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 To Correct a Typographical Error in Rule 7018, 7642-7644 [2010-3332]
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7642
Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Notices
participant, an investor, or a third party.
Upon receipt of a WT instruction from
a participant, DTC either sends a
certificate to the transfer agent for
reregistration in the name of the person
or entity identified in the WT
instruction or instructs the transfer
agent to debit DTC’s FAST position and
to issue securities in the name of the
person or entity identified in the WT
instruction.
As part of DTC’s response to an
industry effort to reduce the number of
securities certificates in the U.S. market
(sometimes referred to as
‘‘dematerialization’’),6 DTC initiated a
program of steadily increasing its fees
for WTs and other withdrawals to create
strong disincentives for the use of
physical certificates. Consistent with
that program, DTC is now proposing to
eliminate a participant’s ability to use
the WT service to have physical
certificates issued for unsponsored
ADRs that are a part of the FAST
Program. DTC believes that this
modification of its WT service reaffirms
its goals of reducing the number of
securities certificates in the U.S.
markets. DTC participants will continue
to have the ability to request a physical
certificate directly from the transfer
agent by using the DWAC process.7
The proposed rule change is
consistent with the requirements of the
Securities Exchange Act of 1934, as
amended (‘‘Act’’), and the rules and
regulations thereunder because it
modifies a DTC service in order to
reduce the use of physical certificates
and the inherent risks associated with
the use of physical certificates and as
such facilitates the prompt and accurate
clearance and settlement of securities.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
DTC does not believe that the
proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
cprice-sewell on DSK2BSOYB1PROD with NOTICES
Written comments relating to the
proposed rule change have not been
solicited or received. DTC will notify
6 For more information on dematerialization, see
Securities Exchange Act Release No. 49405 (March
11, 2004), 69 FR 12922 (March 18, 2004) ([File No.
S7–13–04]).
7 DWAC is a method of electronically transferring
shares between a DTC Participant and the transfer
agent for the shares. For more information about the
DWAC service, see Securities Exchange Act Release
No. 30283 (January 23, 1992), 56 FR 59307
(November 18, 1991) (SR–DTC–91–16) (order
granting approval of the DWAC service).
VerDate Nov<24>2008
15:26 Feb 19, 2010
Jkt 220001
the Commission of any written
comments received by DTC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
ninety days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–DTC–2010–03 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–DTC–2010–03. 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 Web site viewing and
printing in the Commission’s Public
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
Reference Section, 100 F Street, NE.,
Washington, DC 20549–1090, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filings
will also be available for inspection and
copying at the principal office of DTC
and on DTC’s Web site at https://
www.dtcc.com/downloads/legal/
rule_filings/2010/dtc/2010-03.pdf. 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–DTC–2010–03 and should
be submitted on or before March 15,
2010.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–3329 Filed 2–19–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61515; File No. SR–
NASDAQ–2010–014]
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 To Correct a
Typographical Error in Rule 7018
February 12, 2010.
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
26, 2010, 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. Pursuant to
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 NASDAQ
has designated this proposal as
establishing or changing a due, fee, or
other charge, which renders the
proposed rule change effective upon
filing. The Commission is publishing
this notice to solicit comments on the
8 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)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Notices
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
NASDAQ proposes to modify pricing
for NASDAQ members using the
NASDAQ Market Center, and to correct
a typographical error in Rule 7018.5
NASDAQ will implement the proposed
change to Rule 7018(b) on February 1,
2010, and will implement the remainder
of the filing immediately upon filing.
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
cprice-sewell on DSK2BSOYB1PROD with NOTICES
1. Purpose
NASDAQ is modifying its fee
structure for securities that execute at
prices below $1. For these securities,
NASDAQ currently charges members
accessing liquidity a fee equal to 0.1%
(10 basis points) of the total transaction
cost and provides no credit to members
providing liquidity. Under the new fee
structure, members accessing liquidity
will be charged 0.3% (30 basis points)
of the total transaction cost, and
members providing liquidity will be
provided a credit equal to 0.2% (20
basis points) of the total transaction
cost. The change is intended to provide
a competitive response to another
trading venue that has adopted a similar
‘‘maker-taker’’ pricing structure for
securities priced below $1.6 The
proposal is consistent with the
5 The Commission notes that the ‘‘typographical
error in Rule 7018’’ is more accurately characterized
as a drafting error by Nasdaq that resulted in the
omission and misplacement of rule language.
6 See https://www.directedge.com/SubscriberInfo/
FeeSchedule.aspx.
VerDate Nov<24>2008
15:26 Feb 19, 2010
Jkt 220001
provisions of Rule 610 under Regulation
NMS 7 that govern access fees.
NASDAQ is also proposing to correct
a typographical error in Rule 7018. In
SR–NASDAQ–2009–072,8 NASDAQ
submitted a proposed rule change to
make clerical changes designed to
streamline and simplify Rule 7018. As
stated in the ‘‘Purpose’’ section of
NASDAQ’s Form 19b–4 filing, ‘‘[n]one
of the clerical changes will modify any
fee assessed or credit earned for trading
on the NASDAQ Market Center.’’
However, due to a typographical error,
Exhibit 5 introduced inaccuracies into
the provisions of the rule describing the
fees for orders in securities listed on the
New York Stock Exchange (‘‘NYSE’’) that
are routed to other venues without
attempting to execute in NASDAQ for
the full size of the order prior to routing.
This portion of the fee schedule had
previously been divided between
sections governing fees for orders in
NYSE-listed securities executed at
NYSE and fees for orders executed at
other venues. Both sections had
included catch-all provisions governing
‘‘other’’ orders that did not fit into more
defined categories of routed orders;
these catch-all provisions apply
specifically to directed orders that are
not designated as intermarket sweep
orders (i.e., immediate-or-cancel orders
that are directed to route to a venue
specified by the member, and that may
be executed by the receiving venue only
if its quotation is at the national best bid
or offer). In the case of such orders
routed to NYSE, the fee is either $0.0020
per share executed, or $0.0019 per share
executed for members with an average
daily volume through the Nasdaq
Market Center in all securities during
the month of more than 35 million
shares of liquidity provided. In the case
of such orders routed to other venues,
the fee is $0.0035 per share executed.
However, language describing the fee for
routing to other venues was
inadvertently deleted, while language
describing the fee for routing to NYSE
was moved but without language that
had formerly limited its applicability to
orders sent to NYSE. Accordingly, a
reader of the amended rule may
conclude that the fee of $0.0020 or
$0.0019 per share executed is applicable
to ‘‘other’’ orders routed to venues other
than NYSE.
As noted above, however, the filing
that introduced this error in Rule 7018
stated that it was not modifying any fees
or credits, and in fact, was filed as a
7 17
CFR 242.610.
Exchange Act Release No. 60430
(August 4, 2009), 74 FR 40279 (August 11, 2009)
(SR–NASDAQ–2009–072).
8 Securities
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
7643
‘‘stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule’’ under SEC Rule 19b–
4(f)(1) 9 rather than a fee change under
SEC Rule 19b–4(f)(2).10 Moreover,
NASDAQ’s intent not to modify fees
through SR–NASDAQ–2009–072 was
reflected in the Commission’s notice of
the filing on the SEC Web site 11 and in
the Federal Register,12 and the
applicable fees have been accurately
described in the pricing schedule that
appears on NASDAQ’s Web site.13
Accordingly, this filing corrects the
typographical error. NASDAQ has been
billing members in accordance with the
correct fees since the effective date of
SR–NASDAQ–2009–072 on July 24,
2009, and accordingly believes that all
of its members are cognizant of the
correct fee. However, because this filing
is immediately effective and therefore
cannot take effect retroactively,
NASDAQ is also submitting a filing for
notice and comment under Section
19(b)(2) of the Act to seek Commission
approval for charging the correct fee
during the period from July 24, 2009
through January 25, 2010.14 Finally,
NASDAQ is making non-substantive
changes to Rule 7018 to reflect clearly
that the category of ‘‘other’’ fees is, with
respect to all types of securities, a
charge for directed orders where the fees
are not described by other provisions of
Rule 7018. NASDAQ believes that this
change will enhance the clarity of the
rule.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,15 in
general, and with Section 6(b)(4) of the
Act,16 in particular, in that it provides
for the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which
NASDAQ operates or controls.
NASDAQ is adapting the ‘‘maker-taker’’
pricing model that is prevalent across
most U.S. transaction venues for
securities priced at $1 or higher and
applying it securities priced below $1.
This change is a competitive response to
9 17
CFR 240.19b–4(f)(1).
CFR 240.19b–4(f)(2).
11 See https://www.sec.gov/rules/sro/nasdaq/2009/
34-60430.pdf.
12 See Securities Exchange Act Release No. 60430
(August 4, 2009), 74 FR 40279 (August 11, 2009)
(SR–NASDAQ–2009–072).
13 See https://www.nasdaqtrader.com/
Trader.aspx?id=PriceListTrading2.
14 SR–NASDAQ–2010–015 (January 26, 2010).
15 15 U.S.C. 78f.
16 15 U.S.C. 78f(b)(4).
10 17
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7644
Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Notices
another trading venue that has already
introduced this pricing model for lowpriced securities. The change will result
in a fee increase for firms when they
access liquidity in these securities and
a fee reduction for firms when they
provide liquidity in these stocks.
NASDAQ is also correcting a
typographical error in Rule 7018.
The impact of the changes upon the
net fees paid by a particular market
participant will depend upon a number
of variables, including the prices of the
market participant’s quotes and orders
relative to the national best bid and offer
(i.e., its propensity to add or remove
liquidity) and the extent to which it
trades in low-priced securities.
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. NASDAQ believes that the
change will further enhance the
competitiveness of its fees in
comparison with those charged by other
venues, and that its fees are reasonable
and equitably allocated to members on
the basis of whether they opt to direct
orders to NASDAQ.
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.
cprice-sewell on DSK2BSOYB1PROD with NOTICES
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 17 and
subparagraph (f)(2) of Rule 19b–4
thereunder.18 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.
17 15
18 17
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:
15:26 Feb 19, 2010
Jkt 220001
[FR Doc. 2010–3332 Filed 2–19–10; 8:45 am]
BILLING CODE 8011–01–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
Number SR–NASDAQ–2010–014 on the
subject line.
[Release No. 34–61512; File No. SR–
NYSEArca–2010–05]
Paper Comments
February 12, 2010.
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on January
28, 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’
or the ‘‘Exchange’’) through its whollyowned subsidiary NYSE Arca Equities,
Inc. (‘‘NYSE Arca Equities’’), filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. NYSE Arca
filed the proposal pursuant to Section
19(b)(3)(A) 4 of the Act and Rule 19b–
4(f)(2) 5 thereunder. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
All submissions should refer to File
Number SR–NASDAQ–2010–014. 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 Web site viewing and
printing in the Commission’s Public
Reference Room 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 offices 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–2010–014, and
should be submitted on or before March
15, 2010.
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(2).
VerDate Nov<24>2008
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Fee
Schedule
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Schedule of Fees and Charges for
Exchange Services (the ‘‘Schedule’’).
While changes to the Schedule pursuant
to this proposal will be effective upon
filing, the changes will become
operative on February 1, 2010. The text
of the proposed rule change is available
on the Exchange’s Web site at https://
www.nyse.com, on the Commission’s
Web site at https://www.sec.gov, at the
Exchange, and at the Commission’s
Public Reference Room. A copy of this
filing is available on the Exchange’s
Web site at https://www.nyse.com, at the
Exchange’s principal office and at the
Commission’s Public Reference Room.
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(2).
1 15
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]]>Agencies
[Federal Register Volume 75, Number 34 (Monday, February 22, 2010)]
[Notices]
[Pages 7642-7644]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3332]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61515; File No. SR-NASDAQ-2010-014]
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 To Correct a
Typographical Error in Rule 7018
February 12, 2010.
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 26, 2010, 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. Pursuant to Section 19(b)(3)(A)(ii)
of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ NASDAQ has
designated this proposal as establishing or changing a due, fee, or
other charge, which renders the proposed rule change effective upon
filing. The Commission is publishing this notice to solicit comments on
the
[[Page 7643]]
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 the
Substance of the Proposed Rule Change
NASDAQ proposes to modify pricing for NASDAQ members using the
NASDAQ Market Center, and to correct a typographical error in Rule
7018.\5\ NASDAQ will implement the proposed change to Rule 7018(b) on
February 1, 2010, and will implement the remainder of the filing
immediately upon filing. 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.
---------------------------------------------------------------------------
\5\ The Commission notes that the ``typographical error in Rule
7018'' is more accurately characterized as a drafting error by
Nasdaq that resulted in the omission and misplacement of rule
language.
---------------------------------------------------------------------------
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 its fee structure for securities that execute
at prices below $1. For these securities, NASDAQ currently charges
members accessing liquidity a fee equal to 0.1% (10 basis points) of
the total transaction cost and provides no credit to members providing
liquidity. Under the new fee structure, members accessing liquidity
will be charged 0.3% (30 basis points) of the total transaction cost,
and members providing liquidity will be provided a credit equal to 0.2%
(20 basis points) of the total transaction cost. The change is intended
to provide a competitive response to another trading venue that has
adopted a similar ``maker-taker'' pricing structure for securities
priced below $1.\6\ The proposal is consistent with the provisions of
Rule 610 under Regulation NMS \7\ that govern access fees.
---------------------------------------------------------------------------
\6\ See https://www.directedge.com/SubscriberInfo/FeeSchedule.aspx.
\7\ 17 CFR 242.610.
---------------------------------------------------------------------------
NASDAQ is also proposing to correct a typographical error in Rule
7018. In SR-NASDAQ-2009-072,\8\ NASDAQ submitted a proposed rule change
to make clerical changes designed to streamline and simplify Rule 7018.
As stated in the ``Purpose'' section of NASDAQ's Form 19b-4 filing,
``[n]one of the clerical changes will modify any fee assessed or credit
earned for trading on the NASDAQ Market Center.'' However, due to a
typographical error, Exhibit 5 introduced inaccuracies into the
provisions of the rule describing the fees for orders in securities
listed on the New York Stock Exchange (``NYSE'') that are routed to
other venues without attempting to execute in NASDAQ for the full size
of the order prior to routing. This portion of the fee schedule had
previously been divided between sections governing fees for orders in
NYSE-listed securities executed at NYSE and fees for orders executed at
other venues. Both sections had included catch-all provisions governing
``other'' orders that did not fit into more defined categories of
routed orders; these catch-all provisions apply specifically to
directed orders that are not designated as intermarket sweep orders
(i.e., immediate-or-cancel orders that are directed to route to a venue
specified by the member, and that may be executed by the receiving
venue only if its quotation is at the national best bid or offer). In
the case of such orders routed to NYSE, the fee is either $0.0020 per
share executed, or $0.0019 per share executed for members with an
average daily volume through the Nasdaq Market Center in all securities
during the month of more than 35 million shares of liquidity provided.
In the case of such orders routed to other venues, the fee is $0.0035
per share executed. However, language describing the fee for routing to
other venues was inadvertently deleted, while language describing the
fee for routing to NYSE was moved but without language that had
formerly limited its applicability to orders sent to NYSE. Accordingly,
a reader of the amended rule may conclude that the fee of $0.0020 or
$0.0019 per share executed is applicable to ``other'' orders routed to
venues other than NYSE.
---------------------------------------------------------------------------
\8\ Securities Exchange Act Release No. 60430 (August 4, 2009),
74 FR 40279 (August 11, 2009) (SR-NASDAQ-2009-072).
---------------------------------------------------------------------------
As noted above, however, the filing that introduced this error in
Rule 7018 stated that it was not modifying any fees or credits, and in
fact, was filed as a ``stated policy, practice, or interpretation with
respect to the meaning, administration, or enforcement of an existing
rule'' under SEC Rule 19b-4(f)(1) \9\ rather than a fee change under
SEC Rule 19b-4(f)(2).\10\ Moreover, NASDAQ's intent not to modify fees
through SR-NASDAQ-2009-072 was reflected in the Commission's notice of
the filing on the SEC Web site \11\ and in the Federal Register,\12\
and the applicable fees have been accurately described in the pricing
schedule that appears on NASDAQ's Web site.\13\ Accordingly, this
filing corrects the typographical error. NASDAQ has been billing
members in accordance with the correct fees since the effective date of
SR-NASDAQ-2009-072 on July 24, 2009, and accordingly believes that all
of its members are cognizant of the correct fee. However, because this
filing is immediately effective and therefore cannot take effect
retroactively, NASDAQ is also submitting a filing for notice and
comment under Section 19(b)(2) of the Act to seek Commission approval
for charging the correct fee during the period from July 24, 2009
through January 25, 2010.\14\ Finally, NASDAQ is making non-substantive
changes to Rule 7018 to reflect clearly that the category of ``other''
fees is, with respect to all types of securities, a charge for directed
orders where the fees are not described by other provisions of Rule
7018. NASDAQ believes that this change will enhance the clarity of the
rule.
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\9\ 17 CFR 240.19b-4(f)(1).
\10\ 17 CFR 240.19b-4(f)(2).
\11\ See https://www.sec.gov/rules/sro/nasdaq/2009/34-60430.pdf.
\12\ See Securities Exchange Act Release No. 60430 (August 4,
2009), 74 FR 40279 (August 11, 2009) (SR-NASDAQ-2009-072).
\13\ See https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
\14\ SR-NASDAQ-2010-015 (January 26, 2010).
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2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\15\ in general, and with
Section 6(b)(4) of the Act,\16\ in particular, in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility or
system which NASDAQ operates or controls. NASDAQ is adapting the
``maker-taker'' pricing model that is prevalent across most U.S.
transaction venues for securities priced at $1 or higher and applying
it securities priced below $1. This change is a competitive response to
[[Page 7644]]
another trading venue that has already introduced this pricing model
for low-priced securities. The change will result in a fee increase for
firms when they access liquidity in these securities and a fee
reduction for firms when they provide liquidity in these stocks. NASDAQ
is also correcting a typographical error in Rule 7018.
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\15\ 15 U.S.C. 78f.
\16\ 15 U.S.C. 78f(b)(4).
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The impact of the changes upon the net fees paid by a particular
market participant will depend upon a number of variables, including
the prices of the market participant's quotes and orders relative to
the national best bid and offer (i.e., its propensity to add or remove
liquidity) and the extent to which it trades in low-priced securities.
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. NASDAQ
believes that the change will further enhance the competitiveness of
its fees in comparison with those charged by other venues, and that its
fees are reasonable and equitably allocated to members on the basis of
whether they opt to direct orders to NASDAQ.
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 \17\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\18\ 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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\17\ 15 U.S.C. 78s(b)(3)(a)(ii).
\18\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2010-014 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-2010-014. 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 Web site
viewing and printing in the Commission's Public Reference Room 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 offices 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-2010-014, and should be submitted on or before
March 15, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-3332 Filed 2-19-10; 8:45 am]
BILLING CODE 8011-01-P
