Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees for Routing to Away Markets, 47662-47664 [2010-19370]
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47662
Federal Register / Vol. 75, No. 151 / Friday, August 6, 2010 / Notices
of the filing of the proposed rule change,
the Commission summarily may
temporarily suspend 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–FINRA–2010–038 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–FINRA–2010–038. 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 the filing also will be
available for inspection and copying at
FINRA’s principal office. 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–FINRA–
2010–038 and should be submitted on
or before August 27, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary
[FR Doc. 2010–19331 Filed 8–5–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62618; File No. SR–
NASDAQ–2010–088]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Fees for Routing to Away Markets
July 30, 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 July 22,
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 and II 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 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.
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
on August 2, 2010.
The text of the proposed rule change
is set forth below. Proposed new text is
in italics and deleted text is in brackets.3
*
*
*
*
*
7050. NASDAQ Options Market
The following charges shall apply to
the use of the order execution and
routing services of the NASDAQ
Options Market 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 shall
be posted on the NasdaqTrader.com
website.
Exchange
Customer Firm MM
sroberts on DSKD5P82C1PROD with NOTICES
BATS ............................................................................................................................................................................
BOX .............................................................................................................................................................................
CBOE ...........................................................................................................................................................................
ISE ...............................................................................................................................................................................
ISE Select Symbols* of 100 or more contracts ...........................................................................................................
NYSE Arca Penny Pilot ...............................................................................................................................................
NYSE Arca Non Penny Pilot .......................................................................................................................................
NYSE AMEX ................................................................................................................................................................
PHLX (for all options other than PHLX Select Symbols [the below listed options]) ...................................................
10 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Mar<15>2010
16:35 Aug 05, 2010
2 17
Jkt 220001
PO 00000
CFR 240.19b–4.
Frm 00140
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$0.36
$0.06
$0.06
$0.06
$0.26
$0.50
$0.06
$0.06
$0.06
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
3 The proposed text reflects recent amendments to
Rule 7050, specifically proposed rule change SR–
NASDAQ–2010–090.
Sfmt 4703
E:\FR\FM\06AUN1.SGM
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Federal Register / Vol. 75, No. 151 / Friday, August 6, 2010 / Notices
PHLX Select Symbols** [(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] ......................................................................................................................................................................
$0.30
$0.55
$0.55
* These fees are applicable to orders routed to ISE that are subject to Rebates and Fees for Adding and Removing Liquidity in Select Symbols. See ISE’s Schedule of Fees for the complete list of symbols that are subject to these fees.
** These fees are applicable to orders routed to PHLX that are subject to Rebates and Fees for Adding and Removing Liquidity in Select Symbols. See PHLX’s Fee Schedule for the complete list of symbols that are subject to these fees.
*
*
*
*
*
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
www.nasdaqomx.cchwallstreet.com, at
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 away markets
(‘‘routing fees’’). NASDAQ Options
Services LLC (‘‘NOS’’), a member of the
Exchange, is the Exchange’s exclusive
order router. Each time NOS routes to
away markets NOS is charged a $0.06
clearing fee and, in the case of certain
exchanges, a transaction fee is also
charged in certain symbols, which are
passed through to the Exchange. NOM
currently assesses customers a fee of
$0.30 and Firms and Market Makers a
fee of $0.55 for routing options orders to
NASDAQ OMX PHLX, Inc. (‘‘PHLX’’) in
certain select symbols that are subject to
PHLX’s Rebates and Fees for Adding
and Removing Liquidity in Select
Symbols.4 The Exchange proposes to
4 NOM currently assesses the aforementioned
rates in the following symbols: 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,
VerDate Mar<15>2010
16:35 Aug 05, 2010
Jkt 220001
modify Rule 7050 by titling those fees
‘‘PHLX Select Symbols’’ and adding
clarifying language to indicate those fees
would be subject to PHLX’s Rebates and
Fees for Adding and Removing
Liquidity in Select Symbols, rather than
listing all of the option symbols that are
subject to those fees. The Exchange is
proposing to amend the title in Rule
7050 so that the PHLX select symbols
fees would apply to all of the symbols
in PHLX’s list of symbols which are
subject to the Rebates and Fees for
Adding and Removing Liquidity in
Select Symbols.5
The Exchange also proposes to amend
text in Rule 7050 to clarify that orders
which are currently subject to ‘‘PHLX
(for all options other than the below
listed options)’’ routing fees would be
renamed to state ‘‘PHLX (for all options
other than PHLX Select Symbols)’’ to
clarify that these fees would continue to
apply to all orders routed to PHLX and
not subject to PHLX’s Rebates and Fees
for Adding and Removing Liquidity in
Select Symbols.6
NASDAQ Options Services LLC
(‘‘NOS’’), a member of the Exchange, is
the Exchange’s exclusive order router.
Each time NOS routes to away markets,
NOS is charged a $0.06 clearing fee and,
in the case of certain exchanges, a
transaction fee is also charged in certain
symbols, which are passed through to
the Exchange. The Exchange collects
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.
5 PHLX recently filed a proposed rule change to
add the following four options to the Phlx’s list of
symbols subject to the Rebates and Fees for Adding
and Removing Liquidity in Select Symbols: BP
p.l.c. Common Stock (‘‘BP’’), Baidu, Inc. (‘‘BIDU’’),
IShares FTSE/Xinhua China 25 Index (‘‘FXI’’) and
Exxon Mobil Corp. (‘‘XOM’’) and also remove the
following three options: ARIAD Pharmaceuticals,
Inc. (‘‘ARIA’’), Star Scientific, Inc. (‘‘CIGX’’) and
Palm, Inc. (‘‘PALM’’) from its list of Select Symbols.
See SR–Phlx–2010–98. All symbols subject to
PHLX’s Rebates and Fees for Adding and Removing
Liquidity in Select Symbols will be referred to as
‘‘PHLX Select Symbols.’’
6 Currently NOM assesses $0.06 for Customers
and $0.55 for Firms and Market Makers for routing
orders to PHLX which are not subject to PHLX’s
Rebates and Fees for Adding and Removing
Liquidity in Select Symbols.
PO 00000
Frm 00141
Fmt 4703
Sfmt 4703
fees for routing to away markets in order
to recoup clearing and transaction
charges incurred by the Exchange when
such orders are routed to various
destination markets. Each destination
market’s transaction charge varies and
there is a standard clearing charge for
each transaction incurred by the
Exchange.
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
on August 2, 2010.
2. Statutory Basis
NASDAQ believes that the proposed
rule changes are 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
Exchange 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 in any symbol subject to PHLX’s
Rebates and Fees for Adding and
Removing Liquidity in Select Symbols.
This proposal would continue to apply
to all of the PHLX Select Symbols, as
defined on PHLX’s Fee Schedule, going
forward rather than listing each symbol
in Rule 7050. The Exchange believes
this amendment to Rule 7050 is
reasonable because it continues to
assess the same fees for routing orders
to PHLX which are subject to PHLX’s
Rebates and Fees for Adding and
Removing Liquidity in Select Symbols.
This proposal is simply renaming those
routing fees without changing the fees.
Also, the proposal is equitable because
the fees assessed to Customers, Firms
and Market Makers will continue to
apply to those market participants and
the modifications to the title of the
PHLX Select Symbols routing fees will
7 15
8 15
E:\FR\FM\06AUN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
06AUN1
47664
Federal Register / Vol. 75, No. 151 / Friday, August 6, 2010 / Notices
be uniformly applied to each of these
participants.
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 9 and paragraph
(f)(2) of Rule 19b–4 10 thereunder. At
any time within 60 days of the filing of
such proposed rule change, the
Commission summarily may
temporarily suspend 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.
sroberts on DSKD5P82C1PROD with NOTICES
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–2010–088 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 17
VerDate Mar<15>2010
16:35 Aug 05, 2010
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2010–088. 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, 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
available publicly. All submissions
should refer to File No. SR–NASDAQ–
2010–088 and should be submitted on
or before August 27, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19370 Filed 8–5–10; 8:45 am]
BILLING CODE 8010–01–P
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing with the
Commission a proposal to designate
seventy-five options classes to be added
to the Penny Pilot Program (‘‘Penny
Pilot’’ or ‘‘Pilot’’) on August 2, 2010.3
The Exchange is not proposing to
amend any rule text, but simply
administering or enforcing an existing
rule.4
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/
NASDAQOMXPHLX/Filings/, at 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The Penny Pilot was established in January 2007
and in October 2009 was expanded and extended
through December 31, 2010. See Securities
Exchange Act Release Nos. 55153 (January 23,
2007), 72 FR 4553 (January 31, 2007) (SR–Phlx2006–74) (notice of filing and approval order
establishing Penny Pilot); 60873 (October 23, 2009),
74 FR 56675 (November 2, 2009) (SR–Phlx–2009–
91) (notice of filing and immediate effectiveness
expanding and extending Penny Pilot); 60966
(November 9, 2009), 74 FR 59331 (November 17,
2009) (SR–Phlx–2009–94) (notice of filing and
immediate effectiveness adding seventy-five classes
to Penny Pilot); 60966 (November 9, 2009), 75 FR
61454 (February 1, 2010), 75 FR 6233 (February 8,
2010) (SR–Phlx–2010–12) (notice of filing and
immediate effectiveness adding seventy-five classes
to Penny Pilot); and 62028 (May 4, 2010), 75 FR
25890 (May 10, 2010) (SR–Phlx–2010–65) (notice of
filing and immediate effectiveness adding seventyfive classes to Penny Pilot).
4 See Rule 1034 regarding the Penny Pilot.
2 17
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62616; File No. SR–
Phlx–2010–103]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Add
Seventy-Five Options Classes to the
Penny Pilot Program
July 30, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
11 17
Jkt 220001
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on July 22,
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 and
II 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.
PO 00000
CFR 200.30–3(a)(12).
Frm 00142
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]]>Agencies
[Federal Register Volume 75, Number 151 (Friday, August 6, 2010)]
[Notices]
[Pages 47662-47664]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19370]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62618; File No. SR-NASDAQ-2010-088]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Fees for Routing to Away Markets
July 30, 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 July 22, 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 and II 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 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.
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on August 2, 2010.
The text of the proposed rule change is set forth below. Proposed
new text is in italics and deleted text is in brackets.\3\
---------------------------------------------------------------------------
\3\ The proposed text reflects recent amendments to Rule 7050,
specifically proposed rule change SR-NASDAQ-2010-090.
---------------------------------------------------------------------------
* * * * *
7050. NASDAQ Options Market
The following charges shall apply to the use of the order execution
and routing services of the NASDAQ Options Market 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 shall be posted on the
NasdaqTrader.com website.
------------------------------------------------------------------------
------------------------------------------------------------------------
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
ISE Select Symbols* of 100 or more $0.26 $0.55 $0.55
contracts.................................
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 PHLX $0.06 $0.55 $0.55
Select Symbols [the below listed options])
[[Page 47663]]
PHLX Select Symbols** [(for the following $0.30 $0.55 $0.55
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]...................
------------------------------------------------------------------------
* These fees are applicable to orders routed to ISE that are subject to
Rebates and Fees for Adding and Removing Liquidity in Select Symbols.
See ISE's Schedule of Fees for the complete list of symbols that are
subject to these fees.
** These fees are applicable to orders routed to PHLX that are subject
to Rebates and Fees for Adding and Removing Liquidity in Select
Symbols. See PHLX's Fee Schedule for the complete list of symbols that
are subject to these fees.
* * * * *
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nasdaqomx.cchwallstreet.com, at 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 away
markets (``routing fees''). NASDAQ Options Services LLC (``NOS''), a
member of the Exchange, is the Exchange's exclusive order router. Each
time NOS routes to away markets NOS is charged a $0.06 clearing fee
and, in the case of certain exchanges, a transaction fee is also
charged in certain symbols, which are passed through to the Exchange.
NOM currently assesses customers a fee of $0.30 and Firms and Market
Makers a fee of $0.55 for routing options orders to NASDAQ OMX PHLX,
Inc. (``PHLX'') in certain select symbols that are subject to PHLX's
Rebates and Fees for Adding and Removing Liquidity in Select
Symbols.\4\ The Exchange proposes to modify Rule 7050 by titling those
fees ``PHLX Select Symbols'' and adding clarifying language to indicate
those fees would be subject to PHLX's Rebates and Fees for Adding and
Removing Liquidity in Select Symbols, rather than listing all of the
option symbols that are subject to those fees. The Exchange is
proposing to amend the title in Rule 7050 so that the PHLX select
symbols fees would apply to all of the symbols in PHLX's list of
symbols which are subject to the Rebates and Fees for Adding and
Removing Liquidity in Select Symbols.\5\
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\4\ NOM currently assesses the aforementioned rates in the
following symbols: 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.
\5\ PHLX recently filed a proposed rule change to add the
following four options to the Phlx's list of symbols subject to the
Rebates and Fees for Adding and Removing Liquidity in Select
Symbols: BP p.l.c. Common Stock (``BP''), Baidu, Inc. (``BIDU''),
IShares FTSE/Xinhua China 25 Index (``FXI'') and Exxon Mobil Corp.
(``XOM'') and also remove the following three options: ARIAD
Pharmaceuticals, Inc. (``ARIA''), Star Scientific, Inc. (``CIGX'')
and Palm, Inc. (``PALM'') from its list of Select Symbols. See SR-
Phlx-2010-98. All symbols subject to PHLX's Rebates and Fees for
Adding and Removing Liquidity in Select Symbols will be referred to
as ``PHLX Select Symbols.''
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The Exchange also proposes to amend text in Rule 7050 to clarify
that orders which are currently subject to ``PHLX (for all options
other than the below listed options)'' routing fees would be renamed to
state ``PHLX (for all options other than PHLX Select Symbols)'' to
clarify that these fees would continue to apply to all orders routed to
PHLX and not subject to PHLX's Rebates and Fees for Adding and Removing
Liquidity in Select Symbols.\6\
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\6\ Currently NOM assesses $0.06 for Customers and $0.55 for
Firms and Market Makers for routing orders to PHLX which are not
subject to PHLX's Rebates and Fees for Adding and Removing Liquidity
in Select Symbols.
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NASDAQ Options Services LLC (``NOS''), a member of the Exchange, is
the Exchange's exclusive order router. Each time NOS routes to away
markets, NOS is charged a $0.06 clearing fee and, in the case of
certain exchanges, a transaction fee is also charged in certain
symbols, which are passed through to the Exchange. The Exchange
collects fees for routing to away markets in order to recoup clearing
and transaction charges incurred by the Exchange when such orders are
routed to various destination markets. Each destination market's
transaction charge varies and there is a standard clearing charge for
each transaction incurred by the Exchange.
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on August 2, 2010.
2. Statutory Basis
NASDAQ believes that the proposed rule changes are 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 Exchange 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 in any symbol subject to PHLX's Rebates
and Fees for Adding and Removing Liquidity in Select Symbols. This
proposal would continue to apply to all of the PHLX Select Symbols, as
defined on PHLX's Fee Schedule, going forward rather than listing each
symbol in Rule 7050. The Exchange believes this amendment to Rule 7050
is reasonable because it continues to assess the same fees for routing
orders to PHLX which are subject to PHLX's Rebates and Fees for Adding
and Removing Liquidity in Select Symbols. This proposal is simply
renaming those routing fees without changing the fees. Also, the
proposal is equitable because the fees assessed to Customers, Firms and
Market Makers will continue to apply to those market participants and
the modifications to the title of the PHLX Select Symbols routing fees
will
[[Page 47664]]
be uniformly applied to each of these participants.
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\7\ 15 U.S.C. 78f.
\8\ 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 \9\ and paragraph (f)(2) of Rule 19b-4 \10\
thereunder. At any time within 60 days of the filing of such proposed
rule change, the Commission summarily may temporarily suspend 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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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 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-2010-088 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-2010-088. 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, 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
available publicly. All submissions should refer to File No. SR-NASDAQ-
2010-088 and should be submitted on or before August 27, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19370 Filed 8-5-10; 8:45 am]
BILLING CODE 8010-01-P
