Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add Routing Option SOLV and Corresponding Fees, 9395-9397 [2011-3584]
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jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Notices
market information from one platform
may not be a perfect substitute for
market information from one or more
other platforms, the existence of
alternative sources of information can
be expected to constrain the prices
platforms charge for market data.
Besides the fact that similar
information can be obtained elsewhere,
the feasibility of supra-competitive
pricing is constrained by the traders’
ability to shift their trades elsewhere,
which lowers the activity on the
exchange and so in the long run reduces
the quality of the information generated
by the exchange.
Competition among platforms has
driven NASDAQ continually to improve
its platform data offerings and to cater
to customers’ data needs. For example,
NASDAQ has developed and
maintained multiple delivery
mechanisms (IP, multi-cast, and
compression) that enable customers to
receive data in the form and manner
they prefer and at the lowest cost to
them. NASDAQ offers front end
applications such as its ‘‘Bookviewer’’ to
help customers utilize data. NASDAQ
has created new products like
TotalView Aggregate to complement
TotalView ITCH and Level 2, because
offering data in multiple formatting
allows NASDAQ to better fit customer
needs. NASDAQ offers data via multiple
extranet providers, thereby helping to
reduce network and total cost for its
data products. NASDAQ has developed
an online administrative system to
provide customers transparency into
their data feed requests and streamline
data usage reporting. NASDAQ has also
expanded its Enterprise License options
that reduce the administrative burden
and costs to firms that purchase market
data.
Despite these enhancements and a
dramatic increase in message traffic,
NASDAQ’s fees for depth-of-book data
have remained flat. In fact, as a percent
of total customer costs, NASDAQ data
fees have fallen relative to other data
usage costs—including bandwidth,
programming, and infrastructure—that
have risen. The same holds true for
execution services; despite numerous
enhancements to NASDAQ’s trading
platform, absolute and relative trading
costs have declined. Platform
competition has intensified as new
entrants have emerged, constraining
prices for both executions and for data.
Additional evidence cited by NYSE
Arca in SR–NYSE Arca–2010–097 14
which was not before the NetCoalition
court also demonstrates that availability
Securities Exchange Act Release No. 63291
(Nov. 9, 2010).
of depth data attracts order flow and
that competition for order flow can
constrain the price of market data:
1. Terrence Hendershott & Charles M.
Jones, Island Goes Dark: Transparence,
Fragmentation, and Regulation, 18
Review of Financial Studies 743 (2005);
2. Charts and Tables referenced in
Exhibit 3B to that filing;
3. PHB Hagler Bailly, Inc., ‘‘Issues
Surrounding Cost-Based Regulation of
Market Data Prices;’’ and
4. PHB Hagler Bailly, Inc., ‘‘The
Economic Perspective on Regulation of
Market Data.’’
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.15 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–2011–021 on the
subject line.
16:38 Feb 16, 2011
Jkt 223001
All submissions should refer to File
Number SR–NASDAQ–2011–021. 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 the 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 Number SR–
NASDAQ–2011–021 and should be
submitted on or before March 10, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–3583 Filed 2–16–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63893; File No. SR–
NASDAQ–2011–023]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Add
Routing Option SOLV and
Corresponding Fees
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
February 11, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
14 See
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9395
15 15
PO 00000
U.S.C. 78s(b)(3)(a)(ii).
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9396
Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Notices
notice is hereby given that on February
4, 2011, The NASDAQ Stock Market
LLC (the ‘‘Exchange’’ or ‘‘Nasdaq’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially 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 Substance of
the Proposed Rule Change
NASDAQ proposes to amend
NASDAQ Rule 4758 to add a new
routing option, SOLV, and add
corresponding fees to the fee schedule.
The text of the proposed rule change
is available on Nasdaq’s Web site https://
nasdaq.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 the
Statutory Basis for, the Proposed Rule
Change
jlentini on DSKJ8SOYB1PROD with NOTICES
1. Purpose
The Exchange proposes to add a
routing strategy, SOLV, that will offer
members a means of accessing liquidity
in a wide range of execution venues at
varying price levels. SOLV will operate
in the same manner as the current SAVE
strategy in most respects, but will differ
in the treatment of shares that remain
unexecuted after completing the order
route and posting to the NASDAQ book.
Whereas such shares under SAVE, if
locked or crossed by another market
center, are not routed to the locking or
crossing market center, SOLV orders
will be routed out for execution at the
other market center.
Under the new SOLV routing option,
like under the current SAVE routing
option, a market participant may specify
that an order will either (i) route to
NASDAQ OMX BX (‘‘BX’’) and
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16:38 Feb 16, 2011
Jkt 223001
NASDAQ OMX PSX (‘‘PSX’’), then check
the NASDAQ book, and then route to
other venues on the SOLV System
routing table, or (ii) check the NASDAQ
book first and then route to destinations
on the SOLV System routing table.3
Under the second option, the applicable
routing table includes BX and PSX, and
as is the case with all market
destinations, the placement of BX and
PSX on the routing table depends on
NASDAQ’s ongoing assessments of
factors such as latency, fill rates,
reliability, and cost. Under either
routing option in SOLV and SAVE,
shares that remain unexecuted after this
routing are then posted on the NASDAQ
book.4 Under SOLV, however, unlike
under SAVE, unexecuted shares posted
to the NASDAQ book will be routed out
if the order is locked or crossed by
another market center.
NASDAQ has designed SOLV to
comply with the requirements of Rule
611 of Regulation NMS, and believes
that SOLV, like all NASDAQ routing
strategies, conforms to Reg-NMS
requirements.
SOLV is similar in concept to a
routing strategy offered by BATS called
‘‘SLIM,’’ under which an order checks
the System for available shares, is
routed to BATS Y–Exchange, Inc. and
then is sent to destinations on the
System routing table before posting to
the book.5
This rule change also amends the fee
schedule to account for the SOLV
routing strategy. The fees charged for
SOLV are the same as currently charged
under SAVE. Under Rule 7018,
NASDAQ passes through, without
modification, applicable BX and PSX
fees or rebates. In the case of BX, this
means that NASDAQ passes through the
$0.0014 per share executed credit paid
by BX to market participants when
accessing liquidity, and in the case of
PSX, NASDAQ will pass through the fee
charged by PSX to market participants
when accessing liquidity.6 SOLV thus
provides market participants with the
3 As provided in Rule 4758(a)(1)(A), the term
‘‘System routing table’’ refers to the proprietary
process for determining the specific trading venues
to which the System routes orders and the order in
which it routes them. NASDAQ reserves the right
to maintain a different System routing table for
different routing options and to modify the System
routing table at any time without notice.
4 Pursuant to NASDAQ Rule 4758(a)(1)(B), if a
routed order is returned, in whole or in part, that
order will receive a new time stamp reflecting the
time of its return to the System.
5 Securities Exchange Act Release No. 63147
(October 21, 2010), 75 FR 66183 (October 27, 2010)
(SR–BATS–2010–029).
6 The fee is currently $0.0013 per share executed,
but NASDAQ OMX PSX anticipates increasing the
fee to $0.0025 per share executed as of February 1,
2011.
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
option of routing to a venue with a
negative execution cost (BX) and a
relatively lower execution cost (PSX)
before accessing liquidity on NASDAQ
and other venues. Market participants
that wish to access NASDAQ before
routing to BX and PSX may also do so
using SOLV, and will receive the same
pricing as those that opt to route to BX
and PSX first, subject to the fact that
they are likely to have more shares
executed on NASDAQ, at a higher cost,
than those that use SOLV to route to BX
and PSX first. SOLV orders that execute
at venues other than NASDAQ, BX or
PSX or NYSE will be charged $0.0026
per share executed, orders that execute
at NYSE will be charged $0.0022 per
share executed, and orders that execute
in NASDAQ are charged the same
execution fee as SAVE, which is
$0.0027 per share executed.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,7
in general, and with Sections 6(b)(5) of
the Act,8 in particular, in that the
proposal 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
Exchange believes that the proposed
routing option will accomplish those
ends by providing more flexible options,
insomuch as it offers NASDAQ
members a routing strategy with a wide
range of execution venues at varying
price levels.
The rule change is also consistent
with Section 6 of the Act,9 in general,
and with Sections 6(b)(5) 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 fees assessed
for SOLV are the same fees and rebates
currently charged for the similar routing
strategy SAVE. Use of the routing option
is, of course, entirely voluntary.
7 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(5).
8 15
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Federal Register / Vol. 76, No. 33 / Thursday, February 17, 2011 / Notices
Electronic Comments
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
• 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–2011–023 on the
subject line.
Paper Comments
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 11 and Rule
19b–4(f)(6) thereunder.12 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 13 and Rule 19b–4(f)(6)
thereunder.14
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.
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:
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
jlentini on DSKJ8SOYB1PROD with NOTICES
12 17
VerDate Mar<15>2010
16:38 Feb 16, 2011
Jkt 223001
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
9397
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63900; File No. SR–
NASDAQ–2011–026]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Offer
Additional Routing Option
February 14, 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 February
All submissions should refer to File
10, 2011, The NASDAQ Stock Market
Number SR–NASDAQ–2011–023. This
LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’)
file number should be included on the
filed with the Securities and Exchange
subject line if e-mail is used. To help the Commission (‘‘Commission’’) the
Commission process and review your
proposed rule change as described in
comments more efficiently, please use
Items I and II below, which Items have
only one method. The Commission will been prepared by the Exchange.
post all comments on the Commission’s NASDAQ has designated the proposed
Internet Web site (https://www.sec.gov/
rule change as constituting a rule
rules/sro.shtml). Copies of the
change under Rule 19b–4(f)(6) under the
submission, all subsequent
Act,3 which renders the proposal
amendments, all written statements
effective upon filing with the
with respect to the proposed rule
Commission. The Commission is
change that are filed with the
publishing this notice to solicit
Commission, and all written
comments on the proposed rule change
communications relating to the
from interested persons.
proposed rule change between the
Commission and any person, other than I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
those that may be withheld from the
the Proposed Rule Change
public in accordance with the
provisions of 5 U.S.C. 552, will be
The Exchange is filing this proposed
available for Web site viewing and
rule change to offer an additional
printing in the Commission’s Public
routing option. NASDAQ proposes to
Reference Room, 100 F Street, NE.,
implement the proposed rule change on
Washington, DC 20549, on official
February 22, 2011 or as soon thereafter
business days between the hours of 10
as practicable. The text of the proposed
a.m. and 3 p.m. Copies of the filing also rule change is available at https://
will be available for inspection and
nasdaq.cchwallstreet.com/, at
copying at the principal office of the
NASDAQ’s principal office, and at the
15 All comments received will
Exchange.
Commission’s Public Reference Room.
be posted without change; the
II. Self-Regulatory Organization’s
Commission does not edit personal
Statement of the Purpose of, and
identifying information from
Statutory Basis for, the Proposed Rule
submissions. You should submit only
Change
information that you wish to make
available publicly. All submissions
In its filing with the Commission, the
should refer to File Number SR–
Exchange included statements
NASDAQ–2011–023 and should be
concerning the purpose of and basis for
submitted on or before March 10, 2011.
the proposed rule change and discussed
For the Commission, by the Division of
any comments it received on the
Trading and Markets, pursuant to delegated
proposed rule change. The text of these
authority.16
statements may be examined at the
Cathy H. Ahn,
places specified in Item IV below. The
Exchange has prepared summaries, set
Deputy Secretary.
forth in Sections A, B, and C below, of
[FR Doc. 2011–3584 Filed 2–16–11; 8:45 am]
the most significant aspects of such
BILLING CODE 8011–01–P
statements.
15 The text of the proposed rule change is
available on the Commission’s Web site at https://
www.sec.gov.
16 17 CFR 200.30–3(a)(12).
PO 00000
Frm 00079
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1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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]]>Agencies
[Federal Register Volume 76, Number 33 (Thursday, February 17, 2011)]
[Notices]
[Pages 9395-9397]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-3584]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63893; File No. SR-NASDAQ-2011-023]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Add Routing Option SOLV and Corresponding Fees
February 11, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\
[[Page 9396]]
notice is hereby given that on February 4, 2011, The NASDAQ Stock
Market LLC (the ``Exchange'' or ``Nasdaq'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been substantially
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 Substance
of the Proposed Rule Change
NASDAQ proposes to amend NASDAQ Rule 4758 to add a new routing
option, SOLV, and add corresponding fees to the fee schedule.
The text of the proposed rule change is available on Nasdaq's Web
site https://nasdaq.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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to add a routing strategy, SOLV, that will
offer members a means of accessing liquidity in a wide range of
execution venues at varying price levels. SOLV will operate in the same
manner as the current SAVE strategy in most respects, but will differ
in the treatment of shares that remain unexecuted after completing the
order route and posting to the NASDAQ book. Whereas such shares under
SAVE, if locked or crossed by another market center, are not routed to
the locking or crossing market center, SOLV orders will be routed out
for execution at the other market center.
Under the new SOLV routing option, like under the current SAVE
routing option, a market participant may specify that an order will
either (i) route to NASDAQ OMX BX (``BX'') and NASDAQ OMX PSX
(``PSX''), then check the NASDAQ book, and then route to other venues
on the SOLV System routing table, or (ii) check the NASDAQ book first
and then route to destinations on the SOLV System routing table.\3\
Under the second option, the applicable routing table includes BX and
PSX, and as is the case with all market destinations, the placement of
BX and PSX on the routing table depends on NASDAQ's ongoing assessments
of factors such as latency, fill rates, reliability, and cost. Under
either routing option in SOLV and SAVE, shares that remain unexecuted
after this routing are then posted on the NASDAQ book.\4\ Under SOLV,
however, unlike under SAVE, unexecuted shares posted to the NASDAQ book
will be routed out if the order is locked or crossed by another market
center.
---------------------------------------------------------------------------
\3\ As provided in Rule 4758(a)(1)(A), the term ``System routing
table'' refers to the proprietary process for determining the
specific trading venues to which the System routes orders and the
order in which it routes them. NASDAQ reserves the right to maintain
a different System routing table for different routing options and
to modify the System routing table at any time without notice.
\4\ Pursuant to NASDAQ Rule 4758(a)(1)(B), if a routed order is
returned, in whole or in part, that order will receive a new time
stamp reflecting the time of its return to the System.
---------------------------------------------------------------------------
NASDAQ has designed SOLV to comply with the requirements of Rule
611 of Regulation NMS, and believes that SOLV, like all NASDAQ routing
strategies, conforms to Reg-NMS requirements.
SOLV is similar in concept to a routing strategy offered by BATS
called ``SLIM,'' under which an order checks the System for available
shares, is routed to BATS Y-Exchange, Inc. and then is sent to
destinations on the System routing table before posting to the book.\5\
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 63147 (October 21,
2010), 75 FR 66183 (October 27, 2010) (SR-BATS-2010-029).
---------------------------------------------------------------------------
This rule change also amends the fee schedule to account for the
SOLV routing strategy. The fees charged for SOLV are the same as
currently charged under SAVE. Under Rule 7018, NASDAQ passes through,
without modification, applicable BX and PSX fees or rebates. In the
case of BX, this means that NASDAQ passes through the $0.0014 per share
executed credit paid by BX to market participants when accessing
liquidity, and in the case of PSX, NASDAQ will pass through the fee
charged by PSX to market participants when accessing liquidity.\6\ SOLV
thus provides market participants with the option of routing to a venue
with a negative execution cost (BX) and a relatively lower execution
cost (PSX) before accessing liquidity on NASDAQ and other venues.
Market participants that wish to access NASDAQ before routing to BX and
PSX may also do so using SOLV, and will receive the same pricing as
those that opt to route to BX and PSX first, subject to the fact that
they are likely to have more shares executed on NASDAQ, at a higher
cost, than those that use SOLV to route to BX and PSX first. SOLV
orders that execute at venues other than NASDAQ, BX or PSX or NYSE will
be charged $0.0026 per share executed, orders that execute at NYSE will
be charged $0.0022 per share executed, and orders that execute in
NASDAQ are charged the same execution fee as SAVE, which is $0.0027 per
share executed.
---------------------------------------------------------------------------
\6\ The fee is currently $0.0013 per share executed, but NASDAQ
OMX PSX anticipates increasing the fee to $0.0025 per share executed
as of February 1, 2011.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\7\ in general, and with
Sections 6(b)(5) of the Act,\8\ in particular, in that the proposal 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 Exchange
believes that the proposed routing option will accomplish those ends by
providing more flexible options, insomuch as it offers NASDAQ members a
routing strategy with a wide range of execution venues at varying price
levels.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
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The rule change is also consistent with Section 6 of the Act,\9\ in
general, and with Sections 6(b)(5) 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 fees assessed
for SOLV are the same fees and rebates currently charged for the
similar routing strategy SAVE. Use of the routing option is, of course,
entirely voluntary.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(5).
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[[Page 9397]]
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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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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.
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-2011-023 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-2011-023. 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 the filing also will be
available for inspection and copying at the principal office of the
Exchange.\15\ 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-2011-023 and should be submitted on or before March 10, 2011.
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\15\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-3584 Filed 2-16-11; 8:45 am]
BILLING CODE 8011-01-P
