Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees Assessed to Members Using the NASDAQ Market Center, 53996-53997 [2010-21933]

Download as PDF 53996 Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices Act,8 in particular in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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 proposed rule change is consistent with these requirements in that it would permit reasonable periods of time for companies to address instances of noncompliance with Nasdaq’s price requirement and would not adversely affect investors or the national market system. 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. 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. wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2010–107 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–2010–107. 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 Web site viewing and printing at the principal office of Nasdaq. 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–2010–107 and should be submitted on or before September 23, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–21932 Filed 9–1–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62785; File No. SR– NASDAQ–2010–106] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees Assessed to Members Using the NASDAQ Market Center August 27, 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 August 25, 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. 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 the Substance of the Proposed Rule Change NASDAQ proposes to modify pricing assessed to NASDAQ members using the NASDAQ Market Center. NASDAQ will implement the proposed change on September 1, 2010. The text of the proposed rule change is available at https://nasdaqomx.cchwallstreet.com/, at NASDAQ’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NASDAQ included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NASDAQ has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose NASDAQ is proposing to reduce fees assessed members for routing odd-lot directed orders. NASDAQ assesses Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or 1 15 8 15 U.S.C. 78f(b)(5). VerDate Mar<15>2010 15:22 Sep 01, 2010 9 17 Jkt 220001 PO 00000 CFR 200.30–3(a)(12). Frm 00050 Fmt 4703 2 17 Sfmt 4703 E:\FR\FM\02SEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 02SEN1 Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices different fees for orders directed to the New York Stock Exchange (‘‘NYSE’’) that do not attempt to execute in the Nasdaq Market Center prior to routing based on whether the order is an odd-lot or round-lot. In this regard, NASDAQ currently assesses a fee of $0.0021 for round-lot directed orders that execute on the NYSE, an amount equal to the fee assessed NASDAQ by NYSE for executing such orders. NASDAQ assesses a fee of $0.03 on directed orders that do not attempt to execute in the Nasdaq Market Center prior to routing and that execute at the NYSE as an odd-lot transaction, and $0.01 for the odd-lot portion of a [sic] partial roundlot orders that do not attempt to execute in the Nasdaq Market Center prior to routing and that execute at the NYSE. The NYSE executes odd-lot orders on the Odd-lot System, a separate system designed to execute odd-lot interest that does not expose odd-lot orders to the market in the NYSE Display Book, but rather executes such interest against a designated maker as a contra party using a complex pricing formula to determine the execution price. The NYSE recently made technical changes that allow odd-lot interest to be exposed to, and executed against, the general market in its Display Book and is thus decommissioning its separate Odd-lot System.3 In light of the elimination of any distinction between how odd-lot and round-lot orders are handled by the NYSE,4 NASDAQ is making minor modifications to its pricing schedule for the routing of oddlot orders directed to the NYSE through the NASDAQ Market Center. NASDAQ is proposing to lower the fees assessed for these directed odd-lot orders to $0.0021 so that the fee is harmonized with the fee assessed NASDAQ by the NYSE for any executed directed order. wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,5 in general, and with Section 6(b)(4) of the Act,6 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons 3 On July 27, 2010, the Commission approved a proposed rule change by the NYSE to incorporate the receipt and execution of odd-lot interest into the round lot market and decommission the use of the NYSE’s ‘‘Odd-lot System.’’ Securities Exchange Act Release No. 62578 (July 27, 2010), 75 FR 45185 (August 2, 2010) (SR–NYSE–2010–43). 4 The NYSE is transitioning securities on a rolling basis during the month of August 2010. See https:// www.nyse.com/attachment/ Trading_In_Shares_Rollout_List.xls. 5 15 U.S.C. 78f. 6 15 U.S.C. 78f(b)(4). VerDate Mar<15>2010 15:22 Sep 01, 2010 Jkt 220001 using any facility or system which NASDAQ operates or controls. NASDAQ believes that, because NYSE no longer handles routed round-lot and routed odd-lot orders differently and assesses a single uniform fee for such orders, it is appropriate for NASDAQ to assess a uniform fee for routing both types of orders. The harmonized fees also equal the amount assessed NASDAQ by NYSE for executing such orders. Accordingly, NASDAQ believes that the reduced fees are both reasonable and equitably allocated to members. 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. To the contrary, NASDAQ believes that the reduced fee will lower costs and encourage competition. 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.7 At any time within 60 days 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. 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: 7 15 PO 00000 U.S.C. 78s(b)(3)(a)(ii). Frm 00051 Fmt 4703 Sfmt 9990 53997 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–2010–106 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–2010–106. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NASDAQ–2010–106, and should be submitted on or before September 23, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–21933 Filed 9–1–10; 8:45 am] BILLING CODE 8010–01–P 8 17 E:\FR\FM\02SEN1.SGM CFR 200.30–3(a)(12). 02SEN1

Agencies

[Federal Register Volume 75, Number 170 (Thursday, September 2, 2010)]
[Notices]
[Pages 53996-53997]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21933]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62785; File No. SR-NASDAQ-2010-106]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify Fees Assessed to Members Using the NASDAQ Market Center

August 27, 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 August 25, 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. 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

    NASDAQ proposes to modify pricing assessed to NASDAQ members using 
the NASDAQ Market Center. NASDAQ will implement the proposed change on 
September 1, 2010. The text of the proposed rule change is available at 
https://nasdaqomx.cchwallstreet.com/, at NASDAQ's principal office, and 
at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NASDAQ included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. NASDAQ has prepared summaries, set forth in Sections A, 
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NASDAQ is proposing to reduce fees assessed members for routing 
odd-lot directed orders. NASDAQ assesses

[[Page 53997]]

different fees for orders directed to the New York Stock Exchange 
(``NYSE'') that do not attempt to execute in the Nasdaq Market Center 
prior to routing based on whether the order is an odd-lot or round-lot. 
In this regard, NASDAQ currently assesses a fee of $0.0021 for round-
lot directed orders that execute on the NYSE, an amount equal to the 
fee assessed NASDAQ by NYSE for executing such orders. NASDAQ assesses 
a fee of $0.03 on directed orders that do not attempt to execute in the 
Nasdaq Market Center prior to routing and that execute at the NYSE as 
an odd-lot transaction, and $0.01 for the odd-lot portion of a [sic] 
partial round-lot orders that do not attempt to execute in the Nasdaq 
Market Center prior to routing and that execute at the NYSE. The NYSE 
executes odd-lot orders on the Odd-lot System, a separate system 
designed to execute odd-lot interest that does not expose odd-lot 
orders to the market in the NYSE Display Book, but rather executes such 
interest against a designated maker as a contra party using a complex 
pricing formula to determine the execution price.
    The NYSE recently made technical changes that allow odd-lot 
interest to be exposed to, and executed against, the general market in 
its Display Book and is thus decommissioning its separate Odd-lot 
System.\3\ In light of the elimination of any distinction between how 
odd-lot and round-lot orders are handled by the NYSE,\4\ NASDAQ is 
making minor modifications to its pricing schedule for the routing of 
odd-lot orders directed to the NYSE through the NASDAQ Market Center. 
NASDAQ is proposing to lower the fees assessed for these directed odd-
lot orders to $0.0021 so that the fee is harmonized with the fee 
assessed NASDAQ by the NYSE for any executed directed order.
---------------------------------------------------------------------------

    \3\ On July 27, 2010, the Commission approved a proposed rule 
change by the NYSE to incorporate the receipt and execution of odd-
lot interest into the round lot market and decommission the use of 
the NYSE's ``Odd-lot System.'' Securities Exchange Act Release No. 
62578 (July 27, 2010), 75 FR 45185 (August 2, 2010) (SR-NYSE-2010-
43).
    \4\ The NYSE is transitioning securities on a rolling basis 
during the month of August 2010. See https://www.nyse.com/attachment/Trading_In_Shares_Rollout_List.xls.
---------------------------------------------------------------------------

2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\5\ in general, and with Section 
6(b)(4) of the Act,\6\ 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. NASDAQ believes that, because NYSE 
no longer handles routed round-lot and routed odd-lot orders 
differently and assesses a single uniform fee for such orders, it is 
appropriate for NASDAQ to assess a uniform fee for routing both types 
of orders. The harmonized fees also equal the amount assessed NASDAQ by 
NYSE for executing such orders. Accordingly, NASDAQ believes that the 
reduced fees are both reasonable and equitably allocated to members.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    NASDAQ does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended. To the contrary, 
NASDAQ believes that the reduced fee will lower costs and encourage 
competition. 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.\7\ At any time within 60 days 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. If the Commission takes such action, the Commission shall 
institute proceedings to determine whether the proposed rule should be 
approved or disapproved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(a)(ii).
---------------------------------------------------------------------------

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-2010-106 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-2010-106. This 
file number should be included on the subject line if e-mail is used.
    To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for Web site 
viewing and printing in the Commission's Public Reference Room on 
official business days between the hours of 10 a.m. and 3 p.m. Copies 
of such filing also will be available for inspection and copying at the 
principal offices of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NASDAQ-2010-106, and should be submitted on or before 
September 23, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-21933 Filed 9-1-10; 8:45 am]
BILLING CODE 8010-01-P
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