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]
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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).
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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, https://
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.
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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 https://
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 (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 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 (https://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
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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
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]]>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]
-----------------------------------------------------------------------
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 https://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.
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
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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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
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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-2011-069 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 (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 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\
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\9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13148 Filed 5-26-11; 8:45 am]
BILLING CODE 8011-01-P
