Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Fees, 30984-30986 [2011-13148]

Download as PDF 30984 Federal Register / Vol. 76, No. 103 / Friday, May 27, 2011 / Notices Dated: May 22, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–13113 Filed 5–26–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION jdjones on DSK8KYBLC1PROD with NOTICES Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Rule 609 and Form SIP; OMB Control No. 3235–0043; SEC File No. 270– 23. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for approval of extension of the existing collection of information provided for the following rule: Rule 609 (17 CFR 249.609) (formerly Rule 11Ab2–1) and Form SIP (17 CFR 249.1001). On September 23, 1975, the Commission adopted Rule 11Ab2–1,1 which under Regulation NMS has been redesignated as Rule 609 and Form SIP under the Securities Exchange Act of 1934 (‘‘Act’’) (15 U.S.C. 78a et seq.) to establish the procedures by which a Securities Information Processor (‘‘SIP’’) files and amends its SIP registration statement.2 The information filed with the Commission pursuant to Rule 609 and Form SIP is designed to provide the Commission with the information necessary to make the required findings under the Act before granting the SIP’s application for registration. In addition, the requirement that a SIP file an amendment to correct any inaccurate information is designed to assure that the Commission has current, accurate information with respect to the SIP. This information is also made available to members of the public. Only exclusive SIPs are required to register with the Commission. An exclusive SIP is a SIP that engages on an exclusive basis on behalf of any national securities exchange or registered securities association, or any national securities exchange or registered 1 See Securities Exchange Act Release No. 11673 (September 23, 1975), 40 FR 45422 (October 2, 1975). 2 See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005). VerDate Mar<15>2010 15:25 May 26, 2011 Jkt 223001 securities association which engages on an exclusive basis on its own behalf, in collecting, processing, or preparing for distribution or publication, any information with respect to (i) Transactions or quotations on, or effected or made by means of, any facility of such exchange, or (ii) quotations distributed or published by means of any electronic quotation system operated by such association. The Federal securities laws require that before the Commission may approve the registration of an exclusive SIP, it must make certain findings. It takes a SIP applicant approximately 400 hours to prepare documents which include sufficient information to enable the Commission to make those findings. Currently, there are only two exclusive SIPs registered with the Commission; The Securities Industry Automation Corporation (‘‘SIAC’’) and The Nasdaq Stock Market, Inc. (‘‘Nasdaq’’). SIAC and Nasdaq are required to keep the information on file with the Commission current, which entails filing a form SIP annually to update information. Accordingly, the annual reporting and recordkeeping burden for Rule 609 and Form SIP is 400 hours; the burden of information collection is estimated to involve approximately 1 respondent application for registration making 1 response per year. This annual reporting and recordkeeping burden does not include the burden hours or cost of amending a Form SIP because the Commission has already overstated the compliance burdens by assuming that the Commission will receive one initial registration pursuant to Rule 609 on Form SIP a year. Rule 609 and Form SIP do not impose a retention period for any recordkeeping requirements. Completing and filing Form SIP is mandatory before an entity may become an exclusive SIP. Except in cases where confidential treatment is requested by an applicant and granted by the Commission pursuant to the Freedom of Information Act and the rules of the Commission thereunder, information provided in the Form SIP will be routinely available for public inspection. Please note that an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Background documentation for this information collection may be viewed at the following link, http:// www.reginfo.gov. Comments should be directed to (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 Budget, Room 10102, New Executive Office Building, Washington, DC 20503 or by sending an e-mail to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 30 days of this notice. May 22, 2011. Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–13117 Filed 5–26–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64534; File No. SR– NASDAQ–2011–069] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Fees May 23, 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 19, 2011, The NASDAQ Stock Market LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes [sic] modify Rule 7050 governing pricing for NASDAQ members using the NASDAQ Options Market (‘‘NOM’’), NASDAQ’s facility for executing and routing standardized equity and index options. While fee changes pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on June 1, 2011. The text of the proposed rule change is set forth below. Proposed new text is in italics and deleted text is in brackets. * * * * * 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\27MYN1.SGM 27MYN1 30985 Federal Register / Vol. 76, No. 103 / Friday, May 27, 2011 / Notices 7050. NASDAQ Options Market The following charges shall apply to the use of the order execution and Options Market shall be assessed as provided below. The current fees and a historical record of applicable fees shall be posted on the NasdaqTrader.com Web site. routing services of the NASDAQ Options Market for all securities. * * * * * (4) Fees for routing contracts to markets other than the NASDAQ Exchange Customer BATS ................................................................................................................ BOX ................................................................................................................. CBOE ............................................................................................................... CBOE orders greater than 99 contracts in NDX, MNX ETFs, ETNs & HOLDRs ....................................................................................................... C2 .................................................................................................................... ISE ................................................................................................................... ISE Select Symbols* ........................................................................................ NYSE Arca Penny Pilot ................................................................................... NYSE Arca Non Penny Pilot ........................................................................... NYSE AMEX .................................................................................................... PHLX (for all options other than PHLX Select Symbols) ................................ PHLX Select Symbols** ................................................................................... [C2] .................................................................................................................. Firm MM Professional 0.36 0.06 0.06 0.55 0.55 0.55 0.55 0.55 0.55 0.36 0.06 0.26 0.24 0.31 0.06 0.18 0.50 0.06 0.06 0.06 0.30 [$0.21] 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 [$0.55] 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 [$0.55] 0.26 0.46 0.24 0.34 0.50 0.06 0.26 0.26 0.46 [$0.46] * These fees are applicable to orders routed to ISE that are subject to Rebates and Fees for Adding and Removing Liquidity in Select Symbols. See ISE’s Schedule of Fees for the complete list of symbols that are subject to these fees. ** These fees are applicable to orders routed to PHLX that are subject to Rebates and Fees for Adding and Removing Liquidity in Select Symbols. See PHLX’s Fee Schedule for the complete list of symbols that are subject to these fees. * * * * * The text of the proposed rule change is available on the Exchange’s Web site at http:// www.nasdaq.cchwallstreet.com, at the principal office of the Exchange, 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 Exchange 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 Exchange 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 jdjones on DSK8KYBLC1PROD with NOTICES 1. Purpose NASDAQ is proposing to modify Rule 7050 governing fees assessed for option orders entered into NOM but routed to and executed on away markets (‘‘Routing Fees’’). Specifically, NASDAQ is proposing to amend Customer Routing Fees for orders routed to the C2 Options Exchange, Inc. (‘‘C2’’). The Exchange currently assesses the following Routing Fees to route orders to C2: A Customer is assessed $0.21 per VerDate Mar<15>2010 15:25 May 26, 2011 Jkt 223001 contract; a Firm is assessed $0.55 per contract; a Market Maker is assessed $0.55 per contract; and a Professional is assessed $0.46 per contract. The Exchange is proposing to amend the Customer Routing Fee to C2 from $0.21 per contract to $0.31 per contract. The other C2 Routing Fees for Firms, Market Makers and Professionals would remain the same. C2 recently amended its Fees Schedule to increase its public customer taker fee from $.15 to $.25. The Exchange is proposing to amend its Customer Routing Fee to C2 to account for this increase.3 In addition, NASDAQ Options Services LLC (‘‘NOS’’), a member of the Exchange, is the Exchange’s exclusive order router. Each time NOS routes to away markets NOS is charged a $0.06 clearing fee and, in the case of certain exchanges, a transaction fee is also charged in certain symbols, which are passed through to the Exchange. The Exchange is proposing this amendment in order to recoup clearing and transaction charges incurred by the Exchange when orders are routed to C2.4 In addition, the Exchange proposes to amend the Routing Fees in Rule 7050 to reorder the Routing Fees, specifically to move C2 after CBOE for ease of reference. While fee changes pursuant to this proposal are effective upon filing, 3 See Securities Exchange Act Release No. 64390 (May 4, 2011), 76 FR 27117 (May 10, 2011) (SR– C2–2011–011). 4 The Exchange is proposing to recoup the $.25 per contract public customer transaction fee for orders routed to C2 along with the $0.06 clearing fee which is incurred by the Exchange, as explained above. See C2 Fees Schedule. PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 the Exchange has designated these changes to be operative on June 1, 2011. 2. Statutory Basis NASDAQ believes that the proposed rule changes are consistent with the provisions of Section 6 of the Act,5 in general, and with 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 members and issuers and other persons using any facility or system which NASDAQ operates or controls. The Exchange believes that this fee is reasonable because it seeks to recoup costs that are incurred by the Exchange when routing Customer orders to C2 on behalf of its members. Each destination market’s transaction charge varies and there is a standard clearing charge for each transaction incurred by the Exchange. The Exchange believes that the proposed Routing Fee would enable the Exchange to recover the public customer transaction fee assessed by C2, plus clearing fees for the execution of Customer orders. The Exchange also believes that the proposed Routing Fee is equitable because it would be uniformly applied to all Customers. NASDAQ is one of nine options market in the national market system for standardized options. Joining NASDAQ and electing to trade options is entirely voluntary. Under these circumstances, NASDAQ’s fees must be competitive and low in order for NASDAQ to attract order flow, execute orders, and grow as a market. NASDAQ thus believes that its 5 15 6 15 U.S.C. 78f. U.S.C. 78f(b)(4). E:\FR\FM\27MYN1.SGM 27MYN1 30986 Federal Register / Vol. 76, No. 103 / Friday, May 27, 2011 / Notices fees are fair and reasonable and consistent with the Exchange Act. 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 7 and paragraph (f)(2) of Rule 19b–48 thereunder. 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: post all comments on the Commission’s Internet Web site (http://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 No. SR–NASDAQ– 2011–069 and should be submitted on or before June 17, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–13148 Filed 5–26–11; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF STATE Electronic Comments [Public Notice 7485] • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2011–069 on the subject line. Bureau of International Security and Nonproliferation; Imposition of Nonproliferation Measures Against Foreign Persons, Including a Ban on U.S. Government Procurement Department of State. Notice. AGENCY: jdjones on DSK8KYBLC1PROD with NOTICES Paper Comments ACTION: • 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–2011–069. 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 SUMMARY: 7 15 8 17 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). VerDate Mar<15>2010 15:25 May 26, 2011 A determination has been made that a number of foreign entities and one foreign person have engaged in activities that warrant the imposition of measures pursuant to Section 3 of the Iran, North Korea, and Syria Nonproliferation Act. The Act provides for penalties on entities and individuals for the transfer to or acquisition from Iran since January 1, 1999, the transfer to or acquisition from Syria since January 1, 2005, or the transfer to or acquisition from North Korea since 9 17 Jkt 223001 PO 00000 CFR 200.30–3(a)(12). Frm 00085 Fmt 4703 Sfmt 4703 January 1, 2006, of equipment and technology controlled under multilateral control lists (Missile Technology Control Regime, Australia Group, Chemical Weapons Convention, Nuclear Suppliers Group, Wassenaar Arrangement) or otherwise having the potential to make a material contribution to the development of weapons of mass destruction (WMD) or cruise or ballistic missile systems. The latter category includes (a) Items of the same kind as those on multilateral lists but falling below the control list parameters, when it is determined that such items have the potential of making a material contribution to WMD or cruise or ballistic missile systems, (b) other items with the potential of making such a material contribution, when added through case-by-case decisions, and (c) items on U.S. national control lists for WMD/missile reasons that are not on multilateral lists. DATES: Effective Date: May 23, 2011. FOR FURTHER INFORMATION CONTACT: On general issues: Pamela K. Durham, Bureau of International Security and Nonproliferation, Department of State, Telephone (202) 647–4930. For U.S. Government procurement ban issues: Kimberly Triplett, Office of the Procurement Executive, Department of State, Telephone: (703) 875–4079. SUPPLEMENTARY INFORMATION: Pursuant to Sections 2 and 3 of the Iran, North Korea, and Syria Nonproliferation Act (Pub. L. 109–353), the U.S. Government determined on May 12, 2011, that the measures authorized in Section 3 of the Act shall apply to the following foreign persons identified in the report submitted pursuant to Section 2(a) of the Act: Belarusian Optical Mechanical Association (Belarus) and any successor, sub-unit, or subsidiary thereof; BelTechExport (Belarus) and any successor, sub-unit, or subsidiary thereof; Dalian Sunny Industries (China) [also known as: LIMMT (Dalian) Metallurgy and Minerals Co.; LIMMT (Dalian) Economic and Trade Organization; Liaoning Industry & Trade Co., Ltd.; and Dalian Industry and Trade Company Ltd.] and any successor, subunit, or subsidiary thereof; Dalian Zhongbang Chemical Industries Company (China) and any successor, subunit, or subsidiary thereof; Karl Lee (China) [also known as: Li Fang Wei] and any successor, sub-unit, or subsidiary thereof; Xian Junyun Electronic (China) and any successor, sub-unit, or subsidiary thereof; Defense Industries Organization (Iran) and any successor, sub-unit, or subsidiary thereof; Islamic Republic of Iran Shipping Lines (IRISL) (Iran) and any successor, sub-unit, or subsidiary thereof; E:\FR\FM\27MYN1.SGM 27MYN1

Agencies

[Federal Register Volume 76, Number 103 (Friday, May 27, 2011)]
[Notices]
[Pages 30984-30986]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13148]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64534; File No. SR-NASDAQ-2011-069]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Routing Fees

May 23, 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 19, 2011, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes [sic] modify Rule 7050 governing pricing for 
NASDAQ members using the NASDAQ Options Market (``NOM''), NASDAQ's 
facility for executing and routing standardized equity and index 
options.
    While fee changes pursuant to this proposal are effective upon 
filing, the Exchange has designated these changes to be operative on 
June 1, 2011.
    The text of the proposed rule change is set forth below. Proposed 
new text is in italics and deleted text is in brackets.
* * * * *

[[Page 30985]]

7050. NASDAQ Options Market

    The following charges shall apply to the use of the order execution 
and routing services of the NASDAQ Options Market for all securities.
* * * * *
    (4) Fees for routing contracts to markets other than the NASDAQ 
Options Market shall be assessed as provided below. The current fees 
and a historical record of applicable fees shall be posted on the 
NasdaqTrader.com Web site.

----------------------------------------------------------------------------------------------------------------
                    Exchange                         Customer          Firm             MM         Professional
----------------------------------------------------------------------------------------------------------------
BATS............................................            0.36            0.55            0.55            0.36
BOX.............................................            0.06            0.55            0.55            0.06
CBOE............................................            0.06            0.55            0.55            0.26
CBOE orders greater than 99 contracts in NDX,               0.24            0.55            0.55            0.26
 MNX ETFs, ETNs & HOLDRs........................
C2..............................................            0.31            0.55            0.55            0.46
ISE.............................................            0.06            0.55            0.55            0.24
ISE Select Symbols\*\...........................            0.18            0.55            0.55            0.34
NYSE Arca Penny Pilot...........................            0.50            0.55            0.55            0.50
NYSE Arca Non Penny Pilot.......................            0.06            0.55            0.55            0.06
NYSE AMEX.......................................            0.06            0.55            0.55            0.26
PHLX (for all options other than PHLX Select                0.06            0.55            0.55            0.26
 Symbols).......................................
PHLX Select Symbols\**\.........................            0.30            0.55            0.55            0.46
[C2]............................................         [$0.21]         [$0.55]         [$0.55]         [$0.46]
----------------------------------------------------------------------------------------------------------------
\*\ These fees are applicable to orders routed to ISE that are subject to Rebates and Fees for Adding and
  Removing Liquidity in Select Symbols. See ISE's Schedule of Fees for the complete list of symbols that are
  subject to these fees.
\**\ These fees are applicable to orders routed to PHLX that are subject to Rebates and Fees for Adding and
  Removing Liquidity in Select Symbols. See PHLX's Fee Schedule for the complete list of symbols that are
  subject to these fees.

* * * * *
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nasdaq.cchwallstreet.com, at the principal 
office of the Exchange, 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 Exchange 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 Exchange 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 proposing to modify Rule 7050 governing fees assessed for 
option orders entered into NOM but routed to and executed on away 
markets (``Routing Fees''). Specifically, NASDAQ is proposing to amend 
Customer Routing Fees for orders routed to the C2 Options Exchange, 
Inc. (``C2'').
    The Exchange currently assesses the following Routing Fees to route 
orders to C2: A Customer is assessed $0.21 per contract; a Firm is 
assessed $0.55 per contract; a Market Maker is assessed $0.55 per 
contract; and a Professional is assessed $0.46 per contract. The 
Exchange is proposing to amend the Customer Routing Fee to C2 from 
$0.21 per contract to $0.31 per contract. The other C2 Routing Fees for 
Firms, Market Makers and Professionals would remain the same.
    C2 recently amended its Fees Schedule to increase its public 
customer taker fee from $.15 to $.25. The Exchange is proposing to 
amend its Customer Routing Fee to C2 to account for this increase.\3\ 
In addition, NASDAQ Options Services LLC (``NOS''), a member of the 
Exchange, is the Exchange's exclusive order router. Each time NOS 
routes to away markets NOS is charged a $0.06 clearing fee and, in the 
case of certain exchanges, a transaction fee is also charged in certain 
symbols, which are passed through to the Exchange. The Exchange is 
proposing this amendment in order to recoup clearing and transaction 
charges incurred by the Exchange when orders are routed to C2.\4\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 64390 (May 4, 2011), 
76 FR 27117 (May 10, 2011) (SR-C2-2011-011).
    \4\ The Exchange is proposing to recoup the $.25 per contract 
public customer transaction fee for orders routed to C2 along with 
the $0.06 clearing fee which is incurred by the Exchange, as 
explained above. See C2 Fees Schedule.
---------------------------------------------------------------------------

    In addition, the Exchange proposes to amend the Routing Fees in 
Rule 7050 to reorder the Routing Fees, specifically to move C2 after 
CBOE for ease of reference. While fee changes pursuant to this proposal 
are effective upon filing, the Exchange has designated these changes to 
be operative on June 1, 2011.
2. Statutory Basis
    NASDAQ believes that the proposed rule changes are consistent with 
the provisions of Section 6 of the Act,\5\ in general, and with 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 
members and issuers and other persons using any facility or system 
which NASDAQ operates or controls.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that this fee is reasonable because it seeks 
to recoup costs that are incurred by the Exchange when routing Customer 
orders to C2 on behalf of its members. Each destination market's 
transaction charge varies and there is a standard clearing charge for 
each transaction incurred by the Exchange. The Exchange believes that 
the proposed Routing Fee would enable the Exchange to recover the 
public customer transaction fee assessed by C2, plus clearing fees for 
the execution of Customer orders. The Exchange also believes that the 
proposed Routing Fee is equitable because it would be uniformly applied 
to all Customers.
    NASDAQ is one of nine options market in the national market system 
for standardized options. Joining NASDAQ and electing to trade options 
is entirely voluntary. Under these circumstances, NASDAQ's fees must be 
competitive and low in order for NASDAQ to attract order flow, execute 
orders, and grow as a market. NASDAQ thus believes that its

[[Page 30986]]

fees are fair and reasonable and consistent with the Exchange Act.

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 \7\ and paragraph (f)(2) of Rule 19b-4\8\ 
thereunder. 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2011-069 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-2011-069. 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 (http://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 No. SR-NASDAQ-
2011-069 and should be submitted on or before June 17, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13148 Filed 5-26-11; 8:45 am]
BILLING CODE 8011-01-P