Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Fees, 30887-30889 [2010-13158]
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30887
Federal Register / Vol. 75, No. 105 / Wednesday, June 2, 2010 / Notices
14. Kathryn Kasza, CMTW, ClerkTreasurer, Village of Greendale, Greendale,
Wisconsin, dated August 19, 2009
(‘‘Greendale Letter’’).
15. Denise L. Nappier, Connecticut State
Treasurer, dated August 20, 2009
(‘‘Connecticut Letter I’’).
16. Heather Traeger, Associate Counsel,
Investment Company Institute (‘‘ICI’’), dated
August 21, 2009 (‘‘ICI Letter’’).
17. David Muir, President, Utah
Government Finance Officers Association
(‘‘Utah GFOA’’), Finance Director,
Cottonwood Heights City, dated August 25,
2009 (‘‘Utah GFOA Letter’’).
18. Robert Scott, CPA, CPFO, Director of
Finance, City of Brookfield, Wisconsin, dated
August 30, 2009 (‘‘Brookfield Letter’’).
19. Kenneth L. Rust, Chief Administrative
Officer, and Eric H. Johansen, Debt Manager,
City of Portland, Oregon, dated September 1,
2009 (‘‘Portland Letter’’).
20. Bernice Bagnall, President, Oregon
Municipal Finance Officers Association
(‘‘OMFOA’’), Tualatin Valley Water District,
dated September 2, 2009 (‘‘OMFOA Letter’’).
21. Gerry Fink, Village of Hinsdale,
Illinois, dated September 3, 2009 (‘‘Hinsdale
Letter’’).
22. Beth Kellar, International City/County
Management Association; Steve Traylor,
National Association of Counties; Cornelia
Chebinou, National Association of State
Auditors, Comptrollers and Treasurers; Lars
Etzkorn, National League of Cities; Larry
Jones, U.S. Conference of Mayors; Amy Hille,
American Public Power Association; and
Rick Farrell, Council on Infrastructure
Financing Authorities; dated September 3,
2009 (‘‘Consortium Letter’’).
23. Richard C. Kristof, Director of Financial
Services, City of Rio Rancho, Rio Rancho,
New Mexico, dated September 3, 2009 (‘‘Rio
Rancho Letter’’).
24. Eileen Bradley, Assistant Director of
Finance, Township of Lower Merion, dated
September 4, 2009 (‘‘Lower Merion Letter’’).
25. R.T. McNamar, President, E-Certus,
Inc., dated September 8, 2009 (‘‘E-Certus
Letter’’).
26. David B. Vehaun, Assistant City
Manager, City of Rock Hill, South Carolina,
dated September 23, 2009 (‘‘Rock Hill
Letter’’).
27. Jeb Spaulding, President, National
Association of State Treasurers (‘‘NAST’’),
Treasurer, State of Vermont, dated September
25, 2009 (‘‘NAST Letter’’).
proposed rule change from interested
persons.
Comments Relating to Amendment No. 1
1. Jeffrey L. Esser, Executive Director and
CEO, Government Finance Officers
Association, dated January 25, 2010 (‘‘GFOA
Letter III’’).
2. Denise L. Nappier, Connecticut State
Treasurer, dated January 27, 2010
(‘‘Connecticut Letter II’’).
3. Steven Apfelbacher, President, National
Association of Independent Public Finance
Advisors (‘‘NAIPFA’’), dated February 5, 2010
(‘‘NAIPFA Letter’’).
The Exchange 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’’).
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
for transactions on June 1, 2010.
The text of the proposed rule change
is set forth below. Proposed new text is
in italics and deleted text is in brackets.
*
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[FR Doc. 2010–13155 Filed 6–1–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62176; File No. SR–
NASDAQ–2010–063]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees
May 26, 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 26,
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 the Exchange.
The Commission is publishing this
notice to solicit comments on the
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
7050. NASDAQ Options Market
The following charges shall apply to
the use of the order execution and
routing services of the NASDAQ
Options Market by members for all
securities.
(1)–(3) No Change.
(4) Fees for routing contracts to
markets other than the NASDAQ
Options Market shall be assessed as
provided below. The current fees and a
historical record of applicable fees
related to orders routed to other
exchanges shall be posted on the
NasdaqTrader.com Web site.
sroberts on DSKD5P82C1PROD with NOTICES
Exchange
Customer
BATS ....................................................................................................................................................................
BOX .....................................................................................................................................................................
CBOE ...................................................................................................................................................................
ISE .......................................................................................................................................................................
NYSE Arca Penny Pilot .......................................................................................................................................
NYSE Arca Non Penny Pilot ...............................................................................................................................
NYSE AMEX ........................................................................................................................................................
PHLX (for all options other than the below listed options) .................................................................................
PHLX (for the following options only): AA, AAPL, ABK, ABX, AIG, ALL, AMD, AMR, AMZN, ARIA, AXP,
BAC, BRCD, C, CAT, CIEN, CIGX, CSCO, DELL, DIA, DNDN, DRYS, EBAY, EK, F, FAS, FAZ, GDX,
GE, GLD, GLW, GS, HAL, IBM, INTC, IWM, IYR, JPM, LVS, MGM, MOT, MSFT, MU, NEM, NOK,
NVDA, ONNN, ORCL, PALM, PFE, POT, QCOM, QID, QQQQ, RIG, RIMM, RMBS, SBUX, SDS, SIRI,
SKF, SLV, SMH, SNDK, SPY, T, TBT, TZA, UAUA, UNG, USO, UYG, V, VALE, VZ, WYNN, X, XHB,
XLF, XRX and YHOO ......................................................................................................................................
*
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1 15
*
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The text of the proposed rule change
is available on the Exchange’s Web site
U.S.C. 78s(b)(1).
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0.55
0.55
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0.55
0.55
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0.55
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at https://
www.nasdaqomx.cchwallstreet.com, at
CFR 240.19b–4.
Frm 00118
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30888
Federal Register / Vol. 75, No. 105 / Wednesday, June 2, 2010 / Notices
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
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 proposing to modify Rule
7050 governing the fees assessed for
options orders entered into NOM but
routed to and executed on Phlx.
Specifically, NASDAQ is proposing to
expand the number of options to which
certain routing fees apply to reflect the
expansion of Phlx’s Fee Schedule for
rebates for adding and fees for removing
liquidity.3
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 rebates for adding and
fees for 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 twenty-five options to the
table set forth in Rule 7050(4): Ambac
Financial Group, Inc. (‘‘ABK’’), Barrick
Gold Corporation (‘‘ABX’’), Ariad
Pharmaceuticals, Inc. (‘‘ARIA’’),
American Express Company (‘‘AXP’’),
Ciena Corp. (‘‘CIEN’’), Star Scientific,
Inc. (‘‘CIGX’’), Dendreon Corp.
(‘‘DNDN’’), eBay Inc. (‘‘EBAY’’), Corning
Inc. (‘‘GLW’’), Halliburton Company
(‘‘HAL’’), iShares Dow Jones US Real
Estate (‘‘IYR’’), Motorola, Inc., (‘‘MOT’’),
NVIDIA Corporation (‘‘NVDA’’), ON
Semiconductor Corp. (‘‘ONNN’’), Oracle
Corp. (‘‘ORCL’’), ProShares UltraShort,
QQQ (‘‘QID’’), Transocean Ltd. (‘‘RIG’’),
3 See SR–Phlx–2010–73 (May 20, 2010). For a
description of the rebates for adding and fees for
removing liquidity on Phlx’s Fee Schedule, See
Securities Exchange Act Release Nos. 61684 (March
10, 2010), 75 FR 13189 (March 18, 2010) (SR–Phlx–
2010–33); 61961 (April 22, 2010), 75 FR 22881
(April 30, 2010) (SR–Phlx–2010–61).
VerDate Mar<15>2010
19:08 Jun 01, 2010
Jkt 220001
Rambus, Inc. (‘‘RMBS’’), ProShares
UltraShort S&P500 (‘‘SDS’’), ProShares
UltraShort 20+ Year Treasury (’’TBT’’),
Visa, Inc. (‘‘V’’), Vale S.A. (‘‘VALE’’),
SPDR S&P Homebuilders (‘‘XHB’’),
Xerox Corp. (‘‘XRX’’) and Yahoo! Inc.
(‘‘YHOO’’).
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.
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
for transactions on June 1, 2010.
2. Statutory Basis
NASDAQ believes that the proposed
rule changes are consistent with the
provisions of Section 6 of the Act,4 in
general, and with Section 6(b)(4) of the
Act,5 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
Exchange believes the proposed fee
changes are equitable in that they apply
uniformly to all similarly situated
participants on NOM. The Exchange
also believes that the proposed fee
changes are reasonable because the
Exchange is seeking to recoup the costs
incurred for options orders entered into
NOM but routed to and executed on
Phlx.
NASDAQ is one of eight options
market 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
The Exchange 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.
4 15
5 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(4).
Frm 00119
Fmt 4703
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 6 and paragraph
(f)(2) of Rule 19b–4 7 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:
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–2010–063 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–2010–063. 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
6 15
7 17
Sfmt 4703
E:\FR\FM\02JNN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
02JNN1
Federal Register / Vol. 75, No. 105 / Wednesday, June 2, 2010 / Notices
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–2010–063 and should be
submitted on or before June 23, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–13158 Filed 6–1–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62170; File No. SR–CBOE–
2010–048]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Permit CBOE To Open
Short Term Option Series on
Thursdays
sroberts on DSKD5P82C1PROD with NOTICES
May 25, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 19,
2010, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) 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 Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
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)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
VerDate Mar<15>2010
19:08 Jun 01, 2010
Jkt 220001
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to modify its rules to
permit the Exchange, on any Thursday
or Friday, to open Short Term Option
Series that expire on the Friday of the
following business week. The Exchange
is not proposing any rule text changes.
The rule proposal is available on the
Exchange’s Web site (https://
www.cboe.org/legal), at the Exchange’s
Office of the Secretary and at the
Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Securities and Exchange
Commission previously approved
CBOE’s proposed rule change to
permanently establish the Short Term
Option Series Pilot Program
(‘‘Program’’).5 The Program allows CBOE
to list and trade equity and index option
series that expire one week after being
opened for trading. Specifically, Rules
5.5(d) and 24.9 provide that, after an
option class has been approved for
listing and trading on the Exchange, the
Exchange may open for trading on any
Friday that is a business day series of
options on that class that expire on the
next Friday that is a business day.6
Under the Program, CBOE may select up
to five approved option classes on
which Short Term Options Series may
5 See Securities Exchange Act Release No. 59824
(April 27, 2009), 74 FR 20518 (May 4, 2009) (SR–
CBOE–2009–018).
6 If the Exchange is not open for business on a
Friday, the Short Term Opening Date will be the
first business day immediately prior to that Friday.
Similarly if the Exchange is not open for business
on a Friday, the Short Term Option Expiration Date
will be the first business day immediately prior to
that Friday.
PO 00000
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30889
be opened. The Exchange has selected
the following four option classes to
participate in the Program: S&P 500
Index options (SPX), S&P 100 Index
American-style options (OEX), MiniS&P 500 Index options (XSP), and S&P
100 Index European-style options
(XEO).
The purpose of this filing is to permit
the Exchange to open Short Term
Option Series on any Thursday (or
Friday) that expire on the Friday of the
following business week. In support of
this modification, the Exchange states
that it has received requests to begin
certain Short Term Options on
Thursday so that market participants
may have an opportunity to ‘‘roll’’
expiring positions; that is, trade out of
an expiring Short Term Option Series
and re-establish a new position in Short
Term Option Series expiring one week
later. Since the last trading day for
A.M.-settled Short Term Options on
indexes is generally a Thursday, and
new A.M.-settled Short Term Option
Series on indexes are generally listed on
Friday, new and expiring A.M.-settled
Short Term Option Series on indexes
are never available concurrently.
As a result, it is impossible to
implement a position roll in A.M.settled Short Term Options on indexes.
The Exchange has been advised that
opening A.M.-settled Short Term
Options on indexes just one day earlier,
and providing an opportunity to roll,
would enhance the value A.M.-settled
Short Term Options on indexes as a risk
management tool.
In order to avoid investor confusion,
the Exchange is proposing to permit the
listing of all Short Term Option series
(equity and index) on any Thursday or
Friday. As proposed, the rule changes
give the Exchange the flexibility to list
Short Term Option series on any
Thursday or Friday, and do not restrict
listing to a particular day.
2. Statutory Basis
The Exchange believes this rule
proposal is consistent with the Act and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.7
Specifically, the Exchange believes that
the proposed rule change is consistent
with the Section 6(b)(5) Act 8
requirements that the rules of an
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
7 15
8 15
E:\FR\FM\02JNN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
02JNN1
]]>Agencies
[Federal Register Volume 75, Number 105 (Wednesday, June 2, 2010)]
[Notices]
[Pages 30887-30889]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13158]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62176; File No. SR-NASDAQ-2010-063]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Routing Fees
May 26, 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 26, 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 the
Exchange. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange 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'').
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative for transactions on June 1, 2010.
The text of the proposed rule change is set forth below. Proposed
new text is in italics and deleted text is in brackets.
* * * * *
7050. NASDAQ Options Market
The following charges shall apply to the use of the order execution
and routing services of the NASDAQ Options Market by members for all
securities.
(1)-(3) No Change.
(4) Fees for routing contracts to markets other than the NASDAQ
Options Market shall be assessed as provided below. The current fees
and a historical record of applicable fees related to orders routed to
other exchanges shall be posted on the NasdaqTrader.com Web site.
----------------------------------------------------------------------------------------------------------------
Exchange Customer Firm MM
----------------------------------------------------------------------------------------------------------------
BATS........................................................................... 0.36 0.55 0.55
BOX............................................................................ 0.06 0.55 0.55
CBOE........................................................................... 0.06 0.55 0.55
ISE............................................................................ 0.06 0.55 0.55
NYSE Arca Penny Pilot.......................................................... 0.50 0.55 0.55
NYSE Arca Non Penny Pilot...................................................... 0.06 0.55 0.55
NYSE AMEX...................................................................... 0.06 0.55 0.55
PHLX (for all options other than the below listed options)..................... 0.06 0.55 0.55
PHLX (for the following options only): AA, AAPL, ABK, ABX, AIG, ALL, AMD, AMR, 0.30 0.55 0.55
AMZN, ARIA, AXP, BAC, BRCD, C, CAT, CIEN, CIGX, CSCO, DELL, DIA, DNDN, DRYS,
EBAY, EK, F, FAS, FAZ, GDX, GE, GLD, GLW, GS, HAL, IBM, INTC, IWM, IYR, JPM,
LVS, MGM, MOT, MSFT, MU, NEM, NOK, NVDA, ONNN, ORCL, PALM, PFE, POT, QCOM,
QID, QQQQ, RIG, RIMM, RMBS, SBUX, SDS, SIRI, SKF, SLV, SMH, SNDK, SPY, T, TBT,
TZA, UAUA, UNG, USO, UYG, V, VALE, VZ, WYNN, X, XHB, XLF, XRX and YHOO........
----------------------------------------------------------------------------------------------------------------
* * * * *
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nasdaqomx.cchwallstreet.com, at
[[Page 30888]]
the principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is proposing to modify Rule 7050 governing the fees assessed
for options orders entered into NOM but routed to and executed on Phlx.
Specifically, NASDAQ is proposing to expand the number of options to
which certain routing fees apply to reflect the expansion of Phlx's Fee
Schedule for rebates for adding and fees for removing liquidity.\3\
---------------------------------------------------------------------------
\3\ See SR-Phlx-2010-73 (May 20, 2010). For a description of the
rebates for adding and fees for removing liquidity on Phlx's Fee
Schedule, See Securities Exchange Act Release Nos. 61684 (March 10,
2010), 75 FR 13189 (March 18, 2010) (SR-Phlx-2010-33); 61961 (April
22, 2010), 75 FR 22881 (April 30, 2010) (SR-Phlx-2010-61).
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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 rebates for adding and fees for 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
twenty-five options to the table set forth in Rule 7050(4): Ambac
Financial Group, Inc. (``ABK''), Barrick Gold Corporation (``ABX''),
Ariad Pharmaceuticals, Inc. (``ARIA''), American Express Company
(``AXP''), Ciena Corp. (``CIEN''), Star Scientific, Inc. (``CIGX''),
Dendreon Corp. (``DNDN''), eBay Inc. (``EBAY''), Corning Inc.
(``GLW''), Halliburton Company (``HAL''), iShares Dow Jones US Real
Estate (``IYR''), Motorola, Inc., (``MOT''), NVIDIA Corporation
(``NVDA''), ON Semiconductor Corp. (``ONNN''), Oracle Corp. (``ORCL''),
ProShares UltraShort, QQQ (``QID''), Transocean Ltd. (``RIG''), Rambus,
Inc. (``RMBS''), ProShares UltraShort S&P500 (``SDS''), ProShares
UltraShort 20+ Year Treasury (''TBT''), Visa, Inc. (``V''), Vale S.A.
(``VALE''), SPDR S&P Homebuilders (``XHB''), Xerox Corp. (``XRX'') and
Yahoo! Inc. (``YHOO'').
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.
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative for transactions on June 1, 2010.
2. Statutory Basis
NASDAQ believes that the proposed rule changes are consistent with
the provisions of Section 6 of the Act,\4\ in general, and with Section
6(b)(4) of the Act,\5\ 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 Exchange believes the proposed
fee changes are equitable in that they apply uniformly to all similarly
situated participants on NOM. The Exchange also believes that the
proposed fee changes are reasonable because the Exchange is seeking to
recoup the costs incurred for options orders entered into NOM but
routed to and executed on Phlx.
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\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
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NASDAQ is one of eight options market 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
The Exchange 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 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 \6\ and paragraph (f)(2) of Rule 19b-4 \7\
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.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 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-2010-063 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-2010-063. 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
[[Page 30889]]
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-2010-063 and should
be submitted on or before June 23, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-13158 Filed 6-1-10; 8:45 am]
BILLING CODE 8011-01-P
