Self-Regulatory Organizations; NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Fees, 76513-76515 [2010-30833]
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Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices
Section 17A(b)(3)(F) of the Act
requires, among other things, that the
rules of a clearing agency be designed to
remove impediments to and perfect the
mechanism of a national system for
prompt and accurate clearance and
settlement of securities transactions, to
foster cooperation and coordination
with persons engaged in the clearance
and settlement of securities
transactions, and, in general, to protect
investors and the public interest.5 NSCC
believes that the proposed rule change
is consistent with these requirements of
Section 17A of the Act 6 and the rules
and regulations thereunder that are
applicable to NSCC because
discontinuing the CBRS will allow for
more efficient allocation of NSCC’s
resources.
IV. Solicitation of Comments
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
NSCC 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.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments relating to the
proposed rule change have been
solicited or received. NSCC will notify
the Commission of any written
comments received by NSCC.
jlentini on DSKJ8SOYB1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(4) 8 thereunder because it
effects a change in an existing service of
NSCC that: (i) Does not adversely affect
the safeguarding of securities or funds
in the custody or control of NSCC or for
which it is responsible and (ii) does not
significantly affect the respective rights
or obligations of the clearing agency or
persons using the service. At any time
within sixty days of the filing of such
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.
5 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
7 15 U.S.C. 78s(b)(3)(A)(iii).
8 17 CFR 240.19b–4(f)(4).
6 15
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18:23 Dec 07, 2010
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:
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–30881 Filed 12–7–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–NSCC–2010–17 on the
subject line.
Paper Comments
[Release No. 34–63419; File No. SR–
NASDAQ–2010–149]
Self-Regulatory Organizations;
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees
December 2, 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 November
24, 2010, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
All submissions should refer to File
with the Securities and Exchange
Number SR–NSCC–2010–17. This file
Commission (‘‘SEC’’ or ‘‘Commission’’)
number should be included on the
subject line if e-mail is used. To help the the proposed rule change as described
in Items I, II, and III below, which Items
Commission process and review your
have been prepared by the Exchange.
comments more efficiently, please use
only one method. The Commission will The Commission is publishing this
post all comments on the Commission’s notice to solicit comments on the
proposed rule change from interested
Internet Web site (https://www.sec.gov/
persons.
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 Section, 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 filings
also will be available for inspection and
copying at the principal office of NSCC
and on NSCC’s Web site, https://
www.dtcc.com. 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–NSCC–
2010–17 and should be submitted on or
before December 29, 2010.
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 fee changes pursuant to this
proposal are effective upon filing, the
Exchange has designated these changes
to be operative on December 1, 2010.
The text of the proposed rule change
is set forth below. Proposed new text is
italicized and deleted text is in brackets.
*
*
*
*
*
7050. NASDAQ Options Market
The following charges shall apply to
the use of the order execution and
routing services of the NASDAQ
Options Market 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
1 15
9 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
08DEN1
76514
Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices
be posted on the NasdaqTrader.com
Web site.
Exchange
Customer
BATS ................................................................................................................
BOX .................................................................................................................
CBOE ...............................................................................................................
CBOE orders greater than 99 contracts in NDX, MNX ETFs, ETNs &
HOLDRs .......................................................................................................
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) ................................
PHLX Select Symbols ** ...................................................................................
C2 ....................................................................................................................
Firm
MM
Professional
$0.36
0.06
0.06
$0.55
0.55
0.55
$0.55
0.55
0.55
$0.36
0.06
0.26
0.24
0.06
0.26
0.50
0.06
0.06
0.06
0.30
0.21
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
0.26
0.24
0.31
0.50
0.06
0.26
0.26
0.46
0.46
* 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
jlentini on DSKJ8SOYB1PROD with NOTICES
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.
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18:23 Dec 07, 2010
Jkt 223001
The Exchange proposes to assess new
fees for routing contracts to markets
other than the NASDAQ Options Market
to Rule 7050. Specifically, the Exchange
is proposing to assess a routing fee of
$0.24 per contract in Customer option
orders that are routed to the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’). This would apply to orders
greater than 99 contracts in options
traded under the symbol NDX (‘‘NDX’’)
and options on the one-tenth value of
the Nasdaq 100 Index traded under the
symbol MNX (‘‘MNX’’) as well as
exchange-traded funds (‘‘ETFs’’),
exchange-traded notes (‘‘ETNs’’) and
Holding Company Depositary Receipts
(‘‘HOLDRs’’). The Exchange is proposing
to caption these proposed fees ‘‘CBOE
orders greater than 99 contracts in NDX,
MNX, ETFs, ETNs and HOLDRs.’’ The
CBOE current routing fee of $0.55 per
contract would apply to Firms and
Market Makers for CBOE orders greater
than 99 contracts in NDX, MNX, ETFs,
ETNs and HOLDRs.
The Exchange is also proposing to
adopt routing fees for a new type of
participant called ‘‘Professional’’.3 The
Exchange proposes to assess the
following Professional routing fees, in
addition to the current categories of
Customer, Firm and Market Maker, to its
members: (i) A $0.36 per contract fee for
3 See Chapter I, Section I (Definitions). 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). A Participant or a Public
Customer may, without limitation, be a
Professional. All Professional orders shall be
appropriately marked by Participants. See
Securities Exchange Act Release Nos. 63028
(October 1, 2010), 75 FR 62443 (October 8, 2010)
(SR–NASDAQ–2010–099); and 63151 (October 21,
2010), 75 FR 66811 (October 29, 2010) (SR–
NASDAQ–2010–132).
PO 00000
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Professional orders routed to BATS
Exchange, Inc. (‘‘BATS’’) in all options;
(ii) a $0.06 per contract fee for
Professional orders routed to the Boston
Options Exchange Group LLC (‘‘BOX’’)
in all options; (iii) a $0.26 per contract
fee for Professional orders routed to the
Chicago Board of Options Exchange,
Inc. (‘‘CBOE’’) in all options 4; (iv) a $.24
per contract fee for Professional orders
routed to International Securities
Exchange, LLC (‘‘ISE’’) in all options,
except for Select Symbols of 100 or
more contracts; (v) a $0.31 per contract
fee for Professional orders routed to ISE
in its Select Symbols of 100 or more
contracts 5; (vi) a $0.50 per contract fee
for Professional orders routed to NYSE
Arca, Inc. (‘‘NYSE Arca’’) in Penny Pilot
options; (vii) a $0.06 per contract fee for
Professional orders routes to NYSE Arca
in Non-Penny Pilot options; (viii) a
$0.26 per contract fee for Professional
orders routed to NYSE Amex LLC
(‘‘NYSE Amex’’) in all options; (ix) a
$0.26 per contract fee for Professional
orders routed to NASDAQ OMX PHLX
LLC (‘‘PHLX’’) in all option other than
the PHLX Select Symbols; 6 (x) a $0.46
per contract fee for Professional orders
routed to PHLX in Select Symbols; 7 and
(xi) a $0.46 per contract fee for
Professional orders routed to C2 Options
Exchange, Inc. (‘‘C2’’) in all options.
The Exchange is proposing these fees
in order to recoup clearing and
transaction charges incurred by the
4 A Professional would also be assessed the
proposed $0.26 per contract for a CBOE order
greater than 99 contracts in NDX, MNX, ETFs, ETNs
and HOLDRs.
5 See ISE’s Schedule of Fees for the complete list
of Select Symbols.
6 See PHLX’s Fee Schedule for the complete list
of Select Symbols.
7 See PHLX’s Fee Schedule for the complete list
of Select Symbols.
E:\FR\FM\08DEN1.SGM
08DEN1
Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices
Exchange when certain Customer
options orders are routed to CBOE 8 as
well as when certain Professional
options orders are routed to the various
destination markets. Each destination
market’s transaction charge varies and
there is a standard clearing charge for
each transaction incurred by the
Exchange. The Exchange believes that
the routing fees proposed will enable
the Exchange to recover the transaction
fees assessed by away markets, where
applicable, plus clearing fees for the
execution of Customer, Firm, Market
Maker and Professional orders. As with
all fees, the Exchange may adjust these
Routing Fees in response to competitive
conditions by filing a new proposed rule
change.
While fee changes pursuant to this
proposal are effective upon filing, the
Exchange has designated these changes
to be operative on December 1, 2010.
2. Statutory Basis
jlentini on DSKJ8SOYB1PROD with NOTICES
NASDAQ believes that the proposed
rule changes are consistent with the
provisions of Section 6 of the Act,9 in
general, and with Section 6(b)(4) of the
Act,10 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 fees are reasonable because
they seek to recoup costs that are
incurred by the Exchange when routing
Customer orders greater than 99
contracts in NDX, MNX, ETFs, ETNs
and HOLDRs to CBOE and also when
routing orders designated as
Professional to the various destination
markets listed herein, on behalf of its
members. The Exchange also believes
that the proposed fees are equitable
because they will be uniformly applied
to all Customers and Professionals.
NASDAQ is one of nine options
markets 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
8 See
Securities Exchange Act Release No. 62902
(September 14, 2010), 75 FR 57313 (September 20,
2010) (SR–CBOE–2010–081) (a rule change to assess
a transaction fee of $.18 per contract on public
customer orders in options on Standard & Poor’s
Depositary Receipts, except for orders of 99
contracts or less).
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(4).
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18:23 Dec 07, 2010
Jkt 223001
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 11 and
paragraph (f)(2) of Rule 19b–4 12
thereunder. 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:
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–2010–149 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–2010–149. 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–
2010–149 and should be submitted on
or before December 29, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–30833 Filed 12–7–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63404; File No. SR–NSCC–
2010–16]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing of
Proposed Rule Change To Amend
Procedure II of the NSCC Rules &
Procedures To Modify the Money
Tolerance Comparison Provisions for
Fixed Income Securities
December 1, 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 November
19, 2010, the National Securities
13 17
11 15
U.S.C. 78s(b)(3)(A)(ii).
12 17 CFR 240.19b–4(f)(2).
PO 00000
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76515
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\08DEN1.SGM
08DEN1
]]>Agencies
[Federal Register Volume 75, Number 235 (Wednesday, December 8, 2010)]
[Notices]
[Pages 76513-76515]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-30833]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63419; File No. SR-NASDAQ-2010-149]
Self-Regulatory Organizations; NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Routing Fees
December 2, 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 November 24, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of 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 fee changes pursuant to this proposal are effective upon
filing, the Exchange has designated these changes to be operative on
December 1, 2010.
The text of the proposed rule change is set forth below. Proposed
new text is italicized and deleted text is in brackets.
* * * * *
7050. NASDAQ Options Market
The following charges shall apply to the use of the order execution
and routing services of the NASDAQ Options Market 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
[[Page 76514]]
be posted on the NasdaqTrader.com Web site.
----------------------------------------------------------------------------------------------------------------
Exchange Customer Firm MM Professional
----------------------------------------------------------------------------------------------------------------
BATS............................................ $0.36 $0.55 $0.55 $0.36
BOX............................................. 0.06 0.55 0.55 0.06
CBOE............................................ 0.06 0.55 0.55 0.26
CBOE orders greater than 99 contracts in NDX, 0.24 0.55 0.55 0.26
MNX ETFs, ETNs & HOLDRs........................
ISE............................................. 0.06 0.55 0.55 0.24
ISE Select Symbols \*\ of 100 or more contracts. 0.26 0.55 0.55 0.31
NYSE Arca Penny Pilot........................... 0.50 0.55 0.55 0.50
NYSE Arca Non Penny Pilot....................... 0.06 0.55 0.55 0.06
NYSE AMEX....................................... 0.06 0.55 0.55 0.26
PHLX (for all options other than PHLX Select 0.06 0.55 0.55 0.26
Symbols).......................................
PHLX Select Symbols \**\........................ 0.30 0.55 0.55 0.46
C2.............................................. 0.21 0.55 0.55 0.46
----------------------------------------------------------------------------------------------------------------
\*\ 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.
The Exchange proposes to assess new fees for routing contracts to
markets other than the NASDAQ Options Market to Rule 7050.
Specifically, the Exchange is proposing to assess a routing fee of
$0.24 per contract in Customer option orders that are routed to the
Chicago Board Options Exchange, Incorporated (``CBOE''). This would
apply to orders greater than 99 contracts in options traded under the
symbol NDX (``NDX'') and options on the one-tenth value of the Nasdaq
100 Index traded under the symbol MNX (``MNX'') as well as exchange-
traded funds (``ETFs''), exchange-traded notes (``ETNs'') and Holding
Company Depositary Receipts (``HOLDRs''). The Exchange is proposing to
caption these proposed fees ``CBOE orders greater than 99 contracts in
NDX, MNX, ETFs, ETNs and HOLDRs.'' The CBOE current routing fee of
$0.55 per contract would apply to Firms and Market Makers for CBOE
orders greater than 99 contracts in NDX, MNX, ETFs, ETNs and HOLDRs.
The Exchange is also proposing to adopt routing fees for a new type
of participant called ``Professional''.\3\ The Exchange proposes to
assess the following Professional routing fees, in addition to the
current categories of Customer, Firm and Market Maker, to its members:
(i) A $0.36 per contract fee for Professional orders routed to BATS
Exchange, Inc. (``BATS'') in all options; (ii) a $0.06 per contract fee
for Professional orders routed to the Boston Options Exchange Group LLC
(``BOX'') in all options; (iii) a $0.26 per contract fee for
Professional orders routed to the Chicago Board of Options Exchange,
Inc. (``CBOE'') in all options \4\; (iv) a $.24 per contract fee for
Professional orders routed to International Securities Exchange, LLC
(``ISE'') in all options, except for Select Symbols of 100 or more
contracts; (v) a $0.31 per contract fee for Professional orders routed
to ISE in its Select Symbols of 100 or more contracts \5\; (vi) a $0.50
per contract fee for Professional orders routed to NYSE Arca, Inc.
(``NYSE Arca'') in Penny Pilot options; (vii) a $0.06 per contract fee
for Professional orders routes to NYSE Arca in Non-Penny Pilot options;
(viii) a $0.26 per contract fee for Professional orders routed to NYSE
Amex LLC (``NYSE Amex'') in all options; (ix) a $0.26 per contract fee
for Professional orders routed to NASDAQ OMX PHLX LLC (``PHLX'') in all
option other than the PHLX Select Symbols; \6\ (x) a $0.46 per contract
fee for Professional orders routed to PHLX in Select Symbols; \7\ and
(xi) a $0.46 per contract fee for Professional orders routed to C2
Options Exchange, Inc. (``C2'') in all options.
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\3\ See Chapter I, Section I (Definitions). 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). A Participant or a Public Customer may,
without limitation, be a Professional. All Professional orders shall
be appropriately marked by Participants. See Securities Exchange Act
Release Nos. 63028 (October 1, 2010), 75 FR 62443 (October 8, 2010)
(SR-NASDAQ-2010-099); and 63151 (October 21, 2010), 75 FR 66811
(October 29, 2010) (SR-NASDAQ-2010-132).
\4\ A Professional would also be assessed the proposed $0.26 per
contract for a CBOE order greater than 99 contracts in NDX, MNX,
ETFs, ETNs and HOLDRs.
\5\ See ISE's Schedule of Fees for the complete list of Select
Symbols.
\6\ See PHLX's Fee Schedule for the complete list of Select
Symbols.
\7\ See PHLX's Fee Schedule for the complete list of Select
Symbols.
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The Exchange is proposing these fees in order to recoup clearing
and transaction charges incurred by the
[[Page 76515]]
Exchange when certain Customer options orders are routed to CBOE \8\ as
well as when certain Professional options orders are routed to the
various destination markets. Each destination market's transaction
charge varies and there is a standard clearing charge for each
transaction incurred by the Exchange. The Exchange believes that the
routing fees proposed will enable the Exchange to recover the
transaction fees assessed by away markets, where applicable, plus
clearing fees for the execution of Customer, Firm, Market Maker and
Professional orders. As with all fees, the Exchange may adjust these
Routing Fees in response to competitive conditions by filing a new
proposed rule change.
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\8\ See Securities Exchange Act Release No. 62902 (September 14,
2010), 75 FR 57313 (September 20, 2010) (SR-CBOE-2010-081) (a rule
change to assess a transaction fee of $.18 per contract on public
customer orders in options on Standard & Poor's Depositary Receipts,
except for orders of 99 contracts or less).
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While fee changes pursuant to this proposal are effective upon
filing, the Exchange has designated these changes to be operative on
December 1, 2010.
2. Statutory Basis
NASDAQ believes that the proposed rule changes are consistent with
the provisions of Section 6 of the Act,\9\ in general, and with Section
6(b)(4) of the Act,\10\ 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.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed fees are reasonable because
they seek to recoup costs that are incurred by the Exchange when
routing Customer orders greater than 99 contracts in NDX, MNX, ETFs,
ETNs and HOLDRs to CBOE and also when routing orders designated as
Professional to the various destination markets listed herein, on
behalf of its members. The Exchange also believes that the proposed
fees are equitable because they will be uniformly applied to all
Customers and Professionals.
NASDAQ is one of nine options markets 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 \11\ and paragraph (f)(2) of Rule 19b-4 \12\
thereunder. 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.
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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 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-2010-149 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-2010-149. 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-
2010-149 and should be submitted on or before December 29, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-30833 Filed 12-7-10; 8:45 am]
BILLING CODE 8011-01-P
