Self-Regulatory Organizations; NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Fees, 2106-2108 [2012-529]
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2106
Federal Register / Vol. 77, No. 9 / Friday, January 13, 2012 / Notices
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 Exchange 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–CHX–2011–33 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–CHX–2011–33. 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
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–CHX–
2011–33 and should be submitted on or
before February 3, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–533 Filed 1–12–12; 8:45 am]
BILLING CODE 8011–01–P
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The NASDAQ Stock Market LLC
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
italicized and deleted text is in brackets.
*
*
*
*
*
7050.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66121; File No. SR–
NASDAQ–2012–001]
Self-Regulatory Organizations;
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees
January 9, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
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** ...................................................................................
mstockstill on DSK4VPTVN1PROD with NOTICES
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 3,
2012, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’ or ‘‘Exchange’’) 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 the NASDAQ.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
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.
Firm
MM
Professional
$0.[36]50
0.06
0.06
$0.55
0.55
0.55
$0.55
0.55
0.55
0.24
0.50
0.06
0.18
0.50
0.06
0.06
0.06
0.30
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.[48]50
0.06
0.26
0.26
0.51
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.
17 17
CFR 200.30–3(a)(12).
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15:46 Jan 12, 2012
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CFR 240.19b–4.
13JAN1
Federal Register / Vol. 77, No. 9 / Friday, January 13, 2012 / Notices
*
*
*
*
*
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.
mstockstill on DSK4VPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASDAQ proposes 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 its
Customer and Professional Routing Fees
for orders routed to the BATS Exchange,
Inc. (‘‘BATS’’).
The Exchange currently assesses the
following Routing Fees to route orders
to BATS: a Customer is assessed $0.36
per contract; a Firm is assessed $0.55
per contract; a Market Maker is assessed
$0.55 per contract; and a Professional is
assessed $0.48 per contract. The
Exchange proposes to amend the
Customer and Professional Routing Fees
to BATS to $0.50 per contract. The other
BATS Routing Fees for Firms and
Market Makers would remain the same.
Recently, BATS announced that it
would amend its customer and
professional fees to remove liquidity to
$0.44 per contract on January 3, 2012.3
The Exchange is proposing to amend its
Customer and Professional Routing Fees
to BATS to $0.50 per contract to recoup
this fee.
In addition, NASDAQ Options
Services LLC (‘‘NOS’’), a member of the
Exchange, is the Exchange’s exclusive
order router. Each time NOS routes to
3 See BATS (BZX) Exchange Fee Schedule. See
also BATS Options Exchange Pricing Update
Effective January 3, 2012 (dated December 15,
2011).
VerDate Mar<15>2010
15:46 Jan 12, 2012
Jkt 226001
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 Customer and
Professional orders are routed to BATS.
The Exchange proposes to recoup the
$0.44 per contract customer and
professional taker fee for option orders
that are routed to BATS along with the
$0.06 clearing fee which is incurred by
the Exchange, as explained herein.
As with all fees, the Exchange may
adjust these Routing Fees in response to
competitive conditions by filing a new
proposed rule change.
2. Statutory Basis
NASDAQ believes that the proposed
rule changes are 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.
The Exchange believes that this fee is
reasonable because it seeks to recoup
costs that are incurred by the Exchange
when routing Customer and
Professional orders to BATS 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 customer and
professional taker fees assessed by
BATS, plus clearing fees for the
execution of Customer and Professional
orders. The Exchange also believes that
the proposed Routing Fee is equitable
and not unfairly discriminatory because
it would be uniformly applied to all
Customers and Professionals.
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 15
5 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(4).
Frm 00078
Fmt 4703
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.6 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
• 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–2012–001 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–2012–001. 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
6 15
Sfmt 4703
2107
E:\FR\FM\13JAN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
13JAN1
2108
Federal Register / Vol. 77, No. 9 / Friday, January 13, 2012 / Notices
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–2012–001 and should be
submitted on or before February 3, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–529 Filed 1–12–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66120; File No. SR–BATS–
2011–053]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Fees for Use
of BATS Exchange, Inc.
mstockstill on DSK4VPTVN1PROD with NOTICES
January 9, 2012.
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 December
30, 2011, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) 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 the Exchange. The
Exchange has designated the proposed
rule change as one establishing or
changing a member due, fee, or other
charge imposed by the Exchange under
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposed rule change
effective upon filing with the
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
15:46 Jan 12, 2012
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes [sic] amend
the fee schedule applicable to
Members 5 and non-members of the
Exchange pursuant to BATS Rules
15.1(a) and (c). While changes to the fee
schedule pursuant to this proposal will
be effective upon filing, the changes will
become operative on January 3, 2012.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.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
The Exchange proposes to modify the
‘‘Options Pricing’’ section of its fee
schedule to: (i) Adopt the ‘‘Grow with
Us’’ pricing program, which will
provide Members with some of the
benefits of the Exchange’s tiered pricing
structure to the extent such Members
are increasing their activity on the
Exchange’s options platform (‘‘BATS
Options’’) month over month; (ii)
modify the fees charged by the
Exchange to remove liquidity from
BATS Options; (iii) modify the rebates
provided by the Exchange for
Customer 6 orders that add liquidity to
BATS Options; (iv) modify the NBBO
Setter Program, which is a program
5 A Member is any registered broker or dealer that
has been admitted to membership in the Exchange.
6 As defined on the Exchange’s fee schedule, a
‘‘Customer’’ order is any transaction identified by
a Member for clearing in the Customer range at the
Options Clearing Corporation (‘‘OCC’’).
7 17
VerDate Mar<15>2010
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
Jkt 226001
PO 00000
Frm 00079
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intended to incentivize aggressive
quoting on BATS Options; (v) modify
the Quoting Incentive Program, which is
a program intended to incentivize
sustained, aggressive quoting on BATS
Options; and (vi) adopt fees for logical
ports used to access BATS Options for
order entry and receipt of market data.
The Exchange also proposes minor
grammatical changes to conform various
sections of the Exchange’s Options
Pricing section.
(i) Grow With Us Pricing Program
The Exchange currently has volume
tiers in place that provide Members that
satisfy certain volume thresholds with
additional rebates on executions for
which they have added liquidity to the
BATS Options order book and reduced
fees for executions that remove liquidity
from the BATS Options order book.
Further, as described below, the
Exchange is proposing to add certain
additional tiers to its fee schedule. The
Exchange’s tiered pricing structure
includes and will continue to include a
lower tier applicable to Members with
an average daily volume (‘‘ADV’’) 7
equal to or greater than 0.30% of
average total consolidated volume
(‘‘TCV’’) 8 and a second tier applicable
to Members with an ADV equal to or
greater than 1% of average TCV.
Pursuant to the ‘‘Grow with Us’’ pricing
program, the Exchange proposes to
provide a Member with one-half of the
economic benefit such Member would
achieve if such Member were in the next
highest volume tier to the extent such
Member shows a minimum of 5 basis
points TCV improvement over the
Member’s previous highest monthly
TCV on BATS Options, or ‘‘High Water
Mark.’’ The Exchange proposes to define
High Water Mark as the greater of a
Member’s fourth quarter 2011 TCV or a
Member’s best monthly TCV on BATS
Options thereafter. For example, assume
that for the fourth quarter of 2011, a
Member has an ADV of 0.10% of
average TCV. Such Member would not
qualify for volume tier pricing
applicable to Members with an ADV of
0.30% of average TCV. However, if, in
January of 2012, such Member achieves
an average TCV of 0.15% on BATS
Options, such Member will receive onehalf of the economic benefit such
7 As defined on the Exchange’s fee schedule, ADV
is average daily volume calculated as the number
of contracts added or removed, combined, per day
on a monthly basis. The fee schedule also provides
that routed contracts are not included in ADV
calculation.
8 As defined on the Exchange’s fee schedule, TCV
is total consolidated volume calculated as the
volume reported by all exchanges to the
consolidated transaction reporting plan for the
month for which the fees apply.
E:\FR\FM\13JAN1.SGM
13JAN1
]]>Agencies
[Federal Register Volume 77, Number 9 (Friday, January 13, 2012)]
[Notices]
[Pages 2106-2108]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-529]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66121; File No. SR-NASDAQ-2012-001]
Self-Regulatory Organizations; NASDAQ Stock Market LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Routing Fees
January 9, 2012.
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 January 3, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') 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 the 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
The NASDAQ Stock Market LLC 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 italicized 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]50 $0.55 $0.55 $0.[48]50
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 0.24 0.55 0.55 0.26
ETFs, ETNs & HOLDRs.............................
C2............................................... 0.50 0.55 0.55 0.51
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 0.06 0.55 0.55 0.26
Symbols)........................................
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.
[[Page 2107]]
* * * * *
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 proposes 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
its Customer and Professional Routing Fees for orders routed to the
BATS Exchange, Inc. (``BATS'').
The Exchange currently assesses the following Routing Fees to route
orders to BATS: a Customer is assessed $0.36 per contract; a Firm is
assessed $0.55 per contract; a Market Maker is assessed $0.55 per
contract; and a Professional is assessed $0.48 per contract. The
Exchange proposes to amend the Customer and Professional Routing Fees
to BATS to $0.50 per contract. The other BATS Routing Fees for Firms
and Market Makers would remain the same. Recently, BATS announced that
it would amend its customer and professional fees to remove liquidity
to $0.44 per contract on January 3, 2012.\3\ The Exchange is proposing
to amend its Customer and Professional Routing Fees to BATS to $0.50
per contract to recoup this fee.
---------------------------------------------------------------------------
\3\ See BATS (BZX) Exchange Fee Schedule. See also BATS Options
Exchange Pricing Update Effective January 3, 2012 (dated December
15, 2011).
---------------------------------------------------------------------------
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 Customer and Professional orders
are routed to BATS. The Exchange proposes to recoup the $0.44 per
contract customer and professional taker fee for option orders that are
routed to BATS along with the $0.06 clearing fee which is incurred by
the Exchange, as explained herein.
As with all fees, the Exchange may adjust these Routing Fees in
response to competitive conditions by filing a new proposed rule
change.
2. Statutory Basis
NASDAQ believes that the proposed rule changes are 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that this fee is reasonable because it seeks
to recoup costs that are incurred by the Exchange when routing Customer
and Professional orders to BATS 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 customer and professional taker fees assessed
by BATS, plus clearing fees for the execution of Customer and
Professional orders. The Exchange also believes that the proposed
Routing Fee is equitable and not unfairly discriminatory because it
would be uniformly applied to all Customers and Professionals.
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.\6\ 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.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-2012-001 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-2012-001. 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
[[Page 2108]]
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-2012-001 and should
be submitted on or before February 3, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-529 Filed 1-12-12; 8:45 am]
BILLING CODE 8011-01-P
