Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX BX, Inc. To Amend the Fee Schedule of the Boston Options Exchange Facility, 20426-20428 [2011-8582]
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20426
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices
srobinson on DSKHWCL6B1PROD with NOTICES
Register on November 30, 2010.2 No
comment letters were received. This
order approves the proposed rule
change.
II. Description of the Proposal
The proposed rule change will enable
NSCC to offer a new automated service
for the transfer, replacement, or
exchange (collectively referred to as a
‘‘Replacement’’) of an existing insurance
contract that is eligible for NSCC’s IPS.
Specifically, NSCC will add new
Section 11 to Rule 57 (Insurance and
Retirement Processing Services) that
will centralize and automate
Replacement processing and will
decrease the administrative burden on
and risk to NSCC Members, Insurance
Carrier/Retirement Service Members,
Mutual Fund/Insurance Services
Members, and Data Services Only
Members. Prior to this rule change, the
Replacement process was not conducted
through a centralized or automated
process and requires extensive manual
processing of paper forms and other
documents. The insurance industry
utilized Transfer of Assets forms, 1035
Exchange Forms, or other similar
paperwork (collectively referred to as
‘‘TOA’’) to document the request and the
authorization for a Replacement.
Under the new service, an Insurance
Carrier/Retirement Services Member
will be able to initiate a Replacement
(‘‘Receiving Carrier’’) by submitting an
instruction to NSCC to process a
Replacement (‘‘Request for
Replacement’’). NSCC will then transmit
the Request for Replacement to the
designated Insurance Carrier/Retirement
Services Member (‘‘Delivering Carrier’’).
The Delivery Member will have to
confirm, reject, or request modification
to the Request for Replacement in the
format and by such time as established
by NSCC. NSCC will delete from the IPS
Requests for Replacement that are not
confirmed or rejected. The IPS will also
incorporate and will automate the
settlement of confirmed Replacements
into NSCC’s existing IPS settlement
process.
Also under the new Section 11, the
Delivering Carrier will waive the
obligation of the Receiving Carrier to
submit a signed physical copy of the
TOA unless specifically required by
state or local law. The transfer of any
physical documents related to
Replacements that are required under
state law would continue to be
transferred outside of NSCC. It will be
the sole obligation of the Insurance
Carrier/Retirement Services Members
2 Securities Exchange Act Release No. 63368
(Nov. 23, 2010), 75 FR 74117.
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18:00 Apr 11, 2011
Jkt 223001
involved in the Replacement to confirm
that all legal requirements, including
any requirement to obtain a signed
physical copy of the TOA imposed by
applicable State or local law, are
satisfied prior to confirming a Request
for Replacement. The Replacement
service will permit the transfer of
documentation as an attachment to the
Request for Replacement but this will
not be a requirement to utilize the
Replacement service. The waiver of the
obligation to submit signed physical
documents is intended to improve the
orderly processing of Replacements.
Finally, NSCC will update the Fee
Schedule to incorporate the fees
associated with processing a Request for
Replacement. The fee associated with a
Request for Replacement, including
submitting incremental replacement
status messages and money settlement,
will be $5.00 per Request for
Replacement. The cost will be divided
between the carriers associated with the
transaction with the Receiving Carrier
responsible for $3.75 per transaction,
which is three-fourths of the cost of the
Replacement service, and the Delivering
Carrier responsible for the remaining
$1.25, which is one-fourth of the cost.
The fee associated with obtaining the
status of a pending Request for
Replacement, including incremental
statuses, will be $1.00 per pending
status request. The cost will be divided
evenly between the Receiving Carrier
and the Distributor, each of which will
be responsible for paying a fee of $0.50.
Members will be advised of the
specific implementation date through
the issuance of an NSCC Important
Notice.
III. Discussion
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules thereunder applicable to NSCC. In
particular, the Commission finds that
the proposal is consistent with Section
17A(b)(3)(F) of the Act,3 which requires,
among other things, that the rules of a
registered clearing agency are designed
to promote the prompt and accurate
clearance and settlement of securities
transactions. NSCC’s new Replacement
service is designed to process
Replacements in a more timely and
efficient manner by reducing manual
errors, lowering costs, and providing a
uniform platform for Replacements
processing. In addition, the new service
should increase the speed of processing
Replacements through the use of
automation, which should also decrease
NSCC’s operational risk posed by
3 15
PO 00000
U.S.C. 78q–1(b)(3)(F).
Frm 00122
Fmt 4703
Sfmt 4703
processing paper documentation.
Accordingly, NSCC’s proposal should
promote the prompt and accurate
clearance and settlement of securities
transactions.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular Section 17A of the Act 4 and
the rules and regulations thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,5 that the
proposed rule change (File No. SR–
NSCC–2010–15) be and hereby is
approved.6
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.7
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8585 Filed 4–11–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64198; File No. SR–BX–
2011–020]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NASDAQ
OMX BX, Inc. To Amend the Fee
Schedule of the Boston Options
Exchange Facility
April 6, 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 March 31,
2011, NASDAQ OMX BX, Inc. (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 the self-regulatory organization. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A)(ii) of the
Act,3 and Rule 19b–4(f)(2) thereunder,4
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
4 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
6 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
7 17 CFR 200.30–3(a)(12).
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).
5 15
E:\FR\FM\12APN1.SGM
12APN1
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Fee Schedule of the Boston Options
Exchange Group, LLC (‘‘BOX’’). While
changes to the BOX Fee Schedule
pursuant to this proposal will be
effective upon filing, the changes will
become operative on April 1, 2011. The
text of the proposed rule change is
available from the principal office of the
Exchange, at the Commission’s Public
Reference Room, on the Exchange’s
Internet Web site at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/, and on the
Commission’s Web site at https://
www.sec.gov.
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
self-regulatory organization 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 self-regulatory organization 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
srobinson on DSKHWCL6B1PROD with NOTICES
Fees and Credits in Section 7
Currently, Section 7 of the BOX Fee
Schedule specifies a $0.25 credit and fee
for transactions in the BOX Price
Improvement Period (‘‘PIP’’). These
credits and fees apply equally to all
account types, whether Public
Customer, Broker Dealer or Market
Maker, and across options classes, both
those within the Penny Pilot program
and non-Penny classes, and are in
addition to any applicable trading fees,
as described in Sections 1 through 3 of
the BOX Fee Schedule. The Exchange
proposes to increase the existing credits
and fees within Section 7 for
transactions in the PIP, from $0.25 to
$0.30. This increase in credits and fees
for PIP transactions is designed to
provide all BOX market participants an
additional incentive to submit their
orders to the PIP and the opportunity to
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18:00 Apr 11, 2011
Jkt 223001
benefit from its potential price
improvement.
BOX believes that the change to PIP
transaction fees and credits are
competitive, fair and reasonable, and
non-discriminatory in that they apply to
all account types and options classes.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,5
in general, and Section 6(b)(4) of the
Act,6 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees, and other charges among its
members and other persons using its
facilities. The Exchange believes the
proposal is an equitable allocation of
reasonable fees and other charges among
BOX Options Participants. The
Exchange also believes that there is an
equitable allocation of reasonable
credits among BOX Options
Participants.
The Exchange believes that it is
equitable to provide a credit to any
Participant that removes liquidity
through the PIP on behalf of its
customer. The Exchange believes this
credit will attract additional order flow
to BOX, and to the PIP in particular, to
the benefit of all market participants.
The Exchange believes that it is an
equitable allocation of the fees and
credits for PIP transactions because such
fees and credits apply uniformly to all
categories of participants in PIP
transactions, across all account types
and options classes. All market
participants that trade within the PIP,
and all PIP transactions would be
subject to the fees and credits in Section
7 of the BOX Fee Schedule.
Further, the Exchange believes the
proposed fees and credits related to PIP
transactions to be reasonable. BOX
operates within a highly competitive
market in which market participants can
readily direct order flow to any of eight
other competing venues if they deem fee
levels at a particular venue to be
excessive. The changes to BOX credits
and fees proposed by this filing are
intended to attract order flow to BOX by
offering incentives to all market
participants to submit their orders to the
PIP for potential price improvement.
BOX notes that this proposed rule
change will increase both the fees and
credit for PIP transactions. The result is
that BOX will collect a $.30 fee from
Participants that add liquidity in the PIP
and credit another Participant $.30 for
removing liquidity. Stated otherwise,
the fees collected will not necessarily
5 15
6 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
Frm 00123
Fmt 4703
result in additional revenue to BOX, but
will simply allow BOX to provide the
credit incentive to Participants to attract
additional order flow to the PIP. BOX
believes it is appropriate to provide
incentives to market participants to use
PIP, resulting in potential benefit to
customers through potential price
improvement, and to all market
participants from greater liquidity.
In particular, the proposed change
will allow the fees charged on BOX to
remain competitive with other
exchanges as well as apply such fees in
a manner which is equitable among all
BOX Participants. The Exchange
believes that the PIP transaction fees
and credits it assesses are fair and
reasonable and must be competitive
with fees and credits in place on other
exchanges. Further, the Exchange
believes that this competitive
marketplace impacts the fees and credits
present on BOX today and influences
the proposal set forth above.
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
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 7 and Rule 19b–
4(f)(2) thereunder,8 because it
establishes or changes a due, fee, or
other charge applicable only to a
member.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
7 15
8 17
Sfmt 4703
20427
E:\FR\FM\12APN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
12APN1
20428
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8582 Filed 4–11–11; 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–BX–2011–020 on the
subject line.
[Release No. 34–64195; File No. SR–
NYSEAmex–2011–21]
Paper Comments
April 5, 2011.
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the Exchange
Price List
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March
29, 2011, NYSE Amex LLC (‘‘NYSE
Amex’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
All submissions should refer to File
(the ‘‘Commission’’) the proposed rule
Number SR–BX–2011–020. This file
change as described in Items I, II, and
number should be included on the
subject line if e-mail is used. To help the III below, which Items have been
prepared by the self-regulatory
Commission process and review your
organization. The Commission is
comments more efficiently, please use
only one method. The Commission will publishing this notice to solicit
post all comments on the Commission’s comments on the proposed rule change
from interested persons.
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of Substance of
amendments, all written statements
the Proposed Rule Change
with respect to the proposed rule
The Exchange proposes to amend its
change that are filed with the
2011 Price List (‘‘Price List’’) for equities
Commission, and all written
to amend the fees charged for taking
communications relating to the
liquidity in Nasdaq securities priced at
proposed rule change between the
$1.00 or more and traded pursuant to
Commission and any person, other than unlisted trading privileges (‘‘UTP’’). The
those that may be withheld from the
Exchange proposes to create a new tier
public in accordance with the
with a reduced ‘‘take’’ fee of $0.0019 per
share (compared with $0.0027
provisions of 5 U.S.C. 552, will be
currently) for market participants and
available for Web site viewing and
Designated Market Makers (‘‘DMMs’’)
printing in the Commission’s Public
that meet certain average daily executed
Reference Room, 100 F Street, NW.,
volume requirements in either shares or
Washington, DC 20549, on official
a combination of shares and contracts
business days between the hours of 10
traded on the NYSE Amex options
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and market. Market participants and DMMs
who meet these executed volume
copying at the principal office of the
requirements will also qualify for a
Exchange. All comments received will
reduced routing fee of $0.0019 per share
be posted without change; the
(compared with $0.0029 currently) for
Commission does not edit personal
executions on other markets as a result
identifying information from
of routing. The Exchange also proposes
submissions. You should submit only
to eliminate all fees shown in the Price
information that you wish to make
List for Supplemental Liquidity
available publicly. All submissions
should refer to File Number SR–BX–
9 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2011–020 and should be submitted on
2 15 U.S.C. 78a.
or before May 3, 2011.
srobinson on DSKHWCL6B1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
3 17
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18:00 Apr 11, 2011
Jkt 223001
PO 00000
CFR 240.19b–4.
Frm 00124
Fmt 4703
Sfmt 4703
Providers (‘‘SLPs’’), regardless of price,
for taking liquidity and for routing
because those categories are not
applicable to SLPs. The amended
pricing will become operative on April
1, 2011. The text of the proposed rule
change is available at the Exchange, on
the Exchange’s Web site at https://
www.nyse.com, on the Commission’s
Web site at https://www.sec.gov, 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
self-regulatory organization 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 those 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 parts 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 amend its
Price List for equities to modify the fees
charged to market participants and
DMMs for taking liquidity in Nasdaq
securities traded pursuant to UTP
whose share price is $1.00 or more. The
corresponding fees for such securities
whose share price is below $1.00 will
remain unchanged from the current
formulation regardless of whether the
volume requirements described below
are met.
Currently, market participants and
DMMs are charged a fee of $0.0027 per
share for orders in Nasdaq securities
traded pursuant to unlisted trading
privileges and priced at $1.00 or more
that take liquidity. Under the proposal,
the fee will be reduced to $0.0019 per
share for orders that take liquidity if
either of the following volume
requirements is met:
• Execution of an average daily volume
(‘‘ADV’’) in the current month of greater than
three million shares when taking liquidity
and routing to other markets for execution
(combined); or
• Execution of an ADV in the current
month of greater than 1 million shares when
taking liquidity and routing to other markets
for execution (combined) and execution of an
ADV of 130,000 total contracts or more on
the NYSE Amex options market.
E:\FR\FM\12APN1.SGM
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Agencies
[Federal Register Volume 76, Number 70 (Tuesday, April 12, 2011)]
[Notices]
[Pages 20426-20428]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8582]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64198; File No. SR-BX-2011-020]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX BX, Inc. To Amend
the Fee Schedule of the Boston Options Exchange Facility
April 6, 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 March 31, 2011, NASDAQ OMX BX, Inc. (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 the self-regulatory organization. The Exchange filed
the proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the
Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to
[[Page 20427]]
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
The Exchange proposes to amend the Fee Schedule of the Boston
Options Exchange Group, LLC (``BOX''). While changes to the BOX Fee
Schedule pursuant to this proposal will be effective upon filing, the
changes will become operative on April 1, 2011. The text of the
proposed rule change is available from the principal office of the
Exchange, at the Commission's Public Reference Room, on the Exchange's
Internet Web site at https://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings/, and on the Commission's Web site at https://www.sec.gov.
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 self-regulatory organization
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 self-regulatory organization
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
Fees and Credits in Section 7
Currently, Section 7 of the BOX Fee Schedule specifies a $0.25
credit and fee for transactions in the BOX Price Improvement Period
(``PIP''). These credits and fees apply equally to all account types,
whether Public Customer, Broker Dealer or Market Maker, and across
options classes, both those within the Penny Pilot program and non-
Penny classes, and are in addition to any applicable trading fees, as
described in Sections 1 through 3 of the BOX Fee Schedule. The Exchange
proposes to increase the existing credits and fees within Section 7 for
transactions in the PIP, from $0.25 to $0.30. This increase in credits
and fees for PIP transactions is designed to provide all BOX market
participants an additional incentive to submit their orders to the PIP
and the opportunity to benefit from its potential price improvement.
BOX believes that the change to PIP transaction fees and credits
are competitive, fair and reasonable, and non-discriminatory in that
they apply to all account types and options classes.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\5\ in general, and Section
6(b)(4) of the Act,\6\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees, and other charges among
its members and other persons using its facilities. The Exchange
believes the proposal is an equitable allocation of reasonable fees and
other charges among BOX Options Participants. The Exchange also
believes that there is an equitable allocation of reasonable credits
among BOX Options Participants.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that it is equitable to provide a credit to
any Participant that removes liquidity through the PIP on behalf of its
customer. The Exchange believes this credit will attract additional
order flow to BOX, and to the PIP in particular, to the benefit of all
market participants. The Exchange believes that it is an equitable
allocation of the fees and credits for PIP transactions because such
fees and credits apply uniformly to all categories of participants in
PIP transactions, across all account types and options classes. All
market participants that trade within the PIP, and all PIP transactions
would be subject to the fees and credits in Section 7 of the BOX Fee
Schedule.
Further, the Exchange believes the proposed fees and credits
related to PIP transactions to be reasonable. BOX operates within a
highly competitive market in which market participants can readily
direct order flow to any of eight other competing venues if they deem
fee levels at a particular venue to be excessive. The changes to BOX
credits and fees proposed by this filing are intended to attract order
flow to BOX by offering incentives to all market participants to submit
their orders to the PIP for potential price improvement. BOX notes that
this proposed rule change will increase both the fees and credit for
PIP transactions. The result is that BOX will collect a $.30 fee from
Participants that add liquidity in the PIP and credit another
Participant $.30 for removing liquidity. Stated otherwise, the fees
collected will not necessarily result in additional revenue to BOX, but
will simply allow BOX to provide the credit incentive to Participants
to attract additional order flow to the PIP. BOX believes it is
appropriate to provide incentives to market participants to use PIP,
resulting in potential benefit to customers through potential price
improvement, and to all market participants from greater liquidity.
In particular, the proposed change will allow the fees charged on
BOX to remain competitive with other exchanges as well as apply such
fees in a manner which is equitable among all BOX Participants. The
Exchange believes that the PIP transaction fees and credits it assesses
are fair and reasonable and must be competitive with fees and credits
in place on other exchanges. Further, the Exchange believes that this
competitive marketplace impacts the fees and credits present on BOX
today and influences the proposal set forth above.
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
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) thereunder,\8\
because it establishes or changes a due, fee, or other charge
applicable only to a member.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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.
[[Page 20428]]
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-BX-2011-020 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-BX-2011-020. 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, NW.,
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 Number SR-BX-2011-020 and should be
submitted on or before May 3, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8582 Filed 4-11-11; 8:45 am]
BILLING CODE 8011-01-P