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, 33878-33880 [2010-14357]
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33878
Federal Register / Vol. 75, No. 114 / Tuesday, June 15, 2010 / Notices
rule as part of the rule harmonization
process.9
2. Statutory Basis
The Exchange believes that the
proposed rule changes are consistent
with Section 6(b) of the Act,10 in
general, and further the objectives of
Section 6(b)(5) of the Act,11 in
particular, in that they are designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, 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.
The Exchange believes that the
proposed rule changes support the
objectives of the Act by providing
greater harmonization between NYSE
Rules and FINRA Rules (including
Common Rules) of similar purpose,
resulting in less burdensome and more
efficient regulatory compliance for Dual
Members.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act.
mstockstill on DSKH9S0YB1PROD with NOTICES
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and Rule
19b–4(f)(6) thereunder.13 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
9 See
also Securities Exchange Act Release No.
59921 (May 14, 2009), 74 FR 23912 (May 21, 2009).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
12 15 U.S.C. 78s(b)(3)(A)(iii).
13 17 CFR 240.19b–4(f)(6).
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17:15 Jun 14, 2010
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of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),15 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission hereby grants
the Exchange’s request.16 The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because the proposed
rule change will maintain the
harmonization of NYSE Rules and
previously approved FINRA Rules.
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–NYSE–2010–41 on the
subject line.
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). Comments are also
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. 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–NYSE–2010–41 and should
be submitted on or before July 6, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–14361 Filed 6–14–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62249; File No. SR–
NASDAQ–2010–064]
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
June 9, 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 June 1,
2010, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’) filed with the Securities
and Exchange Commission
Paper Comments
(‘‘Commission’’) the proposed rule
• Send paper comments in triplicate
change as described in Items I, II, and
to Elizabeth M. Murphy, Secretary,
III below, which Items have been
Securities and Exchange Commission,
prepared by NASDAQ. Pursuant to
100 F Street, NE., Washington, DC
Section 19(b)(3)(A)(ii) of the Act 3 and
20549–1090.
Rule 19b–4(f)(2) thereunder,4 NASDAQ
All submissions should refer to File
has designated this proposal as
Number SR–NYSE–2010–41. This file
establishing or changing a due, fee, or
number should be included on the
other charge, which renders the
subject line if e-mail is used. To help the proposed rule change effective upon
Commission process and review your
filing. The Commission is publishing
this notice to solicit comments on the
14 17
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
16 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. See 15 U.S.C.
78(c)(f).
15 17
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2). [sic]
1 15
E:\FR\FM\15JNN1.SGM
15JNN1
Federal Register / Vol. 75, No. 114 / Tuesday, June 15, 2010 / Notices
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
NASDAQ proposes to modify pricing
for NASDAQ members using the
NASDAQ Market Center. NASDAQ will
implement the proposed change on June
1, 2010. The text of the proposed rule
change is available at https://
nasdaq.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
mstockstill on DSKH9S0YB1PROD with NOTICES
1. Purpose
NASDAQ is making modifications to
its pricing schedule for execution and
routing of orders in securities priced at
$1 or more through the NASDAQ
Market Center.5 First, for securities
listed on exchanges other than
NASDAQ or the New York Stock
Exchange (‘‘NYSE’’) (‘‘Tape B
Securities’’), NASDAQ is modifying its
liquidity provider rebate so that the
levels of the rebate revert to levels in
effect prior to April 1, 2010.6 As a result
of the change, the rebate paid with
respect to execution of displayed
quotes/orders posted by members
providing an average of between
20,000,001 and 35 million shares of
liquidity per day during the month will
decrease from $0.0026 per share
executed to $0.0025 per share executed;
and the rebate paid with respect to
execution of displayed quote/orders
posted by members providing an
average of 20 million or fewer shares of
5 Fees and credits for execution and routing of
orders in securities priced below $1 remain
unchanged.
6 See Securities Exchange Act Release No. 61854
(April 6, 2010), 75 FR 18932 (April 13, 2010) (SR–
NASDAQ–2010–044).
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17:15 Jun 14, 2010
Jkt 220001
liquidity per day during the month will
decrease from $0.0026 per share
executed to $0.0020 per share executed.
The change will make the rebate for
Tape B Securities consistent with the
rebate paid with respect to execution of
NASDAQ- and NYSE-listed securities.
The rebate with respect to Tape B
Securities for non-displayed quotes/
orders and for members providing an
average of more than 35 million shares
of liquidity during the month will
remain unchanged.
Second, NASDAQ is increasing the
fee for orders using the TFTY routing
strategy that execute at the NYSE from
$0.0017 per share executed to $0.0020
per share executed. The change reflects
the fact that NYSE recently increased
the fees it charges for execution of
orders routed to it.7
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,8 in
general, and with Section 6(b)(4) of the
Act,9 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 routing strategies
that a member uses, 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 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.
7 See Securities Exchange Act Release No. 62082
(May 11, 2010), 75 FR 27848 (May 18, 2010) (SR–
NYSE–2010–34).
8 15 U.S.C. 78f.
9 15 U.S.C. 78f(b)(4).
PO 00000
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Fmt 4703
Sfmt 4703
33879
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 10 and
subparagraph (f)(2) of Rule 19b-4
thereunder.11 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–2010–064 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–2010–064. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
10 15
11 17
E:\FR\FM\15JNN1.SGM
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(2).
15JNN1
33880
Federal Register / Vol. 75, No. 114 / Tuesday, June 15, 2010 / Notices
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–2010–064, and
should be submitted on or before July 6,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–14357 Filed 6–14–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62239; File No. SR–
NYSEAMEX–2010–4]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Deleting Rule 405(4)—
NYSE Amex Equities To Correspond
With Rule Changes of the Financial
Industry Regulatory Authority, Inc.
mstockstill on DSKH9S0YB1PROD with NOTICES
June 8, 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 17,
2010, NYSE Amex LLC (the ‘‘Exchange’’
or ‘‘NYSE Amex’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
17:15 Jun 14, 2010
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to delete Rule
405(4)—NYSE Amex Equities to
correspond with rule changes filed by
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) and approved
by the Commission.3 The text of the
proposed rule change is available at the
Exchange, the Commission’s Public
Reference Room, and https://
www.nyse.com.
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 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
changes is to delete Rule 405(4)—NYSE
Amex Equities (Diligence as to
Accounts) to correspond with rule
changes filed by FINRA and approved
by the Commission.
Background
On July 30, 2007, FINRA’s
predecessor, the National Association of
Securities Dealers, Inc. (‘‘NASD’’), and
NYSE Regulation, Inc. (‘‘NYSER’’)
consolidated their member firm
regulation operations into a combined
organization, FINRA. Pursuant to Rule
17d–2 under the Act, the New York
Stock Exchange LLC (‘‘NYSE’’), NYSER
and FINRA entered into an agreement
(the ‘‘Agreement’’) to reduce regulatory
duplication for their members by
allocating to FINRA certain regulatory
responsibilities for certain NYSE rules
3 See Securities Exchange Act Release No. 61808
(March 31, 2010), 75 FR 17456 (April 6, 2010)
(order approving SR–FINRA–2010–005).
1 15
VerDate Mar<15>2010
III below, which Items have been
substantially prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
Jkt 220001
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
and rule interpretations (‘‘FINRA
Incorporated NYSE Rules’’). The
Exchange became a party to the
Agreement effective December 15,
2008.4
As part of its effort to reduce
regulatory duplication and relieve firms
that are members of FINRA, NYSE and
NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA
is now engaged in the process of
reviewing and amending the NASD and
FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA
rulebook.5
Proposed Conforming Amendments to
NYSE Amex Equities Rules
FINRA recently deleted FINRA
Incorporated NYSE Rule 405(4)
(Diligence as to Accounts), which
required proper supervision of
registered representatives handling
common sales accounts in accordance
with FINRA Incorporated NYSE Rule
342. FINRA Incorporated NYSE Rule
405(4) provided that a member firm
could facilitate the isolated liquidation
of securities valued at $1,000 or less
registered in the name of an individual
who did not have an account with the
firm, and which were not part of any
distribution, through a common sales
account set up for the purpose of
handling such sales. Rule 405(4) further
provided that, subject to certain
requirements, such sales could be made
on behalf of the customer without the
member having to send a periodic
account statement to the customer
pursuant to Rule 409—NYSE Amex
Equities.6
In deleting FINRA Incorporated NYSE
Rule 405(4), FINRA noted that the rule
as written raised potential investor
protection concerns and that certain
terms in the rule would benefit from
additional clarification. FINRA also
4 See Securities Exchange Act Release Nos. 56148
(July 26, 2007), 72 FR 42146 (August 1, 2007) (order
approving the Agreement); 56147 (July 26, 2007), 72
FR 42166 (August 1, 2007) (SR–NASD–2007–054)
(order approving the incorporation of certain NYSE
Rules as ‘‘Common Rules’’); and 60409 (July 30,
2009), 74 FR 39353 (August 6, 2009) (order
approving the amended and restated Agreement,
adding NYSE Amex LLC as a party). Paragraph 2(b)
of the Agreement sets forth procedures regarding
proposed changes by FINRA, NYSE or NYSE Amex
to the substance of any of the Common Rules.
5 FINRA’s rulebook currently has three sets of
rules: (1) NASD Rules, (2) FINRA Incorporated
NYSE Rules, and (3) consolidated FINRA Rules.
The FINRA Incorporated NYSE Rules apply only to
those members of FINRA that are also members of
the NYSE (‘‘Dual Members’’), while the consolidated
FINRA Rules apply to all FINRA members. For
more information about the FINRA rulebook
consolidation process, see FINRA Information
Notice, March 12, 2008.
6 See Securities Exchange Act Release No. 61808
(March 31, 2010), 75 FR 17456 (April 6, 2010).
E:\FR\FM\15JNN1.SGM
15JNN1
Agencies
[Federal Register Volume 75, Number 114 (Tuesday, June 15, 2010)]
[Notices]
[Pages 33878-33880]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-14357]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62249; File No. SR-NASDAQ-2010-064]
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
June 9, 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 June 1, 2010, The NASDAQ Stock Market LLC (``NASDAQ'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by NASDAQ. Pursuant to Section 19(b)(3)(A)(ii) of
the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ NASDAQ has designated
this proposal as establishing or changing a due, fee, or other charge,
which renders the proposed rule change effective upon filing. The
Commission is publishing this notice to solicit comments on the
[[Page 33879]]
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). [sic]
---------------------------------------------------------------------------
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 June
1, 2010. The text of the proposed rule change is available at https://nasdaq.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 making modifications to its pricing schedule for
execution and routing of orders in securities priced at $1 or more
through the NASDAQ Market Center.\5\ First, for securities listed on
exchanges other than NASDAQ or the New York Stock Exchange (``NYSE'')
(``Tape B Securities''), NASDAQ is modifying its liquidity provider
rebate so that the levels of the rebate revert to levels in effect
prior to April 1, 2010.\6\ As a result of the change, the rebate paid
with respect to execution of displayed quotes/orders posted by members
providing an average of between 20,000,001 and 35 million shares of
liquidity per day during the month will decrease from $0.0026 per share
executed to $0.0025 per share executed; and the rebate paid with
respect to execution of displayed quote/orders posted by members
providing an average of 20 million or fewer shares of liquidity per day
during the month will decrease from $0.0026 per share executed to
$0.0020 per share executed. The change will make the rebate for Tape B
Securities consistent with the rebate paid with respect to execution of
NASDAQ- and NYSE-listed securities. The rebate with respect to Tape B
Securities for non-displayed quotes/orders and for members providing an
average of more than 35 million shares of liquidity during the month
will remain unchanged.
---------------------------------------------------------------------------
\5\ Fees and credits for execution and routing of orders in
securities priced below $1 remain unchanged.
\6\ See Securities Exchange Act Release No. 61854 (April 6,
2010), 75 FR 18932 (April 13, 2010) (SR-NASDAQ-2010-044).
---------------------------------------------------------------------------
Second, NASDAQ is increasing the fee for orders using the TFTY
routing strategy that execute at the NYSE from $0.0017 per share
executed to $0.0020 per share executed. The change reflects the fact
that NYSE recently increased the fees it charges for execution of
orders routed to it.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 62082 (May 11,
2010), 75 FR 27848 (May 18, 2010) (SR-NYSE-2010-34).
---------------------------------------------------------------------------
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\8\ in general, and with Section
6(b)(4) of the Act,\9\ 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 routing strategies that a member uses,
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 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 \10\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\11\ 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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\10\ 15 U.S.C. 78s(b)(3)(a)(ii).
\11\ 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-2010-064 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-2010-064.
This file number should be included on the subject line if e-mail is
used. To help the Commission process and review your
[[Page 33880]]
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-2010-064, and should
be submitted on or before July 6, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-14357 Filed 6-14-10; 8:45 am]
BILLING CODE 8010-01-P