Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order Approving Proposed Rule Change To Extend a Holiday for Certain Registration and Processing Fees for Associated Persons, 48115-48116 [E9-22685]
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Federal Register / Vol. 74, No. 181 / Monday, September 21, 2009 / Notices
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change from how the existing
participation entitlement works today.6
The Commission has carefully
reviewed the proposed rule change and
finds that it is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.7 In
particular, the Commission finds that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,8 which
requires, among other things, that the
rules of an exchange be designed to
promote just and equitable principles of
trade, 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; and
are not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The new priority overlay is the same
as the current market-maker
participation entitlement overlay,
except that the participation entitlement
will only be applied if there are no
public customer orders resting at the
best price or if a public customer was
the first to rest interest at the best price.
Otherwise, neither the current public
customer priority overlay nor the
market-maker participation entitlement
priority overlay will be in effect. Thus,
public customer orders will have
priority over the orders of other market
participants if they are the first orders
entered at the best price; if they are not
the first orders at the best price, then the
order will be allocated among market
participants using the underlying
matching algorithm—price-time or prorate—both of which the Commission
already has found as consistent with the
Act.9 The Commission therefore
believes that the modified participation
entitlement priority overlay is
consistent with the Act.
6 For example, assume the matching algorithm for
an options class is established so that public
customer orders have first priority, the modified
participation entitlement has second priority, and
any remaining balance is allocated using the prorata matching algorithm. If, at the time of execution,
there is one or more public customer orders at the
execution price but none is first in time sequence
(for instance, because a market-maker quote was the
first trading interest posted at the execution price),
then the market-maker participation entitlement
and public customer priority overlays would not be
applied and the incoming order would be allocated
solely on a pro-rata basis.
7 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(5).
9 See Securities Exchange Act Release No. 51822
(June 10, 2005), 70 FR 35321 (June 17, 2005)
(Adopting CBOE Rule 6.45B).
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IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–CBOE–2009–
052), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–22683 Filed 9–18–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60668; File No. SR–BX–
2009–043]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Order
Approving Proposed Rule Change To
Extend a Holiday for Certain
Registration and Processing Fees for
Associated Persons
September 14, 2009.
I. Introduction
On July 23, 2009, NASDAQ OMX BX,
Inc. (‘‘Exchange’’), filed with the
Securities and Exchange Commission
(‘‘Commission’’) pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
extend a fee holiday for initial
registration and processing and/or
transfer and relicensing fees collected
by the Exchange via Web CRD for the
registration of associated persons of
Exchange members. The proposed rule
change was published for comment in
the Federal Register on August 10,
2009.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
II. Description of the Proposal
The Exchange (as the Boston Stock
Exchange), before its purchase by The
NASDAQ OMX Group, Inc. in 2008,4
had ceased the trading of equity
securities in 2007.5 In January 2009,
when the Exchange’s market center was
launched, the Exchange adopted a new
10 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(l).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 60427
(August 4, 2009), 74 FR 39986 (August 10, 2009)
(‘‘Notice’’).
4 See Securities Exchange Act Release No. 58183
(July 17, 2008), 73 FR 42850 (July 23,
2008).
5 See Securities Exchange Act Release No. 57757
(May 1, 2008), 73 FR 26159 (May 8,
2008).
11 17
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Fmt 4703
Sfmt 4703
48115
set of Equity Rules, which include rules
governing fees charged to members for
registration of associated persons with
the Exchange. Equity Rule 7003(b) sets
forth the fees collected by the Exchange
via the Web CRD system for initial
registration and transfer or re-licensing:
$60 for each initial Form U4 filed for the
registration of a representative or
principal,6 and $40 for each transfer or
re-licensing of a representative or
principal.7
The Exchange recognized that, in
connection with the resumption of
equities trading, additional firms might
wish to become members of the
Exchange, and if so, would need to
register associated persons. Similarly,
additional representatives or principals
of pre-existing members might wish to
trade equities on the Exchange and
would thus need to register with the
Exchange. Therefore, the Exchange
waived these initial registration and
transfer or re-licensing fees from January
1, 2009 to July 1, 2009.8 The Exchange
proposed to extend this fee waiver
period to cover the period from July 1,
2009 until October 1, 2009, to provide
more time for associated persons that
are new to equity trading through the
Exchange to register, transfer, or relicense without incurring these costs.
Registration events occurring after
October 1, 2009 will be subject to the
initial registration and/or transfer or relicensing fees.9
III. Discussion and Commission
Findings
The Commission has reviewed the
proposed rule change and finds that it
is consistent with the requirements of
the Act and the rules and regulations
thereunder applicable to a national
securities exchange.10 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(4) of the Act 11 in that it provides
for an equitable allocation of reasonable
dues, fees, and other charges among the
Exchange’s members and other persons
using its facilities. The fee waiver
applies to initial registration, transfer,
6 Rule
7003(b)(1).
7003(b)(2).
8 See Securities Exchange Act Release No. 59337
(February 2, 2009), 74 FR 6441
(February 9, 2009).
9 Rule 7003(b)(3) sets forth an annual fee of $50
for each registered representative and principal for
system processing. This annual fee was suspended
on January 1, 2009 and will continue to be
suspended until the Exchange submits a proposed
rule change to reinstate it. See id. See also Notice.
10 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
11 15 U.S.C. 78f(b)(4).
7 Rule
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48116
Federal Register / Vol. 74, No. 181 / Monday, September 21, 2009 / Notices
and re-licensing fees of both
representatives and principals, and
therefore applies equally to all
categories of associated persons who
would incur fees pursuant to Rule
7003(b)(1) and (2). In addition, the
Commission notes that the Exchange
has been waiving these fees since
January 1, 2009, and believes waiving
the fees for an additional three months,
retroactive from July 1, 2009 until
October 1, 2009, is a reasonable
extension of the fee holiday. Based on
the above, the Commission believes the
proposed rule change constitutes an
equitable allocation of reasonable dues,
fees, and other charges under Section
6(b)(4) of the Act,12 and is otherwise
consistent with the requirements of the
Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change (SR–BX–2009–
043), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–22685 Filed 9–18–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60662; File No. SR–BX–
2009–053]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
of Proposed Rule Change To Amend
IM–2110–4 To Reflect Changes to a
Corresponding FINRA Rule
mstockstill on DSKH9S0YB1PROD with NOTICES
September 11, 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
September 1, 2009, NASDAQ OMX BX,
Inc. (the ‘‘Exchange’’ or ‘‘BX’’) 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 Exchange has designated the
proposed rule change as constituting a
non-controversial rule change under
Rule 19b–4(f)(6) under the Act,3 which
12 Id.
13 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
14 17
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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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing this proposed
rule change to amend BX Equity Rule
IM–2110–4 to reflect recent changes to
a corresponding rule of the Financial
Industry Regulatory Authority
(‘‘FINRA’’). BX will implement the
proposed rule change thirty days after
the date of the filing. The text of the
proposed rule change is available at
https://nasdaqomxbx.cchwallstreet.com,
at the Exchange’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, 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
Many of the Equity Rules adopted by
BX in conjunction with its resumption
of the trading of cash equities are based
on rules of FINRA (formerly the
National Association of Securities
Dealers (‘‘NASD’’)). During 2008, FINRA
embarked on an extended process of
moving rules formerly designated as
‘‘NASD Rules’’ into a consolidated
FINRA rulebook. In most cases, FINRA
has renumbered these rules, and in
some cases has substantively amended
them. Accordingly, BX also proposes to
initiate a process of modifying its
rulebook to ensure that BX rules
corresponding to FINRA/NASD rules
continue to mirror them as closely as
practicable. In some cases, it will not be
possible for the rule numbers of BX
rules to mirror corresponding FINRA
rules, because existing or planned BX
rules make use of those numbers.
However, wherever possible, BX plans
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Sfmt 4703
to update its rules to reflect changes to
corresponding FINRA rules.
This filing addresses BX IM–2110–04,
which bars trading ahead of research
reports and which formerly
corresponded to NASD IM–2110–04. In
SR–FINRA–2008–054,4 FINRA
redesignated that rule as FINRA Rule
5280 and made substantive amendments
to strengthen and simplify the rule.
Notably, the amended FINRA rule
requires FINRA members to establish,
maintain and enforce policies and
procedures reasonably designed to
restrict or limit the flow of information
between research department personnel
or other persons with knowledge of the
content or timing of a research report,
and trading department personnel. Such
policies and procedures had formerly
been recommended but not required. BX
is adopting the new FINRA rule in full
(with minor modifications to reflect
limits on its jurisdiction to regulate nonExchange conduct), but is continuing to
designate its rule as IM–2110–04 in
order to maintain the 5000 Series of the
BX Equity Rules for possible future use.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,5
in general, and with Sections 6(b)(5) of
the Act,6 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. The
proposed changes will conform BX
Equity Rule IM–2110–04 to recent
changes made to a corresponding
FINRA rule, to promote application of
consistent regulatory standards.
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.
4 Securities Exchange Act Release No. 59254
(January 15, 2009), 74 FR 4271 (January 23, 2009)
(SR–FINRA–2008–054).
5 15 U.S.C. 78f.
6 15 U.S.C. 78f(b)(5).
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]]>Agencies
[Federal Register Volume 74, Number 181 (Monday, September 21, 2009)]
[Notices]
[Pages 48115-48116]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-22685]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60668; File No. SR-BX-2009-043]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order
Approving Proposed Rule Change To Extend a Holiday for Certain
Registration and Processing Fees for Associated Persons
September 14, 2009.
I. Introduction
On July 23, 2009, NASDAQ OMX BX, Inc. (``Exchange''), filed with
the Securities and Exchange Commission (``Commission'') pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to extend a fee
holiday for initial registration and processing and/or transfer and
relicensing fees collected by the Exchange via Web CRD for the
registration of associated persons of Exchange members. The proposed
rule change was published for comment in the Federal Register on August
10, 2009.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(l).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 60427 (August 4,
2009), 74 FR 39986 (August 10, 2009) (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange (as the Boston Stock Exchange), before its purchase by
The NASDAQ OMX Group, Inc. in 2008,\4\ had ceased the trading of equity
securities in 2007.\5\ In January 2009, when the Exchange's market
center was launched, the Exchange adopted a new set of Equity Rules,
which include rules governing fees charged to members for registration
of associated persons with the Exchange. Equity Rule 7003(b) sets forth
the fees collected by the Exchange via the Web CRD system for initial
registration and transfer or re-licensing: $60 for each initial Form U4
filed for the registration of a representative or principal,\6\ and $40
for each transfer or re-licensing of a representative or principal.\7\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 58183 (July 17,
2008), 73 FR 42850 (July 23,
2008).
\5\ See Securities Exchange Act Release No. 57757 (May 1, 2008),
73 FR 26159 (May 8,
2008).
\6\ Rule 7003(b)(1).
\7\ Rule 7003(b)(2).
---------------------------------------------------------------------------
The Exchange recognized that, in connection with the resumption of
equities trading, additional firms might wish to become members of the
Exchange, and if so, would need to register associated persons.
Similarly, additional representatives or principals of pre-existing
members might wish to trade equities on the Exchange and would thus
need to register with the Exchange. Therefore, the Exchange waived
these initial registration and transfer or re-licensing fees from
January 1, 2009 to July 1, 2009.\8\ The Exchange proposed to extend
this fee waiver period to cover the period from July 1, 2009 until
October 1, 2009, to provide more time for associated persons that are
new to equity trading through the Exchange to register, transfer, or
re-license without incurring these costs. Registration events occurring
after October 1, 2009 will be subject to the initial registration and/
or transfer or re-licensing fees.\9\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 59337 (February 2,
2009), 74 FR 6441
(February 9, 2009).
\9\ Rule 7003(b)(3) sets forth an annual fee of $50 for each
registered representative and principal for system processing. This
annual fee was suspended on January 1, 2009 and will continue to be
suspended until the Exchange submits a proposed rule change to
reinstate it. See id. See also Notice.
---------------------------------------------------------------------------
III. Discussion and Commission Findings
The Commission has reviewed the proposed rule change and finds that
it is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\10\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(4) of the Act \11\ in that
it provides for an equitable allocation of reasonable dues, fees, and
other charges among the Exchange's members and other persons using its
facilities. The fee waiver applies to initial registration, transfer,
[[Page 48116]]
and re-licensing fees of both representatives and principals, and
therefore applies equally to all categories of associated persons who
would incur fees pursuant to Rule 7003(b)(1) and (2). In addition, the
Commission notes that the Exchange has been waiving these fees since
January 1, 2009, and believes waiving the fees for an additional three
months, retroactive from July 1, 2009 until October 1, 2009, is a
reasonable extension of the fee holiday. Based on the above, the
Commission believes the proposed rule change constitutes an equitable
allocation of reasonable dues, fees, and other charges under Section
6(b)(4) of the Act,\12\ and is otherwise consistent with the
requirements of the Act.
---------------------------------------------------------------------------
\10\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\11\ 15 U.S.C. 78f(b)(4).
\12\ Id.
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\13\ that the proposed rule change (SR-BX-2009-043), be, and hereby
is, approved.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22685 Filed 9-18-09; 8:45 am]
BILLING CODE 8010-01-P
