Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing of Proposed Rule Change To Establish Fees for Members, 6441-6443 [E9-2578]
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Federal Register / Vol. 74, No. 25 / Monday, February 9, 2009 / Notices
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[FR Doc. E9–2601 Filed 2–6–09; 8:45 am]
purposes. Annex I of Publication 4058
of the United States International Trade
Commission, incorporated by reference
into Proclamation 8341, incorrectly
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delegated to the USTR in Proclamation
6969, General Notes 11(a) and 11(d) of
the HTS are rectified by inserting
‘‘Peru’’ in alphabetical sequence in the
list of designated beneficiary countries.
Everett H. Eissenstat,
Assistant U.S. Trade Representative for the
Americas.
[FR Doc. E9–2637 Filed 2–4–09; 4:15 pm]
BILLING CODE 3190–W9–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59337; File No. SR–BX–
2009–004]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
of Proposed Rule Change To Establish
Fees for Members
BILLING CODE 3190–W9–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
February 2, 2009.
Notice of Correction to General Notes
11(a) and 11(d) of the Harmonized
Tariff Schedule of the United States
sroberts on PROD1PC70 with NOTICES
AGENCY: Office of the United States
Trade Representative.
ACTION: Notice.
SUMMARY: This notice makes a
rectification to the Harmonized Tariff
Schedule of the United States (HTS) to
reflect that Peru remains a designated
beneficiary country for purposes of the
Andean Trade Preference Act and the
Andean Trade Promotion and Drug
Eradication Act.
DATES: Effective February 1, 2009.
FOR FURTHER INFORMATION CONTACT:
´
´
Marıa L. Pagan, Associate General
Counsel, Office of the United States
Trade Representative, (202) 395–7305.
SUPPLEMENTARY INFORMATION: In
Proclamation 8341 (January 16, 2009)
(74 FR 4105), the President proclaimed
certain changes to the HTS in order to
implement the United States-Peru Trade
Promotion Agreement and for other
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16:35 Feb 06, 2009
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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 January
14, 2009, NASDAQ OMX BX, Inc. (the
‘‘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 by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt a
new member fee schedule for the
resumption of its cash equities trading
business. The text of the proposed rule
change is available from the principal
office of the Exchange and from the
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Frm 00079
Fmt 4703
Commission, and is also available at
https://www.nasdaqtrader.com/
Trader.aspx?id=BSEIERules2008.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On August 29, 2008, the Exchange
was acquired by The NASDAQ OMX
Group, Inc. (‘‘NASDAQ OMX’’). At the
time of this acquisition, the Exchange
was not operating a venue for trading
cash equities. Pursuant to SR–BSE–
2008–48, the Exchange has adopted a
new rulebook with rules governing
membership, the regulatory obligations
of members, listing, and equities
trading.3 The new rules, which are
designated as the ‘‘Equity Rules,’’ are
based to a substantial extent on the rules
of The NASDAQ Stock Market LLC (the
‘‘NASDAQ Exchange’’). The Equity
Rules leave in effect the Exchange’s preexisting rules (the ‘‘Options Rules’’) for
the purpose of governing trading on the
Exchange’s Boston Options Exchange
facility (‘‘BOX’’).
In this filing, the Exchange is
proposing new fees to be charged to
members in connection with the
resumption of its cash equities trading
business. The fee schedules are
structurally similar to those of the
NASDAQ Exchange, but with the
omission of many fees that are not
pertinent to the Exchange’s planned
business and with several differences in
the level of certain fees.
Membership Fees
As provided in proposed Equity Rule
7001, the Exchange will charge a $2,000
membership application fee, a $3,000
annual membership fee, and a $500
3 Securities Exchange Act Release No. 59154
(December 23, 2008), 73 FR 80468 (December 31,
2008) (SR–BSE–2008–48).
1 15
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Federal Register / Vol. 74, No. 25 / Monday, February 9, 2009 / Notices
sroberts on PROD1PC70 with NOTICES
monthly trading rights fee.4 In
recognition of the Exchange’s temporary
cessation of equities trading, the trading
rights fee will be waived for the first
month during which the Exchange’s
new equities trading system, the
NASDAQ OMX BX Equities Market,
operates, and for each month prior to
that time; the annual membership fee
will be waived for all of 2008 and will
be reduced pro rata with respect to any
months of 2009 during which the
trading rights fee is waived; 5 and the
application fee will be waived for
applicants for membership that apply
prior to the time that the NASDAQ
OMX BX Equities Market commences
operations.
As provided in Equity Rule 7002, the
Exchange will charge a Sales Fee to
offset the fees that the Exchange must
pay to the Commission under Section 31
of the Act.6 Equity Rule 7003(a) will
cover registration and processing fees
collected by the Financial Industry
Regulatory Authority (‘‘FINRA’’) with
respect to registration of associated
persons of Exchange members, while
Equity Rule 7003(b) will provide for the
registration fees collected by the
Exchange. In the latter case, the fees are
being kept at the levels previously set by
the Exchange, rather than at the levels
in effect at the NASDAQ Exchange.
Thus, the fees will be $60 for each
initial Form U4 filed for the registration
of a representative or principal; $40 for
each transfer or re-licensing of a
representative of principal; and an
annual fee of $50 for each registered
representative or principal. However, in
recognition of the fact that the relaunch
of equities trading by the Exchange may
cause additional firms to become
members of the Exchange and may
cause pre-existing members to register
additional representatives or principals,
the Exchange is waiving these fees for
a period of time. In the case of the fees
for initial registration and transfer or relicensing, the fees will be waived for the
period from January 1, 2009 to July 1,
2009. Registration events occurring after
July 1, 2009 would be subject to the
fees. The annual fee, which has
historically been collected in December
of a year to cover the succeeding year,
will be waived for the period from
January 1, 2009 until such time as the
Exchange submits a proposed rule
change to reinstate it. The Exchange
4 The fees are identical to the comparable fees of
the NASDAQ Exchange.
5 Thus, if as expected, the NASDAQ OMX BX
Equities Market commences operations on January
16, 2009, the trading rights fee would be waived for
January 2009 and the membership fee for 2009
would be $2750.
6 15 U.S.C. 78ee.
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16:35 Feb 06, 2009
Jkt 217001
expects that it would not submit such a
filing until at least 2010. Thus, the
Exchange would not collect the annual
fee in December 2009.
Access Services Fees
As provided in proposed Equity Rule
7015, access to the NASDAQ OMX BX
Equities Market will be provided
through the OUCH, FIX, and RASH
access protocols, with drop copies
provided through the DROP protocol.
Connections will be available through
extranets, direct connection, and
Internet-based virtual private networks.
The fees will be $400 per month for
each port pair, with an additional $200
per month charged for each Internet port
that requires additional bandwidth.7
These fees are comparable to the fees
charged by the NASDAQ Exchange for
comparable access. In contrast to the
NASDAQ Exchange, however, which
charges certain access fees to persons
that are not members of the NASDAQ
Exchange—for example, FINRA-only
members that use NASDAQ technology
to access the FINRA/NASDAQ Trade
Reporting Facility—the Exchange’s fees
for ports for market access will be
charged only to members.8
Execution Fees
Execution fees will be uniform for all
types of securities and members.9
Specifically, for securities executed at
prices of $1 or more, the Exchange will
charge $0.0022 per share executed and
pay a liquidity provider rebate of $0.002
per share executed. For executions
below $1, the execution fee will be 0.1%
of the total transaction cost, and the
rebate will be $0.
Other Fees
Other fee rules relate to installation,
removal or relocation of equipment at a
subscriber’s premises 10 and
administrative reports 11 and are
7 See
proposed Equity Rule 7015.
Exchange also plans to charge for ports used
to receive market data from the Exchange. Unlike
the access ports that are the subject of this filing,
ports used to receive market data will be available
to non-members as well as members and therefore
will be addressed in a separate filing submitted
under Section 19(b)(2) of the Act, 15 U.S.C.
78s(b)(2). Pending approval of that filing, ports to
receive market data will be provided free of charge.
9 See proposed Equity Rule 7018. By contrast, the
NASDAQ Exchange’s execution fees range from
$0.0029 to $0.0035, but rebates range from $0.0015
to $0.0031, depending on the type of security
traded, the order type, and the market participant’s
average daily trading volumes.
10 See proposed Equity Rule 7029. The provision
allows the Exchange to pass through any costs it
incurs.
11 See proposed Equity Rule 7022. An
administrative report is prepared at a member’s
request regarding its activities to assist the firm in
activities such as auditing its internal systems,
8 The
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comparable to corresponding NASDAQ
Exchange rules. Rule 7027, which
relates to aggregating the activity of
affiliated Exchange members for
purposes of volume pricing discounts,
would not be immediately operative,
since the Exchange will not initially
offer such discounts, but is being
adopted at this time to address any such
discounts adopted in the future.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,12
in general and with Section 6(b)(4) of
the Act,13 as stated above, in that it
provides an equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities. The Exchange makes
all services and products subject to
these fees available on a nondiscriminatory basis to similarly
situated recipients. All fees are
structured in a manner comparable to
corresponding fees of the NASDAQ
Exchange already in effect, and are
generally set at levels equal to or lower
than the levels of the comparable
NASDAQ Exchange fees. Moreover,
each proposed fee is set at a level that
is uniform for all members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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.
Despite its long history, the Exchange
will effectively be entering the
competitive markets for equities trading
as a start-up venture. Accordingly, its
fees must be set at a level that will
promote competition in these markets,
or potential users of its services will
simply continue to obtain services from
the Exchange’s multiple competitors. If
the Exchange sets fees at
inappropriately high levels, market
participants will seek to avoid using the
Exchange. Thus, the products and
services introduced by the Exchange
will promote competition if they
succeed in providing market
participants with viable and costeffective alternatives to existing
competitors. Conversely, they will
impose no burden on competition if
they fail to provide such alternatives.
verifying back-office processing, or projecting
monthly costs. The fee is $25 per month.
12 15 U.S.C. 78f.
13 15 U.S.C. 78f(b)(4).
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Federal Register / Vol. 74, No. 25 / Monday, February 9, 2009 / Notices
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 14 and
subparagraph (f)(2) of Rule 19b–4
thereunder.15 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:
sroberts on PROD1PC70 with NOTICES
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–BX–2009–004 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–BX–2009–004. 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
14 15
15 17
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(2).
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16:35 Feb 06, 2009
Jkt 217001
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, on business days between the
hours of 10 a.m. and 3 p.m., located at
100 F Street, NE., Washington, DC
20549. 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 available publicly. All
submissions should refer to File
Number SR–BX–2009–004 and should
be submitted on or before March 2,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2578 Filed 2–6–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59341; File No. SR–BX–
2009–006]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Eliminate
the Market Hours Day Time-in-Force
February 2, 2009.
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 January
15, 2009, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
constituting a non-controversial rule
change under Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) 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.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
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6443
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to eliminate
the order time-in-force of ‘‘Market Hours
Day’’ (‘‘MDAY’’) from the NASDAQ
OMX BX Equities Market. The Exchange
proposes to implement the change as
soon as practicable following the
effectiveness of the filing.
The text of the proposed rule change
is available from the principal office of
the Exchange, at the Commission’s
Public Reference Room and also on the
Exchange’s Internet Web site at https://
nasdaqtrader.com/Trader.aspx?id=
Boston_Stock_Exchange.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to amend
the rules governing its new equity
trading platform, the NASDAQ OMX BX
Equities Market (the ‘‘System’’), to
eliminate the time-in-force of Market
Hours Day for orders entered into the
System. MDAY orders may be entered
beginning at 7 a.m., but may only
execute during the Exchange’s regular
market hours from 9:30 a.m. to 4 p.m.
The Exchange proposes to eliminate this
time-in-force to prevent MDAY orders
entered prior to 9:30 a.m. from queuing
and subsequently attempting to execute
simultaneously at 9:30 a.m.
The Exchange, unlike the NASDAQ
Stock Market, does not have an opening
cross in which stocks’ opening prices
are established through a process that
involves dissemination of information
about orders being entered into the cross
in the time immediately prior to market
open. Eliminating the MDAY order will
prevent large numbers of executions
from occurring at 9:30 a.m. without the
benefit of the sort of pricing information
provided through an opening cross. In
keeping with the other times-in-force
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]]>Agencies
[Federal Register Volume 74, Number 25 (Monday, February 9, 2009)]
[Notices]
[Pages 6441-6443]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2578]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59337; File No. SR-BX-2009-004]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing of Proposed Rule Change To Establish Fees for Members
February 2, 2009.
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 January 14, 2009, NASDAQ OMX BX, Inc. (the ``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 by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt a new member fee schedule for the
resumption of its cash equities trading business. The text of the
proposed rule change is available from the principal office of the
Exchange and from the Commission, and is also available at https://
www.nasdaqtrader.com/Trader.aspx?id=BSEIERules2008.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On August 29, 2008, the Exchange was acquired by The NASDAQ OMX
Group, Inc. (``NASDAQ OMX''). At the time of this acquisition, the
Exchange was not operating a venue for trading cash equities. Pursuant
to SR-BSE-2008-48, the Exchange has adopted a new rulebook with rules
governing membership, the regulatory obligations of members, listing,
and equities trading.\3\ The new rules, which are designated as the
``Equity Rules,'' are based to a substantial extent on the rules of The
NASDAQ Stock Market LLC (the ``NASDAQ Exchange''). The Equity Rules
leave in effect the Exchange's pre-existing rules (the ``Options
Rules'') for the purpose of governing trading on the Exchange's Boston
Options Exchange facility (``BOX'').
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 59154 (December 23,
2008), 73 FR 80468 (December 31, 2008) (SR-BSE-2008-48).
---------------------------------------------------------------------------
In this filing, the Exchange is proposing new fees to be charged to
members in connection with the resumption of its cash equities trading
business. The fee schedules are structurally similar to those of the
NASDAQ Exchange, but with the omission of many fees that are not
pertinent to the Exchange's planned business and with several
differences in the level of certain fees.
Membership Fees
As provided in proposed Equity Rule 7001, the Exchange will charge
a $2,000 membership application fee, a $3,000 annual membership fee,
and a $500
[[Page 6442]]
monthly trading rights fee.\4\ In recognition of the Exchange's
temporary cessation of equities trading, the trading rights fee will be
waived for the first month during which the Exchange's new equities
trading system, the NASDAQ OMX BX Equities Market, operates, and for
each month prior to that time; the annual membership fee will be waived
for all of 2008 and will be reduced pro rata with respect to any months
of 2009 during which the trading rights fee is waived; \5\ and the
application fee will be waived for applicants for membership that apply
prior to the time that the NASDAQ OMX BX Equities Market commences
operations.
---------------------------------------------------------------------------
\4\ The fees are identical to the comparable fees of the NASDAQ
Exchange.
\5\ Thus, if as expected, the NASDAQ OMX BX Equities Market
commences operations on January 16, 2009, the trading rights fee
would be waived for January 2009 and the membership fee for 2009
would be $2750.
---------------------------------------------------------------------------
As provided in Equity Rule 7002, the Exchange will charge a Sales
Fee to offset the fees that the Exchange must pay to the Commission
under Section 31 of the Act.\6\ Equity Rule 7003(a) will cover
registration and processing fees collected by the Financial Industry
Regulatory Authority (``FINRA'') with respect to registration of
associated persons of Exchange members, while Equity Rule 7003(b) will
provide for the registration fees collected by the Exchange. In the
latter case, the fees are being kept at the levels previously set by
the Exchange, rather than at the levels in effect at the NASDAQ
Exchange. Thus, the fees will be $60 for each initial Form U4 filed for
the registration of a representative or principal; $40 for each
transfer or re-licensing of a representative of principal; and an
annual fee of $50 for each registered representative or principal.
However, in recognition of the fact that the relaunch of equities
trading by the Exchange may cause additional firms to become members of
the Exchange and may cause pre-existing members to register additional
representatives or principals, the Exchange is waiving these fees for a
period of time. In the case of the fees for initial registration and
transfer or re-licensing, the fees will be waived for the period from
January 1, 2009 to July 1, 2009. Registration events occurring after
July 1, 2009 would be subject to the fees. The annual fee, which has
historically been collected in December of a year to cover the
succeeding year, will be waived for the period from January 1, 2009
until such time as the Exchange submits a proposed rule change to
reinstate it. The Exchange expects that it would not submit such a
filing until at least 2010. Thus, the Exchange would not collect the
annual fee in December 2009.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78ee.
---------------------------------------------------------------------------
Access Services Fees
As provided in proposed Equity Rule 7015, access to the NASDAQ OMX
BX Equities Market will be provided through the OUCH, FIX, and RASH
access protocols, with drop copies provided through the DROP protocol.
Connections will be available through extranets, direct connection, and
Internet-based virtual private networks. The fees will be $400 per
month for each port pair, with an additional $200 per month charged for
each Internet port that requires additional bandwidth.\7\ These fees
are comparable to the fees charged by the NASDAQ Exchange for
comparable access. In contrast to the NASDAQ Exchange, however, which
charges certain access fees to persons that are not members of the
NASDAQ Exchange--for example, FINRA-only members that use NASDAQ
technology to access the FINRA/NASDAQ Trade Reporting Facility--the
Exchange's fees for ports for market access will be charged only to
members.\8\
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\7\ See proposed Equity Rule 7015.
\8\ The Exchange also plans to charge for ports used to receive
market data from the Exchange. Unlike the access ports that are the
subject of this filing, ports used to receive market data will be
available to non-members as well as members and therefore will be
addressed in a separate filing submitted under Section 19(b)(2) of
the Act, 15 U.S.C. 78s(b)(2). Pending approval of that filing, ports
to receive market data will be provided free of charge.
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Execution Fees
Execution fees will be uniform for all types of securities and
members.\9\ Specifically, for securities executed at prices of $1 or
more, the Exchange will charge $0.0022 per share executed and pay a
liquidity provider rebate of $0.002 per share executed. For executions
below $1, the execution fee will be 0.1% of the total transaction cost,
and the rebate will be $0.
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\9\ See proposed Equity Rule 7018. By contrast, the NASDAQ
Exchange's execution fees range from $0.0029 to $0.0035, but rebates
range from $0.0015 to $0.0031, depending on the type of security
traded, the order type, and the market participant's average daily
trading volumes.
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Other Fees
Other fee rules relate to installation, removal or relocation of
equipment at a subscriber's premises \10\ and administrative reports
\11\ and are comparable to corresponding NASDAQ Exchange rules. Rule
7027, which relates to aggregating the activity of affiliated Exchange
members for purposes of volume pricing discounts, would not be
immediately operative, since the Exchange will not initially offer such
discounts, but is being adopted at this time to address any such
discounts adopted in the future.
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\10\ See proposed Equity Rule 7029. The provision allows the
Exchange to pass through any costs it incurs.
\11\ See proposed Equity Rule 7022. An administrative report is
prepared at a member's request regarding its activities to assist
the firm in activities such as auditing its internal systems,
verifying back-office processing, or projecting monthly costs. The
fee is $25 per month.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\12\ in general and with
Section 6(b)(4) of the Act,\13\ as stated above, in that it provides an
equitable allocation of reasonable dues, fees, and other charges among
its members and other persons using its facilities. The Exchange makes
all services and products subject to these fees available on a non-
discriminatory basis to similarly situated recipients. All fees are
structured in a manner comparable to corresponding fees of the NASDAQ
Exchange already in effect, and are generally set at levels equal to or
lower than the levels of the comparable NASDAQ Exchange fees. Moreover,
each proposed fee is set at a level that is uniform for all members.
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\12\ 15 U.S.C. 78f.
\13\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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.
Despite its long history, the Exchange will effectively be entering the
competitive markets for equities trading as a start-up venture.
Accordingly, its fees must be set at a level that will promote
competition in these markets, or potential users of its services will
simply continue to obtain services from the Exchange's multiple
competitors. If the Exchange sets fees at inappropriately high levels,
market participants will seek to avoid using the Exchange. Thus, the
products and services introduced by the Exchange will promote
competition if they succeed in providing market participants with
viable and cost-effective alternatives to existing competitors.
Conversely, they will impose no burden on competition if they fail to
provide such alternatives.
[[Page 6443]]
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 \14\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\15\ 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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\14\ 15 U.S.C. 78s(b)(3)(a)(ii).
\15\ 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-BX-2009-004 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2009-004. 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, on business days
between the hours of 10 a.m. and 3 p.m., located at 100 F Street, NE.,
Washington, DC 20549. 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 available publicly. All
submissions should refer to File Number SR-BX-2009-004 and should be
submitted on or before March 2, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2578 Filed 2-6-09; 8:45 am]
BILLING CODE 8011-01-P
