Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Fees, 68877-68879 [2012-27924]
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Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Notices
participant might have a long position
in a call series with a strike price of
$100 and the underlying stock might
now be trading at $30. In such an
instance, there might not otherwise be a
market for that person to close-out its
position even at the $1 cabinet price
(e.g., the series might be quoted no bid).
The Exchange hereby seeks to extend
the pilot period for such $1 cabinet
trading until June 1, 2013. The
Exchange seeks this extension to allow
the procedures to continue without
interruption.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,11
in general, and with Section 6(b)(5) of
the Act,12 in particular, in that the
proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Specifically, the Exchange believes that
allowing for liquidations at a price less
than $1 per option contract pursuant to
the pilot program will better facilitate
the closing of options positions that are
worthless or not actively trading,
especially in Penny Pilot issues where
cabinet trades are not otherwise
permitted. The Exchange believes the
extension is of sufficient length to allow
the Commission to assess the impact of
the Exchange’s authority to allow
transactions to take place in open outcry
at a price of at least $0 but less than $1
per option in accordance with its
attendant obligations and conditions.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
mstockstill on DSK4VPTVN1PROD with NOTICES
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change is effective
upon filing pursuant to Section
19(b)(3)(A) of the Act 13 and paragraph
(f)(6) of Rule 19b-4 thereunder,14 in that
the proposed rule change: (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest; provided the selfregulatory organization has given the
Commission written notice of its intent
to file the proposed rule change, along
with a brief description and text of the
proposed rule change, at least five
business days prior to the date of filing
of the proposed rule change, or such
shorter time as designated by the
Commission.15
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–Phlx–2012–131 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.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
15 The Exchange has fulfilled this requirement.
All submissions should refer to File
Number SR–Phlx–2012–131. 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
10:00 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–Phlx–
2012–131 and should be submitted on
or before December 7, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27870 Filed 11–15–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68187; File No. SR–
NASDAQ–2012–125]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees
November 8, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4thereunder,2
notice is hereby given that on October
31, 2012, The NASDAQ Stock Market
13 15
U.S.C. 78f.
12 15 U.S.C. 78f(b)(5).
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14 17
11 15
1 15
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Frm 00147
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68877
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
E:\FR\FM\16NON1.SGM
16NON1
68878
Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Notices
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 NASDAQ. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.
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
changes pursuant to this proposal are
effective upon filing, the Exchange has
designated the proposed amendment to
be operative on November 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. The text of
these statements may be examined at
the places specified in Item IV below.
The purpose of this filing is to recoup
costs that the Exchange incurs for
routing and executing certain orders in
equity options to the International
Securities Exchange, LLC (‘‘ISE’’).
The Exchange’s Pricing Schedule at
Chapter XV, Section 2(4) currently
includes the following fees for routing
Customer, Firm, Market Maker and
Professional orders to away markets:
Exchange
Customer
BATS Penny ....................................................................................................
BATS non-Penny .............................................................................................
BOX .................................................................................................................
BX Options .......................................................................................................
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 ** ..................................................................................
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Firm
MM
Professional
$0.55
0.86
0.11
0.11
0.11
$0.55
0.91
0.55
0.54
0.55
$0.55
0.91
0.55
0.54
0.55
$0.55
0.91
0.11
0.54
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.
mstockstill on DSK4VPTVN1PROD with NOTICES
The Exchange is proposing to amend
the ISE Select Symbol Customer Routing
Fee from $0.31 to $0.35 per contract
when routing Select Symbols to ISE. ISE
amended its fee for removing liquidity
for Priority Customer orders from $0.20
to $0.25 per contract.3 The Exchange is
seeking to amend the Customer Routing
Fee for ISE Select Symbols to recoup the
fee increase when routing to ISE.
Nasdaq Options Services LLC
(‘‘NOS’’), a member of the Exchange, is
the Exchange’s exclusive order router.4
NOS is the Routing Facility for NOM.
Each time NOS routes to away markets
NOS is charged a clearing fee 5 and, in
3 See Securities Exchange Act Release No. 67628
(August 9. 2012), 77 FR 49049 (August 15, 2012)
(SR–ISE–2012–71).
4 See NASDAQ Rules at Chapter VI, Section 11(e)
(Order Routing).
5 The Options Clearing Corporation (‘‘OCC’’)
recently amended its clearing fee to $0.01 per
contract side. See Securities Exchange Act Release
No. 68025 (October 10, 2012), 77 FR 63398 (October
16, 2012) (SR–OCC–2012–18).
VerDate Mar<15>2010
15:43 Nov 15, 2012
Jkt 229001
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
is proposing to assess a fixed fee of
$0.10 per contract in addition to the
actual transaction fee of $0.25 per
contract which is assessed by ISE when
6 The Exchange incurs costly connectivity charges
related to telecommunication lines and other
related costs when routing orders. Also, 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.
PO 00000
Frm 00148
Fmt 4703
Sfmt 4703
routing a Customer order in a Select
Symbol for a total of $0.35 per contract.
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 7 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 8 in particular, in that it is an
equitable allocation of reasonable fees
and other charges among Exchange
members.
The Exchange believes that the
proposed Customer ISE Select Symbols
Routing Fee is reasonable because the
Exchange seeks to recoup costs incurred
by the Exchange when routing Customer
orders to ISE in Select Symbols on
behalf of NOM Options Participants.
7 15
8 15
E:\FR\FM\16NON1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
16NON1
Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Notices
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
Customer Routing Fee would enable the
Exchange to recover the remove fee
assessed to NOM Options Participants
by ISE in Select Symbols, plus clearing
and other administrative and technical
fees for the execution of certain
Customer orders routed to ISE. The
Exchange also believes that the
proposed Customer Routing Fee is
equitable and not unfairly
discriminatory because the Exchange
would assess the ISE Select Symbol
Customer Routing Fee uniformly to all
Customer orders that are routed to ISE.
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
Options Participant may designate an
order as not available for routing to
avoid routing fees.9
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.
mstockstill on DSK4VPTVN1PROD with NOTICES
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.10 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–2012–125 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68188; File No. SR–BX–
2012–071]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees
November 8, 2012.
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–2012–125. 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 20549–1090, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at NASDAQ’s
principal office and on its Internet Web
site. 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–2012–125, and
should be submitted on or before
December 7, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27924 Filed 11–15–12; 8:45 am]
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 October
31, 2012, NASDAQ OMX BX, Inc. (‘‘BX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Chapter XV, Section 2 entitled ‘‘BX
Options Market—Fees and Rebates.’’
Specifically, the Exchange proposes to
amend a Customer fee for routing
options to the International Securities
Exchange, LLC (‘‘ISE’’). While changes
pursuant to this proposal are effective
upon filing, the Exchange has
designated the proposed amendment to
be operative on November 1, 2012.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nasdaqtrader.com/
micro.aspx?id=BXRulefilings, 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.
BILLING CODE 8011–01–P
NOM Rules at Chapter VI, Section 11.
10 15 U.S.C. 78s(b)(3)(A)(ii).
9 See
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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]]>Agencies
[Federal Register Volume 77, Number 222 (Friday, November 16, 2012)]
[Notices]
[Pages 68877-68879]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27924]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68187; File No. SR-NASDAQ-2012-125]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Routing Fees
November 8, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4thereunder,\2\ notice is hereby given that
on October 31, 2012, The NASDAQ Stock Market
[[Page 68878]]
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 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 changes pursuant to this proposal are
effective upon filing, the Exchange has designated the proposed
amendment to be operative on November 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. 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
the International Securities Exchange, LLC (``ISE'').
The Exchange's Pricing Schedule at Chapter XV, Section 2(4)
currently includes the following fees for routing Customer, Firm,
Market Maker and Professional orders to away markets:
----------------------------------------------------------------------------------------------------------------
Exchange Customer Firm MM Professional
----------------------------------------------------------------------------------------------------------------
BATS Penny...................................... $0.55 $0.55 $0.55 $0.55
BATS non-Penny.................................. 0.86 0.91 0.91 0.91
BOX............................................. 0.11 0.55 0.55 0.11
BX Options...................................... 0.11 0.54 0.54 0.54
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 amend the ISE Select Symbol Customer
Routing Fee from $0.31 to $0.35 per contract when routing Select
Symbols to ISE. ISE amended its fee for removing liquidity for Priority
Customer orders from $0.20 to $0.25 per contract.\3\ The Exchange is
seeking to amend the Customer Routing Fee for ISE Select Symbols to
recoup the fee increase when routing to ISE.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 67628 (August 9.
2012), 77 FR 49049 (August 15, 2012) (SR-ISE-2012-71).
---------------------------------------------------------------------------
Nasdaq Options Services LLC (``NOS''), a member of the Exchange, is
the Exchange's exclusive order router.\4\ NOS is the Routing Facility
for NOM. Each time NOS routes to away markets NOS is charged a clearing
fee \5\ 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 is proposing to assess a fixed fee of $0.10
per contract in addition to the actual transaction fee of $0.25 per
contract which is assessed by ISE when routing a Customer order in a
Select Symbol for a total of $0.35 per contract.
---------------------------------------------------------------------------
\4\ See NASDAQ Rules at Chapter VI, Section 11(e) (Order
Routing).
\5\ The Options Clearing Corporation (``OCC'') recently amended
its clearing fee to $0.01 per contract side. See Securities Exchange
Act Release No. 68025 (October 10, 2012), 77 FR 63398 (October 16,
2012) (SR-OCC-2012-18).
\6\ The Exchange incurs costly connectivity charges related to
telecommunication lines and other related costs when routing orders.
Also, 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.
---------------------------------------------------------------------------
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 \7\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \8\ in particular, in that it
is an equitable allocation of reasonable fees and other charges among
Exchange members.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed Customer ISE Select Symbols
Routing Fee is reasonable because the Exchange seeks to recoup costs
incurred by the Exchange when routing Customer orders to ISE in Select
Symbols on behalf of NOM Options Participants.
[[Page 68879]]
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 Customer
Routing Fee would enable the Exchange to recover the remove fee
assessed to NOM Options Participants by ISE in Select Symbols, plus
clearing and other administrative and technical fees for the execution
of certain Customer orders routed to ISE. The Exchange also believes
that the proposed Customer Routing Fee is equitable and not unfairly
discriminatory because the Exchange would assess the ISE Select Symbol
Customer Routing Fee uniformly to all Customer orders that are routed
to ISE.
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 Options Participant may
designate an order as not available for routing to avoid routing
fees.\9\
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\9\ 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.\10\ 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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\10\ 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-2012-125 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-2012-125. 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 20549-1090, on official business days between the hours
of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be
available for inspection and copying at NASDAQ's principal office and
on its Internet Web site. 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-2012-125, and should be submitted on or before December 7,
2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-27924 Filed 11-15-12; 8:45 am]
BILLING CODE 8011-01-P
