Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees Assessed Under Rule 7015(h), 48189-48190 [2011-19983]
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Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices
submissions. You should submit only
information that you wish to make
publicly available. All submissions
should refer to File Number SR–ISE–
2011–42 and should be submitted on or
before August 29, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–19982 Filed 8–5–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–65014; File No. SR–
NASDAQ–2011–101]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Fees Assessed Under Rule 7015(h)
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 26,
2011, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by NASDAQ. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
NASDAQ is proposing to amend the
fees assessed under Rule 7015(h).
NASDAQ will implement the amended
fees effective August 1, 2011.
The text of the proposed rule change
is below. Proposed new language is in
italics; proposed deletions are in
brackets.
*
*
*
*
*
mstockstill on DSK4VPTVN1PROD with NOTICES
7015. Access Services
The following charges are assessed by
Nasdaq for connectivity to systems
operated by NASDAQ, including the
Nasdaq Market Center, the FINRA/
NASDAQ Trade Reporting Facility, and
FINRA’s OTCBB Service. The following
fees are not applicable to the NASDAQ
Options Market LLC. For related options
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
18:57 Aug 05, 2011
Jkt 223001
fees for Access Services refer to Rule
7053.
(a)–(g) No change.
(h) VTE Terminal Fees
• Each ID is subject to a minimum
commission fee of $125[100] per month
unless it executes a minimum of
100,000 shares.
• Each ID receiving market data is
subject to pass-through fees for use of
these services. Pricing for these services
is determined by the exchanges and/or
market center.
• Each ID that is given web access is
subject to a $125[100] monthly fee.
*
*
*
*
*
In its filing with the Commission,
NASDAQ included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below.
NASDAQ has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASDAQ is proposing to increase the
fees assessed members under Rule
7015(h) for use of VTE terminals. A VTE
terminal is a basic front-end user
interface used by NASDAQ members to
connect to, and enter orders in, The
Nasdaq Market Center. Members using
VTE terminals pay the exchanges
directly for data feeds and services
provided by NASDAQ and other
exchanges or market centers through
VTE at the SEC-approved rate that they
would pay to receive the data feeds
through other means. These data feeds
provide information that is necessary for
users to enter orders through VTE. The
two fees assessed under Rule 7015(h)
relate to optional web access and
commissions.
Rule 7015(h) currently assesses
monthly a minimum commission fee of
$100 fee per ID, and a web access fee of
$100 per ID. NASDAQ last raised fees
assessed under Rule 7015(h) in 2007
when it raised the fee for access to the
terminal via the web from $50 monthly
to $100 monthly, and raised the
minimum commission fee for users
executing orders totaling less than
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
48189
100,000 shares per month from $50
monthly to $100 monthly.3 In light of
increasing costs, NASDAQ is proposing
to increase the fee for access to the
terminal via the web from $100 monthly
to $125 monthly, and increase the
minimum commission fee for users
executing orders totaling less than
100,000 shares per month from $100
monthly to $125 monthly.
NASDAQ notes that web connectivity
is one option available to NASDAQ
users for accessing the VTE terminal.
Another option is access through
extranet connectivity, where a user
contracts directly with a third-party
extranet provider and pays fees to that
provider. With respect to minimum
commission fees, members that execute
total orders above the 100,000 share
threshold will continue to not be
assessed a commission fee.
Based on NASDAQ’s operation of the
VTE since it was acquired from INET,
NASDAQ believes that the pricing
changes are warranted in order to
appropriately balance the demand for
the product with increasing platform,
overhead and technology infrastructure
costs.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,4 in
general, and with Section 6(b)(4) of the
Act,5 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which
NASDAQ operates or controls. All
similarly situated members are subject
to the same fee structure, and access to
this NASDAQ service is offered on fair
and non-discriminatory terms. As noted,
NASDAQ has not increased the fees
assessed under Rule 7015(h) since 2007
despite incurring increased costs. Use of
VTE terminals is voluntary and
members can avail themselves of
numerous other means of accessing The
Nasdaq Market Center. NASDAQ further
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.
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
3 Securities Exchange Act Release No. 56390
(September 12, 2007), 72 FR 53614 (September 19,
2007) (SR–NASDAQ–2007–075).
4 15 U.S.C. 78f.
5 15 U.S.C. 78f(b)(4).
E:\FR\FM\08AUN1.SGM
08AUN1
48190
Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
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 6 and
subparagraph (f)(2) of Rule 19b–4
thereunder.7 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:
mstockstill on DSK4VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2011–101 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–2011–101. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room on official business
days between the hours of 10 a.m. and
3 p.m. Copies of such filing also will be
available for inspection and copying at
the principal offices of the Exchange.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NASDAQ–2011–101, and
should be submitted on or before
August 29, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–19983 Filed 8–5–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65007; File No. SR–CBOE–
2011–071]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fee
Schedule Concerning Facilitation
Orders in Multiply-Listed FLEX Options
August 2, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on August 1,
2011, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) 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 the Exchange. The
Commission is publishing this notice to
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
6 15
U.S.C. 78s(b)(3)(a)(ii).
7 17 CFR 240.19b–4(f)(2).
VerDate Mar<15>2010
18:57 Aug 05, 2011
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 hereby proposes to
waive the Clearing Trading Permit
Holder Proprietary Transaction Fee for
Clearing Trading Permit Holders
executing facilitation orders in
multiply-listed FLEX Options classes.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.cboe.org/legal), at the
Exchange’s Office of the Secretary, and
at the Commission.
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 those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Over-the-counter (‘‘OTC’’) trading and
Flexible Exchange Options (‘‘FLEX’’)
trading are similar in that both are
highly customized, and largely involve
customer-to-firm trades. Due to
regulatory changes and other market
forces, the Exchange believes that
market participants interested in
executing these types of customized,
customer-to-firm trades will begin to
transition from executing such trades in
the OTC markets to executing them as
FLEX trades. Currently, a number of
other exchanges which also host FLEX
trading, including the NASDAQ OMX
PHLX LLC (‘‘PHLX’’), do not charge
transaction fees on firm facilitation
orders in multiply-listed FLEX Options
classes 3 (the nature of a facilitation
order is such that it provides a market
for a trade, and only Clearing Trading
Permit Holders (or firms, on other
exchanges) can enter such orders).
Because CBOE anticipates an increase in
FLEX trading, and because CBOE would
like to be able to compete with other
exchanges for FLEX trades on an even
1 15
Jkt 223001
PO 00000
Frm 00074
Fmt 4703
3 See
Sfmt 4703
E:\FR\FM\08AUN1.SGM
PHLX Fee Schedule, page 9.
08AUN1
Agencies
[Federal Register Volume 76, Number 152 (Monday, August 8, 2011)]
[Notices]
[Pages 48189-48190]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19983]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65014; File No. SR-NASDAQ-2011-101]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Fees Assessed Under Rule 7015(h)
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 26, 2011, The NASDAQ Stock Market LLC (``NASDAQ'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by NASDAQ. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
NASDAQ is proposing to amend the fees assessed under Rule 7015(h).
NASDAQ will implement the amended fees effective August 1, 2011.
The text of the proposed rule change is below. Proposed new
language is in italics; proposed deletions are in brackets.
* * * * *
7015. Access Services
The following charges are assessed by Nasdaq for connectivity to
systems operated by NASDAQ, including the Nasdaq Market Center, the
FINRA/NASDAQ Trade Reporting Facility, and FINRA's OTCBB Service. The
following fees are not applicable to the NASDAQ Options Market LLC. For
related options fees for Access Services refer to Rule 7053.
(a)-(g) No change.
(h) VTE Terminal Fees
Each ID is subject to a minimum commission fee of
$125[100] per month unless it executes a minimum of 100,000 shares.
Each ID receiving market data is subject to pass-through
fees for use of these services. Pricing for these services is
determined by the exchanges and/or market center.
Each ID that is given web access is subject to a $125[100]
monthly fee.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASDAQ included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. NASDAQ has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is proposing to increase the fees assessed members under
Rule 7015(h) for use of VTE terminals. A VTE terminal is a basic front-
end user interface used by NASDAQ members to connect to, and enter
orders in, The Nasdaq Market Center. Members using VTE terminals pay
the exchanges directly for data feeds and services provided by NASDAQ
and other exchanges or market centers through VTE at the SEC-approved
rate that they would pay to receive the data feeds through other means.
These data feeds provide information that is necessary for users to
enter orders through VTE. The two fees assessed under Rule 7015(h)
relate to optional web access and commissions.
Rule 7015(h) currently assesses monthly a minimum commission fee of
$100 fee per ID, and a web access fee of $100 per ID. NASDAQ last
raised fees assessed under Rule 7015(h) in 2007 when it raised the fee
for access to the terminal via the web from $50 monthly to $100
monthly, and raised the minimum commission fee for users executing
orders totaling less than 100,000 shares per month from $50 monthly to
$100 monthly.\3\ In light of increasing costs, NASDAQ is proposing to
increase the fee for access to the terminal via the web from $100
monthly to $125 monthly, and increase the minimum commission fee for
users executing orders totaling less than 100,000 shares per month from
$100 monthly to $125 monthly.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 56390 (September 12,
2007), 72 FR 53614 (September 19, 2007) (SR-NASDAQ-2007-075).
---------------------------------------------------------------------------
NASDAQ notes that web connectivity is one option available to
NASDAQ users for accessing the VTE terminal. Another option is access
through extranet connectivity, where a user contracts directly with a
third-party extranet provider and pays fees to that provider. With
respect to minimum commission fees, members that execute total orders
above the 100,000 share threshold will continue to not be assessed a
commission fee.
Based on NASDAQ's operation of the VTE since it was acquired from
INET, NASDAQ believes that the pricing changes are warranted in order
to appropriately balance the demand for the product with increasing
platform, overhead and technology infrastructure costs.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\4\ in general, and with Section
6(b)(4) of the Act,\5\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system
which NASDAQ operates or controls. All similarly situated members are
subject to the same fee structure, and access to this NASDAQ service is
offered on fair and non-discriminatory terms. As noted, NASDAQ has not
increased the fees assessed under Rule 7015(h) since 2007 despite
incurring increased costs. Use of VTE terminals is voluntary and
members can avail themselves of numerous other means of accessing The
Nasdaq Market Center. NASDAQ further 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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
[[Page 48190]]
necessary or appropriate in furtherance of the purposes of the Act, as
amended.
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 \6\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\7\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(a)(ii).
\7\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2011-101 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-2011-101. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room on
official business days between the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for inspection and copying at the
principal offices of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NASDAQ-2011-101, and should be submitted on or before
August 29, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-19983 Filed 8-5-11; 8:45 am]
BILLING CODE 8011-01-P