Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees for Members Using the NASDAQ Market Center, 28252-28256 [2011-11860]
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the Act,5 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 the Exchange operates or
controls. The Exchange believes the
proposed fees are reasonable and
equitable for the reasons below.
The Exchange operates in a highly
competitive market in which exchanges
offer non co-location services as a
means to facilitate the trading activities
of those customers who believe that the
non co-location services enhance the
efficiency of their trading. Accordingly,
fees charged for non co-location services
are constrained by the fees charged to
co-located customers, as well as fees
charged by other exchanges, taking into
consideration the different costs
associated with the two service types. It
should be noted, however, that the costs
associated with a co-located customer
are primarily fixed costs that include
the costs of renting or owning data
center space and retaining a staff of
technical personnel. Accordingly, the
Exchange establishes a range of non colocation fees with the goal of covering
these same fixed costs and covering less
significant marginal costs, such as the
cost of electricity.
The Exchange proposes the same fee
for non co-located customers and colocated customers because the space
and utility cost are comparable. If a
particular exchange charges excessive
fees for non co-location services that are
comparable to co-location services,
affected members will opt to terminate
their non co-location arrangements with
that exchange, and pursue range of
alternative trading strategies not
dependent upon the Exchange’s non colocation service. Accordingly, the
exchange charging excessive fees would
stand to lose not only non co-location
revenues and any other revenues
associated with the non co-located
customer’s operations. Moreover, all of
the Exchange’s fees for space and utility
costs services are equitably allocated
and non-discriminatory in that all non
co-location customers are offered the
same space and utility service as the colocated customers, and, there is no
differentiation among customers with
regard to the fees charged for such costs.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.6 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–Phlx–2011–60 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–Phlx–2011–60. This file
number should be included on the
subject line if e-mail is used.
To help the Commission process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room on official business
days between the hours of 10 a.m. and
3 p.m. Copies of such filing also will be
available for inspection and copying at
the principal offices of the Exchange.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Phlx–2011–60, and should
be submitted on or before June 6, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–11859 Filed 5–13–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64453; File No. SR–
NASDAQ–2011–062]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify Fees
for Members Using the NASDAQ
Market Center
May 10, 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 April 29,
2011, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by NASDAQ. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
NASDAQ proposes to modify pricing
for NASDAQ members using the
NASDAQ Market Center. NASDAQ has
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
5 15
U.S.C. 78f(b)(4).
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designated this change to be operative
on May 2, 2011. The text of the
proposed rule change is available at
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
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
NASDAQ is amending Rule 7018 to
make modifications to its pricing
schedule for execution of quotes/orders
through the NASDAQ Market Center of
securities priced at $1 or more. Under
the pricing schedule, NASDAQ offers a
credit to liquidity providers, with the
size of the credit varying based on a
range of parameters specified in the fee
schedule. The lowest liquidity provider
rebate is $0.0020 per share executed for
displayed quotes/orders and $0.0010
per share executed for non-displayed
quotes/orders. Under the proposed
change, NASDAQ will modify the
parameters under which members may
qualify for higher liquidity provider
rebates. In general, the changes will
broaden the circumstances under which
members may qualify for a higher
rebate, although in some circumstances
the changes may reduce a particular
member’s rebate.
First, NASDAQ is simplifying the
method of determining whether a
member qualifies for its highest rebate
tier of $0.0015 per share executed for
non-displayed quotes/orders and
$0.00295 per share executed for
displayed quotes/orders. Currently, a
member’s eligibility for this tier is based
on its achieving certain levels of
liquidity provision that vary depending
on overall trading volumes during the
month. Thus, a member qualifies for the
highest credit if it has an average daily
volume through the NASDAQ Market
Center in all securities during the month
of: (i) More than 95 million shares of
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liquidity provided, if average total
consolidated volume reported to all
consolidated transaction reporting plans
by all exchanges and trade reporting
facilities is more than 10 billion shares
per day during the month; (ii) more than
85 million shares of liquidity provided,
if average total consolidated volume is
between 9,000,000,001 and 10 billion
shares per day during the month; (iii)
more than 75 million shares of liquidity
provided, if average total consolidated
volume is between 8,000,000,001 and 9
billion shares per day during the month;
and (iv) more than 65 million shares of
liquidity provided, if average total
consolidated volume is 8 billion or
fewer shares per day during the month.
The liquidity must be provided through
a single market participant identifier
(‘‘MPID’’) of the member. Under this
approach, depending on the volume
during a month, a member may be
required to provide liquidity that
represents varying percentages of the
total consolidated volume in order to
achieve the tier. In order to adopt a
requirement that is consistent from
month to month, NASDAQ is modifying
the requirement so that it is directly tied
to a member’s percentage of total
consolidated volume during the month,
with any member providing liquidity
through a single MPID that represents
more than 0.90% of the total becoming
eligible for the rebate tier. NASDAQ
believes that this change will make the
amount of liquidity provision required
to achieve the highest rebate tier more
predictable and less prone to month-tomonth changes than under the current
approach. For example, under the
current approach, in a month with 9
billion shares of average total
consolidated volume per day, a member
would be required to provide a daily
average of 75 million shares of liquidity,
or approximately 0.83% of the total,
while in a month with slightly over 9
billion shares of average total
consolidated volume per day, the
requirement would rise to 85 million
shares of liquidity, or about 0.94% of
the total. Under the changed approach,
the member would be required to
provide 0.90% of the total, regardless of
the volume during that month. The
change will ensure that a member
providing that level of liquidity will
consistently receive the highest rebate,
whereas a member providing that level
of liquidity under the current schedule
might receive the highest rebate in some
months but not in others as overall
market volumes fluctuated. For
example, during the first three months
of 2011, as well as the month of April
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2011,3 average daily trading volumes
were 8.158 billion, 7.804 billion, 7.870
billion, and 6.970 billion shares,
respectively. Thus, a member seeking to
receive this rebate tier during January
2011 was required to provide a daily
average of more than 75 million shares
of liquidity per day during January
2011, and a daily average of more than
65 million shares during each of
February, March, and April. However,
in each of these months, the required
volumes represented 0.919%, 0.833%,
0.826%, and 0.933%, respectively, of
the total. Thus, a member providing the
new required threshold of 0.90% would
have received the highest rebate in only
two of the four months under the
current approach. Moreover, to the
extent that trading volumes remain at or
near April 2011 levels, the new
approach will make it consistently
easier for members to reach the volume
levels required for the highest tier.
Second, NASDAQ currently offers a
rebate tier of $0.0015 per share executed
for quotes/orders that are not displayed
and $0.0029 per share executed for
quotes/orders that are displayed to
members providing a daily average of
more than 35 million shares of liquidity
during the month, through one or more
of its MPIDs. This tier is currently not
tied to overall market volumes, and
therefore may be more difficult for a
member to achieve in a low volume
month. NASDAQ is modifying the tier
to make it available to a member
providing liquidity through one or more
of its MPIDs that represents more than
0.45% of total consolidated trading
volume. As a result, the required
threshold will be lowered for any month
with an average trading volume lower
than 7,777,777,778 shares per day, but
raised for months with higher trading
volumes. To the extent that trading
volumes remain at or near April 2011
levels, the new approach will make it
consistently easier for members to reach
the volume levels required for the
highest tier.
Third, in order to retain a favorable
rebate tier for members that provide a
specified minimum level of liquidity
without regard to overall market trading
volumes, NASDAQ is also introducing a
new rebate tier for members that
provide a daily average of more than
25 million shares of liquidity during a
month, through one or more MPIDs.
Such members will receive a credit of
$0.0010 per share executed for nondisplayed quotes/orders, and $0.0027
per share executed for displayed quotes/
orders. In addition, NASDAQ is
retaining a tier for members providing a
3 Based
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daily average of more than 20 million
share of liquidity, under which it pays
a rebate of $0.0010 per share executed
for non-displayed liquidity and $0.0025
per share executed for displayed
liquidity.4 These rebate tiers would be
expected to benefit members whose
order flow does not rise during high
volume months, but that nevertheless
provide the specified levels of liquidity,
thereby contributing to the depth and
market quality of the NASDAQ book.
Fourth, NASDAQ currently provides a
rebate tier for members that provide
specified quantities of liquidity in
general and with respect to stocks listed
on venues other than NASDAQ and the
New York Stock Exchange (‘‘Tape B
stocks’’) in particular. Currently, the
rebate is available to members that
provide a daily average of more than
20 million shares of liquidity during the
month, including a daily average of
more than 8 million shares of liquidity
in Tape B stocks. Such members receive
a rebate of $0.0015 per share executed
for non-displayed quotes/orders and a
rebate of $0.0029 per share executed for
displayed quotes/orders. As with
several other tiers, NASDAQ is
modifying the tier requirements to
specify percentages of total consolidated
volume rather than share volumes.
Specifically, a member will be eligible
for this rebate tier if it provides liquidity
through one or more MPIDs that
represents more than 0.30% of total
consolidated volume, and shares of
liquidity in Tape B stocks that represent
more than 0.10% of total consolidated
volume. As a result, the required
threshold for overall liquidity provided
will be lowered in a month with average
daily trading volumes below
6,666,666,667 shares, while the required
threshold for Tape B liquidity would be
lowered in a month with average daily
trading volumes below 8 billion shares.
Fifth, NASDAQ is introducing new
liquidity provider rebate tiers that focus
on the extent to which a member
accesses liquidity as well as its level of
liquidity provision. Because members
accessing high levels of liquidity
contribute to the quality of the
NASDAQ market through the payment
of fees and by encouraging members
that post liquidity to post orders that
seek to interact with incoming orders,
4 NASDAQ is making non-substantive changes to
the text that describes this rebate tier, however.
Specifically, the text had contained references to
levels of liquidity provision with respect to stocks
listed on venues other than NASDAQ and the New
York Stock Exchange that were needed to
distinguish the requirements of the tier from the
requirements of another similarly worded tier.
Because the requirements of the other tier are being
modified, the distinguishing language is being
deleted.
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NASDAQ believes that it is appropriate
to offer an enhanced liquidity provider
rebate to such members. Specifically, if
a member accesses shares of liquidity
through one or more of its MPIDs that
represent more than 0.65% of total
consolidated volume, and also provides
a daily average of at least 2 million
shares of liquidity through one or more
MPIDs, NASDAQ will pay a rebate of
$0.0015 per share executed for the
member’s non-displayed quotes/orders,
and $0.0029 per share executed for its
displayed quotes/orders. Similarly, if a
member accesses shares of liquidity
through one or more of its MPIDs that
represent more than 0.45% of total
consolidated volume, and also provides
a daily average of at least 2 million
shares of liquidity through one or more
MPIDs, NASDAQ will pay a rebate of
$0.0010 per share executed for the
member’s non-displayed quotes/orders,
and $0.0025 per share executed for its
displayed quotes/orders.
Finally, with respect to liquidity
provider rebate tiers focused on
members active in both the NASDAQ
Stock Market and the NASDAQ Options
Market, NASDAQ is modifying its
existing tiers and adding a new tier.
Currently, a member that provides a
daily average of more than 10 million
shares of liquidity in the NASDAQ
Stock Market, and trades a daily average
of more than 130,000 contracts in the
NASDAQ Options Market is eligible to
receive a rebate of $0.0015 per share
executed for its non-displayed quotes/
orders and $0.0029 per share executed
for its displayed quotes/orders.
NASDAQ is reducing the required daily
average number of options contracts to
115,000, while modifying the liquidity
provision threshold to require shares of
liquidity representing more than 0.15%
of total consolidated volume. The
required volume of liquidity provision
would thereby be reduced in any month
with an average daily volume of less
than 6,666,666,667 shares.
Similarly, a member that currently
provides shares representing 1.0% or
more of the total consolidated volume in
the NASDAQ Stock Market, and trades
a daily average of more than 300,000
contracts in the NASDAQ Options
Market, is eligible to receive a rebate of
$0.0015 per share executed for its nondisplayed quotes/orders and $0.00295
per share executed for its displayed
quotes/orders. NASDAQ is reducing the
liquidity provision threshold to require
shares of liquidity representing more
than 0.90% of total consolidated
volume.5
5 NASDAQ is also deleting the word ‘‘average’’
from the provision since it is superfluous: A
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Under the new tier for members active
in both markets, a member will be
eligible to receive $0.0010 per share
executed with respect to non-displayed
quotes/orders and $0.0025 per share
executed with respect to displayed
quotes/orders if it provides shares of
liquidity representing more than 0.10%
of the total consolidated volume for the
month, and also trades an average daily
volume of more than 115,000 contracts
on the NASDAQ Options Market during
the month.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,6 in
general, and with Section 6(b)(4) of the
Act,7 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. All
similarly situated members are subject
to the same fee structure, and access to
NASDAQ is offered on fair and nondiscriminatory terms.
The filing introduces many changes
with respect to the liquidity provider
rebates paid by NASDAQ, but NASDAQ
believes that the overall effect of the
changes will be to make it easier for
members to receive higher rebates,
particularly in months with lower
trading volumes, thereby reducing
prices for those members that were
previously unable to qualify for an
enhanced rebate but that are able to do
so under the revised pricing schedule.
All of the proposed rebate tiers are
based upon a member’s level of activity
in the NASDAQ Stock Market and/or
NASDAQ Options Market.
With respect to the replacement of
share thresholds with percentage
thresholds for certain of NASDAQ’s
existing rebate tiers,8 NASDAQ believes
that the change is reasonable, because it
will result in more predictability from
month to month with respect to the
levels of liquidity provision required to
member providing a given percentage of the average
total consolidated volume on each day during the
month would provide the same percentage of the
total consolidated volume for the entire month.
NASDAQ is also amending Rule 7018(j) to stipulate
that any trading day on which the market is not
open for the entire trading day (such as the day after
Thanksgiving) will be excluded from the
calculation of total consolidated volume as well as
average daily volume.
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
8 Specifically, the tiers for members providing
more than 0.90% of total consolidated volume, for
members providing more than 0.45% of total
consolidated volume, and for members providing
more than 0.30% of total consolidated volume,
including 0.10% in Tape B stocks.
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receive the applicable rebate levels.
Although the changes will make it
easier to achieve applicable rebate tiers
in some months and more difficult in
other months, depending on overall
market volumes, NASDAQ believes that
the levels of activity required to achieve
higher tiers are generally consistent
with existing requirements for these
tiers. Moreover, like existing rebate tiers
tied to volume levels, as in effect at
NASDAQ and other markets, the
proposed rebate tiers are equitable and
non-discriminatory because they are
open to all members on an equal basis
and provide discounts that are
reasonably related to the value to an
exchange’s market quality associated
with higher volumes.
Similarly, the proposed new rebate
tier for members providing an average
daily volume of more than 25 million
shares of liquidity will provide
members with greater opportunities to
receive a higher rebate. Accordingly, it
is reasonable because it will reduce fees
for members providing more than
25 million, but fewer than 35 million
shares of liquidity per day, and is nondiscriminatory and equitable because it
is open to all members on an equal basis
and provides discounts that are
reasonably related to the value to an
exchange’s market quality associated
with volumes.
The new rebate tiers for members that
access high volumes of liquidity and
provide a daily average of at least
2 million shares of liquidity are
reasonable because they will reduce fees
for members that qualify for the tiers.
Moreover, NASDAQ believes that they
are non-discriminatory and equitable
because they are open to all members on
an equal basis and provide discounts
that are reasonably related to the value
to an exchange’s market quality
associated with higher volumes.
Although many rebate tiers focus on
levels of liquidity provision, NASDAQ
believes that is also reasonable and
equitable to reduce fees for members
that access high volumes of liquidity,
because the presence of such members’
order flow in turn attracts members that
seek to post quotes/orders to interact
with incoming order flow.
With respect to pricing changes for
members active on both the NASDAQ
Market Center and the NASDAQ
Options Market, NASDAQ has noted in
its prior filings with regard to existing
rebate tiers focused on such members
that the tiers are responsive to the
convergence of trading in which
members simultaneously trade different
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asset classes within a single strategy.9
NASDAQ also notes that cash equities
and options markets are linked, with
liquidity and trading patterns on one
market affecting those on the other.
Accordingly, pricing incentives that
encourage market participant activity in
both markets recognize that activity in
the options markets also supports price
discovery and liquidity provision in the
NASDAQ Market Center. Moreover,
NASDAQ believes that these changes
are reasonable because they will make it
easier for members active in both
markets to qualify for an enhanced
rebate, and are also non-discriminatory
and equitable. They are open to all
members, but are not the exclusive
means by which members may qualify
for the associated rebate levels.
Accordingly, members are not required
to trade in the NASDAQ Options Market
in order to receive the applicable
rebates.
Finally, NASDAQ notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive. In such an environment,
NASDAQ must continually adjust its
fees to remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. NASDAQ
believes that the proposed rule change
reflects this competitive environment
because it will broaden the conditions
under which members may qualify for
higher liquidity provider rebates.
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.
Because the market for order execution
and routing is extremely competitive,
members may readily opt to disfavor
NASDAQ’s execution services if they
believe that alternatives offer them
better value. For this reason and the
reasons discussed in connection with
the statutory basis for the proposed rule
change, NASDAQ does not believe that
the proposed changes will impair the
ability of members or competing order
execution venues to maintain their
competitive standing in the financial
markets.
9 Securities Exchange Act Release No. 64003
(March 2, 2011), 76 FR 12784 (March 8, 2011) (SR–
NASDAQ–2011–028); Securities Exchange Act
Release No. 59879 (May 6, 2009), 74 FR 22619 (May
13, 2009) (SR–NASDAQ–2009–041).
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28255
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.10 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–2011–062 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–2011–062. 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
10 15
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U.S.C. 78s(b)(3)(a)(ii).
16MYN1
28256
Federal Register / Vol. 76, No. 94 / Monday, May 16, 2011 / Notices
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room on official business
days between the hours of 10 a.m. and
3 p.m. Copies of the filing will also be
available for inspection and copying at
the principal office of NASDAQ. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
All submissions should refer to File
Number SR–NASDAQ–2011–062, and
should be submitted on or before June
6, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–11860 Filed 5–13–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64457; File No. SR–BX–
2011–024]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Codify the
Collection of the Covered Sales Fee
erowe on DSK5CLS3C1PROD with NOTICES
May 10, 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 May 2,
2011, NASDAQ OMX BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. 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
solicit comments on the proposed rule
from interested persons.
11 17
CFR 200.30–3(a)(12).
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).
1 15
VerDate Mar<15>2010
15:14 May 13, 2011
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Chapter V, Sec. 2 (Fees and Charges) of
the Rules of the Boston Options
Exchange Group, LLC (‘‘BOX’’) to codify
the collection of the Covered Sales Fee.
The text of the proposed rule change is
available at the principal office of the
Exchange, the Commission’s Public
Reference Room, on the Commission’s
Web site at https://www.sec.gov, and also
on the Exchange’s Internet Web site at
https://nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.
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
Pursuant to Section 31 of the
Securities and Exchange Act of 1934
(‘‘the Act’’) 5 and Rule 31 thereunder,6
national securities exchanges and
associations (collectively, ‘‘SROs’’) are
required to pay a transaction fee to the
Securities and Exchange Commission
(‘‘Commission’’) that is designed to
recover the costs related to the
government’s supervision and
regulation of the securities markets and
securities professionals. To offset this
obligation, Participants are assessed
charges in connection with satisfaction
of the Exchange’s payment obligations
under Section 31. This fee is collected
indirectly from Participants through
their clearing firms by the Options
Clearing Corporation (‘‘OCC’’) on behalf
of the Exchange. The fee defrays the cost
of the Section 31 fee triggered by the
covered sale. The fee assessed to a
Participant is equal to the Section 31 fee
assessed by the Commission for the
covered sale. The fee is collected by
billing the Participant’s designated
5 15
6 17
Jkt 223001
PO 00000
U.S.C. 78ee.
CFR 240.31.
Frm 00048
Fmt 4703
Sfmt 4703
clearing firm for the amount owed by
the Participant to the Exchange.
Assessing a sale fee is common practice
among national exchanges.7
The Exchange is now proposing to
codify this process by adopting the
proposed Section 2(c) to Chapter V of
the BOX Trading Rules. This proposed
amendment codifies that the fee now
referred to as the Covered Sale Fee is
collected indirectly from Options
Participants through their clearing firms
by a designated clearing agency, as
defined by the Act, on behalf of the
Exchange and that to the extent there
may be any excess monies collected
under this Rule, the Exchange may
retain those monies to help fund its
general operating expenses. In addition,
newly proposed Section 2(c) sets forth
and explains the circumstances when a
Covered Sale Fee is assessed by the
Exchange to an Options Participant as
follows: (i) When a sale in option
securities occurs with respect to which
the Exchange is obligated to pay a fee
to the Commission under Section 31 of
the Act; and (2) when a sell order in
option securities is routed for execution
at an away market other than on BOX,
resulting in a covered sale on that
market and an obligation of the Routing
Broker providing routing services for
BOX, as described in Chapter XII, Sec.
5, Supp. Material .01 of the BOX
Trading Rules, to pay the related sales
fee of that away market.8
Finally, the Exchange proposes to
reletter the remainder of Section 2.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,9
in general, and furthers the objectives of
Section (b)(4),10 in particular, in that it
7 See e.g. International Securities Exchange
(‘‘ISE’’) Rule 212 and NASDAQ OMX PHLX
(‘‘PHLX’’) Rule 607.
8 Sell orders in options securities entered into
BOX that are routed to another market for
execution, however, do not result in a covered sale
on the Exchange. Execution of such routed orders
is facilitated by Routing Broker(s), which executes
the routed order on the away market on behalf of
the Participant. Such routed sell orders result in a
covered sale on the away market, which incurs a
Section 31 fee obligation. The away market assesses
a sale fee on the Routing Broker to defray the cost
of the Section 31 fee obligation. In turn, as
proposed, the Exchange will assess the Participant,
the original selling party, a Covered Sale Fee to
defray the cost of the Section 31 fee passed on by
the away market pursuant to its sale fee. As such,
the Exchange’s Covered Sale Fee offsets the sale fee
the Routing Broker(s) is assessed by the away
market, and BOX reimburses the amounts paid by
the Routing Broker(s) to the away markets, the
result of which is to place the parties involved in
the transaction in the same position as if the
covered sale had occurred on the Exchange.
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(4).
E:\FR\FM\16MYN1.SGM
16MYN1
]]>Agencies
[Federal Register Volume 76, Number 94 (Monday, May 16, 2011)]
[Notices]
[Pages 28252-28256]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-11860]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64453; File No. SR-NASDAQ-2011-062]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Fees for Members Using the NASDAQ Market Center
May 10, 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 April 29, 2011, The NASDAQ Stock Market LLC (``NASDAQ'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by NASDAQ. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
NASDAQ proposes to modify pricing for NASDAQ members using the
NASDAQ Market Center. NASDAQ has
[[Page 28253]]
designated this change to be operative on May 2, 2011. The text of the
proposed rule change is available at 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is amending Rule 7018 to make modifications to its pricing
schedule for execution of quotes/orders through the NASDAQ Market
Center of securities priced at $1 or more. Under the pricing schedule,
NASDAQ offers a credit to liquidity providers, with the size of the
credit varying based on a range of parameters specified in the fee
schedule. The lowest liquidity provider rebate is $0.0020 per share
executed for displayed quotes/orders and $0.0010 per share executed for
non-displayed quotes/orders. Under the proposed change, NASDAQ will
modify the parameters under which members may qualify for higher
liquidity provider rebates. In general, the changes will broaden the
circumstances under which members may qualify for a higher rebate,
although in some circumstances the changes may reduce a particular
member's rebate.
First, NASDAQ is simplifying the method of determining whether a
member qualifies for its highest rebate tier of $0.0015 per share
executed for non-displayed quotes/orders and $0.00295 per share
executed for displayed quotes/orders. Currently, a member's eligibility
for this tier is based on its achieving certain levels of liquidity
provision that vary depending on overall trading volumes during the
month. Thus, a member qualifies for the highest credit if it has an
average daily volume through the NASDAQ Market Center in all securities
during the month of: (i) More than 95 million shares of liquidity
provided, if average total consolidated volume reported to all
consolidated transaction reporting plans by all exchanges and trade
reporting facilities is more than 10 billion shares per day during the
month; (ii) more than 85 million shares of liquidity provided, if
average total consolidated volume is between 9,000,000,001 and 10
billion shares per day during the month; (iii) more than 75 million
shares of liquidity provided, if average total consolidated volume is
between 8,000,000,001 and 9 billion shares per day during the month;
and (iv) more than 65 million shares of liquidity provided, if average
total consolidated volume is 8 billion or fewer shares per day during
the month. The liquidity must be provided through a single market
participant identifier (``MPID'') of the member. Under this approach,
depending on the volume during a month, a member may be required to
provide liquidity that represents varying percentages of the total
consolidated volume in order to achieve the tier. In order to adopt a
requirement that is consistent from month to month, NASDAQ is modifying
the requirement so that it is directly tied to a member's percentage of
total consolidated volume during the month, with any member providing
liquidity through a single MPID that represents more than 0.90% of the
total becoming eligible for the rebate tier. NASDAQ believes that this
change will make the amount of liquidity provision required to achieve
the highest rebate tier more predictable and less prone to month-to-
month changes than under the current approach. For example, under the
current approach, in a month with 9 billion shares of average total
consolidated volume per day, a member would be required to provide a
daily average of 75 million shares of liquidity, or approximately 0.83%
of the total, while in a month with slightly over 9 billion shares of
average total consolidated volume per day, the requirement would rise
to 85 million shares of liquidity, or about 0.94% of the total. Under
the changed approach, the member would be required to provide 0.90% of
the total, regardless of the volume during that month. The change will
ensure that a member providing that level of liquidity will
consistently receive the highest rebate, whereas a member providing
that level of liquidity under the current schedule might receive the
highest rebate in some months but not in others as overall market
volumes fluctuated. For example, during the first three months of 2011,
as well as the month of April 2011,\3\ average daily trading volumes
were 8.158 billion, 7.804 billion, 7.870 billion, and 6.970 billion
shares, respectively. Thus, a member seeking to receive this rebate
tier during January 2011 was required to provide a daily average of
more than 75 million shares of liquidity per day during January 2011,
and a daily average of more than 65 million shares during each of
February, March, and April. However, in each of these months, the
required volumes represented 0.919%, 0.833%, 0.826%, and 0.933%,
respectively, of the total. Thus, a member providing the new required
threshold of 0.90% would have received the highest rebate in only two
of the four months under the current approach. Moreover, to the extent
that trading volumes remain at or near April 2011 levels, the new
approach will make it consistently easier for members to reach the
volume levels required for the highest tier.
---------------------------------------------------------------------------
\3\ Based on volume data through April 26, 2011.
---------------------------------------------------------------------------
Second, NASDAQ currently offers a rebate tier of $0.0015 per share
executed for quotes/orders that are not displayed and $0.0029 per share
executed for quotes/orders that are displayed to members providing a
daily average of more than 35 million shares of liquidity during the
month, through one or more of its MPIDs. This tier is currently not
tied to overall market volumes, and therefore may be more difficult for
a member to achieve in a low volume month. NASDAQ is modifying the tier
to make it available to a member providing liquidity through one or
more of its MPIDs that represents more than 0.45% of total consolidated
trading volume. As a result, the required threshold will be lowered for
any month with an average trading volume lower than 7,777,777,778
shares per day, but raised for months with higher trading volumes. To
the extent that trading volumes remain at or near April 2011 levels,
the new approach will make it consistently easier for members to reach
the volume levels required for the highest tier.
Third, in order to retain a favorable rebate tier for members that
provide a specified minimum level of liquidity without regard to
overall market trading volumes, NASDAQ is also introducing a new rebate
tier for members that provide a daily average of more than 25 million
shares of liquidity during a month, through one or more MPIDs. Such
members will receive a credit of $0.0010 per share executed for non-
displayed quotes/orders, and $0.0027 per share executed for displayed
quotes/orders. In addition, NASDAQ is retaining a tier for members
providing a
[[Page 28254]]
daily average of more than 20 million share of liquidity, under which
it pays a rebate of $0.0010 per share executed for non-displayed
liquidity and $0.0025 per share executed for displayed liquidity.\4\
These rebate tiers would be expected to benefit members whose order
flow does not rise during high volume months, but that nevertheless
provide the specified levels of liquidity, thereby contributing to the
depth and market quality of the NASDAQ book.
---------------------------------------------------------------------------
\4\ NASDAQ is making non-substantive changes to the text that
describes this rebate tier, however. Specifically, the text had
contained references to levels of liquidity provision with respect
to stocks listed on venues other than NASDAQ and the New York Stock
Exchange that were needed to distinguish the requirements of the
tier from the requirements of another similarly worded tier. Because
the requirements of the other tier are being modified, the
distinguishing language is being deleted.
---------------------------------------------------------------------------
Fourth, NASDAQ currently provides a rebate tier for members that
provide specified quantities of liquidity in general and with respect
to stocks listed on venues other than NASDAQ and the New York Stock
Exchange (``Tape B stocks'') in particular. Currently, the rebate is
available to members that provide a daily average of more than 20
million shares of liquidity during the month, including a daily average
of more than 8 million shares of liquidity in Tape B stocks. Such
members receive a rebate of $0.0015 per share executed for non-
displayed quotes/orders and a rebate of $0.0029 per share executed for
displayed quotes/orders. As with several other tiers, NASDAQ is
modifying the tier requirements to specify percentages of total
consolidated volume rather than share volumes. Specifically, a member
will be eligible for this rebate tier if it provides liquidity through
one or more MPIDs that represents more than 0.30% of total consolidated
volume, and shares of liquidity in Tape B stocks that represent more
than 0.10% of total consolidated volume. As a result, the required
threshold for overall liquidity provided will be lowered in a month
with average daily trading volumes below 6,666,666,667 shares, while
the required threshold for Tape B liquidity would be lowered in a month
with average daily trading volumes below 8 billion shares.
Fifth, NASDAQ is introducing new liquidity provider rebate tiers
that focus on the extent to which a member accesses liquidity as well
as its level of liquidity provision. Because members accessing high
levels of liquidity contribute to the quality of the NASDAQ market
through the payment of fees and by encouraging members that post
liquidity to post orders that seek to interact with incoming orders,
NASDAQ believes that it is appropriate to offer an enhanced liquidity
provider rebate to such members. Specifically, if a member accesses
shares of liquidity through one or more of its MPIDs that represent
more than 0.65% of total consolidated volume, and also provides a daily
average of at least 2 million shares of liquidity through one or more
MPIDs, NASDAQ will pay a rebate of $0.0015 per share executed for the
member's non-displayed quotes/orders, and $0.0029 per share executed
for its displayed quotes/orders. Similarly, if a member accesses shares
of liquidity through one or more of its MPIDs that represent more than
0.45% of total consolidated volume, and also provides a daily average
of at least 2 million shares of liquidity through one or more MPIDs,
NASDAQ will pay a rebate of $0.0010 per share executed for the member's
non-displayed quotes/orders, and $0.0025 per share executed for its
displayed quotes/orders.
Finally, with respect to liquidity provider rebate tiers focused on
members active in both the NASDAQ Stock Market and the NASDAQ Options
Market, NASDAQ is modifying its existing tiers and adding a new tier.
Currently, a member that provides a daily average of more than 10
million shares of liquidity in the NASDAQ Stock Market, and trades a
daily average of more than 130,000 contracts in the NASDAQ Options
Market is eligible to receive a rebate of $0.0015 per share executed
for its non-displayed quotes/orders and $0.0029 per share executed for
its displayed quotes/orders. NASDAQ is reducing the required daily
average number of options contracts to 115,000, while modifying the
liquidity provision threshold to require shares of liquidity
representing more than 0.15% of total consolidated volume. The required
volume of liquidity provision would thereby be reduced in any month
with an average daily volume of less than 6,666,666,667 shares.
Similarly, a member that currently provides shares representing
1.0% or more of the total consolidated volume in the NASDAQ Stock
Market, and trades a daily average of more than 300,000 contracts in
the NASDAQ Options Market, is eligible to receive a rebate of $0.0015
per share executed for its non-displayed quotes/orders and $0.00295 per
share executed for its displayed quotes/orders. NASDAQ is reducing the
liquidity provision threshold to require shares of liquidity
representing more than 0.90% of total consolidated volume.\5\
---------------------------------------------------------------------------
\5\ NASDAQ is also deleting the word ``average'' from the
provision since it is superfluous: A member providing a given
percentage of the average total consolidated volume on each day
during the month would provide the same percentage of the total
consolidated volume for the entire month. NASDAQ is also amending
Rule 7018(j) to stipulate that any trading day on which the market
is not open for the entire trading day (such as the day after
Thanksgiving) will be excluded from the calculation of total
consolidated volume as well as average daily volume.
---------------------------------------------------------------------------
Under the new tier for members active in both markets, a member
will be eligible to receive $0.0010 per share executed with respect to
non-displayed quotes/orders and $0.0025 per share executed with respect
to displayed quotes/orders if it provides shares of liquidity
representing more than 0.10% of the total consolidated volume for the
month, and also trades an average daily volume of more than 115,000
contracts on the NASDAQ Options Market during the month.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\6\ in general, and with Section
6(b)(4) of the Act,\7\ 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. All similarly situated members are
subject to the same fee structure, and access to NASDAQ is offered on
fair and non-discriminatory terms.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The filing introduces many changes with respect to the liquidity
provider rebates paid by NASDAQ, but NASDAQ believes that the overall
effect of the changes will be to make it easier for members to receive
higher rebates, particularly in months with lower trading volumes,
thereby reducing prices for those members that were previously unable
to qualify for an enhanced rebate but that are able to do so under the
revised pricing schedule. All of the proposed rebate tiers are based
upon a member's level of activity in the NASDAQ Stock Market and/or
NASDAQ Options Market.
With respect to the replacement of share thresholds with percentage
thresholds for certain of NASDAQ's existing rebate tiers,\8\ NASDAQ
believes that the change is reasonable, because it will result in more
predictability from month to month with respect to the levels of
liquidity provision required to
[[Page 28255]]
receive the applicable rebate levels. Although the changes will make it
easier to achieve applicable rebate tiers in some months and more
difficult in other months, depending on overall market volumes, NASDAQ
believes that the levels of activity required to achieve higher tiers
are generally consistent with existing requirements for these tiers.
Moreover, like existing rebate tiers tied to volume levels, as in
effect at NASDAQ and other markets, the proposed rebate tiers are
equitable and non-discriminatory because they are open to all members
on an equal basis and provide discounts that are reasonably related to
the value to an exchange's market quality associated with higher
volumes.
---------------------------------------------------------------------------
\8\ Specifically, the tiers for members providing more than
0.90% of total consolidated volume, for members providing more than
0.45% of total consolidated volume, and for members providing more
than 0.30% of total consolidated volume, including 0.10% in Tape B
stocks.
---------------------------------------------------------------------------
Similarly, the proposed new rebate tier for members providing an
average daily volume of more than 25 million shares of liquidity will
provide members with greater opportunities to receive a higher rebate.
Accordingly, it is reasonable because it will reduce fees for members
providing more than 25 million, but fewer than 35 million shares of
liquidity per day, and is non-discriminatory and equitable because it
is open to all members on an equal basis and provides discounts that
are reasonably related to the value to an exchange's market quality
associated with volumes.
The new rebate tiers for members that access high volumes of
liquidity and provide a daily average of at least 2 million shares of
liquidity are reasonable because they will reduce fees for members that
qualify for the tiers. Moreover, NASDAQ believes that they are non-
discriminatory and equitable because they are open to all members on an
equal basis and provide discounts that are reasonably related to the
value to an exchange's market quality associated with higher volumes.
Although many rebate tiers focus on levels of liquidity provision,
NASDAQ believes that is also reasonable and equitable to reduce fees
for members that access high volumes of liquidity, because the presence
of such members' order flow in turn attracts members that seek to post
quotes/orders to interact with incoming order flow.
With respect to pricing changes for members active on both the
NASDAQ Market Center and the NASDAQ Options Market, NASDAQ has noted in
its prior filings with regard to existing rebate tiers focused on such
members that the tiers are responsive to the convergence of trading in
which members simultaneously trade different asset classes within a
single strategy.\9\ NASDAQ also notes that cash equities and options
markets are linked, with liquidity and trading patterns on one market
affecting those on the other. Accordingly, pricing incentives that
encourage market participant activity in both markets recognize that
activity in the options markets also supports price discovery and
liquidity provision in the NASDAQ Market Center. Moreover, NASDAQ
believes that these changes are reasonable because they will make it
easier for members active in both markets to qualify for an enhanced
rebate, and are also non-discriminatory and equitable. They are open to
all members, but are not the exclusive means by which members may
qualify for the associated rebate levels. Accordingly, members are not
required to trade in the NASDAQ Options Market in order to receive the
applicable rebates.
---------------------------------------------------------------------------
\9\ Securities Exchange Act Release No. 64003 (March 2, 2011),
76 FR 12784 (March 8, 2011) (SR-NASDAQ-2011-028); Securities
Exchange Act Release No. 59879 (May 6, 2009), 74 FR 22619 (May 13,
2009) (SR-NASDAQ-2009-041).
---------------------------------------------------------------------------
Finally, NASDAQ notes that it operates in a highly competitive
market in which market participants can readily favor competing venues
if they deem fee levels at a particular venue to be excessive. In such
an environment, NASDAQ must continually adjust its fees to remain
competitive with other exchanges and with alternative trading systems
that have been exempted from compliance with the statutory standards
applicable to exchanges. NASDAQ believes that the proposed rule change
reflects this competitive environment because it will broaden the
conditions under which members may qualify for higher liquidity
provider rebates.
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. Because the market
for order execution and routing is extremely competitive, members may
readily opt to disfavor NASDAQ's execution services if they believe
that alternatives offer them better value. For this reason and the
reasons discussed in connection with the statutory basis for the
proposed rule change, NASDAQ does not believe that the proposed changes
will impair the ability of members or competing order execution venues
to maintain their competitive standing in the financial markets.
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.\10\ 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(a)(ii).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2011-062 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-2011-062. 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
[[Page 28256]]
proposed rule change between the Commission and any person, other than
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room on official business
days between the hours of 10 a.m. and 3 p.m. Copies of the filing will
also be available for inspection and copying at the principal office of
NASDAQ. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly.
All submissions should refer to File Number SR-NASDAQ-2011-062, and
should be submitted on or before June 6, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-11860 Filed 5-13-11; 8:45 am]
BILLING CODE 8011-01-P
