Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving Proposed Rule Change To Establish the Nasdaq Short Sale Volume and Monthly Short Sale Transaction Service and Related Fees, 38162-38163 [2010-15997]
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38162
Federal Register / Vol. 75, No. 126 / Thursday, July 1, 2010 / Notices
change effective and operative upon
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because doing so will allow CBOE to
immediately delete an obsolete rule and
update its rule book, which in turn will
avoid potential confusion. Accordingly,
the Commission designates the
proposed rule change as operative upon
filing with the Commission.13
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:
jlentini on DSKJ8SOYB1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2010–061 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–2010–061. 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
13 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
self-regulatory organization. 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–2010–061 and
should be submitted on or before July
22, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–15995 Filed 6–30–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62380; File No. SR–
NASDAQ–2010–052]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Approving Proposed Rule Change To
Establish the Nasdaq Short Sale
Volume and Monthly Short Sale
Transaction Service and Related Fees
June 25, 2010.
I. Introduction
On April 26, 2010, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to establish the Nasdaq Short
Sale Volume and Monthly Short Sale
Transaction files (the ‘‘Service’’). The
Service is comprised of aggregate
reported share volume of executed short
sale trades during regular market hours
on a daily basis, as well as every short
sale executed on the Nasdaq execution
system and reported to a consolidated
tape for Nasdaq, the New York Stock
Exchange (‘‘NYSE’’) and regional
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
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exchange-listed securities, including the
price of the trade and the number of
shares for every short sale transaction,
on a monthly basis, separated into daily
files. On May 13, 2010, Nasdaq filed
Amendment No. 1. The proposed rule
change, as modified by Amendment No.
1, was published for comment in the
Federal Register on May 25, 2010.3 The
Commission received no comments on
the proposal. This order approves the
proposed rule change.
II. Description of the Proposal
Nasdaq is proposing to establish a
new service and related fees. The
Service is comprised of aggregate
reported share volume of executed short
sale trades during regular market hours
on a daily basis, as well as every short
sale executed on the Nasdaq execution
system and reported to a consolidated
tape for Nasdaq, the NYSE and regional
exchange-listed securities, including the
price of the trade and the number of
shares for every short sale transaction,
on a monthly basis, separated into daily
files. Nasdaq proposes to offer the
Service at $500 per subscriber, per
month, which would allow a distributor
access to the downloadable FTP files
and to distribute the product internally
and externally.
III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change, as
modified by Amendment No. 1, is
consistent with the Act and the rules
and regulations thereunder applicable to
a national securities exchange.4 In
particular, the Commission finds that
the proposed rule change is consistent
with Section 6(b)(4) of the Act,5 which
requires that the rules of a national
securities exchange provide for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and issuers and other parties
using its facilities, and Section 6(b)(5) of
the Act,6 which requires, among other
things, that the rules of an exchange not
be designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers. The
Commission also finds that the
proposed rule change is consistent with
Section 6(b)(8) of the Act,7 in that it
does not impose any burden on
3 See Securities Exchange Act Release No. 62112
(May 14, 2010), 75 FR 29371.
4 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b)(4).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78f(b)(8).
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Federal Register / Vol. 75, No. 126 / Thursday, July 1, 2010 / Notices
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.8
The Commission has reviewed the
proposal using the approach set forth by
the Commission for non-core market
data fees, and finds that the proposal
meets the criteria for approval. Because
Nasdaq was subject to significant
competitive forces in setting the terms
of the proposal, the Commission will
approve the proposal in the absence of
a substantial countervailing basis to find
that the terms of the proposal fail to
meet the applicable requirements of the
Act or the rules thereunder. An analysis
of the proposal does not provide such a
basis.
Nasdaq has represented that the
Service is a voluntary one, and that the
information provided is not comprised
of data that Nasdaq receives because of
Nasdaq’s status as a self-regulatory
organization. Because the Service is
voluntary, Nasdaq has met the statutory
standard by pricing the Service
according to free market principles;
indeed, if Nasdaq priced the Service too
high, those in the marketplace could
simply opt not to purchase the Service.
The Commission believes that Nasdaq’s
fees for the Service are reasonable and
equitably allocated.
IV. Conclusion
jlentini on DSKJ8SOYB1PROD with NOTICES
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 9, that the
proposed rule change (SR–NASDAQ–
2010–052), as modified by Amendment
No. 1, be, and it hereby is, approved.
8 The proposal meets the criteria, formulated by
the Commission in connection with the petition
filed by NetCoalition, for approval of proposed rule
changes concerning the distribution of non-core
market data. See Securities Exchange Act Release
Nos. 59039 (December 2, 2008), 73 FR 74770
(December 9, 2008) (SR–NYSEArca–2006–21) and
55011 (December 27, 2006) (order granting petition
for review of SR–NYSEArca–2006–021). In its order
issued in connection with the NetCoalition petition,
the Commission stated that ‘‘reliance on competitive
forces is the most appropriate and effective means
to assess whether the terms for the distribution of
non-core data are equitable, fair and reasonable, and
not unreasonably discriminatory.’’ 73 FR at 74781–
82. As such, the ‘‘existence of significant
competition provides a substantial basis for finding
that the terms of an exchange’s fee proposal are
equitable, fair, reasonable, and not unreasonably or
unfairly discriminatory.’’ Id. at 74782. If an
exchange ‘‘was subject to significant competitive
forces in setting the terms of a proposal,’’ a proposal
will be approved unless the Commission
determines that ‘‘there is a substantial
countervailing basis to find that the terms
nevertheless fail to meet an applicable requirement
of the Exchange Act or the rules thereunder.’’ Id. at
74781.
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–15997 Filed 6–30–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62379; File No. SR–Phlx–
2010–87]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
Fees for FLEX Equity Options
June 25, 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 21,
2010, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to assess a
transaction charge for members trading
Flexible Exchange® Options (‘‘FLEX
Options’’).3
While changes to the Exchange’s Fee
Schedule pursuant to this proposal are
effective upon filing, the Exchange has
designated this proposal to be effective
for trades settling on or after July 1,
2010.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqtrader.com/
micro.aspx?id=PHLXfilings, at the
principal office of the Exchange, at the
Commission’s Public Reference Room,
and on the Commission’s Web site at
https://www.sec.gov.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 A FLEX option is a customized option that
provides parties to the transaction with the ability
to fix terms including the exercise style, expiration
date, and certain exercise prices. See Exchange Rule
1079. FLEX Options are a trademark of the Chicago
Board Options Exchange.
2 17
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38163
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
The purpose of the proposed rule
change is to establish a new fee for
equity options transactions executed
pursuant to Exchange Rule 1079 (‘‘FLEX
equity options’’). The Exchange believes
that the proposed fee reduction for
trading FLEX equity options will
encourage members to trade additional
FLEX equity options contracts on the
Exchange, resulting in additional order
flow to the Exchange. Currently, the fees
which members are assessed when
trading FLEX equity options are the
standard equity option fees.
Currently, members who trade FLEX
equity options are assessed the standard
equity options fees delineated in
Section II of the Fee Schedule. The
Exchange is proposing to reduce
transaction fees to $0.10 per contract
side for FLEX equity options for all
participants, except Customers.4
Specifically, the Exchange proposes to
assess a $.10 transaction charge on
Professionals 5, Specialists 6, Registered
Options Traders 7, Streaming Quote
4 At this time the Exchange is not proposing to
otherwise amend its equity option fees.
5 Rule 1000(b)(14) provides in relevant part: ‘‘The
term ‘‘professional’’ means any person or entity that
(i) is not a broker or dealer in securities, and (ii)
places more than 390 orders in listed options per
day on average during a calendar month for its own
beneficial account(s).
6 A Specialist is an Exchange member who is
registered as an options specialist pursuant to Rule
1020(a).
7 A Registered Option Trader is defined in
Exchange Rule 1014(b) as a regular member or a
foreign currency options participant of the
Exchange located on the trading floor who has
received permission from the Exchange to trade in
options for his own account. A ROT includes a
SQT, a RSQT and a Non-SQT, which by definition
is neither a SQT or a RSQT. See Exchange Rule
1014 (b)(i) and (ii).
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Agencies
[Federal Register Volume 75, Number 126 (Thursday, July 1, 2010)]
[Notices]
[Pages 38162-38163]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15997]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62380; File No. SR-NASDAQ-2010-052]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order
Approving Proposed Rule Change To Establish the Nasdaq Short Sale
Volume and Monthly Short Sale Transaction Service and Related Fees
June 25, 2010.
I. Introduction
On April 26, 2010, The NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (``Commission''), pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to establish
the Nasdaq Short Sale Volume and Monthly Short Sale Transaction files
(the ``Service''). The Service is comprised of aggregate reported share
volume of executed short sale trades during regular market hours on a
daily basis, as well as every short sale executed on the Nasdaq
execution system and reported to a consolidated tape for Nasdaq, the
New York Stock Exchange (``NYSE'') and regional exchange-listed
securities, including the price of the trade and the number of shares
for every short sale transaction, on a monthly basis, separated into
daily files. On May 13, 2010, Nasdaq filed Amendment No. 1. The
proposed rule change, as modified by Amendment No. 1, was published for
comment in the Federal Register on May 25, 2010.\3\ The Commission
received no comments on the proposal. This order approves the proposed
rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 62112 (May 14,
2010), 75 FR 29371.
---------------------------------------------------------------------------
II. Description of the Proposal
Nasdaq is proposing to establish a new service and related fees.
The Service is comprised of aggregate reported share volume of executed
short sale trades during regular market hours on a daily basis, as well
as every short sale executed on the Nasdaq execution system and
reported to a consolidated tape for Nasdaq, the NYSE and regional
exchange-listed securities, including the price of the trade and the
number of shares for every short sale transaction, on a monthly basis,
separated into daily files. Nasdaq proposes to offer the Service at
$500 per subscriber, per month, which would allow a distributor access
to the downloadable FTP files and to distribute the product internally
and externally.
III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1, is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\4\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(4) of the Act,\5\
which requires that the rules of a national securities exchange provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members and issuers and other parties using its
facilities, and Section 6(b)(5) of the Act,\6\ which requires, among
other things, that the rules of an exchange not be designed to permit
unfair discrimination between customers, issuers, brokers, or dealers.
The Commission also finds that the proposed rule change is consistent
with Section 6(b)(8) of the Act,\7\ in that it does not impose any
burden on
[[Page 38163]]
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.\8\
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\4\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\5\ 15 U.S.C. 78f(b)(4).
\6\ 15 U.S.C. 78f(b)(5).
\7\ 15 U.S.C. 78f(b)(8).
\8\ The proposal meets the criteria, formulated by the
Commission in connection with the petition filed by NetCoalition,
for approval of proposed rule changes concerning the distribution of
non-core market data. See Securities Exchange Act Release Nos. 59039
(December 2, 2008), 73 FR 74770 (December 9, 2008) (SR-NYSEArca-
2006-21) and 55011 (December 27, 2006) (order granting petition for
review of SR-NYSEArca-2006-021). In its order issued in connection
with the NetCoalition petition, the Commission stated that
``reliance on competitive forces is the most appropriate and
effective means to assess whether the terms for the distribution of
non-core data are equitable, fair and reasonable, and not
unreasonably discriminatory.'' 73 FR at 74781-82. As such, the
``existence of significant competition provides a substantial basis
for finding that the terms of an exchange's fee proposal are
equitable, fair, reasonable, and not unreasonably or unfairly
discriminatory.'' Id. at 74782. If an exchange ``was subject to
significant competitive forces in setting the terms of a proposal,''
a proposal will be approved unless the Commission determines that
``there is a substantial countervailing basis to find that the terms
nevertheless fail to meet an applicable requirement of the Exchange
Act or the rules thereunder.'' Id. at 74781.
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The Commission has reviewed the proposal using the approach set
forth by the Commission for non-core market data fees, and finds that
the proposal meets the criteria for approval. Because Nasdaq was
subject to significant competitive forces in setting the terms of the
proposal, the Commission will approve the proposal in the absence of a
substantial countervailing basis to find that the terms of the proposal
fail to meet the applicable requirements of the Act or the rules
thereunder. An analysis of the proposal does not provide such a basis.
Nasdaq has represented that the Service is a voluntary one, and
that the information provided is not comprised of data that Nasdaq
receives because of Nasdaq's status as a self-regulatory organization.
Because the Service is voluntary, Nasdaq has met the statutory standard
by pricing the Service according to free market principles; indeed, if
Nasdaq priced the Service too high, those in the marketplace could
simply opt not to purchase the Service. The Commission believes that
Nasdaq's fees for the Service are reasonable and equitably allocated.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\9\, that the proposed rule change (SR-NASDAQ-2010-052), as modified by
Amendment No. 1, be, and it hereby is, approved.
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\9\ 15 U.S.C. 78s(b)(2).
\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15997 Filed 6-30-10; 8:45 am]
BILLING CODE 8010-01-P