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, 28256-28257 [2011-11917]
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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
Federal Register / Vol. 76, No. 94 / Monday, May 16, 2011 / Notices
is designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Participants and
other persons using the facilities. The
proposed rule is codifying a practice
currently employed by Exchange and
the OCC. By adopting this rule, the
Exchange is providing Participants with
a description of the Covered Sale Fee
and the process by which the Covered
Sale Fee is collected.
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 Exchange Act 11
and Rule 19b–4(f)(2) thereunder,12
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.
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:
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
erowe on DSK5CLS3C1PROD with NOTICES
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Mar<15>2010
15:14 May 13, 2011
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 64143
(March 29, 2011), 76 FR 18589 (April 4, 2011)
(‘‘Notice’’).
2 17
13 17
Jkt 223001
[Release No. 34–64463; File No. SR–
NASDAQ–2011–037]
A. Elimination of the Order Imbalance
Tie-Breaker and Modification of the
Mid-Point Tie-Breaker
NOM currently employs a series of
tie-breakers that resolve instances where
multiple prices satisfy the conditions for
• 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–2011–024 on the
subject line.
12 17
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Order
Approving Proposed Rule Change To
All submissions should refer to File
Modify Chapter V, Section 4 and
Number SR–BX–2011–024. This file
Chapter VI, Section 8 of the
number should be included on the
subject line if e-mail is used. To help the Exchange’s Rules Relating to Opening
and Halt Crosses on the NASDAQ
Commission process and review your
Options Market
comments more efficiently, please use
only one method. The Commission will May 11, 2011.
post all comments on the Commission’s
I. Introduction
Internet Web site (https://www.sec.gov/
On March 15, 2011, The NASDAQ
rules/sro.shtml). Copies of the
Stock Market LLC (‘‘NASDAQ’’ or
submission, all subsequent
‘‘Exchange’’) filed with the Securities
amendments, all written statements
and Exchange Commission
with respect to the proposed rule
(‘‘Commission’’), pursuant to Section
change that are filed with the
19(b)(1) of the Securities Exchange Act
Commission, and all written
of 1934 (‘‘Act’’),1 and Rule 19b-4
communications relating to the
thereunder,2 a proposed rule change to
proposed rule change between the
modify the procedures for the opening
Commission and any person, other than of trading at the start of the trading day
those that may be withheld from the
and at the resumption of trading
public in accordance with the
following a trading halt on the NASDAQ
provisions of 5 U.S.C. 552, will be
Options Market (‘‘NOM’’). The proposed
available for Web site viewing and
rule change was published for comment
printing in the Commission’s Public
in the Federal Register on April 4,
Reference Room, 100 F Street, NE.,
2011.3 The Commission received no
comment letters regarding the proposal.
Washington, DC 20549, on official
This order approves the proposed rule
business days between the hours of 10
change.
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and II. Description of the Proposal
copying at the principal office of the
The Exchange proposes to modify
Exchange. All comments received will
Chapter V, Section 4 and Chapter VI,
be posted without change; the
Section 8 of the Exchange’s rules (‘‘NOM
Commission does not edit personal
Rules’’) governing the opening of trading
identifying information from
at the start of the trading day and at the
submissions. You should submit only
resumption of trading following a
information that you wish to make
trading halt on NOM. Specifically, the
available publicly. All submissions
Exchange proposes to: (1) Eliminate one
should refer to File Number SR–BX–
tie-breaker and modify a second tie2011–024 and should be submitted on
breaker used to establish the Current
or before June 6, 2011.
Reference Price and cross price; (2)
modify the circumstances whereby the
For the Commission, by the Division of
Exchange disseminates an indicative
Trading and Markets, pursuant to delegated
indicator of ‘‘market;’’ (3) change the
authority.13
start time for imbalance and indicative
Cathy H. Ahn,
data dissemination; (4) clarify when an
Deputy Secretary.
Order Imbalance Indicator is
[FR Doc. 2011–11917 Filed 5–13–11; 8:45 am]
disseminated; and (5) establish a halt
BILLING CODE 8011–01–P
cross.
Electronic Comments
11 15
28257
PO 00000
CFR 200.30–3(a)(12).
Frm 00049
Fmt 4703
Sfmt 4703
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]]>Agencies
[Federal Register Volume 76, Number 94 (Monday, May 16, 2011)]
[Notices]
[Pages 28256-28257]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-11917]
-----------------------------------------------------------------------
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
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.
---------------------------------------------------------------------------
\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 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 clearing firm for the amount owed by the
Participant to the Exchange. Assessing a sale fee is common practice
among national exchanges.\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78ee.
\6\ 17 CFR 240.31.
\7\ See e.g. International Securities Exchange (``ISE'') Rule
212 and NASDAQ OMX PHLX (``PHLX'') Rule 607.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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
[[Page 28257]]
is designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Participants and other persons using
the facilities. The proposed rule is codifying a practice currently
employed by Exchange and the OCC. By adopting this rule, the Exchange
is providing Participants with a description of the Covered Sale Fee
and the process by which the Covered Sale Fee is collected.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 Exchange Act \11\ and Rule 19b-4(f)(2)
thereunder,\12\ because it establishes or changes a due, fee, or other
charge applicable only to a member.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 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.
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-2011-024 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-2011-024. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BX-2011-024 and should be
submitted on or before June 6, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-11917 Filed 5-13-11; 8:45 am]
BILLING CODE 8011-01-P
