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, 28082-28083 [2010-11936]

Download as PDF 28082 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices included in the then-current list of Common Rules that are no longer substantially similar to FINRA rules; and confirm that the remaining rules on the list of Common Rules continue to be EDGX rules that are substantially similar to FINRA rules.22 FINRA will then confirm in writing whether the rules listed in any updated list are Common Rules as defined in the Plan. Under the Plan, EDGX will also provide FINRA with a current list of Dual Members and shall update the list no less frequently than once each quarter.23 The Commission is hereby declaring effective a plan that, among other things, allocates regulatory responsibility to FINRA for the oversight and enforcement of all EDGX rules that are substantially similar to the rules of FINRA for Dual Members of EDGX and FINRA. Therefore, modifications to the Certification need not be filed with the Commission as an amendment to the Plan, provided that the Parties are only adding to, deleting from, or confirming changes to EDGX rules in the Certification in conformance with the definition of Common Rules provided in the Plan. However, should the Parties decide to add a EDGX rule to the Certification that is not substantially similar to a FINRA rule; delete a EDGX rule from the Certification that is substantially similar to a FINRA rule; or leave on the Certification a EDGX rule that is no longer substantially similar to a FINRA rule, then such a change would constitute an amendment to the Plan, which must be filed with the Commission pursuant to Rule 17d–2 under the Act and noticed for public comment.24 The Plan also permits EDGX and FINRA to terminate the Plan, subject to notice.25 The Commission notes, however, that while the Plan permits the Parties to terminate the Plan, the Parties cannot by themselves reallocate the regulatory responsibilities set forth in the Plan, since Rule 17d–2 under the Act requires that any allocation or reallocation of regulatory responsibilities be filed with the Commission.26 22 See paragraph 2 of the proposed 17d–2 Plan. paragraph 3 of the proposed 17d–2 Plan. 24 The Commission also notes that the addition to or deletion from the Certification of any federal securities laws, rules, and regulations for which FINRA would bear responsibility under the Plan for examining, and enforcing compliance by, Dual Members, also would constitute an amendment to the Plan. 25 See paragraph 12 of the proposed 17d–2 Plan. 26 The Commission notes that paragraph 12 of the Plan reflects the fact that FINRA’s responsibilities under the Plan will continue in effect until the Commission approves any termination of the Plan. jlentini on DSKJ8SOYB1PROD with NOTICES 23 See VerDate Mar<15>2010 16:07 May 18, 2010 Jkt 220001 IV. Conclusion This Order gives effect to the Plan filed with the Commission in File No. 4–598. The Parties shall notify all members affected by the Plan of their rights and obligations under the Plan. It is therefore ordered, pursuant to Section 17(d) of the Act, that the Plan in File No. 4–598, between FINRA and EDGX, filed pursuant to Rule 17d–2 under the Act, is approved and declared effective. It is therefore ordered that EDGX is relieved of those responsibilities allocated to FINRA under the Plan in File No. 4–598. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.27 Elizabeth M. Murphy, Secretary. [FR Doc. 2010–11934 Filed 5–18–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62081; File No. SR– NASDAQ–2010–058] 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 May 11, 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 May 3, 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. 27 17 CFR 200.30–3(a)(34). 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 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 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 May 3, 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 In response to announced execution rate changes at the New York Stock Exchange (‘‘NYSE’’), NASDAQ is making minor modifications to its pricing schedule for the routing of orders through the NASDAQ Market Center. First, NASDAQ is increasing the per share credits and fees for members using the STGY, SCAN, SKNY, SKIP, or DOTI routing strategies to either add liquidity or execute at the NYSE.5 The credit for orders adding liquidity after routing will increase to $0.0013 from $0.0010 per share. The fee for other orders will increase to $0.0021 from $0.0018 per share. For orders using these strategies that execute in destinations other than the NYSE (or NASDAQ OMX BX, in the case of DOTI orders), the fee will remain $0.0030 per share executed.6 Second, NASDAQ is modifying the fees for members using the TFTY or MOPP routing strategies, and directed orders that execute in a venue other than the NASDAQ Market Center as 5 Orders designated to use these routing strategies check the NASDAQ book for the full size of the order prior to routing. The terms and conditions of NASDAQ’s routing strategies are described in NASDAQ Rule 4758. 6 For DOTI orders that execute in NASDAQ OMX BX, NASDAQ will continue to pass through fees and rebates associated with order execution on that venue. E:\FR\FM\19MYN1.SGM 19MYN1 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices follows: (1) The fees for directed orders designated as Intermarket Sweep Orders that execute at the NYSE will increase to $0.0023 from $0.0020 per share executed; (2) The fee for other directed orders that execute at the NYSE will increase to $0.0022 from $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; (3) The fee for all for other directed orders that execute at the NYSE from members that do not reach the 35 million threshold will increase to $0.0023 from $0.0020 per share; (4) The fee for MOPP orders that execute at the NYSE will increase to $0.0023 from $0.0020 per share; and (5) The fee for TFTY orders that execute at the NYSE will increase to $0.0017 from $0.0014 per share. All other fees and pass-through fees remain unchanged. jlentini on DSKJ8SOYB1PROD with NOTICES 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,7 in general, and with Section 6(b)(4) of the Act,8 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 modest price increases upon the net fees paid by a particular market participant will depend upon a number of variables, including the routing strategies that it uses, 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), and the types of securities that it trades. NASDAQ notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. Accordingly, if particular market participants object to the proposed fee increases, they can avoid paying the fees by directing orders to other venues or using routing strategies and order types that are not subject to the increases. 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 9 and subparagraph (f)(2) of Rule 19b–4 thereunder.10 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: 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–2010–058, and should be submitted on or before June 9, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Elizabeth M. Murphy, Secretary. [FR Doc. 2010–11936 Filed 5–18–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2010–058 on the subject line. [Release No. 34–62085; File No. SR–CHX– 2010–08] Self-Regulatory Organizations; The Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a Fixed Provide Credit for CHXRegistered Institutional Brokers Paper Comments May 12, 2010. • 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–2010–058. This file number should be included on the subject line if e-mail is used. 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 April 30, 2010, the Chicago Stock Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II and III 11 17 7 15 U.S.C. 78f. 8 15 U.S.C. 78f(b)(4). VerDate Mar<15>2010 16:07 May 18, 2010 9 15 U.S.C. 78s(b)(3)(A)(ii). 10 17 CFR 240.19b–4(f)(2). Jkt 220001 28083 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\19MYN1.SGM 19MYN1

Agencies

[Federal Register Volume 75, Number 96 (Wednesday, May 19, 2010)]
[Notices]
[Pages 28082-28083]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11936]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62081; File No. SR-NASDAQ-2010-058]


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

May 11, 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 May 3, 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 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. NASDAQ will implement the proposed change on May 
3, 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
    In response to announced execution rate changes at the New York 
Stock Exchange (``NYSE''), NASDAQ is making minor modifications to its 
pricing schedule for the routing of orders through the NASDAQ Market 
Center. First, NASDAQ is increasing the per share credits and fees for 
members using the STGY, SCAN, SKNY, SKIP, or DOTI routing strategies to 
either add liquidity or execute at the NYSE.\5\ The credit for orders 
adding liquidity after routing will increase to $0.0013 from $0.0010 
per share. The fee for other orders will increase to $0.0021 from 
$0.0018 per share. For orders using these strategies that execute in 
destinations other than the NYSE (or NASDAQ OMX BX, in the case of DOTI 
orders), the fee will remain $0.0030 per share executed.\6\
---------------------------------------------------------------------------

    \5\ Orders designated to use these routing strategies check the 
NASDAQ book for the full size of the order prior to routing. The 
terms and conditions of NASDAQ's routing strategies are described in 
NASDAQ Rule 4758.
    \6\ For DOTI orders that execute in NASDAQ OMX BX, NASDAQ will 
continue to pass through fees and rebates associated with order 
execution on that venue.
---------------------------------------------------------------------------

    Second, NASDAQ is modifying the fees for members using the TFTY or 
MOPP routing strategies, and directed orders that execute in a venue 
other than the NASDAQ Market Center as

[[Page 28083]]

follows: (1) The fees for directed orders designated as Intermarket 
Sweep Orders that execute at the NYSE will increase to $0.0023 from 
$0.0020 per share executed; (2) The fee for other directed orders that 
execute at the NYSE will increase to $0.0022 from $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; (3) The fee for all for other 
directed orders that execute at the NYSE from members that do not reach 
the 35 million threshold will increase to $0.0023 from $0.0020 per 
share; (4) The fee for MOPP orders that execute at the NYSE will 
increase to $0.0023 from $0.0020 per share; and (5) The fee for TFTY 
orders that execute at the NYSE will increase to $0.0017 from $0.0014 
per share. All other fees and pass-through fees remain unchanged.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\7\ in general, and with Section 
6(b)(4) of the Act,\8\ 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 modest price 
increases upon the net fees paid by a particular market participant 
will depend upon a number of variables, including the routing 
strategies that it uses, 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), and the types of securities 
that it trades. NASDAQ notes that it operates in a highly competitive 
market in which market participants can readily direct order flow to 
competing venues if they deem fee levels at a particular venue to be 
excessive. Accordingly, if particular market participants object to the 
proposed fee increases, they can avoid paying the fees by directing 
orders to other venues or using routing strategies and order types that 
are not subject to the increases. 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 \9\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\10\ 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-2010-058 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-2010-058. 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-2010-058, and should be submitted on or before 
June 9, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11936 Filed 5-18-10; 8:45 am]
BILLING CODE 8010-01-P
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