Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Customer Routing Fees, 21130-21132 [2012-8461]
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21130
Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Notices
of data to consume on the basis of the
total cost of interacting with NASDAQ
or other exchanges. Of course, the
explicit data fees are but one factor in
a total platform analysis. Some
competitors have lower transactions fees
and higher data fees, and others are vice
versa. The market for this Depth-of-Book
information is highly competitive and
continually evolves as products develop
and change.
Additional evidence cited by NYSE
Arca in SR–NYSE Arca–2010–097 17
which was not before the NetCoalition
court also demonstrates that availability
of Depth-of-Book data attracts order
flow and that competition for order flow
can constrain the price of market data:
1. Terrence Hendershott & Charles M.
Jones, Island Goes Dark: Transparence,
Fragmentation, and Regulation, 18
Review of Financial Studies 743 (2005);
2. Charts and Tables referenced in
Exhibit 3B to that filing;
3. PHB Hagler Bailly, Inc., ‘‘Issues
Surrounding Cost-Based Regulation of
Market Data Prices;’’ and
4. PHB Hagler Bailly, Inc., ‘‘The
Economic Perspective on Regulation of
Market Data.’’
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.
pmangrum on DSK3VPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A)(ii) of
the Act,18 NASDAQ has designated this
proposal as establishing or changing a
due, fee, or other charge imposed by the
self-regulatory organization on any
person, whether or not the person is a
member of the self-regulatory
organization, which renders the
proposed rule change effective upon
filing.
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.
17 See Securities Exchange Act Release No. 63291
(Nov. 9, 2010).
18 15 U.S.C. 78s(b)(3)(A)(ii).
VerDate Mar<15>2010
15:11 Apr 06, 2012
Jkt 226001
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–2012–044 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–2012–044. 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–
NASDAQ–2012–044 and should be
submitted on or before April 30, 2012.
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–8462 Filed 4–6–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66719; File No. SR–
NASDAQ–2012–046]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
Customer Routing Fees
April 3, 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 March 28,
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 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 Substance of
the Proposed Rule Change
NASDAQ proposes to modify Chapter
XV, Options Pricing, Section 2, of the
Options Rules portion of the NASDAQ
Rulebook governing pricing for
NASDAQ members using The NASDAQ
Options Market (‘‘NOM’’), NASDAQ’s
facility for executing and routing
standardized equity and index options.
The proposed rule change amends
certain Customer Routing Fees to recoup
costs incurred by the Exchange in
routing to away markets. While changes
proposed herein are effective upon
filing, the Exchange has designated
these changes to be operative on April
2, 2012.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.cchwallstreet.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Notices
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. 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 purpose of this filing is to recoup
costs that the Exchange incurs for
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 ** ..................................................................................
routing and executing certain Customer
orders in equity and index options to
the International Securities Exchange,
LLC (‘‘ISE’’) and to the NASDAQ OMX
PHLX, LLC (‘‘PHLX’’). Chapter XV,
Section 2 currently includes the
following Routing Fees for routing
Customer, Firm, Market Maker and
Professional orders to away markets.
Firm
$0.55
0.11
0.11
MM
$0.55
0.55 0
0.55 0.
0.29
0.55
0.11
0.23
0.55
0.11
0.11
0.11
0.35
0.55 0.55 0.3
0.55
0.55
0.55 0.55 0.39
0.55
0.55
0.55
0.55
0.55 0.55 0.51
Professional
$0.55 $0.55
.55
55
pmangrum on DSK3VPTVN1PROD with NOTICES
*
*
*
*
The Exchange is proposing to amend
the ‘‘ISE Select Symbols’’ 3 Customer
Routing Fee from $0.23 per contract to
$0.31 per contract. ISE recently
amended its ‘‘taker’’ fee for regular, or
non-complex, Priority Customer orders
in the Select Symbols, regardless of size,
from $0.15 per contract to $0.20 per
contract.4 In addition to the ISE taker
fee, the Exchange also incurs other
routing costs which it seeks to recoup.
The Exchange is also proposing to
amend the ‘‘PHLX Select Symbols’’
Customer Routing Fee from $0.35 per
contract to $0.50 per contract. PHLX
recently amended its Single contra-side
Customer Fee for Removing Liquidity
for its Select Symbols from $0.31 per
contract to $0.39 per contract.5 In
addition to the PHLX Single contra-side
Customer Fee for Removing Liquidity
for its Select Symbols, the Exchange
also incurs other routing costs which it
seeks to recoup.
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 ISE’s Schedule of Fees for the complete list
of symbols that are subject to these fees.
4 See ISE’s Schedule of Fees. See also Securities
Exchange Act Release No. 66597 (March 14, 2012),
77 FR 16295 (March 20, 2012) (SR–ISE–2012–17).
5 See Securities Exchange Act Release No. 66367
(February 9, 2012), 77 FR 8934 (February 15, 2012)
(SR–Phlx-2012–15). See also Section I of PHLX’s
Pricing Schedule.
VerDate Mar<15>2010
15:11 Apr 06, 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 currently recoups clearing
and transaction charges incurred by the
Exchange as well as certain other costs
incurred by the Exchange when routing
to away markets, such as administrative
and technical costs associated with
operating NOS; the Exchange’s
membership fees at away markets; and
technical costs associated with routing.6
As with all fees, the Exchange may
adjust these Routing Fees in response to
competitive conditions by filing a new
proposed rule change. While changes to
the Fee Schedule pursuant to this
proposal are effective upon filing, the
Exchange has designated these changes
to be operative on April 2, 2012.
2. Statutory Basis
NASDAQ believes that the proposed
rule changes are consistent with the
6 The Exchange is therefore increasing the ISE
Select Symbols Customer Routing Fee to $0.31 per
contract to account for the $0.20 ISE taker fee, the
$0.06 clearing cost and another $0.05 per contract
associated with administrative and technical costs
associated with operating NOS. It is also increasing
the PHLX Select Symbols Customer Routing Fee to
$0.50 per contract to account for the $0.39 PHLX
Customer Single contra-side Fee for Removing
Liquidity for its Select Symbols, the $0.06 clearing
cost and another $0.05 per contract associated with
with administrative and technical costs associated
with operating NOS.
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
1
0.55 0.55
0.55 0.29
0.55
0.55
0.55
0.55
* These fees are applicable to orders routed to ISE that are subject to Rebates and Fees for Adding and Removing Liquidity in Se
bols. 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
bols. See PHLX’s Fee Schedule for the complete list of symbols that are subject to these fees.
*
0.11
0.31
0.55
0.11
0.31
0.31
lect SymSelect Sym-
provisions of Section 6 of the Act,7 in
general, and with Section 6(b)(4) of the
Act,8 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 orders
to ISE and PHLX 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 would enable
the Exchange to recover the customer
taker fees assessed by ISE and customer
Single contra-side Fee for Removing
Liquidity assessed by PHLX, plus
clearing fees for the execution of
customer orders. The Exchange also
believes that the proposed Routing Fees
are equitable and not unfairly
discriminatory because they would be
uniformly applied to all Customers.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
7 15
8 15
E:\FR\FM\09APN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
09APN1
21132
Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Notices
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.9 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:
pmangrum on DSK3VPTVN1PROD with NOTICES
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–2012–046 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–2012–046. 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/
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 200.30–3(a)(12).
15:11 Apr 06, 2012
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–8461 Filed 4–6–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66729; File No. SR–
NASDAQ–2012–037]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Fees for Newly Listed Indexes
April 3, 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 March 28,
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 NASDAQ. The
Commission is publishing this notice to
1 15
10 17
VerDate Mar<15>2010
rules/sro/shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
will also be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–NASDAQ–
2012–046 and should be submitted on
or before April 30, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to
delegated authority.10
2 17
Jkt 226001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00066
Fmt 4703
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
NASDAQ proposes to modify pricing
for NASDAQ members using the
NASDAQ Options Market (‘‘NOM’’),
NASDAQ’s facility for executing and
routing standardized equity and index
options. Specifically, NASDAQ
proposes to adopt fees for newly listed
indexes and make other minor
amendments to Chapter XV at Section 2
entitled ‘‘NASDAQ Options Market—
Fees.’’
While changes proposed herein are
effective upon filing, the Exchange has
designated these changes to be operative
on April 2, 2012.
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. 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 amend Chapter
XV, Section 2 to adopt fees for the
following newly listed index options:
PHLX Semiconductor SectorSM
(SOXSM), PHLX Housing SectorTM
(HGXSM) and PHLX Oil Service
SectorSM (OSXSM).3
Specifically, the Exchange proposes to
assess the following Fees for Adding
Liquidity and Fees for Removing
Liquidity for transactions in SOX, HGX
and OSX:
3 The Exchange plans on listing these index
options on April 2, 2012.
Sfmt 4703
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09APN1
]]>Agencies
[Federal Register Volume 77, Number 68 (Monday, April 9, 2012)]
[Notices]
[Pages 21130-21132]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8461]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66719; File No. SR-NASDAQ-2012-046]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Customer Routing Fees
April 3, 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 March 28, 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 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 Chapter XV, Options Pricing, Section 2,
of the Options Rules portion of the NASDAQ Rulebook governing pricing
for NASDAQ members using The NASDAQ Options Market (``NOM''), NASDAQ's
facility for executing and routing standardized equity and index
options. The proposed rule change amends certain Customer Routing Fees
to recoup costs incurred by the Exchange in routing to away markets.
While changes proposed herein are effective upon filing, the Exchange
has designated these changes to be operative on April 2, 2012.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.
[[Page 21131]]
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. 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 purpose of this filing is to recoup costs that the Exchange
incurs for routing and executing certain Customer orders in equity and
index options to the International Securities Exchange, LLC (``ISE'')
and to the NASDAQ OMX PHLX, LLC (``PHLX''). Chapter XV, Section 2
currently includes the following Routing Fees for routing Customer,
Firm, Market Maker and Professional orders to away markets.
----------------------------------------------------------------------------------------------------------------
Exchange Customer Firm MM Professional
--------------------------------------------------------------------------------------------------
BATS.............................. $0.55 $0.55 $0.55 $0.55
BOX............................... 0.11 0.55 0.55 0.11
CBOE.............................. 0.11 0.55 0.55 0.31
CBOE orders greater than 99 0.29 0.55 0.55 0.31
contracts in NDX, MNX ETFs, ETNs
& HOLDRs.........................
C2................................ 0.55 0.55 0.55 0.55
ISE............................... 0.11 0.55 0.55 0.29
ISE Select Symbols \*\............ 0.23 0.55 0.55 0.39
NYSE Arca Penny Pilot............. 0.55 0.55 0.55 0.55
NYSE Arca Non Penny Pilot......... 0.11 0.55 0.55 0.11
NYSE AMEX......................... 0.11 0.55 0.55 0.31
PHLX (for all options other than 0.11 0.55 0.55 0.31
PHLX Select Symbols).............
PHLX Select Symbols \**\.......... 0.35 0.55 0.55 0.51
----------------------------------------------------------------------------------------------------------------
* 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 Exchange is proposing to amend the ``ISE Select Symbols'' \3\
Customer Routing Fee from $0.23 per contract to $0.31 per contract. ISE
recently amended its ``taker'' fee for regular, or non-complex,
Priority Customer orders in the Select Symbols, regardless of size,
from $0.15 per contract to $0.20 per contract.\4\ In addition to the
ISE taker fee, the Exchange also incurs other routing costs which it
seeks to recoup.
---------------------------------------------------------------------------
\3\ See ISE's Schedule of Fees for the complete list of symbols
that are subject to these fees.
\4\ See ISE's Schedule of Fees. See also Securities Exchange Act
Release No. 66597 (March 14, 2012), 77 FR 16295 (March 20, 2012)
(SR-ISE-2012-17).
---------------------------------------------------------------------------
The Exchange is also proposing to amend the ``PHLX Select Symbols''
Customer Routing Fee from $0.35 per contract to $0.50 per contract.
PHLX recently amended its Single contra-side Customer Fee for Removing
Liquidity for its Select Symbols from $0.31 per contract to $0.39 per
contract.\5\ In addition to the PHLX Single contra-side Customer Fee
for Removing Liquidity for its Select Symbols, the Exchange also incurs
other routing costs which it seeks to recoup.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 66367 (February 9,
2012), 77 FR 8934 (February 15, 2012) (SR-Phlx-2012-15). See also
Section I of PHLX's Pricing Schedule.
---------------------------------------------------------------------------
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
currently recoups clearing and transaction charges incurred by the
Exchange as well as certain other costs incurred by the Exchange when
routing to away markets, such as administrative and technical costs
associated with operating NOS; the Exchange's membership fees at away
markets; and technical costs associated with routing.\6\
---------------------------------------------------------------------------
\6\ The Exchange is therefore increasing the ISE Select Symbols
Customer Routing Fee to $0.31 per contract to account for the $0.20
ISE taker fee, the $0.06 clearing cost and another $0.05 per
contract associated with administrative and technical costs
associated with operating NOS. It is also increasing the PHLX Select
Symbols Customer Routing Fee to $0.50 per contract to account for
the $0.39 PHLX Customer Single contra-side Fee for Removing
Liquidity for its Select Symbols, the $0.06 clearing cost and
another $0.05 per contract associated with with administrative and
technical costs associated with operating NOS.
---------------------------------------------------------------------------
As with all fees, the Exchange may adjust these Routing Fees in
response to competitive conditions by filing a new proposed rule
change. While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on April 2, 2012.
2. Statutory Basis
NASDAQ believes that the proposed rule changes are consistent with
the provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(4) of the Act,\8\ 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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\7\ 15 U.S.C. 78f.
\8\ 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 orders to ISE and PHLX 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 would enable the
Exchange to recover the customer taker fees assessed by ISE and
customer Single contra-side Fee for Removing Liquidity assessed by
PHLX, plus clearing fees for the execution of customer orders. The
Exchange also believes that the proposed Routing Fees are equitable and
not unfairly discriminatory because they would be uniformly applied to
all Customers.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose
[[Page 21132]]
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.\9\ 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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\9\ 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-2012-046 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-2012-046. 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 such filing will also be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-NASDAQ-2012-046 and should be
submitted on or before April 30, 2012.
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).
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-8461 Filed 4-6-12; 8:45 am]
BILLING CODE 8011-01-P
