Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Modify Fees for Members Using the NASDAQ Options Market, 39755-39756 [E8-15624]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices
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–ISE–2008–55. This file
number should be included on the
subject line if e-mail 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 (https://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 inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 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–ISE–2008–55 and should be
submitted on or before July 31, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15650 Filed 7–9–08; 8:45 am]
jlentini on PROD1PC65 with NOTICES
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58081; File No. SR–
NASDAQ–2008–058]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change to Modify
Fees for Members Using the NASDAQ
Options Market
July 2, 2008.
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 June 30,
2008, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) 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 substantially by
Nasdaq. Nasdaq has designated this
proposal as one establishing or changing
a member due, fee, or other charge
imposed by Nasdaq under Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to modify Rule 7050
governing pricing for Nasdaq members
using the NASDAQ Options Market
(‘‘NOM’’), Nasdaq’s facility for
executing and routing standardized
equity and index options. Nasdaq will
implement the proposed rule change on
July 1, 2008. The text of the proposed
rule change is available at https://
www.complinet.com/nasdaq, the
principal offices of the Exchange, and
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,
Nasdaq 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. Nasdaq has prepared
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
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 is proposing to modify the
fees assessed for execution of options
orders entered into NOM but routed to
away markets. Nasdaq currently
assesses a routing fee based upon an
approximation of the cost to Nasdaq of
executing such orders at those markets.
In order to reflect Nasdaq’s cost of
execution at away markets, the fees are
separated by type of option (penny
pilot, equity/non-penny pilot, ETF or
HLDS/non-penny pilot, and Index) and
vary depending upon whether the order
is being routed for a customer, a
member firm, or a registered market
maker. In addition, Nasdaq passes
through surcharges that are assessed by
other markets for the execution of
specific options orders on specific
underlying instruments.
Nasdaq has determined that the
superior approach is to pass through to
exchange members the actual fees
assessed by away markets plus the
clearing fees for the execution of orders
routed from Nasdaq. Nasdaq has
collected and organized in chart format
the fees to be assessed for routing to
each destination exchange. These fees
include both the execution fees charged
by the individual exchanges and also
the clearing fees associated with each
execution. Nasdaq believes that these
routing fees are inherently competitive,
fair and reasonable, and nondiscriminatory in that they replicate the
fees assessed by away markets executing
orders routed from Nasdaq. As with all
fees, Nasdaq may adjust these routing
fees in response to competitive
conditions by filing a new proposed rule
change.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,5 in
general, and with Section 6(b)(4) of the
Act,6 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which
Nasdaq operates or controls.
Nasdaq is one of seven options
markets in the national market system
for standardized options. Joining
2 17
10 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
16:58 Jul 09, 2008
Jkt 214001
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
39755
5 15
6 15
E:\FR\FM\10JYN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
10JYN1
39756
Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices
Nasdaq and electing to trade options is
entirely voluntary. Under these
circumstances, Nasdaq’s fees must be
competitive and low in order for Nasdaq
to attract order flow, execute orders, and
grow as a market. The various
exchanges have filed these fees with the
Commission and it is reasonable for
Nasdaq to pass those fees through to its
members. As such, Nasdaq believes that
its fees are fair and reasonable and
consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
To the contrary, Nasdaq has designed its
fees to compete effectively for the
execution and routing of options
contracts and to reduce the overall cost
to investors of options trading.
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
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 7 and Rule 19b–4(f)(2) 8 thereunder,
because it establishes or changes a due,
fee, or other charge imposed on
members by Nasdaq. Accordingly, the
proposal is effective upon filing with
the Commission. At any time within 60
days of the filing of the proposed rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
jlentini on PROD1PC65 with NOTICES
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:
7 15
8 17
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2008–058 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, Station Place, 100 F Street,
NE., Washington, DC 20549–1090.
16:58 Jul 09, 2008
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–15624 Filed 7–9–08; 8:45 am]
BILLING CODE 8010–01–P
9 17
Jkt 214001
[Release No. 34–58093; File No. SR–
NASDAQ–2008–057]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Regarding
Technical and Conforming Changes to
NASDAQ Rules Governing Options
Trading
July 3, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
All submissions should refer to File
notice is hereby given that on June 24,
Number SR–NASDAQ–2008–058. This
2008, The NASDAQ Stock Market LLC
file number should be included on the
(‘‘Nasdaq’’) filed with the Securities and
subject line if e-mail is used. To help the Exchange Commission (‘‘Commission’’)
Commission process and review your
the proposed rule change as described
comments more efficiently, please use
in Items I, II, and III below, which Items
only one method. The Commission will have been prepared substantially by
post all comments on the Commission’s Nasdaq. Nasdaq has designated the
Internet Web site (https://www.sec.gov/
proposed rule change as a ‘‘nonrules/sro.shtml). Copies of the
controversial’’ proposed rule change
submission, all subsequent
pursuant to Section 19(b)(3)(A) of the
amendments, all written statements
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders the proposal effective
with respect to the proposed rule
upon filing with the Commission. The
change that are filed with the
Commission is publishing this notice to
Commission, and all written
solicit comments on the proposed rule
communications relating to the
change from interested persons.
proposed rule change between the
Commission and any person, other than I. Self-Regulatory Organization’s
those that may be withheld from the
Statement of the Terms of Substance of
public in accordance with the
the Proposed Rule Change
provisions of 5 U.S.C. 552, will be
NASDAQ proposes to make minor
available for inspection and copying in
and technical corrections to its rules for
the Commission’s Public Reference
the NASDAQ Options Market
Room, 100 F Street, NE., Washington,
(‘‘NOM’’).5 The text of the proposed rule
DC 20549, on official business days
change is available at Nasdaq, the
between the hours of 10 a.m. and 3 p.m. Commission’s Public Reference Room,
Copies of such filing also will be
and https://www.complinet.com/nasdaq.
available for inspection and copying at
the principal office of the Exchange. All II. Self-Regulatory Organization’s
Statement of the Purpose of, and
comments received will be posted
Statutory Basis for, the Proposed Rule
without change; the Commission does
Change
not edit personal identifying
In its filing with the Commission,
information from submissions. You
Nasdaq included statements concerning
should submit only information that
you wish to make publicly available. All the purpose of and basis for the
proposed rule change and discussed any
submissions should refer to File
comments it received on the proposed
Number SR–NASDAQ–2008–058 and
rule change. The text of these statements
should be submitted on or before July
may be examined at the places specified
31, 2008.
in Item IV below. Nasdaq has prepared
For the Commission, by the Division of
summaries, set forth in Sections A, B,
Trading and Markets, pursuant to delegated
and C below, of the most significant
authority.9
aspects of such statements.
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
SECURITIES AND EXCHANGE
COMMISSION
PO 00000
CFR 200.30–3(a)(12).
Frm 00111
Fmt 4703
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 57478
(March 12, 2008), 73 FR 14521 (March 18, 2008)
(order approving SR–NASDAQ–2007–004 and
2007–080).
2 17
E:\FR\FM\10JYN1.SGM
10JYN1
]]>Agencies
[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Notices]
[Pages 39755-39756]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15624]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58081; File No. SR-NASDAQ-2008-058]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
to Modify Fees for Members Using the NASDAQ Options Market
July 2, 2008.
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 June 30, 2008, The NASDAQ Stock Market LLC (``Nasdaq'') 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 substantially by Nasdaq. Nasdaq has designated this
proposal as one establishing or changing a member due, fee, or other
charge imposed by Nasdaq under Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to modify Rule 7050 governing pricing for Nasdaq
members using the NASDAQ Options Market (``NOM''), Nasdaq's facility
for executing and routing standardized equity and index options. Nasdaq
will implement the proposed rule change on July 1, 2008. The text of
the proposed rule change is available at https://www.complinet.com/
nasdaq, the principal offices of the Exchange, and 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, Nasdaq 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. Nasdaq 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 is proposing to modify the fees assessed for execution of
options orders entered into NOM but routed to away markets. Nasdaq
currently assesses a routing fee based upon an approximation of the
cost to Nasdaq of executing such orders at those markets. In order to
reflect Nasdaq's cost of execution at away markets, the fees are
separated by type of option (penny pilot, equity/non-penny pilot, ETF
or HLDS/non-penny pilot, and Index) and vary depending upon whether the
order is being routed for a customer, a member firm, or a registered
market maker. In addition, Nasdaq passes through surcharges that are
assessed by other markets for the execution of specific options orders
on specific underlying instruments.
Nasdaq has determined that the superior approach is to pass through
to exchange members the actual fees assessed by away markets plus the
clearing fees for the execution of orders routed from Nasdaq. Nasdaq
has collected and organized in chart format the fees to be assessed for
routing to each destination exchange. These fees include both the
execution fees charged by the individual exchanges and also the
clearing fees associated with each execution. Nasdaq believes that
these routing fees are inherently competitive, fair and reasonable, and
non-discriminatory in that they replicate the fees assessed by away
markets executing orders routed from Nasdaq. As with all fees, Nasdaq
may adjust these routing fees in response to competitive conditions by
filing a new proposed rule change.
2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\5\ in general, and with Section
6(b)(4) of the Act,\6\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system
which Nasdaq operates or controls.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
Nasdaq is one of seven options markets in the national market
system for standardized options. Joining
[[Page 39756]]
Nasdaq and electing to trade options is entirely voluntary. Under these
circumstances, Nasdaq's fees must be competitive and low in order for
Nasdaq to attract order flow, execute orders, and grow as a market. The
various exchanges have filed these fees with the Commission and it is
reasonable for Nasdaq to pass those fees through to its members. As
such, Nasdaq believes that its fees are fair and reasonable and
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. To the contrary,
Nasdaq has designed its fees to compete effectively for the execution
and routing of options contracts and to reduce the overall cost to
investors of options trading.
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
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-
4(f)(2) \8\ thereunder, because it establishes or changes a due, fee,
or other charge imposed on members by Nasdaq. Accordingly, the proposal
is effective upon filing with the Commission. At any time within 60
days of the filing of the proposed rule change, the Commission may
summarily abrogate such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2008-058 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, Station Place, 100 F Street, NE., Washington,
DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2008-058.
This file number should be included on the subject line if e-mail 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 (https://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 inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such 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 publicly available. All
submissions should refer to File Number SR-NASDAQ-2008-058 and should
be submitted on or before July 31, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Acting Secretary.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. E8-15624 Filed 7-9-08; 8:45 am]
BILLING CODE 8010-01-P
