for 
immediate delivery that is calculated from the foreign currency price 
quotation reported by the foreign currency price quotation 
dissemination system selected by the Exchange, to which an appropriate 
multiplier is applied. The multiplier(s) will be: 100 for the British 
pound, the Euro, the Swiss franc, the Canadian dollar, the Australian 
dollar, the Brazilian real, and the New Zealand dollar; 1,000 for the 
Chinese yuan, the Danish krone, the Mexican peso, the Norwegian krone, 
the South African rand, and the Swedish krona; 10,000 for the Japanese 
yen and the Russian ruble; and 100,000 for the South Korean won.''
Closing Settlement Value
    The Exchange proposes to add a new Chapter IV, Section 9 to address 
Closing Settlement Value. The Exchange is proposing to add language 
similar to that contained in a Phlx Rule.\11\ Specifically, the 
Exchange is adding language which states, U.S. Dollar-Settled Foreign 
Currency options are settled in U.S. dollars. The closing settlement 
value for the U.S. Dollar-Settled Foreign Currency options on the 
Australian dollar, the Euro, the British pound, the Canadian dollar, 
the Swiss franc, the Japanese yen, the Mexican peso, the Brazilian 
real, the Chinese yuan, the Danish krone, the New Zealand dollar, the 
Norwegian krone, the Russian ruble, the South African rand, the South 
Korean won, and the Swedish krona shall be the Exchange Spot Price at 
12:00:00 Eastern Time (noon) on the business day of expiration, or, in 
the case of an option contract expiring on a day that is not a business 
day, on the business day prior to the expiration date unless the 
Exchange determines to apply an alternative closing settlement value as 
a result of extraordinary circumstances. Neither the Exchange, nor any 
agent of the Exchange shall have any liability for damages, claims, 
losses or expenses caused by any errors, omissions, or delays in 
calculating or disseminating the current settlement value or the 
closing settlement value resulting from an act, condition, or cause 
beyond the reasonable control of the Exchange including but not limited 
to, an act of God; fire; flood; extraordinary weather conditions; war; 
insurrection; riot; strike; accident; action of government; 
communications or power failure; equipment or software malfunction; any 
error, omission, or delay in the reports of transactions in one or more 
underlying currencies or any error, omission or delay in the reports of 
the current settlement value or the closing settlement value by the 
Exchange. The Exchange shall post the closing settlement value on its 
Web site or disseminate it through one or more major market data 
vendors.
---------------------------------------------------------------------------

    \11\ See Phlx Rule 1057.
---------------------------------------------------------------------------

Minimum Increments
    The Exchange also proposes to amend Chapter VI, Section 4 to add a 
new section (c) and (d) to add rule text similar to that of Phlx \12\ 
to address minimum increments for quoting and bids and offers. 
Specifically, all options on foreign currencies where the underlying 
foreign currency is not the U.S. dollar shall have a minimum increment 
of $.01. In the case of options on foreign currencies, all bids or 
offers shall be expressed in terms of U.S. dollars per unit of the 
underlying foreign currency. E.g., a bid of ``3.25'' for a premium on a 
$170 strike price option on the British pound shall represent a bid to 
pay $325 per option contract.
---------------------------------------------------------------------------

    \12\ See Phlx Rules 1033(b)(ii) and 1034(a)(ii).
---------------------------------------------------------------------------

Delivery and Payment
    The Exchange proposes to amend Chapter VIII, Section 3 to add a new 
section (d) to address delivery and payment similar to a Phlx Rule.\13\ 
Specifically, in accordance with the applicable rules of The Options 
Clearing Corporation (``OCC''), upon exercise of an in-the-money U.S. 
Dollar-Settled Foreign Currency option structured as a call, the holder 
receives, from OCC, U.S. dollars representing the difference between 
the exercise strike price and the closing settlement value of the U.S. 
Dollar-Settled Foreign Currency options contract multiplied by the 
number of units of currency covered by the contract. For a U.S. Dollar-
Settled Foreign Currency option structured as a put, the holder 
receives U.S. dollars representing the excess of the exercise price 
over the closing settlement value of the U.S. Dollar-Settled Foreign 
Currency option contract multiplied by the number of units of foreign 
currency covered by the contract.
---------------------------------------------------------------------------

    \13\ See Phlx Rule 1044. NASDAQ Rules at Chapter VIII, Section 3 
contain a Delivery and Payment rule which would be supplemented with 
the above-described rule text.
---------------------------------------------------------------------------

Definition
    The Exchange also proposes to add a new definition to Chapter I, 
Section 1 for foreign currency. This definition is the same definition 
that appears in Phlx Rules.\14\ The Exchange proposes to define foreign 
currency to mean means the standard unit of the official medium of 
exchange of a sovereign government including the United States 
Government (e.g., the British pound, the Swiss franc, the Canadian 
dollar, the Australian dollar, the Japanese yen, the Mexican peso, the 
Brazilian real, the Chinese yuan, the Danish krone, the New Zealand 
dollar, the Norwegian krone, the Russian ruble, the South African rand, 
the South Korean won, the Swedish krona, or the United States dollar) 
or the Euro.
---------------------------------------------------------------------------

    \14\ See Phlx Rule 1000(b)(13).
---------------------------------------------------------------------------

Surveillance and Capacity

    The Exchange represents that it has the necessary systems capacity 
to support listing these proprietary Phlx products on the Exchange. The 
Exchange represents that it has an adequate surveillance program in 
place. The Exchange is a member of the Intermarket Surveillance Group 
(``ISG'') under the Intermarket Surveillance Group Agreement, which was 
modernized in 2008, and may obtain trading information via the ISG from 
other exchanges who are members or affiliates of the ISG. ISG members 
include all of the U.S. registered stock and options markets and work 
together to coordinate surveillance and investigative information 
sharing in the stock and options markets. In addition,

[[Page 23039]]

the major futures exchanges are affiliated members of the ISG, which 
allows for the sharing of surveillance information for potential 
intermarket trading abuses.
Incorporation of Phlx Rules
    NOM proposes herein to incorporate by reference as NOM Options 
Rules certain Phlx such that NOM members will comply with a NOM rule by 
complying with the Phlx rule referenced. In connection with its 
proposal to incorporate Phlx rules by reference, NOM will file a 
request, pursuant to Rule 240.0-12,\15\ an exemption under Section 36 
of the Act from the rule filing requirements of Section 19(b) of the 
Act for changes to those NOM Options Rules that are effected solely by 
virtue of a change to a cross-referenced Phlx rule. NOM agrees to 
provide written notice to Options Participants of any amendments to 
Phlx rules that are incorporated by reference.\16\ NOM will notify 
Participants whenever Phlx proposes to change a rule that has been 
incorporated by reference into the NOM Options Rules.
---------------------------------------------------------------------------

    \15\ 17 CFR 240.0-12.
    \16\ NOM will provide such notice through a posting on the same 
Web site location where NOM posts its own rule filings pursuant to 
Rule 19b-4(1) under Act, within the timeframe required by that Rule. 
The Web site posting will include a link to the location on the Phlx 
Web site where those SROs' proposed rule changes are posted.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \17\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \18\ in particular, in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in 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.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposal would allow Phlx proprietary indexes and U.S. Dollar-
Settled Foreign Currency options to be traded on NOM, in addition to 
Phlx. Investors would have an additional venue in which to trade these 
proprietary products. The Exchange seeks to list and trade these 
proprietary products utilizing the same terms and conditions as Phlx. 
The proposed rules mirror the terms and conditions of Phlx proprietary 
products as they are listed and traded on Phlx. The Exchange believes 
that this will serve to minimize investor confusion as the products 
would be traded in the same manner with the same position limits, 
increments and listing conditions.

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

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Exchange intends to list and trade options on Phlx 
proprietary products on NOM in the same manner that these products are 
traded on Phlx.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(ii) of the Act \19\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\20\
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \20\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved. The Exchange has 
provided 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.

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-2014-039 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-2014-039. 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 10:00 a.m. and 
3:00 p.m. Copies of the 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 available publicly.
    All submissions should refer to File Number SR-NASDAQ-2014-039 and 
should be submitted on or before May 16, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-09393 Filed 4-24-14; 8:45 am]
BILLING CODE 8011-01-P