Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to BX Options Routing, 42032-42034 [2012-17330]
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42032
Federal Register / Vol. 77, No. 137 / Tuesday, July 17, 2012 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67402; File No. SR–
NASDAQ–2012–080]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to BX
Options Routing
July 11, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on June 28,
2012, the NASDAQ Stock Market LLC
(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the 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 NASDAQ Stock Market LLC
proposes to modify Chapter XV, Section
2, governing pricing for NASDAQ
members using the NASDAQ Options
Market (‘‘NOM’’), NASDAQ’s facility for
executing and routing standardized
equity and index options.
While the changes proposed herein
are effective upon filing, the Exchange
has designated these changes to be
operative on July 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
Exchange
Customer
BATS Penny ....................................................................................................
BOX .................................................................................................................
BATS Non-Penny ............................................................................................
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 ** ...................................................................................
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 orders in
equity options to BX Options.
The Exchange’s Pricing Schedule at
Chapter XV, Section 2(4) currently
includes the following fees for routing
Customer, Professional, Firm, BrokerDealer and Market Maker orders to away
markets.
Firm
MM
Professional
$0.55
0.11
0.86
0.11
$0.55
0.55
0.91
0.55
$0.55
0.55
0.91
0.55
$0.55
0.11
0.91
0.31
0.29
0.55
0.11
0.31
0.55
0.11
0.11
0.11
0.50
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
0.31
0.55
0.29
0.39
0.55
0.11
0.31
0.31
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 Pricing Schedule for the complete list of symbols that are subject to these fees.
The Exchange is proposing to adopt
the following fees when routing to BX
Options:
Customer
Firm
MM
Professional
BX Options .......................................................................................................
tkelley on DSK3SPTVN1PROD with NOTICES
Exchange
$0.11
$0.54
$0.54
$0.54
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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16:53 Jul 16, 2012
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$0.43 per contract to BX Options Market
Makers and Non-Customers which
includes Professionals, Firms, BrokerDealers and Non-BX Options Marker
Makers.4 Customers would not be
assessed a Fee to Remove Liquidity on
BX Options. The Exchange is seeking to
adopt new Routing Fees to account for
these new fees and other routing costs
incurred by the Exchange when routing
to BX Options as of July 2, 2012.
3 See Securities Exchange Act Release No. 67256
(June 26, 2012) (SR–BX–2012–030).
4 See Securities Exchange Act Release No. 34–
67339 (July 3, 2012) (Notice of Filing and
BX Options received approval to
operate a new options market 3 and filed
to adopt various fees and rebates which
would become operative on July 2,
2012. Specifically, BX Options will
assess a Fee to Remove Liquidity of
Immediate Effectiveness of Proposed Rule Change
by NASDAQ OMX BX, Inc. to Adopt Transaction
and Routing Fees). This filing became operative on
July 2, 2012.
PO 00000
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Fmt 4703
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17JYN1
Federal Register / Vol. 77, No. 137 / Tuesday, July 17, 2012 / Notices
Nasdaq Options Services LLC
(‘‘NOS’’), a member of the Exchange, is
the Exchange’s exclusive order router.5
NOS is the Routing Facility for BX
Options. 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 fees 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, membership fees at
away markets, and technical costs
associated with routing.6 The Exchange
would therefore assess Customers $0.11
per contract, Firms would be assessed
$0.54 per contract, Market Makers
would be assessed $0.54 per contract
and Professionals would be assessed
$0.54 per contract.7 The Exchange
proposes to title the new fees ‘‘BX
Options.’’
The Exchange also proposes other
minor amendments to remove the
following sentence from Chapter XV,
Section 2(4): ‘‘The current fees and a
historical record of applicable fees shall
be posted on the NasdaqTrader.com
website.’’ This sentence is not necessary
as all rules are posted on the Exchange’s
Web site. Also, the Exchange is
alphabetically relocating the BOX
Routing Fees.
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 its proposal to
amend its rules is consistent with
Section 6(b) of the Act 8 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 9 in particular, in that it is an
equitable allocation of reasonable fees
tkelley on DSK3SPTVN1PROD with NOTICES
5 See
BX Rules at Chapter VI, Section 11(e) (Order
Routing).
6 In addition to membership fees and transaction
fees, the Exchange also incurs an Options
Regulatory Fee when routing to an away market that
assesses that fee.
7 The Exchange’s proposed Routing Fees for BX
would include the Fees for Removing Liquidity of
$0.43 per contract, a $0.06 clearing cost and another
$0.05 per contract associated with administrative
and technical costs associated with operating NOS,
a total of $0.54 per contract. The Exchange would
only assess a Customer the $0.06 clearing cost and
another $0.05 per contract associated with
administrative and technical costs associated with
operating NOS (a total of $0.11 per contract)
because a Customer is not assessed a Fee for
Removing Liquidity on BX.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
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16:53 Jul 16, 2012
Jkt 226001
and other charges among Exchange
members.
The Exchange believes that the
proposed BX Options Routing Fees are
reasonable because they seek to recoup
costs that are incurred by the Exchange
when routing Customer, Professional,
Firm, Broker-Dealer, Specialist and
Market Maker orders to BX Options on
behalf of members, respectively. Each
destination market’s transaction charge
varies and there is a standard clearing
charge for each transaction incurred by
the Exchange along with other
administrative and technical costs that
are incurred by the Exchange. The
Exchange believes that the proposed
Routing Fees would enable the
Exchange to recover the remove fees
assessed to market participants by BX
Options, plus clearing and other
administrative and technical fees for the
execution of Customer, Professional,
Firm, Broker-Dealer, Specialist and
Market Maker orders when routed to BX
Options. The Exchange also believes
that the proposed BX Options Routing
Fees are equitable and not unfairly
discriminatory because they would be
uniformly applied to all Customer,
Professional, Firm, Broker-Dealer,
Specialist and Market Maker orders that
are routed to BX Options.
The Exchange believes that the
proposed minor amendments to remove
the sentence referring to the Exchange’s
Web site information and the relocation
of BOX Routing Fees are reasonable,
equitable and not unfairly
discriminatory because these
amendments update Chapter XV,
Section 2 of the Rules to remove an
unnecessary sentence and conform the
manner in which the Routing Fees are
displayed.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ 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. In addition, a NOM
Participant may designate an order as
not available for routing to avoid routing
fees.10
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.
PO 00000
10 See
NOM Rules at Chapter VI, Section 11.
Frm 00067
Fmt 4703
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42033
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.11 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–2012–080 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–2012–080. 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
11 15
E:\FR\FM\17JYN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
17JYN1
42034
Federal Register / Vol. 77, No. 137 / Tuesday, July 17, 2012 / Notices
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 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–2012–080 and should be
submitted on or before August 7, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–17330 Filed 7–16–12; 8:45 am]
BILLING CODE 8011–01–P
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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67401; File No. SR–
NYSEArca–2012–68]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the
AdvisorShares Active Bear ETF
July 11, 2012.
tkelley on DSK3SPTVN1PROD with NOTICES
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on June 27,
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 and II
below, which Items have been prepared
by the self-regulatory organization. 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 reflect a
change to the means of achieving the
investment objective applicable to the
AdvisorShares Active Bear ETF (the
‘‘Fund’’). The text of the proposed rule
change is available on the Exchange’s
Web site at www.nyse.com, at the
principal office of the Exchange, and at
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:53 Jul 16, 2012
Jkt 226001
The Commission has approved listing
and trading on the Exchange of shares
(‘‘Shares’’) of the AdvisorShares Active
Bear ETF, a series of AdvisorShares
Trust (the ‘‘Trust’’),4 under NYSE Arca
Equities Rule 8.600, which governs the
listing and trading of Managed Fund
Shares. The Shares are offered by the
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 The investment advisor to
the Fund is AdvisorShares Investments,
LLC (the ‘‘Adviser’’). Ranger Alternative
Management, L.P. is the sub-advisor
(‘‘Sub-Adviser’’) to the Fund and the
portfolio manager. Foreside Fund
Services LLC is the distributor for the
Fund. The Bank of New York Mellon
Corporation is the administrator,
4 See Securities Exchange Act Release No. 63737
(January 19, 2011), 76 FR 4968 (January 27, 2011)
(SR–NYSEArca–2010–107) (‘‘Prior Order’’). See also
Securities Exchange Act Release No. 63447
(December 7, 2010), 75 FR 77681 (December 13,
2010) (SR–NYSEArca–2010–107) (‘‘Prior Notice,’’
and together with the Prior Order, the ‘‘Prior
Release’’).
5 The Trust is registered under the Investment
Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940
Act’’). On September 22, 2010, the Trust filed with
the Commission an amendment to its registration
statement on Form N–1A under the Securities Act
of 1933 (15 U.S.C. 77a) (‘‘1933 Act’’), and under the
1940 Act relating to the Fund (File Nos. 333–
157876 and 811–22110) (the ‘‘Registration
Statement’’). The description of the operation of the
Trust and the Fund herein is based on the
Registration Statement. In addition, the
Commission has issued an order granting certain
exemptive relief to the Trust under the 1940 Act.
See Investment Company Act Release No. 29291
(May 28, 2010) (File No. 812–13677) (‘‘Exemptive
Order’’).
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
custodian, transfer agent and fund
accounting agent for the Fund.
In this proposed rule change, the
Exchange proposes to reflect a change to
the description of the measures the SubAdviser will utilize to implement the
Fund’s investment objective.6 As
reflected in the Prior Release, the Fund’s
investment objective is to seek capital
appreciation through short sales of
domestically traded equity securities.
The Sub-Advisor seeks to achieve the
Fund’s investment objective by short
selling a portfolio of liquid mid- and
large-cap U.S. exchange-traded equity
securities, exchange-traded funds
(‘‘ETFs’’) registered pursuant to the 1940
Act, and exchange-traded products
(‘‘ETPs’’), including exchange-traded
notes (‘‘ETNs’’, and, collectively with
ETFs and ETPs, ‘‘Underlying ETPs’’).7
In contrast to ETFs, ETNs and ETPs are
not registered pursuant to the 1940 Act.
The Exchange seeks to make a change
to representations made by the Adviser
reflected in the Prior Release, as
described below. As stated in the Prior
Notice, the Fund generally targets a
composition of 20 to 50 equity short
positions, with an average individual
position size which generally ranges
between 2–7% of the aggregate portfolio
exposure. Going forward, the Fund
generally will target a composition of 20
to 75 equity short positions, with no
change in the aggregate portfolio
exposure size.
The Adviser represents that the
purpose of this change is to provide
additional flexibility to the Sub-Adviser
to meet the Fund’s investment objective
by providing a limited increase in the
number of equity short positions in the
Fund’s portfolio. Such an increase will
permit the Fund to include a broader
range of market sectors in the mid- and
large-cap equity securities and
Underlying ETPs in which the Fund
invests, and will further the Fund’s
objective to seek capital appreciation.
The Adviser represents that there is
no change to the Fund’s investment
objective. The Fund will continue to
comply with all initial and continued
listing requirements under NYSE Arca
Equities Rule 8.600.
6 The change described herein will be effective
upon filing with the Commission of another
amendment to the Trust’s Registration Statement.
See note 5, supra. The Adviser represents that the
Adviser and Sub-Adviser have managed and will
continue to manage the Fund in the manner
described in the Prior Release, and will not
implement the change described herein until the
instant proposed rule change is operative.
7 The Fund may sell short only equity securities
traded in the U.S. on registered exchanges. The
Fund does not purchase or borrow illiquid
securities or securities registered pursuant to Rule
144A under the 1933 Act.
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]]>Agencies
[Federal Register Volume 77, Number 137 (Tuesday, July 17, 2012)]
[Notices]
[Pages 42032-42034]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-17330]
[[Page 42032]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67402; File No. SR-NASDAQ-2012-080]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to BX Options Routing
July 11, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on June 28, 2012, the NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
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 Chapter XV, Section
2, governing pricing for NASDAQ members using the NASDAQ Options Market
(``NOM''), NASDAQ's facility for executing and routing standardized
equity and index options.
While the changes proposed herein are effective upon filing, the
Exchange has designated these changes to be operative on July 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
The purpose of this filing is to recoup costs that the Exchange
incurs for routing and executing certain orders in equity options to BX
Options.
The Exchange's Pricing Schedule at Chapter XV, Section 2(4)
currently includes the following fees for routing Customer,
Professional, Firm, Broker-Dealer and Market Maker orders to away
markets.
----------------------------------------------------------------------------------------------------------------
Exchange Customer Firm MM Professional
----------------------------------------------------------------------------------------------------------------
BATS Penny...................................... $0.55 $0.55 $0.55 $0.55
BOX............................................. 0.11 0.55 0.55 0.11
BATS Non-Penny.................................. 0.86 0.91 0.91 0.91
CBOE............................................ 0.11 0.55 0.55 0.31
CBOE orders greater than 99 contracts in NDX, 0.29 0.55 0.55 0.31
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 \*\.......................... 0.31 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 PHLX Select 0.11 0.55 0.55 0.31
Symbols).......................................
PHLX Select Symbols \**\........................ 0.50 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 Pricing Schedule for the complete list of symbols that are
subject to these fees.
The Exchange is proposing to adopt the following fees when routing
to BX Options:
----------------------------------------------------------------------------------------------------------------
Exchange Customer Firm MM Professional
----------------------------------------------------------------------------------------------------------------
BX Options.................................. $0.11 $0.54 $0.54 $0.54
----------------------------------------------------------------------------------------------------------------
BX Options received approval to operate a new options market \3\
and filed to adopt various fees and rebates which would become
operative on July 2, 2012. Specifically, BX Options will assess a Fee
to Remove Liquidity of $0.43 per contract to BX Options Market Makers
and Non-Customers which includes Professionals, Firms, Broker-Dealers
and Non-BX Options Marker Makers.\4\ Customers would not be assessed a
Fee to Remove Liquidity on BX Options. The Exchange is seeking to adopt
new Routing Fees to account for these new fees and other routing costs
incurred by the Exchange when routing to BX Options as of July 2, 2012.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 67256 (June 26,
2012) (SR-BX-2012-030).
\4\ See Securities Exchange Act Release No. 34-67339 (July 3,
2012) (Notice of Filing and Immediate Effectiveness of Proposed Rule
Change by NASDAQ OMX BX, Inc. to Adopt Transaction and Routing
Fees). This filing became operative on July 2, 2012.
---------------------------------------------------------------------------
[[Page 42033]]
Nasdaq Options Services LLC (``NOS''), a member of the Exchange, is
the Exchange's exclusive order router.\5\ NOS is the Routing Facility
for BX Options. 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 fees 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,
membership fees at away markets, and technical costs associated with
routing.\6\ The Exchange would therefore assess Customers $0.11 per
contract, Firms would be assessed $0.54 per contract, Market Makers
would be assessed $0.54 per contract and Professionals would be
assessed $0.54 per contract.\7\ The Exchange proposes to title the new
fees ``BX Options.''
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\5\ See BX Rules at Chapter VI, Section 11(e) (Order Routing).
\6\ In addition to membership fees and transaction fees, the
Exchange also incurs an Options Regulatory Fee when routing to an
away market that assesses that fee.
\7\ The Exchange's proposed Routing Fees for BX would include
the Fees for Removing Liquidity of $0.43 per contract, a $0.06
clearing cost and another $0.05 per contract associated with
administrative and technical costs associated with operating NOS, a
total of $0.54 per contract. The Exchange would only assess a
Customer the $0.06 clearing cost and another $0.05 per contract
associated with administrative and technical costs associated with
operating NOS (a total of $0.11 per contract) because a Customer is
not assessed a Fee for Removing Liquidity on BX.
---------------------------------------------------------------------------
The Exchange also proposes other minor amendments to remove the
following sentence from Chapter XV, Section 2(4): ``The current fees
and a historical record of applicable fees shall be posted on the
NasdaqTrader.com website.'' This sentence is not necessary as all rules
are posted on the Exchange's Web site. Also, the Exchange is
alphabetically relocating the BOX Routing Fees.
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 its proposal to amend its rules is consistent
with Section 6(b) of the Act \8\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \9\ in particular, in that it
is an equitable allocation of reasonable fees and other charges among
Exchange members.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed BX Options Routing Fees are
reasonable because they seek to recoup costs that are incurred by the
Exchange when routing Customer, Professional, Firm, Broker-Dealer,
Specialist and Market Maker orders to BX Options on behalf of members,
respectively. Each destination market's transaction charge varies and
there is a standard clearing charge for each transaction incurred by
the Exchange along with other administrative and technical costs that
are incurred by the Exchange. The Exchange believes that the proposed
Routing Fees would enable the Exchange to recover the remove fees
assessed to market participants by BX Options, plus clearing and other
administrative and technical fees for the execution of Customer,
Professional, Firm, Broker-Dealer, Specialist and Market Maker orders
when routed to BX Options. The Exchange also believes that the proposed
BX Options Routing Fees are equitable and not unfairly discriminatory
because they would be uniformly applied to all Customer, Professional,
Firm, Broker-Dealer, Specialist and Market Maker orders that are routed
to BX Options.
The Exchange believes that the proposed minor amendments to remove
the sentence referring to the Exchange's Web site information and the
relocation of BOX Routing Fees are reasonable, equitable and not
unfairly discriminatory because these amendments update Chapter XV,
Section 2 of the Rules to remove an unnecessary sentence and conform
the manner in which the Routing Fees are displayed.
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ 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. In addition, a NOM Participant may
designate an order as not available for routing to avoid routing
fees.\10\
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\10\ See NOM Rules at Chapter VI, Section 11.
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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.\11\ 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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\11\ 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-2012-080 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-2012-080. 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
[[Page 42034]]
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 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-2012-080 and should
be submitted on or before August 7, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-17330 Filed 7-16-12; 8:45 am]
BILLING CODE 8011-01-P
