Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Pricing for Option Orders Routed to Away Markets, 18250-18251 [2010-8153]

Download as PDF 18250 Federal Register / Vol. 75, No. 68 / Friday, April 9, 2010 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61830; File No. SR– NASDAQ–2010–040] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Pricing for Option Orders Routed to Away Markets April 1, 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 March 25, 2010, The NASDAQ Stock Market LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘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 proposed rule change from interested persons. srobinson on DSKHWCL6B1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change NASDAQ proposes 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. Specifically, NOM proposes to expand the list of options that will be assessed routing fees of $0.30 per contract for customer orders and $0.55 per contract for Firm and Market Maker orders that are routed from NOM to NASDAQ OMX PHLX, Inc. (‘‘Phlx’’). The proposal also includes a technical change to properly alphabetize the symbol ‘‘BAC’’ in the rule text. NASDAQ will make the proposed rule change effective for transactions settling on or after April 1, 2010. 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. 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). 2 17 17:07 Apr 08, 2010 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose NASDAQ is proposing to modify Rule 7050 governing the fees assessed for options orders entered into NOM but routed to and executed on NASDAQ OMX PHLX, Inc. (‘‘Phlx’’). Specifically, NASDAQ is proposing to expand the number of options to which certain routing fees apply to reflect the expansion of the fee schedule for adding and removing liquidity on the Phlx.5 NASDAQ currently assesses a $0.30 per contract routing fee for customer orders, and a $0.55 per contract routing fee for Firm and Market Maker orders routed from NOM to Phlx for options that are subject to fees and rebates for adding and removing liquidity as described in the Phlx fee schedule. To reflect the additions Phlx is making to its fee schedule, NASDAQ proposes to add the following options to the table set forth in Rule 7050(4): Alcoa, Inc. (‘‘AA’’); American International Group, Inc. (‘‘AIG’’); Advanced Micro Devices, Inc. (‘‘AMD’’); AMR Corporation (‘‘AMR’’); Caterpillar, Inc. (‘‘CAT’’); Cisco Systems, Inc. (‘‘CSCO’’); Ford Motor Company (‘‘F’’); Direxion Daily Financial Bull 3X Shares (‘‘FAS’’); Direxion Daily Financial Bear 3X Shares (‘‘FAZ’’); SPDR Gold Trust (‘‘GLD’’); Intel Corporation (‘‘INTC’’); JPMorgan Chase & Co. (‘‘JPM’’), Las Vegas Sands Corp. (‘‘LVS’’); MGM Mirage (‘‘MGM’’); Micron Technology, Inc. (‘‘MU’’); Newmont Mining Corporation (‘‘NEM’’); Palm, Inc. (‘‘PALM’’); Pfizer, Inc. (‘‘PFE’’); Potash Corp./Saskatchewan, Inc. (‘‘POT’’); SanDisk Corporation (‘‘SNDK’’); AT&T, Inc. (‘‘T’’); UAL Corporation (‘‘UAUA’’); Verizon Communications, Inc. (‘‘VZ’’), 5 See SR–Phlx–2010–47 (March 22, 2010). For a description of the Phlx’s current fee schedule for adding and removing liquidity, See Securities Exchange Act Release No. 61684 (March 10, 2010), 75 FR 13189 (March 18, 2010) (SR–Phlx–2010–33). 1 15 VerDate Nov<24>2008 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. Jkt 220001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 and United States Steel Corporation (‘‘X’’). The Exchange is proposing these fees to recoup the majority of transaction and clearing costs associated with routing orders to Phlx. As with all fees, the Exchange may adjust these routing fees by filing a new proposed rule change. The Exchange has designated this proposal to be operative for trades settling on or after April 1, 2010. 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,6 in general, and with Section 6(b)(4) of the Act,7 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 further believes that the proposed rule change is consistent with Section 6(b)(5) of the Act 8 in that it 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; and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers, or to regulate by virtue of any authority conferred by the Act matters not related to the purposes of the Act or the administration of the Exchange. NASDAQ is one of eight options markets in the national market system for standardized options. Joining NASDAQ and electing to trade options is entirely voluntary. Under these circumstances, NASDAQ’s fees must be competitive and low in order for NASDAQ to attract order flow, execute orders, and grow as a market. NASDAQ thus 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 impose any burden on competition that is not necessary or appropriate in furtherance 6 15 U.S.C. 78f. U.S.C. 78f(b)(4). 8 15 U.S.C. 78f(b)(5). 7 15 E:\FR\FM\09APN1.SGM 09APN1 Federal Register / Vol. 75, No. 68 / Friday, April 9, 2010 / Notices of the purposes of the Act, as amended. To the contrary, NASDAQ has designed its fees to compete effectively for the execution and routing 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 No written comments were either solicited or 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 9 and paragraph (f)(2) of Rule 19b–4 10 thereunder. 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: srobinson on DSKHWCL6B1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2010–040 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–2010–040. 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 9 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 10 17 VerDate Nov<24>2008 17:07 Apr 08, 2010 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, 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 publicly available. All submissions should refer to File Number SR– NASDAQ–2010–040 and should be submitted on or before April 30, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–8153 Filed 4–8–10; 8:45 am] BILLING CODE 8011–01–P SOCIAL SECURITY ADMINISTRATION [Docket No. SSA–2009–0066] Privacy Act of 1974, as Amended; Computer Matching Program (SSA/ Internal Revenue Service (IRS))— Match #1305 AGENCY: ACTION: Notice of a renewal of an existing computer matching program that is scheduled to expire on March 31, 2010. SUMMARY: In accordance with the provisions of the Privacy Act, as amended, this notice announces a renewal of an existing computer matching program that we are currently conducting with the IRS. DATES: We will file a report of the subject matching program with the Committee on Homeland Security and Governmental Affairs of the Senate; the Committee on Oversight and Government Reform of the House of Representatives, and the Office of Information and Regulatory Affairs, 11 17 Jkt 220001 Social Security Administration (SSA). PO 00000 CFR 200.30–3(a)(12). Frm 00108 Fmt 4703 Sfmt 4703 18251 Office of Management and Budget (OMB). The matching program will be effective as indicated below. ADDRESSES: Interested parties may comment on this notice by either telefaxing to (410) 965–0201 or writing to the Deputy Commissioner for Budget, Finance and Management, 800 Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235–6401. All comments received will be available for public inspection at this address. FOR FURTHER INFORMATION CONTACT: The Deputy Commissioner for Budget, Finance and Management as shown above. SUPPLEMENTARY INFORMATION: A. General The Computer Matching and Privacy Protection Act of 1988 (Public Law (Pub. L.) 100–503), amended the Privacy Act (5 U.S.C. 552a) by describing the conditions under which computer matching involving the Federal government could be performed and adding certain protections for persons applying for, and receiving, Federal benefits. Section 7201 of the Omnibus Budget Reconciliation Act of 1990 (Pub. L. 101–508) further amended the Privacy Act regarding protections for such persons. The Privacy Act, as amended, regulates the use of computer matching by Federal agencies when records in a system of records are matched with other Federal, State, or local government records. It requires Federal agencies involved in computer matching programs to: (1) Negotiate written agreements with the other agency or agencies participating in the matching programs; (2) Obtain the approval of the matching agreement by the Data Integrity Boards (DIB) of the participating Federal agencies; (3) Publish notice of the computer matching program in the Federal Register; (4) Furnish detailed reports about matching programs to Congress and OMB; (5) Notify applicants and beneficiaries that their records are subject to matching; and (6) Verify match findings before reducing, suspending, terminating, or denying a person’s benefits or payments. B. SSA Computer Matches Subject to the Privacy Act We have taken action to ensure that all of our computer matching programs comply with the requirements of the Privacy Act, as amended. E:\FR\FM\09APN1.SGM 09APN1

Agencies

[Federal Register Volume 75, Number 68 (Friday, April 9, 2010)]
[Notices]
[Pages 18250-18251]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8153]



[[Page 18250]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61830; File No. SR-NASDAQ-2010-040]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Pricing for Option Orders Routed to Away Markets

April 1, 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 March 25, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 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 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. 
Specifically, NOM proposes to expand the list of options that will be 
assessed routing fees of $0.30 per contract for customer orders and 
$0.55 per contract for Firm and Market Maker orders that are routed 
from NOM to NASDAQ OMX PHLX, Inc. (``Phlx''). The proposal also 
includes a technical change to properly alphabetize the symbol ``BAC'' 
in the rule text. NASDAQ will make the proposed rule change effective 
for transactions settling on or after April 1, 2010.
    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 proposing to modify Rule 7050 governing the fees assessed 
for options orders entered into NOM but routed to and executed on 
NASDAQ OMX PHLX, Inc. (``Phlx''). Specifically, NASDAQ is proposing to 
expand the number of options to which certain routing fees apply to 
reflect the expansion of the fee schedule for adding and removing 
liquidity on the Phlx.\5\
---------------------------------------------------------------------------

    \5\ See SR-Phlx-2010-47 (March 22, 2010). For a description of 
the Phlx's current fee schedule for adding and removing liquidity, 
See Securities Exchange Act Release No. 61684 (March 10, 2010), 75 
FR 13189 (March 18, 2010) (SR-Phlx-2010-33).
---------------------------------------------------------------------------

    NASDAQ currently assesses a $0.30 per contract routing fee for 
customer orders, and a $0.55 per contract routing fee for Firm and 
Market Maker orders routed from NOM to Phlx for options that are 
subject to fees and rebates for adding and removing liquidity as 
described in the Phlx fee schedule. To reflect the additions Phlx is 
making to its fee schedule, NASDAQ proposes to add the following 
options to the table set forth in Rule 7050(4): Alcoa, Inc. (``AA''); 
American International Group, Inc. (``AIG''); Advanced Micro Devices, 
Inc. (``AMD''); AMR Corporation (``AMR''); Caterpillar, Inc. (``CAT''); 
Cisco Systems, Inc. (``CSCO''); Ford Motor Company (``F''); Direxion 
Daily Financial Bull 3X Shares (``FAS''); Direxion Daily Financial Bear 
3X Shares (``FAZ''); SPDR Gold Trust (``GLD''); Intel Corporation 
(``INTC''); JPMorgan Chase & Co. (``JPM''), Las Vegas Sands Corp. 
(``LVS''); MGM Mirage (``MGM''); Micron Technology, Inc. (``MU''); 
Newmont Mining Corporation (``NEM''); Palm, Inc. (``PALM''); Pfizer, 
Inc. (``PFE''); Potash Corp./Saskatchewan, Inc. (``POT''); SanDisk 
Corporation (``SNDK''); AT&T, Inc. (``T''); UAL Corporation (``UAUA''); 
Verizon Communications, Inc. (``VZ''), and United States Steel 
Corporation (``X'').
    The Exchange is proposing these fees to recoup the majority of 
transaction and clearing costs associated with routing orders to Phlx. 
As with all fees, the Exchange may adjust these routing fees by filing 
a new proposed rule change.
    The Exchange has designated this proposal to be operative for 
trades settling on or after April 1, 2010.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\6\ in general, and with Section 
6(b)(4) of the Act,\7\ 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    NASDAQ further believes that the proposed rule change is consistent 
with Section 6(b)(5) of the Act \8\ in that it 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; and is not designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers, or to regulate by virtue of any authority conferred by the Act 
matters not related to the purposes of the Act or the administration of 
the Exchange.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    NASDAQ is one of eight options markets in the national market 
system for standardized options. Joining NASDAQ and electing to trade 
options is entirely voluntary. Under these circumstances, NASDAQ's fees 
must be competitive and low in order for NASDAQ to attract order flow, 
execute orders, and grow as a market. NASDAQ thus 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 impose 
any burden on competition that is not necessary or appropriate in 
furtherance

[[Page 18251]]

of the purposes of the Act, as amended. To the contrary, NASDAQ has 
designed its fees to compete effectively for the execution and routing 
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

    No written comments were either solicited or 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 \9\ and paragraph (f)(2) of Rule 19b-4 \10\ 
thereunder. 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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-2010-040 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-2010-040. 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, 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 
publicly available. All submissions should refer to File Number SR-
NASDAQ-2010-040 and should be submitted on or before April 30, 2010.

    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. 2010-8153 Filed 4-8-10; 8:45 am]
BILLING CODE 8011-01-P
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