Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Modifying Rule 7050 Governing Pricing for The NASDAQ Options Market (“NOM”), 20514-20516 [E9-10118]
Download as PDF
<![CDATA[
20514
Federal Register / Vol. 74, No. 84 / Monday, May 4, 2009 / Notices
tjames on PRODPC75 with NOTICES
participants once a year per CUSIP. DTC
collected DSFs at the request of the
depositary bank and only for issues that
have not paid a dividend in the last 12
months. In addition to collecting the
DSF, DTC charged its participants three
percent (3%) of the ADR agent fee,
which includes all fees under the ADR
agreement, up to a maximum of $10,000
per CUSIP (‘‘collection charge’’) in order
to cover costs incurred in collecting and
passing through DSFs.3
With this rule filing, DTC will collect
all allowable DSFs, dividend fees,4 passthrough expenses, or other special fees
as governed by the ADR agreement.5
Additionally, DTC will increase the
maximum collection charge to $20,000
per CUSIP. In order to collect the ADR
agent fees, the ADR depositary banks
will be required to notify DTC thirty
calendar days prior to the record date
that a DSF or other fee is due and
payable.6 Moreover, DTC will require
that the ADR depositary bank submit an
attestation that the specific fee(s) is (are)
allowable under the ADR agreement
with the issuer. The attestation will be
in a form prescribed by DTC and may
be changed periodically to address
operational issues. If a participant asks
DTC to substantiate the fee, DTC may
require the ADR depositary to provide
DTC with a copy of the ADR agreement
with the issuer and highlight the fee
schedule. DTC may at its discretion
provide copies of the agreement to its
participants to substantiate the fee.
As a result of this rule filing, the fee
schedule for assessing ADR agent fees
will be revised. First, ADR agent fees
will apply to all fees permitted under
the ADR agreement; the reference to
‘‘issues not paying periodic dividends’’
would be deleted. Second, as discussed
above, the maximum ADR agent fee that
DTC would collect would be increased
to $20,000 from $10,000.
DTC expects to begin collecting ADR
agent fees as expanded by this rule
filing in the first full month following
the approval of this filing.
3 See Securities Exchange Release Act No. 55306
(Feb. 15, 2007) 72 FR 8217 (Feb. 23, 2007) (File No.
SR–DTC–2006–21) (modifying the fees from the
original filing).
4 Dividend fees will continue to be collected
through the current rate adjustment process. The
dividend fee is incorporated into the final rate paid
on the dividend by the agent on payment date and
covers their cost for servicing the dividend
payment.
5 ADR agreements are filed with the Commission
and are usually posted on the depositary bank’s
Web site.
6 Fees may be collected multiple times in any
given calendar year depending on the terms of the
ADR agreement.
VerDate Nov<24>2008
18:31 May 01, 2009
Jkt 217001
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 DTC. In particular, the
Commission believes the proposal is
consistent with Section 17A(b)(3)(F) of
the Act,7 which requires that the rules
of a registered clearing agency are
designed to, among other things, remove
impediments to the perfection of the
mechanism of a national system for the
prompt and accurate clearance and
settlement of securities transactions. For
example, further automating and
centralizing information to effect DTC’s
ADR agent fee collection process should
eliminate invoice and check processing
for DTC participants and depositary
banks because ADR depositaries will no
longer have to mail invoices and
reminders to participants holding ADR
securities at DTC. In addition, DTC
participants will have a more
transparent view into upcoming ADR
agent fees and a centralized source for
information about the ADR agent fee
and the collection process. These
refinements to the ADR fee collection
process should therefore remove
impediments to the perfection of the
mechanism of a national system for the
prompt and accurate clearance and
settlement of securities transactions.
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.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (File No. SR–
DTC–2009–05) be and hereby is
approved.10
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–10117 Filed 5–1–09; 8:45 am]
BILLING CODE 8010–01–P
7 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
9 15 U.S.C. 78s(b)(2).
10 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
11 17 CFR 200.30–3(a)(12).
8 15
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59822; File No. SR–
NASDAQ–2009–034]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Modifying
Rule 7050 Governing Pricing for The
NASDAQ Options Market (‘‘NOM’’)
April 27, 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 April 9,
2009, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III, below, which Items
have been prepared by Nasdaq. Nasdaq
has filed this proposal pursuant to
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 [sic]
Nasdaq has designated this proposal as
establishing or changing a due, fee, or
other charge applicable only to
members, which renders the proposed
rule change effective upon filing. The
Commission is publishing this notice
and [sic] order 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 has filed a proposed rule
change 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. Proposed new language is
underlined [sic]; 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 for all securities.
(1) Fees for Execution of Contracts on
the NASDAQ Options Market
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 Changes are marked to the rule text that appears
in the electronic manual of Nasdaq found at
https://nasdaqomx.cchwallstreet.com.
2 17
E:\FR\FM\04MYN1.SGM
04MYN1
20515
Federal Register / Vol. 74, No. 84 / Monday, May 4, 2009 / Notices
Except as specified below, the charge to member entering order that executes in the NASDAQ Options
Market.
For a pilot period ending July 31, 2009, charge for members or non-members entering order via the Options Intermarket Linkage that executes in the Nasdaq Options Market.
Charge to members entering orders in options on QQQQ, SPY, DIA, IWM, AAPL BAC, C, GS, JPM,
RIMM, XLE, XLF, and XOM with an account type ‘‘Customer’’ that executes and remove liquidity entered by another member.
Credit to member providing liquidity through the NASDAQ Options Market ................................................
Credit to member providing liquidity using price-improving orders through the NASDAQ Options Market
$0.45 per executed contract.
$0.45 per executed contract.
No fee.
$0.30 per executed contract.
$0.35 per executed contract.
FEES AND REBATES
[Per executed contract]
Customer
Penny Pilot Options:
Rebate to Add Liquidity ........................................................................................................
Fee for Removing Liquidity ..................................................................................................
All Other Options:
Fee for Adding Liquidity .......................................................................................................
Fee for Removing Liquidity ..................................................................................................
Rebate for Removing Liquidity .............................................................................................
Firm
Market maker
$0.25
Free
$0.25
0.45
$0.25
0.45
Free
........................
0.20
0.30
0.45
........................
0.30
0.45
........................
Transactions in which the same participant is the buyer and the seller shall be charged a net fee of $0.10 per executed contract.
For a pilot period ending July 31, 2009, the charge for members or non-members entering order via the Options Intermarket Linkage that executes in the Nasdaq Options Market shall be $0.45 per executed contract.
*
(2)–(4) No change.
*
*
*
*
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. The text of these
statements may be examined at the
places specified in Item III below [sic],
and is set forth in Sections A, B, and C
below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
tjames on PRODPC75 with NOTICES
1. Purpose
Nasdaq is modifying NASDQ Rule
7050, the fee schedule for NOM, in
several ways. First, Nasdaq is making
several changes that apply to orders
with an account type of ‘‘Customer.’’
Specifically, Nasdaq is expanding a
pricing program to lower the fee for the
execution of options contracts for
certain orders in certain options on the
NASDAQ Options Market (‘‘NOM’’). On
January 12, 2009, Nasdaq began
permitting orders with an account type
of ‘‘Customer’’ to take liquidity 6 for free
in certain options. Nasdaq applied the
new fee provision to options on four
6 An order that takes liquidity is one that is
entered into NOM and that executes against an
order resting on the NOM book.
VerDate Nov<24>2008
15:26 May 01, 2009
Jkt 217001
exchange-traded funds: QQQQ, SPY,
DIA, and IWM. Nasdaq later expanded
that program to apply the reduced fee
provision to options on the following
equities: AAPL, BAC, C, GS, JPM,
RIMM, XLE, XLF, and XOM. That
proposal accomplished its goal of
attracting liquidity to the Nasdaq
Options Market.
Accordingly, Nasdaq now proposes to
expand the application of that rule to
additional options classes. Specifically,
Nasdaq is expanding the program to all
options that are included in the Options
Penny Pilot Program. Nasdaq will
monitor the trading of options on these
equities to ensure that the proposal is
operating in a fashion that promotes the
interests of investors.
Nasdaq is also changing the fee
structure for ‘‘Customer’’ orders in
options not included in the Options
Penny Pilot Program. Specifically,
Nasdaq will charge no execution fees for
members providing liquidity through
the NASDAQ Options Market with an
account type ‘‘Customer.’’ Nasdaq will
also offer a credit of $0.20 per executed
contract to members entering orders in
options with an account type
‘‘Customer’’ that execute and remove
liquidity entered by another member in
options that are not included in the
Options Penny Pilot Program.
Second, Nasdaq is modifying
NASDAQ Rule 7050 to further
distinguish between options that are
included in the Options Penny Pilot
Program and those that are not.
Specifically, NOM will provide a credit
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
of $0.25 to members providing liquidity
through NOM in options included in the
Options Penny Pilot Program. [sic], and
charge a fee of $0.30 to members
providing liquidity in the capacity of
‘‘firm’’ or ‘‘market maker’’ (as opposed
to ‘‘customer’’) through NOM for
options that are not included in Options
Penny Pilot Program.
Third, Nasdaq is modifying NASDAQ
Rule 7050 with respect to all options to
change the distinction between orders
that interact with other members’ orders
and those that interact with orders from
the same firm. Specifically, Nasdaq will
charge a fee of $0.10 per executed
contract when a member order executes
against the order entered by the same
firm. Similarly, Nasdaq will not offer a
credit or charge a fee when a member
order provides liquidity to an order
entered by the same firm.
Fourth, Nasdaq is eliminating the
special pricing currently offered for
Price Improving Orders. Going forward,
Price Improving Orders will be subject
to the standard fee schedule set forth in
NASDAQ Rule 7050 as amended by this
proposed rule change.
Nasdaq believes that the proposed
fees are competitive, fair and
reasonable, and non-discriminatory in
that they apply equally to all similarly
situated members and customers. As
with all fees, Nasdaq may adjust these
proposed fees in response to
competitive conditions by filing a new
proposed rule change.
2. Statutory Basis
E:\FR\FM\04MYN1.SGM
04MYN1
20516
Federal Register / Vol. 74, No. 84 / Monday, May 4, 2009 / Notices
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,7 in
general, and with Section 6(b)(5) of the
Act,8 in particular, in that the proposal
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. As one of seven options
market in the national market system,
Nasdaq’s fees must be competitive and
low in order for Nasdaq to attract order
flow, execute orders, and grow as a
market. 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 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.
tjames on PRODPC75 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A)(ii) of
the Act 9 and Rule 19b–4(f)(2)
thereunder,10 Nasdaq has designated
this proposal as establishing or changing
a due, fee, or other charge applicable
only to members, which renders the
proposed rule change effective upon
filing. Nasdaq will make the proposed
pricing schedule operational on April
13, 2009.
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
7 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(3)(A)(ii).
10 17 CFR 240.19b–4(f)(2).
8 15
VerDate Nov<24>2008
15:26 May 01, 2009
Jkt 217001
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–2009–034 on the
subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–10118 Filed 5–1–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59823; File No. SR–NYSE–
2009–40]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by New York
Stock Exchange LLC Amending the
Exchange’s Timely Alert Policy
April 27, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
Paper Comments
notice is hereby given that on April 8,
• Send paper comments in triplicate
2009, New York Stock Exchange, LLC
to Elizabeth M. Murphy, Secretary,
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
Securities and Exchange Commission,
the Securities and Exchange
100 F Street, NE., Washington DC
Commission (the ‘‘Commission’’ or
20549–1090.
‘‘SEC’’) the proposed rule change as
described in Items I, II, and III below,
All submissions should refer to File
which Items have been prepared by the
Number SR–NASDAQ–2009–034. This
Exchange. The Commission is
file number should be included on the
subject line if e-mail is used. To help the publishing this notice to solicit
comments on the proposed rule change
Commission process and review your
from interested persons.
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
The Exchange proposes to amend
submission, all subsequent
Section 202.06 of the Listed Company
amendments, all written statements
Manual to provide that companies can
with respect to the proposed rule
comply with the Exchange’s immediate
change that are filed with the
release policy by disseminating the
Commission, and all written
information by any Regulation Fair
communications relating to the
Disclosure (‘‘Regulation FD’’) compliant
proposed rule change between the
Commission and any person, other than method (or combination of methods).
The text of the proposed rule change is
those that may be withheld from the
available at the Exchange, the
public in accordance with the
Commission’s Public Reference Room,
provisions of 5 U.S.C. 552, will be
and https://www.nyse.com.
available for inspection and copying in
the Commission’s Public Reference
II. Self-Regulatory Organization’s
Room, 100 F Street, NE., Washington,
Statement of the Purpose of, and
DC 20549, on official business days
Statutory Basis for, the Proposed Rule
between the hours of 10 a.m. and 3 p.m. Change
Copies of such filing also will be
In its filing with the Commission, the
available for inspection and copying at
self-regulatory organization included
the principal office of the Exchange. All
statements concerning the purpose of,
comments received will be posted
and basis for, the proposed rule change
without change; the Commission does
and discussed any comments it received
not edit personal identifying
on the proposed rule change. The text
information from submissions. You
of those statements may be examined at
should submit only information that
the places specified in Item IV below.
you wish to make available publicly. All
submissions should refer to File No.
11 17 CFR 200.30–3(a)(12).
SR–NASDAQ–2009–034 and should be
1 15 U.S.C. 78s(b)(1).
submitted on or before May 26, 2009.
2 17 CFR 240.19b–4.
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
E:\FR\FM\04MYN1.SGM
04MYN1
]]>Agencies
[Federal Register Volume 74, Number 84 (Monday, May 4, 2009)]
[Notices]
[Pages 20514-20516]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-10118]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59822; File No. SR-NASDAQ-2009-034]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Modifying Rule 7050 Governing Pricing for The NASDAQ Options Market
(``NOM'')
April 27, 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 April 9, 2009, The NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III, below, which
Items have been prepared by Nasdaq. Nasdaq has filed this proposal
pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ [sic] Nasdaq has designated this proposal as
establishing or changing a due, fee, or other charge applicable only to
members, which renders the proposed rule change effective upon filing.
The Commission is publishing this notice and [sic] order 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 has filed a proposed rule change 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. Proposed new language is underlined [sic];
proposed deletions are in brackets.\5\
---------------------------------------------------------------------------
\5\ Changes are marked to the rule text that appears in the
electronic manual of Nasdaq found at https://nasdaqomx.cchwallstreet.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 for all securities.
(1) Fees for Execution of Contracts on the NASDAQ Options Market
[[Page 20515]]
Except as specified below, $0.45 per executed contract.
the charge to member
entering order that executes
in the NASDAQ Options Market.
For a pilot period ending $0.45 per executed contract.
July 31, 2009, charge for
members or non-members
entering order via the
Options Intermarket Linkage
that executes in the Nasdaq
Options Market.
Charge to members entering No fee.
orders in options on QQQQ,
SPY, DIA, IWM, AAPL BAC, C,
GS, JPM, RIMM, XLE, XLF, and
XOM with an account type
``Customer'' that executes
and remove liquidity entered
by another member.
Credit to member providing $0.30 per executed contract.
liquidity through the NASDAQ
Options Market.
Credit to member providing $0.35 per executed contract.
liquidity using price-
improving orders through the
NASDAQ Options Market.
Fees and Rebates
[Per executed contract]
----------------------------------------------------------------------------------------------------------------
Customer Firm Market maker
----------------------------------------------------------------------------------------------------------------
Penny Pilot Options: .............. .............. ..............
Rebate to Add Liquidity..................................... $0.25 $0.25 $0.25
Fee for Removing Liquidity.................................. Free 0.45 0.45
All Other Options: .............. .............. ..............
Fee for Adding Liquidity.................................... Free 0.30 0.30
Fee for Removing Liquidity.................................. .............. 0.45 0.45
Rebate for Removing Liquidity............................... 0.20 .............. ..............
----------------------------------------------------------------------------------------------------------------
Transactions in which the same participant is the buyer and the seller shall be charged a net fee of $0.10 per
executed contract.
For a pilot period ending July 31, 2009, the charge for members or non-members entering order via the Options
Intermarket Linkage that executes in the Nasdaq Options Market shall be $0.45 per executed contract.
(2)-(4) No change.
* * * * *
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. The
text of these statements may be examined at the places specified in
Item III below [sic], and is set forth in Sections A, B, and C below.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Nasdaq is modifying NASDQ Rule 7050, the fee schedule for NOM, in
several ways. First, Nasdaq is making several changes that apply to
orders with an account type of ``Customer.'' Specifically, Nasdaq is
expanding a pricing program to lower the fee for the execution of
options contracts for certain orders in certain options on the NASDAQ
Options Market (``NOM''). On January 12, 2009, Nasdaq began permitting
orders with an account type of ``Customer'' to take liquidity \6\ for
free in certain options. Nasdaq applied the new fee provision to
options on four exchange-traded funds: QQQQ, SPY, DIA, and IWM. Nasdaq
later expanded that program to apply the reduced fee provision to
options on the following equities: AAPL, BAC, C, GS, JPM, RIMM, XLE,
XLF, and XOM. That proposal accomplished its goal of attracting
liquidity to the Nasdaq Options Market.
---------------------------------------------------------------------------
\6\ An order that takes liquidity is one that is entered into
NOM and that executes against an order resting on the NOM book.
---------------------------------------------------------------------------
Accordingly, Nasdaq now proposes to expand the application of that
rule to additional options classes. Specifically, Nasdaq is expanding
the program to all options that are included in the Options Penny Pilot
Program. Nasdaq will monitor the trading of options on these equities
to ensure that the proposal is operating in a fashion that promotes the
interests of investors.
Nasdaq is also changing the fee structure for ``Customer'' orders
in options not included in the Options Penny Pilot Program.
Specifically, Nasdaq will charge no execution fees for members
providing liquidity through the NASDAQ Options Market with an account
type ``Customer.'' Nasdaq will also offer a credit of $0.20 per
executed contract to members entering orders in options with an account
type ``Customer'' that execute and remove liquidity entered by another
member in options that are not included in the Options Penny Pilot
Program.
Second, Nasdaq is modifying NASDAQ Rule 7050 to further distinguish
between options that are included in the Options Penny Pilot Program
and those that are not. Specifically, NOM will provide a credit of
$0.25 to members providing liquidity through NOM in options included in
the Options Penny Pilot Program. [sic], and charge a fee of $0.30 to
members providing liquidity in the capacity of ``firm'' or ``market
maker'' (as opposed to ``customer'') through NOM for options that are
not included in Options Penny Pilot Program.
Third, Nasdaq is modifying NASDAQ Rule 7050 with respect to all
options to change the distinction between orders that interact with
other members' orders and those that interact with orders from the same
firm. Specifically, Nasdaq will charge a fee of $0.10 per executed
contract when a member order executes against the order entered by the
same firm. Similarly, Nasdaq will not offer a credit or charge a fee
when a member order provides liquidity to an order entered by the same
firm.
Fourth, Nasdaq is eliminating the special pricing currently offered
for Price Improving Orders. Going forward, Price Improving Orders will
be subject to the standard fee schedule set forth in NASDAQ Rule 7050
as amended by this proposed rule change.
Nasdaq believes that the proposed fees are competitive, fair and
reasonable, and non-discriminatory in that they apply equally to all
similarly situated members and customers. As with all fees, Nasdaq may
adjust these proposed fees in response to competitive conditions by
filing a new proposed rule change.
2. Statutory Basis
[[Page 20516]]
Nasdaq believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(5) of the Act,\8\ in particular, in that the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. As one of seven options
market in the national market system, Nasdaq's fees must be competitive
and low in order for Nasdaq to attract order flow, execute orders, and
grow as a market. Nasdaq believes that its fees are fair and reasonable
and consistent with the Exchange Act.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
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
Pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-
4(f)(2) thereunder,\10\ Nasdaq has designated this proposal as
establishing or changing a due, fee, or other charge applicable only to
members, which renders the proposed rule change effective upon filing.
Nasdaq will make the proposed pricing schedule operational on April 13,
2009.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2009-034 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-NASDAQ-2009-034. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-NASDAQ-2009-034 and should be
submitted on or before May 26, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-10118 Filed 5-1-09; 8:45 am]
BILLING CODE 8010-01-P
