Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Fees for Members Using the NASDAQ Market Center, 48186-48187 [2011-19981]
Download as PDF
48186
Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices
These exemptions are effective
immediately.
BILLING CODE 7590–01–P
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASDAQ included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below.
NASDAQ has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
Dated at Rockville, Maryland, this 1st day
of August 2011.
For the U.S. Nuclear Regulatory
Commission.
Keith I. McConnell,
Deputy Director, Decommissioning and
Uranium Recovery Licensing Directorate,
Division of Waste Management and
Environmental Protection, Office of Federal
and State Materials and Environmental
Management Programs.
[FR Doc. 2011–20016 Filed 8–5–11; 8:45 am]
[Release No. 34–65013; File No. SR–
NASDAQ–2011–103]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify Fees
for Members Using the NASDAQ
Market Center
August 2, 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 July 27,
2011, The NASDAQ Stock Market LLC
(the ‘‘Exchange’’ or ‘‘NASDAQ’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III, below, which Items
have been prepared by NASDAQ. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
mstockstill on DSK4VPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASDAQ proposes to modify pricing
for NASDAQ members using the
NASDAQ Market Center. NASDAQ will
implement the proposed change on
August 1, 2011. The text of the proposed
rule change is available from NASDAQ’s
Web site at https://
nasdaq.cchwallstreet.com, at
NASDAQ’s principal office, at the
Commission’s Public Reference Room,
and at the Commission’s Web site at
https://www.sec.gov.
1 15
2 17
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
18:57 Aug 05, 2011
1. Purpose
NASDAQ is amending Rule 7018 to
make modifications to its pricing
schedule for execution of quotes/orders
through the NASDAQ Market Center of
securities priced at $1 or more.
Specifically, NASDAQ has several
liquidity provider rebate tiers focused
on members that are active in both the
NASDAQ Stock Market and the
NASDAQ Options Market. Currently, a
member that provides shares of liquidity
in the NASDAQ Market Center
representing 0.9% or more of the total
consolidated volume reported to all
consolidated transaction reporting plans
by all exchanges and trade reporting
facilities during the month, and trades
a daily average of more than 300,000
contracts in the NASDAQ Options
Market during the month, is eligible to
receive a rebate of $0.0015 per share
executed for its non-displayed quotes/
orders and $0.00295 per share executed
for its displayed quotes/orders.
NASDAQ is modifying the tier
requirements slightly to require
liquidity in the NASDAQ Market Center
representing more than 1.0% of total
consolidated volume, and an average
daily volume of more than 200,000
contracts in the NASDAQ Options
Market. Although NASDAQ is raising
the requirement for liquidity provision
in the NASDAQ Market Center and
lowering the requirement for NASDAQ
Options Market activity, it is NASDAQ’s
expectation, based on observed trading
patterns in the market, that the change
will make it easier for members to
achieve the criteria for the tier, and
therefore will result in a price
reduction.
Jkt 223001
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
provisions of Section 6 of the Act,3 in
general, and with Section 6(b)(4) of the
Act,4 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which
NASDAQ operates or controls. All
similarly situated members are subject
to the same fee structure, and access to
NASDAQ is offered on fair and nondiscriminatory terms.
NASDAQ notes that its pricing tiers
focused on members active in both the
NASDAQ Market Center and the
NASDAQ Options Market are
responsive to the convergence of trading
in which members simultaneously trade
different asset classes within a single
strategy. NASDAQ also notes that cash
equities and options markets are linked,
with liquidity and trading patterns on
one market affecting those on the other.
Accordingly, pricing incentives that
encourage market participant activity in
both markets recognize that activity in
the options markets also supports price
discovery and liquidity provision in the
NASDAQ Market Center. Moreover,
NASDAQ believes that these changes
are reasonable because they will make it
easier for members active in both
markets to qualify for an enhanced
rebate, and are also non-discriminatory
and equitable. They are open to all
members, but are not the exclusive
means by which members may qualify
for the associated rebate levels.
Accordingly, members are not required
to trade in the NASDAQ Options Market
in order to receive the applicable
rebates.
Finally, NASDAQ notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive. In such an environment,
NASDAQ must continually adjust its
fees to remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. NASDAQ
believes that the proposed rule change
reflects this competitive environment
because it will broaden the conditions
under which members may qualify for
higher liquidity provider rebates.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
3 15
4 15
E:\FR\FM\08AUN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
08AUN1
Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices
of the purposes of the Act, as amended.
Because the market for order execution
and routing is extremely competitive,
members may readily opt to disfavor
NASDAQ’s execution services if they
believe that alternatives offer them
better value. For this reason and the
reasons discussed in connection with
the statutory basis for the proposed rule
change, NASDAQ does not believe that
the proposed changes will impair the
ability of members or competing order
execution venues to maintain their
competitive standing in the financial
markets.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.5 At any time
within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• 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–2011–103 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–2011–103. 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 the 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–
NASDAQ–2011–103 and should be
submitted on or before August 29, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–19981 Filed 8–5–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65011; File No. SR–ISE–
2011–42]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
International Securities Exchange, Inc.,
Relating to Rule 717
August 2, 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 July 25,
2011, the International Securities
Exchange, Inc. (‘‘ISE’’ or the
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
5 15
U.S.C. 78s(b)(3)(a)(ii).
VerDate Mar<15>2010
18:57 Aug 05, 2011
Jkt 223001
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
48187
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
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 ISE is proposing to specify in its
rules an existing policy related to the
application of Rule 717(d) and (e). The
text of the proposed rule change is as
follows (additions are in italics):
Rule 717. Limitation on Orders
(a) through (g) no change.
Supplementary Material to Rule 717
.01 through .05 no change.
.06 The exposure requirement of
paragraph (d) and (e) of Rule 717
applies to the entry of orders with
knowledge that there is a pre-existing
unexecuted agency, proprietary, or
solicited order on the Exchange.
Members may demonstrate that orders
were entered without knowledge by
providing evidence that effective
information barriers between the
persons, business units and/or systems
entering the orders onto the Exchange
were in existence at the time the orders
were entered. Such information barriers
must be fully documented and provided
to the Exchange upon request.
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
Rule 717(d) and (e) requires members
to expose orders entered on the limit
order book for at least one second before
executing them as principal or against
orders that were solicited from other
broker-dealers. This requirement gives
E:\FR\FM\08AUN1.SGM
08AUN1
Agencies
[Federal Register Volume 76, Number 152 (Monday, August 8, 2011)]
[Notices]
[Pages 48186-48187]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19981]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65013; File No. SR-NASDAQ-2011-103]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Fees for Members Using the NASDAQ Market Center
August 2, 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 July 27, 2011, The NASDAQ Stock Market LLC (the ``Exchange''
or ``NASDAQ'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III, below, which Items have been prepared by NASDAQ. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASDAQ proposes to modify pricing for NASDAQ members using the
NASDAQ Market Center. NASDAQ will implement the proposed change on
August 1, 2011. The text of the proposed rule change is available from
NASDAQ's Web site at https://nasdaq.cchwallstreet.com, at NASDAQ's
principal office, at the Commission's Public Reference Room, and at the
Commission's Web site at https://www.sec.gov.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASDAQ included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. NASDAQ has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is amending Rule 7018 to make modifications to its pricing
schedule for execution of quotes/orders through the NASDAQ Market
Center of securities priced at $1 or more. Specifically, NASDAQ has
several liquidity provider rebate tiers focused on members that are
active in both the NASDAQ Stock Market and the NASDAQ Options Market.
Currently, a member that provides shares of liquidity in the NASDAQ
Market Center representing 0.9% or more of the total consolidated
volume reported to all consolidated transaction reporting plans by all
exchanges and trade reporting facilities during the month, and trades a
daily average of more than 300,000 contracts in the NASDAQ Options
Market during the month, is eligible to receive a rebate of $0.0015 per
share executed for its non-displayed quotes/orders and $0.00295 per
share executed for its displayed quotes/orders. NASDAQ is modifying the
tier requirements slightly to require liquidity in the NASDAQ Market
Center representing more than 1.0% of total consolidated volume, and an
average daily volume of more than 200,000 contracts in the NASDAQ
Options Market. Although NASDAQ is raising the requirement for
liquidity provision in the NASDAQ Market Center and lowering the
requirement for NASDAQ Options Market activity, it is NASDAQ's
expectation, based on observed trading patterns in the market, that the
change will make it easier for members to achieve the criteria for the
tier, and therefore will result in a price reduction.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\3\ in general, and with Section
6(b)(4) of the Act,\4\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system
which NASDAQ operates or controls. All similarly situated members are
subject to the same fee structure, and access to NASDAQ is offered on
fair and non-discriminatory terms.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
NASDAQ notes that its pricing tiers focused on members active in
both the NASDAQ Market Center and the NASDAQ Options Market are
responsive to the convergence of trading in which members
simultaneously trade different asset classes within a single strategy.
NASDAQ also notes that cash equities and options markets are linked,
with liquidity and trading patterns on one market affecting those on
the other. Accordingly, pricing incentives that encourage market
participant activity in both markets recognize that activity in the
options markets also supports price discovery and liquidity provision
in the NASDAQ Market Center. Moreover, NASDAQ believes that these
changes are reasonable because they will make it easier for members
active in both markets to qualify for an enhanced rebate, and are also
non-discriminatory and equitable. They are open to all members, but are
not the exclusive means by which members may qualify for the associated
rebate levels. Accordingly, members are not required to trade in the
NASDAQ Options Market in order to receive the applicable rebates.
Finally, NASDAQ notes that it operates in a highly competitive
market in which market participants can readily favor competing venues
if they deem fee levels at a particular venue to be excessive. In such
an environment, NASDAQ must continually adjust its fees to remain
competitive with other exchanges and with alternative trading systems
that have been exempted from compliance with the statutory standards
applicable to exchanges. NASDAQ believes that the proposed rule change
reflects this competitive environment because it will broaden the
conditions under which members may qualify for higher liquidity
provider rebates.
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance
[[Page 48187]]
of the purposes of the Act, as amended. Because the market for order
execution and routing is extremely competitive, members may readily opt
to disfavor NASDAQ's execution services if they believe that
alternatives offer them better value. For this reason and the reasons
discussed in connection with the statutory basis for the proposed rule
change, NASDAQ does not believe that the proposed changes will impair
the ability of members or competing order execution venues to maintain
their competitive standing in the financial markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\5\ At any time within 60 days of the filing
of the proposed rule change, the Commission summarily may temporarily
suspend such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(a)(ii).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2011-103 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-2011-103. 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 the 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-
NASDAQ-2011-103 and should be submitted on or before August 29, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-19981 Filed 8-5-11; 8:45 am]
BILLING CODE 8011-01-P