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]
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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.
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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 https://
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).
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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 (https://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 (https://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 https://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.
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\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.
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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.
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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(4).
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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.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
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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-2008-059 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 (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 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
