The Nasdaq Stock Market proposes to add new Rule 5950, Market Quality Program, that is intended to enable market makers that voluntarily commit to and do in fact enhance the market quality (quoted spread and liquidity) of certain securities listed on the Exchange to qualify for a fee credit pursuant to the Exchange’s Market Quality Program.  Nasdaq also would exempt the Market Quality Program from Rule 2460, Payment for Market Making. NASDAQ believes this voluntary program will benefit investors, issuers or companies, and market participants by significantly enhancing the quality of the market and trading in such listed securities.  Nasdaq would start off the Market Quality Program as a one-year pilot, during which time Nasdaq will periodically provide information to the SEC about market quality in respect of the Market Quality Program. Purpose of the Filing. Proposed new Rule 5950 would enable Market Makers that enhance the market quality of certain securities listed on the Exchange - "targeted securities” - and thereby qualify for a fee credits.  The 1-year pilot period would commence when the Market Quality Program ("MQP") is implemented by the Exchange and an MQP Company and one or more related Market Makers are accepted into the MQP in respect of a security listed pursuant to the Program ("MQP Security"). MQP Securities Defined. This category may include: ETFs, Linked Securities ("LS"), and Trust Issued Receipts ("TIRs").  However, the Exchange believes that MQP Securities will predominantly, if not entirely, consist of ETFs as reflected in the proposal.  An MQP Company that lists an eligible MQP Security on Nasdaq will pay a listing fee as set forth in proposed Rule 5950 ("MQP Fee"), in addition to the standard (non-MQP) Nasdaq listing fee applicable to such MQP Security. An MQP Fee will be used to fund incentives paid out to one or more Market Makers in the MQP Security ("MQP Market Maker") that theoretically enhances the market quality of the MQP Security.  Subject to the conditions set forth in this rule, this incentive will be credited ("MQP Credit") to 1 or more MQP Market Makers that make a quality market in the MQP Security pursuant to the Program. For further details, go to: [Nasdaq Rule Filing 12-43, 3/23/12].