Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees for Members Using the NASDAQ Market Center and NASDAQ Options Market, 22619-22621 [E9-11164]
Download as PDF
Federal Register / Vol. 74, No. 91 / Wednesday, May 13, 2009 / Notices
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–11169 Filed 5–12–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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
No. SR–ISE–2009–21 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 No.
SR–ISE–2009–21. 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 changes 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 ISE. 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–ISE–2009–21 and should be
submitted on or before June 3, 2009.
[Release No. 34–59879; File No. SR–
NASDAQ–2009–041]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify Fees
for Members Using the NASDAQ
Market Center and NASDAQ Options
Market
May 6, 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 May 1,
2009, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’ or 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 change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASDAQ proposes to modify pricing
for NASDAQ members using the Nasdaq
Market Center. This proposed rule
change, which is effective upon filing,
will become operative on May 1, 2009.
The text of the proposed rule change is
available at https://nasdaqomx.cchwall
street.com/, at NASDAQ’s principal
office, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASDAQ included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
18:44 May 12, 2009
Jkt 217001
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 modifying the price of
trading equities and options on
NASDAQ in several ways. First,
NASDAQ is increasing the rebate for
providing liquidity in equities traded on
NASDAQ for members that actively
trade both equities and options on
NASDAQ. Currently, NASDAQ offers
rebates of $0.0020 to $0.00295 per share
for all members that provide liquidity in
equities traded on NASDAQ depending
on the volume of liquidity provided in
equities.
Effective May 1, 2009, a member firm
that accesses liquidity of more than
200,000 contracts per day from The
NASDAQ Options Market (‘‘NOM’’) and
provides average daily volume of
liquidity exceeding 25 million shares
per day in the NASDAQ equities
market, will be credited a rebate of
$0.0029 for providing liquidity in
securities listed on NASDAQ or the
New York Stock Exchange (‘‘NYSE’’) or
on other exchanges. A member that
provides 25 million shares of liquidity
per day in equities and does not have
the requisite options participation
receives a rebate of $0.0025 per share.
Second, also effective May 1, 2009,
member firms will have the opportunity
to earn a waiver of applicable fees
charged for executing Mid-point Pegged
orders (as defined in Nasdaq Rule
4751(f)(4)). Firms can earn this fee
waiver by providing average daily
volume of liquidity through the Nasdaq
Market Center in all securities during
the month of more than 125 million
shares.
Third, NASDAQ is implementing
pricing for the routing strategy set forth
in Nasdaq Rule 4758(a)(1)(A)(i), as set
forth in SR–NASDAQ–2009–036.3
Specifically, NASDAQ modified Rule
4758, Order Routing, to provide market
participants with the option of entering
orders that do not check the Nasdaq
Market Center book prior to routing.
Market participants using that routing
strategy for all securities will be
assessed a fee of $0.0005 per share
executed for orders that execute on
venues other than in the NYSE or
NASDAQ OMX BX. For securities that
utilize this strategy and that execute on
10 17
1 15
VerDate Nov<24>2008
22619
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
3 Securities Exchange Act Release No. 59807
(Apr. 21, 2009); 74 FR 19251 (Apr. 28, 2009).
E:\FR\FM\13MYN1.SGM
13MYN1
22620
Federal Register / Vol. 74, No. 91 / Wednesday, May 13, 2009 / Notices
NASDAQ OMX BX, NASDAQ will passthrough the fees or rebates currently
assessed by NASDAQ OMX BX or
$0.0006 rebate per share executed for
Nasdaq-listed and NYSE-listed
securities and $0.0014 charge per share
executed for other securities. An order
that is routed but does not execute and
is returned to the Nasdaq Market Center
will be assessed fees or provided rebates
consistent with those approved for
orders that execute or provide liquidity
on the Nasdaq Market Center.
Fourth, NASDAQ is also eliminating
from Rule 7018 all provisions related to
process that were in effect from April 1
through April 14, 2009.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,4 in
general, and with Section 6(b)(4) of the
Act,5 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. The
proposed fee change applies uniformly
to all similarly situated NASDAQ
members. The impact of the changes
upon the net fees paid by a particular
market participant will depend upon a
number of variables, including its
monthly volume in equities and
options, the prices of its quotes and
orders (i.e., its propensity to add or
remove liquidity) in equities and
options, and the listing venue for the
securities that it trades.
NASDAQ notes that it operates in a
highly competitive market in which
market participants can readily direct
order flow to competing venues if they
deem fee levels at a particular venue to
be excessive. The proposed rule change
reflects a significant reduction in the
overall cost of trading on NASDAQ.
NASDAQ believes that the applicable
fees and credits remain competitive
with those charged by other venues and
therefore continue to be reasonable and
equitably allocated to those members
that opt to direct orders to NASDAQ
rather than competing venues.
NASDAQ is also responding to the
convergence of trading in which
members simultaneously trade different
asset classes within a single strategy.
This has been true of equities and
options trading which is increasing, and
is now visible in equities and futures
trading. For example, on April 1, 2009,
NYSE Euronext LLC announced the
‘‘Futures Incentive Program’’ or ‘‘FIP’’
4 15
5 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
VerDate Nov<24>2008
18:44 May 12, 2009
which coordinates fee schedules
between NYSE Liffe US and NYSE Arca
with respect to trading gold and silver
futures contracts on NYSE Liffe US and
gold and silver based exchange traded
funds on NYSE Arca. Like the NYSE
Euronext FIP proposal, NASDAQ’s
current proposal enables NASDAQ
members to continue to recognize the
full benefit of trading on NASDAQ.
Additionally, NASDAQ and its
members will both recognize additional
operational and administrative
efficiencies from linking the billing of
equities and options trading. In addition
to the efficiencies associated with
existing volume discounts for equities
trading, this proposal will enable
NASDAQ to issue a single invoice to
replace two invoices in various
circumstances.
Finally, this proposal is voluntary
with respect to all firms and should be
considered as one among many
alternatives within NASDAQ’s current
tiered pricing structure. For example,
Nasdaq is offering to waive execution
fees for Mid-point Pegged Orders for
firms with high equities trading volume.
This fee waiver lowers the total cost of
trading on Nasdaq, and responds to a
similar waiver by the ArcaNYSE [sic]
Exchange.
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.
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 6 and
subparagraph (f)(2) of Rule 19b–4
thereunder.7 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.
6 15
7 17
Jkt 217001
PO 00000
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–2009–041 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–2009–041. 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 official business days between
the hours of 10 a.m. and 3 p.m. Copies
of the filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2009–041 and should be
submitted on or before June 3, 2009.
U.S.C. 78s(b)(3)(a)(ii) [sic].
CFR 240.19b–4(f)(2).
Frm 00112
Fmt 4703
Sfmt 4703
E:\FR\FM\13MYN1.SGM
13MYN1
Federal Register / Vol. 74, No. 91 / Wednesday, May 13, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–11164 Filed 5–12–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59872; File No. SR–FINRA–
2009–026]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Implement NonSubstantive Changes to the Code of
Arbitration Procedure for Customer
Disputes and the Code of Arbitration
Procedure for Industry Disputes
May 6, 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 Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) (f/k/a National Association
of Securities Dealers, Inc. (‘‘NASD’’))
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
on April 17, 2009, the proposed rule
change as described in Items I and II
below, which Items have been prepared
by FINRA. FINRA has designated the
proposed rule change as constituting a
‘‘non-controversial’’ rule change under
paragraph (f)(6) of Rule 19b–4 under the
Act,3 which renders the proposal
effective upon receipt of this filing by
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend the
Code of Arbitration Procedure for
Customer Disputes (‘‘Customer Code’’)
and the Code of Arbitration Procedure
for Industry Disputes (‘‘Industry Code’’)
to correct typographical errors and
implement other non-substantive
technical changes. The text of the
proposed rule change is available on
FINRA’s Web site at https://
www.finra.org, at the principal office of
FINRA and at the Commission’s Public
Reference Room.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA 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
FINRA is proposing several technical
amendments to the Customer and
Industry Codes that would correct
typographical errors and implement
other non-substantive changes. FINRA
will discuss the proposed changes as
they appear in the Codes, beginning
with the proposed amendments to the
Customer Code.
Proposed Technical Amendments to the
Customer Code
Rule 12504—Motions to Dismiss
On December 31, 2008, the
Commission approved new Rules 12504
and 13504 and amendments to Rules
12206 and 13206, which establish
procedures that govern motions to
dismiss.4 FINRA is proposing to amend
Rule 12504(b) to make a conforming
change to the reference to
‘‘subparagraph (a)’’ in the rule. In other
rules of the Code, FINRA refers to
lettered provisions by ‘‘paragraph,’’ not
‘‘subparagraph.’’ Thus, for consistency
in the Codes, FINRA is proposing to
change the reference in Rule 12504(b) to
‘‘paragraph (a).’’
Rule 12514—Pre-Hearing Exchange of
Documents and Witness Lists Before
Hearing
FINRA is proposing to conform the
spelling of the term ‘‘pre-hearing’’ in the
title of Rule 12514 to other instances in
the Codes where it is spelled without
the hyphen. Thus, the term ‘‘prehearing’’ would be changed to
‘‘prehearing.’’
Rule 12904(g)—Explained Decisions
On February 4, 2009, the SEC
approved a proposal to amend Rule
8 17
1 15
VerDate Nov<24>2008
18:44 May 12, 2009
4 See Securities Exchange Act Release No. 59189
(December 31, 2008), 74 FR 731 (January 7, 2009)
(Order Approving File No. SR–FINRA–2007–021).
Jkt 217001
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
22621
12904 of the Customer Code and Rule
13904 of the Industry Code to require
arbitrators to provide an explained
decision upon the joint request of the
parties.5 FINRA is proposing to correct
a typographical error in Rule
12904(g)(2). The relevant sentence of the
rule states that ‘‘an explained decision
is a fact-based award stating the general
reasons(s) for the arbitrators’ decision.’’
The word ‘‘reasons(s)’’ should be
changed to ‘‘reason(s).’’
FINRA is also proposing to correct a
typographical error in Rule 12904(g)(6).
The paragraph states that ‘‘this
paragraph (g) will not apply to
simplified cases decided without a
hearing under Rules 12800 or to default
cases conducted under Rule 12801.’’
The phrase ‘‘Rules 12800’’ should be
changed to ‘‘Rule 12800.’’ Further,
FINRA is proposing to change the term
‘‘pre-hearing’’ in Rule 12904(g)(3) to
‘‘prehearing’’ to conform the spelling
with other instances in the Codes.
Proposed Technical Amendments to the
Industry Code 6
Rule 13504—Motions To Dismiss
For an explanation of the proposed
amendment, see the relevant section
under ‘‘Proposed Technical
Amendments to the Customer Code’’
above.
Rule 13514—Pre-Hearing Exchange of
Documents and Witness Lists Before
Hearing
For an explanation of the proposed
amendment, see the relevant section
under ‘‘Proposed Technical
Amendments to the Customer Code’’
above.
Rule 13904(g)—Explained Decisions
For an explanation of the proposed
amendment, see the relevant section
under ‘‘Proposed Technical
Amendments to the Customer Code’’
above.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
5 See Securities Exchange Act Release No. 59358
(February 4, 2009); 74 FR 6928 (February 11, 2009)
(Order Approving File No. SR–FINRA–2008–051).
6 Most rules of the Customer and Industry Codes
are identical, except for panel composition,
references to document production lists that apply
only in customer cases, and rules relating to
employment discrimination and injunctive relief
that apply only to industry claims. Wherever
possible, the last three digits of the rule numbers
in the Customer and Industry Codes are the same.
Thus, the explanations in this filing for the
proposed amendments in the Customer Code also
apply to the proposed amendments in the Industry
Code.
E:\FR\FM\13MYN1.SGM
13MYN1
Agencies
[Federal Register Volume 74, Number 91 (Wednesday, May 13, 2009)]
[Notices]
[Pages 22619-22621]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-11164]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59879; File No. SR-NASDAQ-2009-041]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Fees for Members Using the NASDAQ Market Center and NASDAQ
Options Market
May 6, 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 May 1, 2009, The NASDAQ Stock Market LLC (``NASDAQ'' or 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 change 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
NASDAQ proposes to modify pricing for NASDAQ members using the
Nasdaq Market Center. This proposed rule change, which is effective
upon filing, will become operative on May 1, 2009. The text of the
proposed rule change is available at https://nasdaqomx.cchwallstreet.com/, at NASDAQ's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASDAQ included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. NASDAQ has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is modifying the price of trading equities and options on
NASDAQ in several ways. First, NASDAQ is increasing the rebate for
providing liquidity in equities traded on NASDAQ for members that
actively trade both equities and options on NASDAQ. Currently, NASDAQ
offers rebates of $0.0020 to $0.00295 per share for all members that
provide liquidity in equities traded on NASDAQ depending on the volume
of liquidity provided in equities.
Effective May 1, 2009, a member firm that accesses liquidity of
more than 200,000 contracts per day from The NASDAQ Options Market
(``NOM'') and provides average daily volume of liquidity exceeding 25
million shares per day in the NASDAQ equities market, will be credited
a rebate of $0.0029 for providing liquidity in securities listed on
NASDAQ or the New York Stock Exchange (``NYSE'') or on other exchanges.
A member that provides 25 million shares of liquidity per day in
equities and does not have the requisite options participation receives
a rebate of $0.0025 per share.
Second, also effective May 1, 2009, member firms will have the
opportunity to earn a waiver of applicable fees charged for executing
Mid-point Pegged orders (as defined in Nasdaq Rule 4751(f)(4)). Firms
can earn this fee waiver by providing average daily volume of liquidity
through the Nasdaq Market Center in all securities during the month of
more than 125 million shares.
Third, NASDAQ is implementing pricing for the routing strategy set
forth in Nasdaq Rule 4758(a)(1)(A)(i), as set forth in SR-NASDAQ-2009-
036.\3\ Specifically, NASDAQ modified Rule 4758, Order Routing, to
provide market participants with the option of entering orders that do
not check the Nasdaq Market Center book prior to routing. Market
participants using that routing strategy for all securities will be
assessed a fee of $0.0005 per share executed for orders that execute on
venues other than in the NYSE or NASDAQ OMX BX. For securities that
utilize this strategy and that execute on
[[Page 22620]]
NASDAQ OMX BX, NASDAQ will pass-through the fees or rebates currently
assessed by NASDAQ OMX BX or $0.0006 rebate per share executed for
Nasdaq-listed and NYSE-listed securities and $0.0014 charge per share
executed for other securities. An order that is routed but does not
execute and is returned to the Nasdaq Market Center will be assessed
fees or provided rebates consistent with those approved for orders that
execute or provide liquidity on the Nasdaq Market Center.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 59807 (Apr. 21, 2009);
74 FR 19251 (Apr. 28, 2009).
---------------------------------------------------------------------------
Fourth, NASDAQ is also eliminating from Rule 7018 all provisions
related to process that were in effect from April 1 through April 14,
2009.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\4\ in general, and with Section
6(b)(4) of the Act,\5\ 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. The proposed fee change applies
uniformly to all similarly situated NASDAQ members. The impact of the
changes upon the net fees paid by a particular market participant will
depend upon a number of variables, including its monthly volume in
equities and options, the prices of its quotes and orders (i.e., its
propensity to add or remove liquidity) in equities and options, and the
listing venue for the securities that it trades.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
NASDAQ notes that it operates in a highly competitive market in
which market participants can readily direct order flow to competing
venues if they deem fee levels at a particular venue to be excessive.
The proposed rule change reflects a significant reduction in the
overall cost of trading on NASDAQ. NASDAQ believes that the applicable
fees and credits remain competitive with those charged by other venues
and therefore continue to be reasonable and equitably allocated to
those members that opt to direct orders to NASDAQ rather than competing
venues.
NASDAQ is also responding to the convergence of trading in which
members simultaneously trade different asset classes within a single
strategy. This has been true of equities and options trading which is
increasing, and is now visible in equities and futures trading. For
example, on April 1, 2009, NYSE Euronext LLC announced the ``Futures
Incentive Program'' or ``FIP'' which coordinates fee schedules between
NYSE Liffe US and NYSE Arca with respect to trading gold and silver
futures contracts on NYSE Liffe US and gold and silver based exchange
traded funds on NYSE Arca. Like the NYSE Euronext FIP proposal,
NASDAQ's current proposal enables NASDAQ members to continue to
recognize the full benefit of trading on NASDAQ.
Additionally, NASDAQ and its members will both recognize additional
operational and administrative efficiencies from linking the billing of
equities and options trading. In addition to the efficiencies
associated with existing volume discounts for equities trading, this
proposal will enable NASDAQ to issue a single invoice to replace two
invoices in various circumstances.
Finally, this proposal is voluntary with respect to all firms and
should be considered as one among many alternatives within NASDAQ's
current tiered pricing structure. For example, Nasdaq is offering to
waive execution fees for Mid-point Pegged Orders for firms with high
equities trading volume. This fee waiver lowers the total cost of
trading on Nasdaq, and responds to a similar waiver by the ArcaNYSE
[sic] Exchange.
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.
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 \6\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\7\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(a)(ii) [sic].
\7\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2009-041 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-2009-041. 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 official
business days between the hours of 10 a.m. and 3 p.m. Copies of the
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NASDAQ-2009-041 and should be submitted on or before
June 3, 2009.
[[Page 22621]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-11164 Filed 5-12-09; 8:45 am]
BILLING CODE 8010-01-P