Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify FINRA/Nasdaq Trade Reporting Securities Transaction Credit, 3182-3184 [2011-949]
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3182
Federal Register / Vol. 76, No. 12 / Wednesday, January 19, 2011 / Notices
are due no later than February 4, 2011.
Reply comments are due not later than
February 15, 2011. The filing can be
accessed via the Commission’s Web site
(https://www.prc.gov).
The Commission appoints Robert
Sidman to serve as Public
Representative in this docket.
It is ordered
1. The Commission establishes Docket
No. MT2011–2 for consideration of the
matters raised by the Notice.
2. Pursuant to 39 U.S.C. 505, Robert
Sidman is appointed to serve as officer
of the Commission (Public
Representative) to represent the
interests of the general public in this
proceeding.
3. Comments by interested persons
are due no later than February 4, 2011.
4. Reply comments are due no later
than February 15, 2011.
5. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011–969 Filed 1–18–11; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSKH9S0YB1PROD with NOTICES
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold an Open Meeting
on January 20, 2011 at 10 a.m., in the
Auditorium, Room L–002.
The subject matter of the Open
Meeting will be:
Item 1: The Commission will consider
whether to adopt new rules to
implement Section 943 of the DoddFrank Wall Street Reform and Consumer
Protection Act relating to the use of
representations and warranties in the
market for asset-backed securities.
Item 2: The Commission will consider
whether to adopt rules to implement
Section 945 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act, which requires an issuer of assetbacked securities (ABS) to perform a
review of the assets underlying the ABS
and disclose information relating to the
review.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
17:04 Jan 18, 2011
Dated: January 13, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–1114 Filed 1–14–11; 4:15 pm]
IV. Ordering Paragraphs
VerDate Mar<15>2010
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Jkt 223001
BILLING CODE 8011–01–P
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Release No. 34–63695; File No. SR–FINRA–
2010–068
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify FINRA/Nasdaq
Trade Reporting Securities
Transaction Credit
January 11, 2011.
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 December
30, 2010, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has
designated the proposed rule change as
‘‘establishing or changing a due, fee or
other charge’’ under Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon receipt of this
filing by the Commission. 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
FINRA is proposing to amend FINRA
Rule 7610A (Securities Transaction
Credit) to modify credits provided to
members that use the FINRA/Nasdaq
Trade Reporting Facility (‘‘FINRA/
Nasdaq TRF’’).
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA 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
Background
The FINRA/Nasdaq TRF is a facility
of FINRA that is operated by The
NASDAQ OMX Group, Inc. (‘‘NASDAQ
OMX’’). In connection with the
establishment of the FINRA/Nasdaq
TRF, FINRA and NASDAQ OMX
entered into a limited liability company
agreement (the ‘‘LLC Agreement’’).
Under the LLC Agreement, FINRA, the
‘‘SRO Member,’’ has sole regulatory
responsibility for the FINRA/Nasdaq
TRF. NASDAQ OMX, the ‘‘Business
Member,’’ is primarily responsible for
the management of the FINRA/Nasdaq
TRF’s business affairs, including
establishing pricing for use of the
FINRA/Nasdaq TRF, to the extent those
affairs are not inconsistent with the
regulatory and oversight functions of
FINRA. Additionally, the Business
Member is obligated to pay the cost of
regulation and is entitled to the profits
and losses, if any, derived from the
operation of the FINRA/Nasdaq TRF.
The FINRA/Nasdaq TRF receives
revenue for transactions reported to the
three tapes 5 from the Consolidated Tape
Association and Nasdaq Securities
Information Processor (the ‘‘Tapes’’).
Pursuant to Rule 7610A, FINRA
members are provided with a fractional
share of this revenue based on their
‘‘Market Share.’’6 Market Share is
5 Market data is transmitted to three tapes based
on the listing venue of the security: New York Stock
Exchange securities (‘‘Tape A’’), American Stock
Exchange and regional exchange securities (‘‘Tape
B’’), and Nasdaq Stock Market securities (‘‘Tape C’’).
Tape A and Tape B are generally referred to as the
Consolidated Tape.
6 Rule 7610A defines Market Share as a
percentage calculated by dividing the total number
of shares represented by trades reported by a FINRA
member to the FINRA/Nasdaq TRF during a given
calendar quarter by the total number of shares
represented by all trades reported to the
Consolidated Tape Association or the Nasdaq
E:\FR\FM\19JAN1.SGM
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Federal Register / Vol. 76, No. 12 / Wednesday, January 19, 2011 / Notices
calculated quarterly for each member
based on the transactions attributed to
them in each of the three Tapes. Rule
7610A provides four tiers of revenue
share: 0%, 50%, 80% and 100%.
Eligibility for a tier is based on the
percentage of Market Share, and the
percentage of Market Share required
increases as the tiers of revenue share
increase.
Proposed Credit Schedule
NASDAQ OMX, as the FINRA/Nasdaq
TRF Business Member, has determined
to amend the current Market Share
percentages for revenue sharing
eligibility applicable to Tapes A, B and
C by increasing the current qualifying
Market Share percentages for each tier
and adding a new Revenue Share tier.
Previous tier break point
Revenue
share
(percent)
3183
In addition, NASDAQ OMX has
determined to adjust the Revenue Share
percentages under the credit schedule
within each of the tiers.
Accordingly, FINRA is proposing to
amend Rule 7610A to reflect the new
credit schedule. The following table
provides a comparison of the old Market
Share tier structure with the proposed
new structure:
New tier break point
Revenue
share
Tape
Tape
Tape
Tape
Tape
A
A
A
A
A
Tier
Tier
Tier
Tier
Tier
1
2
3
4
5
...................................
...................................
...................................
...................................
...................................
=>0.75%
<0.75%, =>0.25%
<0.25%, =>0.10%
<0.10%
N/A
100
80
50
0
................
=>2%
<2%, =>1%
<1%, =>0.50%
<0.50%, =>0.10%
<0.10%
98%
95
75
20
0
Tape
Tape
Tape
Tape
Tape
B
B
B
B
B
Tier
Tier
Tier
Tier
Tier
1
2
3
4
5
...................................
...................................
...................................
...................................
...................................
=>0.75%
<0.75%, =>0.25%
<0.25%, =>0.10%
<0.10%
N/A
100
80
50
0
................
=>2%
<2%, =>1%
<1%, =>0.35%
<0.35%, =>0.10%
<0.10%
98
90
70
10
0
Tape
Tape
Tape
Tape
Tape
C
C
C
C
C
Tier
Tier
Tier
Tier
Tier
1
2
3
4
5
...................................
...................................
...................................
...................................
...................................
=>0.75%
<0.75%, =>0.25%
<0.25%, =>0.10%
<0.10%
N/A
100
80
50
0
................
=>2%
<2%, =>1%
<1%, =>0.50%
<0.50%, =>0.10%
<0.10%
98
95
75
20
0
mstockstill on DSKH9S0YB1PROD with NOTICES
NASDAQ OMX, as the Business
Member, has advised FINRA that it
believes that the increase in tier break
point percentages coupled with the
adjusted and new Revenue Share tiers
will make the tiers more meaningful. In
this regard, the Business Member has
observed that the distribution of
participants among the tiers is
significantly weighted toward the top
tiers under each of the Tapes. The
Business Member believes that the
proposed tier break points will result in
a more even distribution of participants
among the various tiers. The Business
Member notes that all participants
eligible for Revenue Share under the
current credit schedule will continue to
be eligible for Revenue Share under the
proposed credit schedule, although at
the adjusted Revenue Share percentages.
FINRA has filed the proposed rule
change for immediate effectiveness.
FINRA is proposing that the operative
date of the proposed rule change will be
January 3, 2011.
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using any
facility or system that FINRA operates
or controls. FINRA believes that the
amended credit schedule is fair and
provides an equitable allocation of the
credits provided to the FINRA/Nasdaq
TRF in that it will apply uniformly to
all FINRA members that use the FINRA/
Nasdaq TRF.
19b–4 thereunder.9 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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:
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(5) of the Act,7 which
requires, among other things, that
FINRA rules provide for the equitable
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Securities Information Processor, as applicable,
during that quarter. Market Share is calculated
separately for each tape.
VerDate Mar<15>2010
17:04 Jan 18, 2011
Jkt 223001
FINRA 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.
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.
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and paragraph (f)(2) of Rule
IV. Solicitation of Comments
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–2010–068 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
7 15
U.S.C. 78o–3(b)(5).
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
8 15
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3184
Federal Register / Vol. 76, No. 12 / Wednesday, January 19, 2011 / Notices
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–FINRA–2010–068. 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
FINRA. 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 publicly available. All
submissions should refer to File
Number SR–FINRA–2010–068 and
should be submitted on or before
February 9, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–949 Filed 1–18–11; 8:45 am]
mstockstill on DSKH9S0YB1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
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[Release No. 34–63706; File No. SR–CBOE–
2011–004]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Fees
Schedule and Circular Regarding
Trading Permit Holder Application and
Other Related Fees
January 12, 2011.
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 January 3,
2011, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by CBOE. 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
Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’ or ‘‘Exchange’’)
proposes to amend its Fees Schedule
and circular regarding Trading Permit
Holder application and other related
fees (‘‘Trading Permit Fee Circular’’).The
text of the proposed rule change is
available on the Exchange’s Web site
(https://www.cboe.org/legal/), at the
Exchange’s Office of the Secretary, 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,
CBOE 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. CBOE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
10 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Mar<15>2010
17:04 Jan 18, 2011
2 17
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CFR 240.19b–4.
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE Rule 2.20 grants the Exchange
the authority to, from time to time, fix
the fees and charges payable by Trading
Permit Holders. CBOE is proposing to
amend its Fees Schedule and Trading
Permit Fee Circular to (i) Amend the
monthly fee for Market-Maker Trading
Permits and establish a sliding scale for
discounted Market-Maker Trading
Permit Fees (subject to certain
conditions); (ii) establish a VIX Tier
Appointment; (iii) amend the monthly
fee for Floor Broker Trading Permits and
add an additional fee for Floor Brokers
that conduct a certain level of activity
in VIX; (iv) amend the monthly fee for
Electronic Access Permits; (v) amend
the monthly fees for bandwidth packets;
(vi) increase the Inactive Nominee
Status fee; (vii) increase the Fingerprint
Processing Fee; and (viii) update the
Fees Schedule to remove outdated
language.
CBOE Rule 3.1 provides, among other
things, that the Exchange may issue
different types of Trading Permits and
determine the fees for those Trading
Permits. Specifically, under Rule
3.1(a)(iv), the Exchange may issue
different types of Trading Permits that
allow holders to trade one or more
products authorized for trading on the
Exchange and to act in one or more
trading functions authorized by CBOE
Rules. The Exchange currently has four
types of Trading Permits: (i) MarketMaker Trading Permit; (ii) Floor Broker
Trading Permit; (iii) Electronic Access
Permit; and (iv) CBSX Trading Permit.
Rule 3.1(a)(v) provides, in relevant part,
that Trading Permits will be subject to
such fees and charges as are established
by the Exchange from time to time
pursuant to CBOE Rule 2.20 and the
Exchange Fees Schedule.
In June 2010, and immediately
following demutualization, CBOE
amended its Fees Schedule to establish
Trading Permit, tier appointment and
bandwidth packet fees.3 The Fees
Schedule established a monthly fee of
$7,500 for a Market-Maker Trading
Permit. At the time the Market-Maker
Trading Permits were established, CBOE
determined to discount the fees by 20%
for the remainder of 2010. Thus,
between July 2010 and December 2010,
CBOE assessed a fee of $6,000 per
month for a Market-Maker Trading
3 See Securities Exchange Act Release No. 62386
(June 25, 2010), 75 FR 38566 (July 2, 2010) (SR–
CBOE–2010–073) [sic].
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]]>Agencies
[Federal Register Volume 76, Number 12 (Wednesday, January 19, 2011)]
[Notices]
[Pages 3182-3184]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-949]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-63695; File No. SR-FINRA-2010-068
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Modify FINRA/Nasdaq Trade Reporting Securities
Transaction Credit
January 11, 2011.
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 December 30, 2010, Financial Industry Regulatory Authority, Inc.
(``FINRA'') 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 FINRA. FINRA has designated
the proposed rule change as ``establishing or changing a due, fee or
other charge'' under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule
19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon
receipt of this filing by the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to amend FINRA Rule 7610A (Securities
Transaction Credit) to modify credits provided to members that use the
FINRA/Nasdaq Trade Reporting Facility (``FINRA/Nasdaq TRF'').
The text of the proposed rule change is available on FINRA's Web
site at https://www.finra.org, at the principal office of FINRA 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, FINRA 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. FINRA 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
Background
The FINRA/Nasdaq TRF is a facility of FINRA that is operated by The
NASDAQ OMX Group, Inc. (``NASDAQ OMX''). In connection with the
establishment of the FINRA/Nasdaq TRF, FINRA and NASDAQ OMX entered
into a limited liability company agreement (the ``LLC Agreement'').
Under the LLC Agreement, FINRA, the ``SRO Member,'' has sole regulatory
responsibility for the FINRA/Nasdaq TRF. NASDAQ OMX, the ``Business
Member,'' is primarily responsible for the management of the FINRA/
Nasdaq TRF's business affairs, including establishing pricing for use
of the FINRA/Nasdaq TRF, to the extent those affairs are not
inconsistent with the regulatory and oversight functions of FINRA.
Additionally, the Business Member is obligated to pay the cost of
regulation and is entitled to the profits and losses, if any, derived
from the operation of the FINRA/Nasdaq TRF.
The FINRA/Nasdaq TRF receives revenue for transactions reported to
the three tapes \5\ from the Consolidated Tape Association and Nasdaq
Securities Information Processor (the ``Tapes''). Pursuant to Rule
7610A, FINRA members are provided with a fractional share of this
revenue based on their ``Market Share.''\6\ Market Share is
[[Page 3183]]
calculated quarterly for each member based on the transactions
attributed to them in each of the three Tapes. Rule 7610A provides four
tiers of revenue share: 0%, 50%, 80% and 100%. Eligibility for a tier
is based on the percentage of Market Share, and the percentage of
Market Share required increases as the tiers of revenue share increase.
---------------------------------------------------------------------------
\5\ Market data is transmitted to three tapes based on the
listing venue of the security: New York Stock Exchange securities
(``Tape A''), American Stock Exchange and regional exchange
securities (``Tape B''), and Nasdaq Stock Market securities (``Tape
C''). Tape A and Tape B are generally referred to as the
Consolidated Tape.
\6\ Rule 7610A defines Market Share as a percentage calculated
by dividing the total number of shares represented by trades
reported by a FINRA member to the FINRA/Nasdaq TRF during a given
calendar quarter by the total number of shares represented by all
trades reported to the Consolidated Tape Association or the Nasdaq
Securities Information Processor, as applicable, during that
quarter. Market Share is calculated separately for each tape.
---------------------------------------------------------------------------
Proposed Credit Schedule
NASDAQ OMX, as the FINRA/Nasdaq TRF Business Member, has determined
to amend the current Market Share percentages for revenue sharing
eligibility applicable to Tapes A, B and C by increasing the current
qualifying Market Share percentages for each tier and adding a new
Revenue Share tier. In addition, NASDAQ OMX has determined to adjust
the Revenue Share percentages under the credit schedule within each of
the tiers.
Accordingly, FINRA is proposing to amend Rule 7610A to reflect the
new credit schedule. The following table provides a comparison of the
old Market Share tier structure with the proposed new structure:
----------------------------------------------------------------------------------------------------------------
Revenue
Previous tier break point share New tier break point Revenue
(percent) share
----------------------------------------------------------------------------------------------------------------
Tape A Tier 1..................... =>0.75% 100 =>2% 98%
Tape A Tier 2..................... <0.75%, =>0.25% 80 <2%, =>1% 95
Tape A Tier 3..................... <0.25%, =>0.10% 50 <1%, =>0.50% 75
Tape A Tier 4..................... <0.10% 0 <0.50%, =>0.10% 20
Tape A Tier 5..................... N/A ......... <0.10% 0
-----------------------------------------------------------------------------
Tape B Tier 1..................... =>0.75% 100 =>2% 98
Tape B Tier 2..................... <0.75%, =>0.25% 80 <2%, =>1% 90
Tape B Tier 3..................... <0.25%, =>0.10% 50 <1%, =>0.35% 70
Tape B Tier 4..................... <0.10% 0 <0.35%, =>0.10% 10
Tape B Tier 5..................... N/A ......... <0.10% 0
-----------------------------------------------------------------------------
Tape C Tier 1..................... =>0.75% 100 =>2% 98
Tape C Tier 2..................... <0.75%, =>0.25% 80 <2%, =>1% 95
Tape C Tier 3..................... <0.25%, =>0.10% 50 <1%, =>0.50% 75
Tape C Tier 4..................... <0.10% 0 <0.50%, =>0.10% 20
Tape C Tier 5..................... N/A ......... <0.10% 0
----------------------------------------------------------------------------------------------------------------
NASDAQ OMX, as the Business Member, has advised FINRA that it
believes that the increase in tier break point percentages coupled with
the adjusted and new Revenue Share tiers will make the tiers more
meaningful. In this regard, the Business Member has observed that the
distribution of participants among the tiers is significantly weighted
toward the top tiers under each of the Tapes. The Business Member
believes that the proposed tier break points will result in a more even
distribution of participants among the various tiers. The Business
Member notes that all participants eligible for Revenue Share under the
current credit schedule will continue to be eligible for Revenue Share
under the proposed credit schedule, although at the adjusted Revenue
Share percentages.
FINRA has filed the proposed rule change for immediate
effectiveness. FINRA is proposing that the operative date of the
proposed rule change will be January 3, 2011.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\7\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls. FINRA believes that the amended credit schedule is fair and
provides an equitable allocation of the credits provided to the FINRA/
Nasdaq TRF in that it will apply uniformly to all FINRA members that
use the FINRA/Nasdaq TRF.
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\7\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA 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.
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) of the Act \8\ and paragraph (f)(2) of Rule 19b-4
thereunder.\9\ 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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-FINRA-2010-068 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission,
[[Page 3184]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2010-068. 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 FINRA.
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 publicly
available. All submissions should refer to File Number SR-FINRA-2010-
068 and should be submitted on or before February 9, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-949 Filed 1-18-11; 8:45 am]
BILLING CODE 8011-01-P
