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, 18932-18934 [2010-8365]
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18932
Federal Register / Vol. 75, No. 70 / Tuesday, April 13, 2010 / Notices
exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest. In particular, the
proposed rule change seeks to provide
an advisory note to notify customers
that the Delta-Based Equity Hedge
Exemption for customers is not
currently available and that the
Exchange will issue a Regulatory
Circular announcing when the
exemption becomes available for
customers.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
will take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A)(i) of the Act 6 and Rule 19b–
4(f)(1) thereunder,7 because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
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
sroberts on DSKD5P82C1PROD with NOTICES
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:
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2010–030 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–CBOE–2010–030. 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 office of the CBOE. 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–CBOE–2010–030 and
should be submitted on or before May
4, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–8366 Filed 4–12–10; 8:45 am]
BILLING CODE 8011–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61854; File No. SR–
NASDAQ–2010–044]
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
April 6, 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 30,
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
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. NASDAQ will
implement the proposed change on
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 C.F.R. 240.19b–4(f)(2).
2 17
6 15
7 17
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
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17:33 Apr 12, 2010
8 17
Jkt 220001
PO 00000
CFR 200.30–3(a)(12).
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13APN1
Federal Register / Vol. 75, No. 70 / Tuesday, April 13, 2010 / Notices
sroberts on DSKD5P82C1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASDAQ is making modifications to
its pricing schedule for execution of
orders in securities priced at $1 or more
through the NASDAQ Market Center.5
First, NASDAQ is eliminating volumebased pricing tiers that currently apply
to executions of orders in the NASDAQ
Market Center for securities listed on
NASDAQ or the New York Stock
Exchange (‘‘NYSE’’). As a result of this
change, the fee to access liquidity in the
NASDAQ Market Center will be $0.0030
per share executed, regardless of
whether the security being traded is
listed on NASDAQ, NYSE, NYSE Amex,
or any other listing venue. The change
is designed to ensure that NASDAQ
does not lose money on trade
executions, as is currently the case
when the order of a member in the most
favorable ‘‘take’’ tier (fee of $0.0028 per
share executed for members with an
average daily volume of more than 145
million share of liquidity routed,
removed, and/or provided, and more
than 35 million shares of liquidity
provided) is matched with the order of
a member in the two most favorable
liquidity provider rebate tiers (credit of
$0.00295 per share executed for
members providing an average of more
than 95 million share of liquidity per
day, or $0.0029 per share executed for
members providing an average of more
than 35 million share of liquidity per
day).
Second, NASDAQ is increasing the
liquidity provider rebate for securities
listed on exchanges other than
NASDAQ and NYSE. Currently, with
respect to displayed quotes/orders,
NASDAQ pays a liquidity provider
rebate of $0.0025 per share executed to
members providing an average of
between 20,000,001 and 35 million
shares of liquidity per day, and a rebate
of $0.0020 per share executed to
members providing 20 million or fewer
shares of liquidity per day. As a result
of the change, NASDAQ will provide a
rebate of $0.0026 per share executed to
members providing 35 million or fewer
shares of liquidity per day. Rebates to
members that provide more than 35
million shares of liquidity per day
remain unchanged.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
5 Fees and credits for executions of orders for
securities priced below $1 remain unchanged.
VerDate Nov<24>2008
17:33 Apr 12, 2010
Jkt 220001
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. The
impact of the price changes upon the
net fees paid by a particular market
participant will depend upon a number
of variables, including the relative
availability of liquidity on NASDAQ
and other venues, 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), the types of securities that it
trades, and the member’s trading
volumes. NASDAQ notes that the
proposed elimination of ‘‘take’’ tiers will
result in a fee schedule with less
variability and will eliminate
circumstances in which NASDAQ loses
money on order executions by paying a
rebate that is higher than the take fee it
charges. The increase in the rebate for
securities listed on exchanges other than
NASDAQ and NYSE is intended to
increase the attractiveness of NASDAQ
as a venue for trading these 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. Accordingly, if particular
market participants object to the
proposed fee changes, they can avoid
paying the fees by directing orders to
other venues. NASDAQ believes that its
fees continue to be 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.
Because the market for order execution
and routing is extremely competitive,
members may readily direct orders to
NASDAQ’s competitors if they object to
the proposed rule change.
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.
6 15
7 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(4).
Frm 00151
Fmt 4703
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 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder.9 At any time within 60 days
of the filing of the proposed rule change,
the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2010–044 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–2010–044. 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
8 15
9 17
Sfmt 4703
18933
E:\FR\FM\13APN1.SGM
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(2).
13APN1
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Federal Register / Vol. 75, No. 70 / Tuesday, April 13, 2010 / Notices
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–2010–044, and
should be submitted on or before May
4, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–8365 Filed 4–12–10; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61852; File No. SR–CBOE–
2010–034]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Temporary
Membership Status and Interim
Trading Permit Access Fees
April 6, 2010.
sroberts on DSKD5P82C1PROD with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 29, 2010, the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ 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 CBOE. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to adjust (i) the
monthly access fee for persons granted
temporary CBOE membership status
(‘‘Temporary Members’’) pursuant to
Interpretation and Policy .02 under
CBOE Rule 3.19 (‘‘Rule 3.19.02’’) and (ii)
the monthly access fee for Interim
Trading Permit (‘‘ITP’’) holders under
CBOE Rule 3.27. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/Legal/), at the Exchange’s
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Nov<24>2008
17:33 Apr 12, 2010
Jkt 220001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE 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 CBOE 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
BILLING CODE 8011–01–P
10 17
Office of the Secretary, and at the
Commission’s Public Reference Room.
1. Purpose
The current access fee for Temporary
Members under Rule 3.19.02 2 and the
current access fee for ITP holders under
Rule 3.27 3 are both $4,875 per month.
Both access fees are currently set at the
indicative lease rate 4 for March 2010.
The Exchange proposes to adjust both
access fees effective at the beginning of
April 2010. Specifically, instead of
setting these access fees at the indicative
lease rate, the Exchange proposes to
revise both the Temporary Member
access fee and the ITP access fee to be
$7,500 per month commencing on April
1, 2010.
Because Temporary Members and ITP
holders possess a feature that does not
exist in the typical lease arrangement for
a CBOE transferable membership, the
Exchange believes that it is equitable to
assess Temporary Members and ITP
holders an access fee that is higher than
2 See Securities Exchange Act Release No. 56458
(September 18, 2007), 72 FR 54309 (September 24,
2007) (SR–CBOE–2007–107) for a description of the
Temporary Membership status under Rule 3.19.02.
3 See Securities Exchange Act Release No. 58178
(July 17, 2008), 73 FR 42634 (July 22, 2008) (SR–
CBOE–2008–40) for a description of the Interim
Trading Permits under Rule 3.27.
4 The indicative lease rate is defined under Rule
3.27(b) as the highest clearing firm floating monthly
rate of the CBOE Clearing Members that assist in
facilitating at least 10% of the CBOE transferable
membership leases. Rule 3.27(b) defines the
clearing firm floating monthly rate as the floating
monthly rate that a Clearing Member designates, in
connection with transferable membership leases
that the Clearing Member assisted in facilitating, for
leases that utilize that monthly rate. The concepts
of an indicative lease rate and of a clearing firm
floating month rate were previously utilized in the
CBOE rule filings that set and adjusted the
Temporary Member access fee. Both concepts are
also codified in Rule 3.27(b) in relation to ITPs.
PO 00000
Frm 00152
Fmt 4703
Sfmt 4703
the indicative lease rate.5 Specifically,
under CBOE Rules 3.19 and 3.27, access
to the Exchange by Temporary Members
and ITP holders may only be terminated
at their own direction except in the
following limited circumstances: (i) As
a result of regulatory action against the
Temporary Member or ITP holder, (ii) in
the event of a demutualization, or (iii)
through a rule change approved by the
Commission. On the other hand, the
typical lease arrangement for a
transferable membership can be
terminated by the lessor without cause
upon a month’s notice to the lessee. As
a result, Temporary Members and ITP
holders enjoy more certainty than
lessees with respect to their trading
access to the Exchange.
CBOE also believes that the proposed
access fees are reasonable when
compared to the average indicative lease
rate over the last six months and to
indicative lease rate levels during the
past year. Specifically, the average
indicative lease rate between October
2009 and March 2010 was $8,493,
which is in excess of the proposed
$7,500 rate. Additionally, the indicative
lease rate was above $10,000 between
June 2009 and November 2009, peaking
at $11,900 in October 2010. Also, in as
recently as January 2010, the indicative
lease rate exceeded the proposed $7,500
when the indicative lease rate was
$7,928. Accordingly, the Exchange
considers $7,500 to be a reasonable rate
for monthly access to the Exchange.
Each of the proposed access fees will
remain in effect until such time either
that the Exchange submits a further rule
filing pursuant to Section 19(b)(3)(A)(ii)
of the Act 6 to modify the applicable
access fee or the applicable status (i.e.,
the Temporary Membership status or
the ITP status) is terminated.
Accordingly, the Exchange may further
adjust the proposed access fees in the
future if the Exchange determines that it
would be appropriate to do so.
The procedural provisions of the
CBOE Fee Schedule related to the
assessment of each proposed access fee
are not proposed to be changed and will
remain the same as the current
procedural provisions relating to the
assessment of that access fee.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,7 in general, and
furthers the objectives of Section 6(b)(4)
5 See, e.g., Securities Exchange Act Release No.
58200 (July 21, 2008), 73 FR 43805 (July 28, 2008)
(SR–CBOE–2008–77).
6 15 U.S.C. 78s(b)(3)(A)(ii).
7 15 U.S.C. 78f(b).
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Agencies
[Federal Register Volume 75, Number 70 (Tuesday, April 13, 2010)]
[Notices]
[Pages 18932-18934]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-8365]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61854; File No. SR-NASDAQ-2010-044]
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
April 6, 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 30, 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
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 C.F.R. 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. NASDAQ will implement the proposed change on
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.
[[Page 18933]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is making modifications to its pricing schedule for
execution of orders in securities priced at $1 or more through the
NASDAQ Market Center.\5\ First, NASDAQ is eliminating volume-based
pricing tiers that currently apply to executions of orders in the
NASDAQ Market Center for securities listed on NASDAQ or the New York
Stock Exchange (``NYSE''). As a result of this change, the fee to
access liquidity in the NASDAQ Market Center will be $0.0030 per share
executed, regardless of whether the security being traded is listed on
NASDAQ, NYSE, NYSE Amex, or any other listing venue. The change is
designed to ensure that NASDAQ does not lose money on trade executions,
as is currently the case when the order of a member in the most
favorable ``take'' tier (fee of $0.0028 per share executed for members
with an average daily volume of more than 145 million share of
liquidity routed, removed, and/or provided, and more than 35 million
shares of liquidity provided) is matched with the order of a member in
the two most favorable liquidity provider rebate tiers (credit of
$0.00295 per share executed for members providing an average of more
than 95 million share of liquidity per day, or $0.0029 per share
executed for members providing an average of more than 35 million share
of liquidity per day).
---------------------------------------------------------------------------
\5\ Fees and credits for executions of orders for securities
priced below $1 remain unchanged.
---------------------------------------------------------------------------
Second, NASDAQ is increasing the liquidity provider rebate for
securities listed on exchanges other than NASDAQ and NYSE. Currently,
with respect to displayed quotes/orders, NASDAQ pays a liquidity
provider rebate of $0.0025 per share executed to members providing an
average of between 20,000,001 and 35 million shares of liquidity per
day, and a rebate of $0.0020 per share executed to members providing 20
million or fewer shares of liquidity per day. As a result of the
change, NASDAQ will provide a rebate of $0.0026 per share executed to
members providing 35 million or fewer shares of liquidity per day.
Rebates to members that provide more than 35 million shares of
liquidity per day remain unchanged.
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. The impact of the price changes upon
the net fees paid by a particular market participant will depend upon a
number of variables, including the relative availability of liquidity
on NASDAQ and other venues, 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), the types of securities
that it trades, and the member's trading volumes. NASDAQ notes that the
proposed elimination of ``take'' tiers will result in a fee schedule
with less variability and will eliminate circumstances in which NASDAQ
loses money on order executions by paying a rebate that is higher than
the take fee it charges. The increase in the rebate for securities
listed on exchanges other than NASDAQ and NYSE is intended to increase
the attractiveness of NASDAQ as a venue for trading these securities.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 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.
Accordingly, if particular market participants object to the proposed
fee changes, they can avoid paying the fees by directing orders to
other venues. NASDAQ believes that its fees continue to be 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. Because the market
for order execution and routing is extremely competitive, members may
readily direct orders to NASDAQ's competitors if they object to the
proposed rule change.
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 \8\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\9\ 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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\8\ 15 U.S.C. 78s(b)(3)(a)(ii).
\9\ 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-2010-044 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-2010-044. 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
[[Page 18934]]
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-2010-044, and should be submitted
on or before May 4, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8365 Filed 4-12-10; 8:45 am]
BILLING CODE 8011-01-P