Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to SQF and BONO Port Fees and Account Fees, 25216-25218 [2012-10160]
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25216
Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
CME has not solicited and does not
intend to solicit comments regarding
this proposed rule change. CME has not
received any unsolicited written
comments from interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change was filed
pursuant to Section 19(b)(3)(A) of the
Act and paragraph (f)(1) of Rule 19b–4
thereunder and therefore became
effective on filing. At any time within
sixty days of the filing of such 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
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 may be
submitted by using 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 No. SR–CME–2012–
12 on the subject line.
• Paper comments should be sent 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–CME–2012–12. 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
17:44 Apr 26, 2012
Jkt 226001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–10159 Filed 4–26–12; 8:45 am]
BILLING CODE 8011–01–P
IV. Solicitation of Comments
VerDate Mar<15>2010
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
also will be available for inspection and
copying at the principal office of CME
and on CME’s Web site at https://
www.cmegroup.com/market-regulation/
files/SEC_19b-4_12-12.pdf. 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–CME–2012–12 and should
be submitted on or before May 18, 2012.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66848; File No. SR–
NASDAQ–2012–052]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
SQF and BONO Port Fees and Account
Fees
April 23, 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 April 18,
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
The Exchange proposes to modify
Chapter XV, Options Pricing, Section 3,
as well as to add an account fee
(‘‘Account Fee’’) via Section 9, of the
Options Rules portion of the NASDAQ
5 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
Rulebook governing pricing for
NASDAQ members using The NASDAQ
Options Market (‘‘NOM’’), NASDAQ’s
facility for executing and routing
standardized equity and index options.
While fee changes pursuant to this
proposal are effective upon filing, the
Exchange has designated these changes
to be operative on May 1, 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 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 purpose of this filing is to recoup
some of the costs associated with SQF
and BONO ports, as well as to assess a
new fee to recoup some of the monthly
billing and processing costs associated
with participant accounts.
With respect to the proposed SQF
port fee (‘‘SQF Port Fee’’), initially for
which there was no charge,3 the
Exchange believes that it is now
reasonable to assess the proposed fee
because the Exchange is no longer
seeking to specifically incentivize
market makers to connect to NOM 2.0.
Additionally, the proposed SQF Port
Fee is less than the range of port fees
that are assessed today by NOM,4 as
well as within the range of Port Fees
currently charged by NASDAQ OMX
PHLX LLC (‘‘PHLX’’).5
3 See Securities Exchange Act Release No. 65180
(August 22, 2011), 76 FR 53521 (August 26, 2011)
(SR–NASDAQ–2011–111).
4 See Chapter XV, Options Pricing, Section 3(b) of
the Options Rules portion of the NASDAQ
Rulebook.
5 See NASDAQ OMX PHLX LLC Pricing
Schedule, Section VII B (Port Fees).
E:\FR\FM\27APN1.SGM
27APN1
Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
With respect to the BONO 6 port fee
(‘‘BONO Port Fee’’), initially for which
there was no charge, this port fee is
priced identically to the fee currently
being charged for the NASDAQ ITCH to
Trade Options (‘‘ITTO’’) 7 port, which is
the other market data port. The increase
will assist the Exchange in recouping
costs associated with maintaining the
BONO port.
The Exchange also proposes to assess
a monthly $50 Account Fee for each
member account, which would allow
the Exchange to recoup costs associated
with monthly billing and processing.
The Account Fee would cover any
month, or any part of a month, during
which an account is maintained by a
member. The proposed rule change
would also encourage members to
discontinue holding trading accounts,
which the Exchange believes should, in
turn, eliminate the need to expend
resources to create additional account
fields. As a result, the staff time
allocated to maintaining account
records would be reduced, which would
allow for a more efficient use of staff
resources. The proposed Account Fee is
substantially similar to the monthly
account fee that the PHLX currently
charges.8
Members currently have the option to
request an unlimited number of trading
accounts through the Exchange’s
Membership Department. In many
instances, multiple accounts are
assigned at the member’s request to
allow them to track their own activity
using the Exchange’s account numbers.9
Often, however, accounts are not
released back to the Exchange when
they are no longer required by the
member or when a member may have
requested more accounts than needed.
This practice limits the number of
available accounts and adds to
increased staff time to maintain accurate
records of active accounts and the
retiring of inactive accounts.
While fee changes pursuant to this
proposal are effective upon filing, the
Exchange has designated these changes
to be operative on May 1, 2012.
6 BONO is an option feed designed to provide the
NASDAQ Best Bid and Offer and last sale
information directly to NOM participant firms.
7 ITTO is designed to provide full quote and order
depth using the standard ITCH format. ITTO uses
a series of messages to track the life of a quote or
order through the NOM. ITTO supports NOM last
sale data as well as Net Order Imbalance data for
the opening auction.
8 See PHLX Pricing Schedule, Section VI A
(Membership Fees).
9 The proposed rule change does not limit the
number of accounts a member organization may
request.
VerDate Mar<15>2010
17:44 Apr 26, 2012
Jkt 226001
2. Statutory Basis
NASDAQ believes that its proposal to
amend its schedule of fees is consistent
with Section 6(b) of the Act 10 in
general, and furthers the objectives of
Section 6(b)(4) of the Act 11 in
particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members and
other persons using any facility or
system which NASDAQ operates or
controls.
The Exchange believes that the new
SQF and BONO Port Fees (collectively,
the ‘‘Port Fees’’) are reasonable because
each will assist in recouping costs
incurred by the Exchange for
connectivity to NOM. Additionally, the
proposed SQF Port Fee is reasonable
because the fee is lower than the range
of port fees that are assessed today by
NOM, as well as within the range of port
fees currently charged by PHLX.12 The
BONO Port Fee is reasonable because it
is the same as the fee currently being
charged for ITTO, which is the other
market data port. The Exchange believes
that the Port Fees, for which the
Exchange will assess NOM participants
as of May 1, 2012, are equitable and not
unfairly discriminatory because they are
uniformly applied to all NOM
participants that utilize these ports.
The Exchange also believes that the
Account Fee is reasonable because it
seeks to recoup costs incurred by the
Exchange. Further, the Exchange is
seeking to incentivize members to
discontinue such inactive trading
accounts. The Exchange also believes
that the proposed Account Fee is
equitable and not unfairly
discriminatory because it would be
uniformly applied to all members.
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
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
12 Supra note 4.
19(b)(3)(A)(ii) of the Act 13 and
paragraph (f)(2) of Rule 19b–4 14
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–2012–052 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–2012–052. 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
10 15
11 15
PO 00000
Frm 00097
Fmt 4703
13 15
14 17
Sfmt 4703
25217
E:\FR\FM\27APN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
27APN1
25218
Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Notices
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–2012–052 and should be
submitted on or before May 18, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–10160 Filed 4–26–12; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66846; File No. SR–
NYSEArca–2012–34]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To List and Trade the
Huntington US Equity Rotation
Strategy ETF and Huntington
EcoLogical Strategy ETF Under NYSE
Arca Equities Rule 8.600
April 23, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule
19b–4 thereunder,2 notice is hereby
given that, on April 12, 2012, NYSE
Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’)
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 substantially prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
mstockstill on DSK4VPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to list and
trade the following under NYSE Arca
Equities Rule 8.600 (‘‘Managed Fund
Shares’’): Huntington US Equity
Rotation Strategy ETF and Huntington
EcoLogical Strategy ETF. The text of the
proposed rule change is available at the
Exchange, www.nyse.com, and the
Commission’s Public Reference Room.
15 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
17:44 Apr 26, 2012
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, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1. Purpose
The Exchange proposes to list and
trade shares (‘‘Shares’’) of the following
under NYSE Arca Equities Rule 8.600,
which governs the listing and trading of
Managed Fund Shares: 3 Huntington US
Equity Rotation Strategy ETF and
Huntington EcoLogical Strategy ETF
(each, a ‘‘Fund’’ and collectively,
‘‘Funds’’).4 The Funds will be actively
managed exchange-traded funds
(‘‘ETFs’’). The Shares of each Fund will
be offered by Huntington Strategy
Shares (‘‘Trust’’), a statutory trust
organized under the laws of the State of
Delaware and registered with the
Commission as an open-end
management investment company.5
3 A Managed Fund Share is a security that
represents an interest in an investment company
registered under the Investment Company Act of
1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as
an open-end investment company or similar entity
that invests in a portfolio of securities selected by
its investment adviser consistent with its
investment objectives and policies. In contrast, an
open-end investment company that issues
Investment Company Units, listed and traded on
the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that
correspond generally to the price and yield
performance of a specific foreign or domestic stock
index, fixed income securities index, or
combination thereof.
4 The Commission has approved listing and
trading on the Exchange of a number of actively
managed funds under NYSE Arca Equities Rule
8.600. See, e.g., Securities Exchange Act Release
Nos. 57801 (May 8, 2008), 73 FR 27878 (May 14,
2008) (SR–NYSEArca-2008–31) (order approving
Exchange listing and trading of twelve actively
managed funds of the WisdomTree Trust); 65468
(October 3, 2011), 76 FR 62873 (October 11, 2011)
(SR–NYSEArca–2011–51) (order approving listing
and trading of TrimTabs Float Shrink ETF); 63076
(October 12, 2010), 75 FR 63874 (October 18, 2010)
(SR–NYSEArca–2010–79) (order approving listing
of Cambria Global Tactical ETF).
5 The Trust is registered under the 1940 Act. On
April 6, 2012, the Trust filed with the Commission
an amendment to the Trust’s Registration Statement
on Form N–1A under the Securities Act of 1933 (15
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
Huntington Asset Advisors, Inc.
(‘‘Adviser’’) is the investment adviser of
each Fund and manages the investment
portfolios of the Funds. SEI Investments
Distribution Co. (‘‘Distributor’’) is the
principal underwriter and distributor of
the Funds’ Shares. Citibank, N.A. is the
custodian (‘‘Custodian’’) for the Funds.
Commentary .06 to Rule 8.600
provides that, if the investment adviser
to the investment company issuing
Managed Fund Shares is affiliated with
a broker-dealer, such investment adviser
shall erect a ‘‘fire wall’’ between the
investment adviser and the brokerdealer with respect to access to
information concerning the composition
and/or changes to such investment
company portfolio. In addition,
Commentary .06 further requires that
personnel who make decisions on the
open-end fund’s portfolio composition
must be subject to procedures designed
to prevent the use and dissemination of
material non-public information
regarding the open-end fund’s
portfolio.6 Commentary .06 to Rule
8.600 is similar to Commentary .03(a)(i)
and (iii) to NYSE Arca Equities Rule
5.2(j)(3); however, Commentary .06 in
U.S.C. 77a) and under the 1940 Act relating to the
Funds (File Nos. 333–170750 and 811–22497)
(‘‘Registration Statement’’). The description of the
operation of the Trust and the Funds herein is
based, in part, on the Registration Statement. As of
the date of this filing, the Trust has also filed an
Amended and Restated Application for an Order
under Section 6(c) of the 1940 Act for exemptions
from various provisions of the 1940 Act and rules
thereunder (File No. 812–13785), dated April 3,
2012 (‘‘Exemptive Application’’). See Investment
Company Act Release No. 30032 (April 10, 2012).
The Shares will not be listed on the Exchange until
an order (‘‘Exemptive Order’’) under the 1940 Act
has been issued by the Commission with respect to
the Exemptive Application. Investments made by
the Funds will comply with the conditions set forth
in the Exemptive Order.
6 An investment adviser to an open-end fund is
required to be registered under the Investment
Advisers Act of 1940 (‘‘Advisers Act’’). As a result,
the Adviser and its related personnel are subject to
the provisions of Rule 204A–1 under the Advisers
Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that
reflects the fiduciary nature of the relationship to
clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed
to prevent the communication and misuse of nonpublic information by an investment adviser must
be consistent with Rule 204A–1 under the Advisers
Act. In addition, Rule 206(4)–7 under the Advisers
Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such
investment adviser has (i) adopted and
implemented written policies and procedures
reasonably designed to prevent violation, by the
investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted
thereunder; (ii) implemented, at a minimum, an
annual review regarding the adequacy of the
policies and procedures established pursuant to
subparagraph (i) above and the effectiveness of their
implementation; and (iii) designated an individual
(who is a supervised person) responsible for
administering the policies and procedures adopted
under subparagraph (i) above.
E:\FR\FM\27APN1.SGM
27APN1
]]>Agencies
[Federal Register Volume 77, Number 82 (Friday, April 27, 2012)]
[Notices]
[Pages 25216-25218]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-10160]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66848; File No. SR-NASDAQ-2012-052]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to SQF and BONO Port Fees and Account Fees
April 23, 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 April 18, 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
The Exchange proposes to modify Chapter XV, Options Pricing,
Section 3, as well as to add an account fee (``Account Fee'') via
Section 9, 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.
While fee changes pursuant to this proposal are effective upon
filing, the Exchange has designated these changes to be operative on
May 1, 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 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 purpose of this filing is to recoup some of the costs
associated with SQF and BONO ports, as well as to assess a new fee to
recoup some of the monthly billing and processing costs associated with
participant accounts.
With respect to the proposed SQF port fee (``SQF Port Fee''),
initially for which there was no charge,\3\ the Exchange believes that
it is now reasonable to assess the proposed fee because the Exchange is
no longer seeking to specifically incentivize market makers to connect
to NOM 2.0. Additionally, the proposed SQF Port Fee is less than the
range of port fees that are assessed today by NOM,\4\ as well as within
the range of Port Fees currently charged by NASDAQ OMX PHLX LLC
(``PHLX'').\5\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 65180 (August 22,
2011), 76 FR 53521 (August 26, 2011) (SR-NASDAQ-2011-111).
\4\ See Chapter XV, Options Pricing, Section 3(b) of the Options
Rules portion of the NASDAQ Rulebook.
\5\ See NASDAQ OMX PHLX LLC Pricing Schedule, Section VII B
(Port Fees).
---------------------------------------------------------------------------
[[Page 25217]]
With respect to the BONO \6\ port fee (``BONO Port Fee''),
initially for which there was no charge, this port fee is priced
identically to the fee currently being charged for the NASDAQ ITCH to
Trade Options (``ITTO'') \7\ port, which is the other market data port.
The increase will assist the Exchange in recouping costs associated
with maintaining the BONO port.
---------------------------------------------------------------------------
\6\ BONO is an option feed designed to provide the NASDAQ Best
Bid and Offer and last sale information directly to NOM participant
firms.
\7\ ITTO is designed to provide full quote and order depth using
the standard ITCH format. ITTO uses a series of messages to track
the life of a quote or order through the NOM. ITTO supports NOM last
sale data as well as Net Order Imbalance data for the opening
auction.
---------------------------------------------------------------------------
The Exchange also proposes to assess a monthly $50 Account Fee for
each member account, which would allow the Exchange to recoup costs
associated with monthly billing and processing. The Account Fee would
cover any month, or any part of a month, during which an account is
maintained by a member. The proposed rule change would also encourage
members to discontinue holding trading accounts, which the Exchange
believes should, in turn, eliminate the need to expend resources to
create additional account fields. As a result, the staff time allocated
to maintaining account records would be reduced, which would allow for
a more efficient use of staff resources. The proposed Account Fee is
substantially similar to the monthly account fee that the PHLX
currently charges.\8\
---------------------------------------------------------------------------
\8\ See PHLX Pricing Schedule, Section VI A (Membership Fees).
---------------------------------------------------------------------------
Members currently have the option to request an unlimited number of
trading accounts through the Exchange's Membership Department. In many
instances, multiple accounts are assigned at the member's request to
allow them to track their own activity using the Exchange's account
numbers.\9\ Often, however, accounts are not released back to the
Exchange when they are no longer required by the member or when a
member may have requested more accounts than needed. This practice
limits the number of available accounts and adds to increased staff
time to maintain accurate records of active accounts and the retiring
of inactive accounts.
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\9\ The proposed rule change does not limit the number of
accounts a member organization may request.
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While fee changes pursuant to this proposal are effective upon
filing, the Exchange has designated these changes to be operative on
May 1, 2012.
2. Statutory Basis
NASDAQ believes that its proposal to amend its schedule of fees is
consistent with Section 6(b) of the Act \10\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \11\ in particular, in
that it is an equitable allocation of reasonable fees and other charges
among Exchange members and other persons using any facility or system
which NASDAQ operates or controls.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the new SQF and BONO Port Fees
(collectively, the ``Port Fees'') are reasonable because each will
assist in recouping costs incurred by the Exchange for connectivity to
NOM. Additionally, the proposed SQF Port Fee is reasonable because the
fee is lower than the range of port fees that are assessed today by
NOM, as well as within the range of port fees currently charged by
PHLX.\12\ The BONO Port Fee is reasonable because it is the same as the
fee currently being charged for ITTO, which is the other market data
port. The Exchange believes that the Port Fees, for which the Exchange
will assess NOM participants as of May 1, 2012, are equitable and not
unfairly discriminatory because they are uniformly applied to all NOM
participants that utilize these ports.
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\12\ Supra note 4.
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The Exchange also believes that the Account Fee is reasonable
because it seeks to recoup costs incurred by the Exchange. Further, the
Exchange is seeking to incentivize members to discontinue such inactive
trading accounts. The Exchange also believes that the proposed Account
Fee is equitable and not unfairly discriminatory because it would be
uniformly applied to all members.
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 \13\ and paragraph (f)(2) of Rule 19b-4 \14\
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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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 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-2012-052 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-2012-052. 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
[[Page 25218]]
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-2012-052 and should be submitted
on or before May 18, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-10160 Filed 4-26-12; 8:45 am]
BILLING CODE 8011-01-P
