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, 42397-42399 [E8-16588]

Download as PDF PWALKER on PROD1PC71 with NOTICES Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Notices letter acknowledges in the letter or representation its obligation to promptly notify DTC whenever there is any anticipated change in the representations given. Under Rule 10, if a participant fails to continue to adhere to these standards, then DTC, based on its judgment, may at any time cease to act for the participant with respect to a particular transaction, particular transactions, transactions generally, or a program and may terminate a participant’s right to act as a Settling Bank. Both Rule 2 and Rule 10 give DTC the discretion to admit participants or continue to act for them on a temporary or other conditional basis. In order to harmonize the rules of DTC with those of its clearing agency affiliates, DTC will add an additional consequence in this regard whereby a participant will be fined $1,000 if it fails to notify DTC of its non-compliance with any general continuance standard for DTC participation within two business days. In addition, DTC will add a provision to its fine schedule that would impose a fine in the amount of $5,000 if a participant fails to notify DTC of a ‘‘material change.’’ A ‘‘material change’’ would include events such as a merger or acquisition involving the participant, a change in corporate form, a name change, a material change in ownership, control or management, and participation as a defendant in litigation which could reasonably be anticipated to have a direct negative impact on the participant’s financial condition or ability to conduct its business. The new provision provides that the notification must be provided 90 calendar days prior to the effective date of such event unless the participant demonstrates that it could not have reasonably have given notice within that timeframe. With respect to both $1,000 and $5,000 fines mentioned above, DTC will add an additional provision that if the participant’s failure to provide notice of such material change applies to more than one DTC-affiliate clearing agency, the fine amount will be divided equally among the clearing agencies. This is the same approach being adopted above with respect to fines for failure to timely provide requisite financial and other information. When the member is a DTC participant and a member of FICC or NSCC, DTC will collect the fine and allocate the amount equally among other clearing agencies, as appropriate. If the member is not a DTC participant but is a member of NSCC and FICC, NSCC will collect the fine and allocate the appropriate portion to FICC. VerDate Aug<31>2005 19:22 Jul 18, 2008 Jkt 214001 III. Discussion The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a registered clearing agency. In particular, the Commission believes the proposal is consistent with the requirements of Section 17A(b)(3)(F),6 which, among other things, requires that the rules of a clearing agency are designed to remove impediments to and perfect the mechanisms of a national system for the prompt and accurate clearance and settlement of securities transactions and with the requirements of Section 17A(b)(3)(H) 7 which, among other things, requires that the rules of a clearing agency provide a fair procedure with respect to the disciplining of participants and the denial of participation to any person seeking to be a participant. The Commission finds that the proposed rule change, which restructures and harmonizes DTC’s fines with those of NSCC and FICC, is consistent with those statutory obligations. IV. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular Section 17A of the Act 8 and the rules and regulations thereunder. In approving the proposed rule change, the Commission considered the proposal’s impact on efficiency, competition and capital formation.9 It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (File No. SR– DTC–2007–05), as amended, be and hereby is approved. For the Commission by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Acting Secretary. [FR Doc. E8–16604 Filed 7–18–08; 8:45 am] BILLING CODE 8010–01–P PO 00000 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58152; File No. SR– NASDAQ–2008–059] 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 14, 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 July 1, 2008, 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 substantially by Nasdaq. Pursuant to Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) 4 thereunder, Nasdaq has designated this proposal as establishing or changing a due, fee, or other charge, which renders the proposed rule change effective upon filing. 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 below. Proposed new language is italicized; proposed deletions are in brackets.5 * * * * * 7050. NASDAQ Options Market The following charges shall apply to the use of the order execution and routing services of the NASDAQ Options Market by members for all securities. (1)–(3) No Change. (4) Fees for executions of contracts other than those executed on the 1 15 6 15 U.S.C. 78q–1(b)(3)(F). 7 15 U.S.C. 78q–1(b)(3)(H). 8 15 U.S.C. 78q–1. 9 15 U.S.C. 78c(f). 10 17 CFR 200.30–3(a)(12). Frm 00085 Fmt 4703 Sfmt 4703 42397 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). 5 Changes are marked to the rule text that appears in the electronic Nasdaq Manual found at http:// nasdaq.complinet.com. 2 17 E:\FR\FM\21JYN1.SGM 21JYN1 42398 Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Notices NASDAQ Options Market shall include execution and clearing fees charged to NASDAQ for executing on away markets, as follows: Customer Firm MM AMEX $0.06 $0.63 $0.66 0.51 0.06 0.06 0.06 0.06 0.51 0.26 0.41 0.42 0.42 0.51 0.26 0.41 0.42 0.42 0.06 0.06 0.24 0.42 0.56 0.47 0.46 0.52 0.56 0.24 0.34 0.24 0.51 0.31 0.51 0.42 0.52 0.52 0.31 0.57 0.61 0.31 0.61 0.51 0.51 0.31 0.51 0.42 0.52 0.52 0.31 0.57 0.61 0.31 0.61 0.51 0.06 0.24 0.24 0.24 0.24 0.24 [0.06] 0.24 0.24 0.34 0.39 0.40 0.29 [0.34] [0.46] 0.51 [0.46] 0.51 [0.56] 0.61 [0.61] 0.66 [0.62] 0.67 [0.51] 0.56 [0.56] BOX Penny Pilot ................................................................................................................................... Non-Penny Pilot ........................................................................................................................... BKX .............................................................................................................................................. NDX ............................................................................................................................................. MNX ............................................................................................................................................. CBOE Equity Options ............................................................................................................................. QQQQ .......................................................................................................................................... SPY .............................................................................................................................................. OEX, XEO .................................................................................................................................... SPX ≥ $1 ..................................................................................................................................... SPX < $1 ..................................................................................................................................... MVR ............................................................................................................................................. Volatility Indices ........................................................................................................................... DXL .............................................................................................................................................. IWM .............................................................................................................................................. DJX, MNX, NDX, & RUT ............................................................................................................. Other indices, ETFs, & HOLDRs ................................................................................................. ISE Equity Options ............................................................................................................................. Premium Products ** .................................................................................................................... BKX, FTZ, IJH, IJR, IJS, MFX, MID, MSH, SML, UKX .............................................................. RMN, RUI, RUT ........................................................................................................................... NDX, MNX ................................................................................................................................... FUM, HSX, POW, TNY, WMX .................................................................................................... [FTZ] ............................................................................................................................................ ** Premium products: BBH, BYT, DBA, DBO, DBS, DDM, DGL, DIA, DMA, DSI, DUG, DVY, DXD, EEM, EEV, EFA, ERF, EWA, EWC, EWG, EWH, EWJ, EWT, EWW, EWY, EWZ, FCG, FDG, FDM, FIW, FNI, FXA, FXB, FXC, FXE, FXF, FXI, FXP, FXY, GDX, GLD, HHH, HHO, HVY, IAI, IBB, IEF, IGW, ILF, IVE, IVV, IVW, IWB, IWD, IWF, IWM, IWN, IWO, IXX, IXZ, IYE, IYM, IYR, IYT, JLO, KBE, KCE, KIE, KLD, MDY, MOO, MYP, OEF, OIH, OOG, PBW, PGJ, PHO, PMP, PPH, PUF, QID, QLD, RND, RSP, RTH, RUF, SAW, SDS, SHY, SKF, SIN, SMH, SPY, SSO, TAN, TLT, TTH, TWM, UNG, USO, UTH, UWM, UYG, WSI, XHB, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XRT. NYSE–Arca Penny Pilot ................................................................................................................................... Non-Penny Pilot ........................................................................................................................... BKX .............................................................................................................................................. RUT .............................................................................................................................................. 0.51 0.06 0.06 0.06 0.51 0.56 0.66 0.71 0.51 0.56 0.66 0.71 0.06 0.18 0.50 0.30 0.30 0.30 0.51 0.51 0.26 PHLX Equity Options ............................................................................................................................. MNX & NDX Options ................................................................................................................... Index Options ............................................................................................................................... PWALKER on PROD1PC71 with NOTICES 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 VerDate Aug<31>2005 19:22 Jul 18, 2008 Jkt 214001 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 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 away markets. On June 30, 2008, Nasdaq filed SR–2008–058, a proposal 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 collected and organized in chart format the fees to be assessed for routing to each destination exchange. Nasdaq is filing this proposed rule change to reflect a change proposed by the International Securities Exchange on E:\FR\FM\21JYN1.SGM 21JYN1 Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Notices June 30, 2008, in SR–ISE–2008–55.6 In addition, Nasdaq is adding to the list of products that ISE treats as ‘‘premium’’ options symbol FXY, which had been inadvertently omitted from Nasdaq’s fee schedule. Finally, within Nasdaq’s fee schedule for executions occurring at ISE, Nasdaq is proposing to classify options class FTZ as a premium product with a fee of $.24, $.34, and $.61 for customers, firms, and market makers. Options class FTZ had previously been listed in a category by itself with executions fees of $.06, $.34, and $.56 for customers, firms, and market makers. Nasdaq expects that ISE will charge Nasdaq members $.24, $.34, and $.61, respectively, as set forth in Nasdaq’s proposed rule language.7 All fees for markets other than ISE remain unchanged. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,8 in general, and with Section 6(b)(4) of the Act,9 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 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 Exchange Act. B. Self-Regulatory Organization’s Statement on Burden on Competition PWALKER on PROD1PC71 with NOTICES 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 6 See Securities Exchange Act Release No. 58091 (July 3, 2008), 73 FR 39754 (July 10, 2008) (SR–ISE– 2008–55). 7 See e-mail from Jeffrey S. Davis, Vice President and Deputy General Counsel, Nasdaq, to Joseph P. Morra, Special Counsel, and Andrew Madar, Attorney-Advisor, Commission, dated July 10, 2008, adding the prior 3 sentences. 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 19:22 Jul 18, 2008 Jkt 214001 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 rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 10 and subparagraph (f)(2) of Rule 19b–4 thereunder,11 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. 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 e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2008–059 on the subject line. 42399 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 Nasdaq. 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–2008–059 and should be submitted on or before August 11, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Acting Secretary. [FR Doc. E8–16588 Filed 7–18–08; 8:45 am] BILLING CODE 8010–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #11328] Kansas Disaster #KS–00027 Small Business Administration. Notice. AGENCY: ACTION: SUMMARY: This is a Notice of the Presidential declaration of a major disaster for Public Assistance Only for the State of Kansas (FEMA–1776–DR), Paper Comments dated 07/09/2008. • Send paper comments in triplicate Incident: Severe Storms, Flooding, to Secretary, Securities and Exchange and Tornadoes. Commission, Station Place, 100 F Street, Incident Period: 05/22/2008 through NE., Washington, DC 20549–1090. 06/16/2008. All submissions should refer to File EFFECTIVE DATE: 07/09/2008. Number SR–NASDAQ–2008–059. This Physical Loan Application Deadline file number should be included on the Date: 09/08/2008. subject line if e-mail is used. To help the ADDRESSES: Submit completed loan Commission process and review your applications to: U.S. Small Business comments more efficiently, please use only one method. The Commission will Administration, Processing and post all comments on the Commission’s Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. Internet Web site (http://www.sec.gov/ FOR FURTHER INFORMATION CONTACT: A. rules/sro.shtml). Copies of the Escobar, Office of Disaster Assistance, submission, all subsequent U.S. Small Business Administration, PO 00000 10 15 11 17 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). Frm 00087 Fmt 4703 Sfmt 4703 12 17 E:\FR\FM\21JYN1.SGM CFR 200.30–3(a)(12). 21JYN1

Agencies

[Federal Register Volume 73, Number 140 (Monday, July 21, 2008)]
[Notices]
[Pages 42397-42399]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16588]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58152; File No. SR-NASDAQ-2008-059]


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 14, 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 July 1, 2008, 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 substantially by Nasdaq. 
Pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
\4\ thereunder, Nasdaq has designated this proposal as establishing or 
changing a due, fee, or other charge, which renders the proposed rule 
change effective upon filing. 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 below. Proposed new 
language is italicized; proposed deletions are in brackets.\5\
---------------------------------------------------------------------------

    \5\ Changes are marked to the rule text that appears in the 
electronic Nasdaq Manual found at http://nasdaq.complinet.com.
---------------------------------------------------------------------------

* * * * *

7050. NASDAQ Options Market

    The following charges shall apply to the use of the order execution 
and routing services of the NASDAQ Options Market by members for all 
securities.
    (1)-(3) No Change.
    (4) Fees for executions of contracts other than those executed on 
the

[[Page 42398]]

NASDAQ Options Market shall include execution and clearing fees charged 
to NASDAQ for executing on away markets, as follows:

----------------------------------------------------------------------------------------------------------------
                                                                     Customer          Firm             MM
----------------------------------------------------------------------------------------------------------------
                                                      AMEX
----------------------------------------------------------------------------------------------------------------
                                                                           $0.06           $0.63           $0.66
----------------------------------------------------------------------------------------------------------------
                                                       BOX
----------------------------------------------------------------------------------------------------------------
Penny Pilot.....................................................            0.51            0.51            0.51
Non-Penny Pilot.................................................            0.06            0.26            0.26
BKX.............................................................            0.06            0.41            0.41
NDX.............................................................            0.06            0.42            0.42
MNX.............................................................            0.06            0.42            0.42
----------------------------------------------------------------------------------------------------------------
                                                      CBOE
----------------------------------------------------------------------------------------------------------------
Equity Options..................................................            0.06            0.51            0.51
QQQQ............................................................            0.06            0.31            0.31
SPY.............................................................            0.24            0.51            0.51
OEX, XEO........................................................            0.42            0.42            0.42
SPX >= $1.......................................................            0.56            0.52            0.52
SPX < $1........................................................            0.47            0.52            0.52
MVR.............................................................            0.46            0.31            0.31
Volatility Indices..............................................            0.52            0.57            0.57
DXL.............................................................            0.56            0.61            0.61
IWM.............................................................            0.24            0.31            0.31
DJX, MNX, NDX, & RUT............................................            0.34            0.61            0.61
Other indices, ETFs, & HOLDRs...................................            0.24            0.51            0.51
----------------------------------------------------------------------------------------------------------------
                                                       ISE
----------------------------------------------------------------------------------------------------------------
Equity Options..................................................            0.06            0.24     [0.46] 0.51
Premium Products **.............................................            0.24            0.24     [0.46] 0.51
BKX, FTZ, IJH, IJR, IJS, MFX, MID, MSH, SML, UKX................            0.24            0.34     [0.56] 0.61
RMN, RUI, RUT...................................................            0.24            0.39     [0.61] 0.66
NDX, MNX........................................................            0.24            0.40     [0.62] 0.67
FUM, HSX, POW, TNY, WMX.........................................            0.24            0.29     [0.51] 0.56
[FTZ]...........................................................          [0.06]          [0.34]          [0.56]
----------------------------------------------------------------------------------------------------------------
** Premium products: BBH, BYT, DBA, DBO, DBS, DDM, DGL, DIA, DMA, DSI, DUG, DVY, DXD, EEM, EEV, EFA, ERF, EWA,
 EWC, EWG, EWH, EWJ, EWT, EWW, EWY, EWZ, FCG, FDG, FDM, FIW, FNI, FXA, FXB, FXC, FXE, FXF, FXI, FXP, FXY, GDX,
 GLD, HHH, HHO, HVY, IAI, IBB, IEF, IGW, ILF, IVE, IVV, IVW, IWB, IWD, IWF, IWM, IWN, IWO, IXX, IXZ, IYE, IYM,
 IYR, IYT, JLO, KBE, KCE, KIE, KLD, MDY, MOO, MYP, OEF, OIH, OOG, PBW, PGJ, PHO, PMP, PPH, PUF, QID, QLD, RND,
 RSP, RTH, RUF, SAW, SDS, SHY, SKF, SIN, SMH, SPY, SSO, TAN, TLT, TTH, TWM, UNG, USO, UTH, UWM, UYG, WSI, XHB,
 XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XRT.
----------------------------------------------------------------------------------------------------------------
                                                    NYSE-Arca
----------------------------------------------------------------------------------------------------------------
Penny Pilot.....................................................            0.51            0.51            0.51
Non-Penny Pilot.................................................            0.06            0.56            0.56
BKX.............................................................            0.06            0.66            0.66
RUT.............................................................            0.06            0.71            0.71
----------------------------------------------------------------------------------------------------------------
                                                      PHLX
----------------------------------------------------------------------------------------------------------------
Equity Options..................................................            0.06            0.30            0.51
MNX & NDX Options...............................................            0.18            0.30            0.51
Index Options...................................................            0.50            0.30            0.26
----------------------------------------------------------------------------------------------------------------

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. On June 30, 
2008, Nasdaq filed SR-2008-058, a proposal 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 collected and 
organized in chart format the fees to be assessed for routing to each 
destination exchange.
    Nasdaq is filing this proposed rule change to reflect a change 
proposed by the International Securities Exchange on

[[Page 42399]]

June 30, 2008, in SR-ISE-2008-55.\6\ In addition, Nasdaq is adding to 
the list of products that ISE treats as ``premium'' options symbol FXY, 
which had been inadvertently omitted from Nasdaq's fee schedule. 
Finally, within Nasdaq's fee schedule for executions occurring at ISE, 
Nasdaq is proposing to classify options class FTZ as a premium product 
with a fee of $.24, $.34, and $.61 for customers, firms, and market 
makers. Options class FTZ had previously been listed in a category by 
itself with executions fees of $.06, $.34, and $.56 for customers, 
firms, and market makers. Nasdaq expects that ISE will charge Nasdaq 
members $.24, $.34, and $.61, respectively, as set forth in Nasdaq's 
proposed rule language.\7\ All fees for markets other than ISE remain 
unchanged.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 58091 (July 3, 
2008), 73 FR 39754 (July 10, 2008) (SR-ISE-2008-55).
    \7\ See e-mail from Jeffrey S. Davis, Vice President and Deputy 
General Counsel, Nasdaq, to Joseph P. Morra, Special Counsel, and 
Andrew Madar, Attorney-Advisor, Commission, dated July 10, 2008, 
adding the prior 3 sentences.
---------------------------------------------------------------------------

2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\8\ in general, and with Section 
6(b)(4) of the Act,\9\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Nasdaq is one of seven options markets in the national market 
system for standardized options. Joining 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 Exchange 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 rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \10\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2008-059 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-2008-059. 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 (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 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 Nasdaq. 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-2008-059 and should 
be submitted on or before August 11, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16588 Filed 7-18-08; 8:45 am]
BILLING CODE 8010-01-P