Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Fees to C2, 70782-70784 [2011-29441]
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Federal Register / Vol. 76, No. 220 / Tuesday, November 15, 2011 / Notices
companies and initial public offerings
and securities regulation involving
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For further information, please
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Dated: November 10, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–29622 Filed 11–10–11; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
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on Thursday, November 17, 2011 at 2
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and 17 CFR 200.402(a)(3), (5), (7), (9)(ii)
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contact:
The Office of the Secretary at (202)
551–5400.
Dated: November 10, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–29623 Filed 11–10–11; 4:15 pm]
BILLING CODE 8011–01–P
[Release No. 34–65711; File No. SR–
NASDAQ–2011–148]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees to C2
November 8, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
The Exchange proposes to 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.
The text of the proposed rule change
is set forth below. Proposed new text is
in italics and deleted text is in
[brackets].
*
*
*
*
*
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.
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 ** ..................................................................................................
mstockstill on DSK4VPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
7050. NASDAQ Options Market
SECURITIES AND EXCHANGE
COMMISSION
Exchange
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
1, 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.
$0.36
$0.06
$0.06
$0.24
$0.[31]50
$0.06
$0.18
$0.50
$0.06
$0.06
$0.06
$0.30
Firm
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
MM
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
Professional
$0.36
$0.06
$0.26
$0.26
$0.[46]51
$0.24
$0.34
$0.50
$0.06
$0.26
$0.26
$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.
*
*
1 15
*
*
*
The text of the proposed rule change
is available on the Exchange’s Web site
U.S.C. 78s(b)(1).
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19:06 Nov 14, 2011
2 17
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at https://www.nasdaq.cchwall
street.com, at the principal office of the
CFR 240.19b–4.
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Federal Register / Vol. 76, No. 220 / Tuesday, November 15, 2011 / Notices
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 the
Statutory Basis for, the Proposed Rule
Change
mstockstill on DSK4VPTVN1PROD 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 and Professional 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 $0.31 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 $0.31
per contract to $0.50 per contract and
the Professional Routing Fee from $.33
[sic] to $.45 [sic] per contract. The other
C2 Routing Fees for Firms and Market
Makers would remain the same.
C2 recently amended its Fees
Schedule to increase its public customer
taker fee from $.25 per contract to $.44
per contract and to increase its
professional taker fee from $.33 per
contract to $.45 per contract.3 The
Exchange is proposing to amend its
Customer and Professional Routing Fees
to C2 to account for this increase. 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
3 See
SR–C2–2011–032.
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19:06 Nov 14, 2011
Jkt 226001
Exchange is proposing this amendment
in order to recoup Customer 4 and
Professional 5 clearing and transaction
charges incurred by the Exchange when
orders are routed to C2.
2. Statutory Basis
NASDAQ believes that the proposed
rule changes are consistent with the
provisions of Section 6 of the Act,6 in
general, and with Section 6(b)(4) of the
Act,7 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 these fees
are reasonable because they seek to
recoup costs that are incurred by the
Exchange when routing Customer and
Professional 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 Fees will enable the
Exchange to recover the public customer
and professional transaction fees
assessed by C2, plus clearing fees for the
execution of Customer and Professional
orders. The Exchange also believes that
the proposed Routing Fees are equitable
and not unfairly discriminatory because
they will be uniformly applied to all
Customers and Professionals.
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
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.
4 The Exchange is proposing to recoup the $.44
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.
5 The Exchange is proposing to recoup the $.45
per contract professional 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.
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00081
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70783
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 8 and paragraph
(f)(2) of Rule 19b–4 9 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:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2011–148 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–2011–148. This
file number should be included on the
subject line if email 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
8 15
9 17
E:\FR\FM\15NON1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
15NON1
70784
Federal Register / Vol. 76, No. 220 / Tuesday, November 15, 2011 / Notices
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–2011–148 and should be
submitted on or before December 6,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–29441 Filed 11–14–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
NASDAQ’s Investor Support Program,
Offer an Additional Liquidity Provider
Credit Through a Pre-Market Investor
Program, and Make Other Changes to
Pricing for Members Using the
NASDAQ Market Center
mstockstill on DSK4VPTVN1PROD with NOTICES
November 9, 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 November
1, 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.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
19:06 Nov 14, 2011
Jkt 226001
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
[Release No. 34–65717; File No. SR–
NASDAQ–2011–150]
10 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASDAQ proposes to modify its
Investor Support Program, offer an
additional liquidity provider credit
through a pre-market investor program,
and make other changes to pricing for
NASDAQ members using the NASDAQ
Market Center. NASDAQ will
implement the proposed change on
November 1, 2011. The text of the
proposed rule change is available at
https://nasdaq.cchwallstreet.com/, at
NASDAQ’s principal office, and at the
Commission’s Public Reference Room.
1. Purpose
The Investor Support Program
The Exchange is proposing changes to
the credit provisions of Rule 7014 to
modify the structure of its Investor
Support Program. The ISP enables
NASDAQ members to earn a monthly
fee credit for providing additional
liquidity to NASDAQ and increasing the
NASDAQ-traded volume of what are
generally considered to be retail and
institutional investor orders in
exchange-traded securities (‘‘targeted
liquidity’’).3 The goal of the ISP is to
incentivize members to provide such
3 For a detailed description of the Investor
Support Program as originally implemented, see
Securities Exchange Act Release No. 63270
(November 8, 2010), 75 FR 69489 (November 12,
2010) (NASDAQ–2010–141) (notice of filing and
immediate effectiveness) (the ‘‘ISP Filing’’). See also
Securities Exchange Act Release Nos. 63414
(December 2, 2010), 75 FR 76505 (December 8,
2010) (NASDAQ–2010–153) (notice of filing and
immediate effectiveness); 63628 (January 3, 2011),
76 FR 1201 (January 7, 2011) (NASDAQ–2010–154)
(notice of filing and immediate effectiveness);
63891 (February 11, 2011), 76 FR 9384 (February
17, 2011) (NASDAQ–2011–022) (notice of filing and
immediate effectiveness); and 64050 (March 8,
2011), 76 FR 13694 (March 14, 2011) (SR–
NASDAQ–2011–034).
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
targeted liquidity to the NASDAQ
Market Center.4 The Exchange noted in
the ISP Filing that maintaining and
increasing the proportion of orders in
exchange-listed securities executed on a
registered exchange (rather than relying
on any of the available off-exchange
execution methods) would help raise
investors’ confidence in the fairness of
their transactions and would benefit all
investors by deepening NASDAQ’s
liquidity pool, supporting the quality of
price discovery, promoting market
transparency and improving investor
protection.
The Exchange now proposes
modifications to the ISP designed to
broaden participation by members with
targeted liquidity and create a clearer
incentive structure. First, NASDAQ is
modifying the definition of ‘‘Baseline
Participation Ratio’’ to allow a greater
number of members to participate in the
program. In general terms, the Baseline
Participation Ratio is the ratio of shares
of liquidity provided by the member in
NASDAQ for the month of August 2010
to the total consolidated volume for that
month. To the extent that a member’s
participation in NASDAQ exceeds its
Baseline Participation Ratio (i.e., to the
extent that the member increases its
participation in NASDAQ above August
2010 levels), the member may be
eligible for the program.5 The current
definition of Baseline Participation
Ratio is ‘‘with respect to a member, such
member’s Participation Ratio 6 for the
4 The Commission has recently expressed its
concern that a significant percentage of the orders
of individual investors are executed at over the
counter (‘‘OTC’’) markets, that is, at off-exchange
markets; and that a significant percentage of the
orders of institutional investors are executed in
dark pools. Securities Exchange Act Release No.
61358 (January 14, 2010), 75 FR 3594 (January 21,
2010) (Concept Release on Equity Market Structure,
‘‘Concept Release’’). In the Concept Release, the
Commission has recognized the strong policy
preference under the Act in favor of price
transparency and displayed markets. The
Commission published the Concept Release to
invite public comment on a wide range of market
structure issues, including high frequency trading
and un-displayed, or ‘‘dark,’’ liquidity. See also
Mary L. Schapiro, Strengthening Our Equity Market
Structure (Speech at the Economic Club of New
York, Sept. 7, 2010) (‘‘Schapiro Speech,’’ available
on the Commission Web site) (comments of
Commission Chairman on what she viewed as a
troubling trend of reduced participation in the
equity markets by individual investors, and that
nearly 30 percent of volume in U.S.-listed equities
is executed in venues that do not display their
liquidity or make it generally available to the
public).
5 As discussed below, the ISP is being modified
such that participation must equal or exceed past
levels.
6 The term ‘‘Participation Ratio’’ is defined as:
‘‘for a given member in a given month, the ratio of
(A) The number of shares of liquidity provided in
orders entered by the member through any of its
Nasdaq ports and executed in the Nasdaq Market
Center during such month to (B) the Consolidated
E:\FR\FM\15NON1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 220 (Tuesday, November 15, 2011)]
[Notices]
[Pages 70782-70784]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29441]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65711; File No. SR-NASDAQ-2011-148]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Routing Fees to C2
November 8, 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 November 1, 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 to 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.
The text of the proposed rule change is set forth below. Proposed
new text is in italics and deleted text is in [brackets].
* * * * *
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, MNX ETFs, $0.24 $0.55 $0.55 $0.26
ETNs & HOLDRs.............................................
C2......................................................... $0.[31]50 $0.55 $0.55 $0.[46]51
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 Symbols)...... $0.06 $0.55 $0.55 $0.26
PHLX Select Symbols **..................................... $0.30 $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
[[Page 70783]]
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 the
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 and Professional 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 $0.31 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
$0.31 per contract to $0.50 per contract and the Professional Routing
Fee from $.33 [sic] to $.45 [sic] per contract. The other C2 Routing
Fees for Firms and Market Makers would remain the same.
C2 recently amended its Fees Schedule to increase its public
customer taker fee from $.25 per contract to $.44 per contract and to
increase its professional taker fee from $.33 per contract to $.45 per
contract.\3\ The Exchange is proposing to amend its Customer and
Professional Routing Fees to C2 to account for this increase. 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 Customer \4\ and
Professional \5\ clearing and transaction charges incurred by the
Exchange when orders are routed to C2.
---------------------------------------------------------------------------
\3\ See SR-C2-2011-032.
\4\ The Exchange is proposing to recoup the $.44 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.
\5\ The Exchange is proposing to recoup the $.45 per contract
professional 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.
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2. Statutory Basis
NASDAQ believes that the proposed rule changes are consistent with
the provisions of Section 6 of the Act,\6\ in general, and with Section
6(b)(4) of the Act,\7\ 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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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that these fees are reasonable because they
seek to recoup costs that are incurred by the Exchange when routing
Customer and Professional 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 Fees will enable the
Exchange to recover the public customer and professional transaction
fees assessed by C2, plus clearing fees for the execution of Customer
and Professional orders. The Exchange also believes that the proposed
Routing Fees are equitable and not unfairly discriminatory because they
will be uniformly applied to all Customers and Professionals.
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 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 \8\ and paragraph (f)(2) of Rule 19b-4 \9\
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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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 email to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2011-148 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-2011-148. This
file number should be included on the subject line if email 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
[[Page 70784]]
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-2011-148 and should
be submitted on or before December 6, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-29441 Filed 11-14-11; 8:45 am]
BILLING CODE 8011-01-P
