Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Fee and Rebate Schedule, 15065-15067 [2013-05415]

Download as PDF Federal Register / Vol. 78, No. 46 / Friday, March 8, 2013 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES 9. No Director or officer of a Corporation, or director, manager or officer of the Advisor, will own, directly or indirectly (other than through a pooled investment vehicle that is not controlled by such person), any interest in a Subadvisor, except for (a) ownership of interests in the Advisor or any entity that controls, is controlled by, or is under common control with the Advisor, or (b) ownership of less than 1% of the outstanding securities of any class of equity or debt of any publicly traded company that is either a Subadvisor or an entity that controls, is controlled by or is under common control with a Subadvisor. For any Corporation that owns a Subsidiary, this condition shall also apply to the Directors and officers of that Corporation with respect to any interest in a Subadvisor to that Corporation’s Subsidiaries. 10. Each Corporation will disclose in its registration statement the Aggregate Fee Disclosure. 11. In the event the Commission adopts a rule under the Act providing substantially similar relief to that in the order requested in the application, the requested order will expire on the effective date of that rule. 12. For any Corporation that pays subadvisory fees directly from its assets, any changes to a Subadvisory Agreement that would result in an increase in the total management and advisory fees payable by the Corporation will be required to be approved by the shareholders of that Corporation. 13. Whenever a subadvisor is hired or terminated, the Advisor will provide the Board with information showing the expected impact on the profitability of the Advisor. 14. Each Advisor will provide the Board, no less frequently than quarterly, with information about the profitability of the Advisor on a per Corporation basis. The information will reflect the impact on profitability of the hiring or termination of any subadvisor during the applicable quarter. For the Commission, by the Division of Investment Management, under delegated authority. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–05424 Filed 3–7–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Sunshine Act Meeting The Exchange is proposing to amend its Fee and Rebate Schedule (the ‘‘Fee Schedule’’) issued pursuant to Exchange Rule 16.1(a) to charge Equity Trading Permit (‘‘ETP’’) Holders 3 $0.0020 per share when using a Midpoint-Seeker Order 4 in the Exchange’s automatic execution mode of interaction (‘‘AutoEx Mode’’) 5 to remove liquidity in a security that is priced at or above $1.00. The text of the proposed rule change is available on the Exchange’s Web site at www.nsx.com, at the Exchange’s principal office, and at the Commission’s Public Reference Room. FEDERAL REGISTER CITATION OF PREVIOUS ANNOUNCEMENT: [78 FR 14141, March 4, 2013] STATUS: PLACE: Jkt 229001 100 F Street NE, Washington, DATE AND TIME OF PREVIOUSLY ANNOUNCED MEETING: Wednesday, March 6, 2013. Date and Time Change. The Open Meeting scheduled for Wednesday, March 6, 2013 at 10:00 a.m., has been changed to Thursday, March 7, 2013 at 1:00 p.m. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. CHANGE IN THE MEETING: Dated: March 6, 2013. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–05532 Filed 3–6–13; 11:15 am] BILLING CODE 8011–01–P 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 parts of such statements. SECURITIES AND EXCHANGE COMMISSION A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [Release No. 34–69029; File No. SR–NSX– 2013–08] 1. Purpose Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Fee and Rebate Schedule March 4, 2013. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act ’’ or ‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on February 26, 2013, National Stock Exchange, Inc. (‘‘NSX®’’ 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 comment on the proposed rule change from interested persons. 2 17 18:44 Mar 07, 2013 Open Meeting. DC. 1 15 VerDate Mar<15>2010 15065 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00107 Fmt 4703 Sfmt 4703 The Exchange proposes to amend Section I of its Fee Schedule to charge ETP Holders $0.0020 per share when using a Midpoint-Seeker Order in the Exchange’s Auto-Ex Mode to remove liquidity in a security that is priced at or above $1.00. The Midpoint Seeker Order is an Immediate-or-Cancel (‘‘IOC’’) 6 order that ETP Holders may use to execute against orders that are posted on the NSX Book 7 at a price equal to or better than the midpoint of 3 Exchange Rule 1.5 defines the term ‘‘ETP’’ as an Equity Trading Permit issued by the Exchange for effecting approved securities transactions on the Exchange’s Trading Facilities. 4 NSX Rule 11.11(c)(13). See also SR–NSX–2013– 07. 5 Under Auto-Ex mode the Exchange matches and executes like-priced orders in accordance with the process described in Exchange Rule 11.13(b)(1). 6 Under Exchange Rule 11.11(b)(1), an ‘‘Immediate-or-Cancel Order’’ is a ‘‘limit order that is to be executed in whole or in part as soon as such order is received, and the portion not so executed’’ is to be cancelled. 7 Exchange Rule 1.5. ‘‘NSX Book’’ is defined as ‘‘System’s electronic file of orders.’’ E:\FR\FM\08MRN1.SGM 08MRN1 15066 Federal Register / Vol. 78, No. 46 / Friday, March 8, 2013 / Notices the Protected National Best Bid or Offer (‘‘NBBO’’).8 Under Section I of the Fee Schedule, the Exchange currently charges ETP Holders that do not execute at least 50,000 shares of added liquidity in a month using the Exchange’s Auto-Ex Mode a per share fee of $0.0030 for any marketable order that removes liquidity. ETP Holders that execute more than 50,000 shares of added liquidity per month in Auto-Ex Mode are eligible for fees and rebates under either the Variable or Fixed Fee Schedules under Section I. Instead of paying the above described fees when removing liquidity in Auto-Ex Mode, ETP Holders will now pay the proposed lower fixed fee of $0.0020 per share when using the Midpoint-Seeker Order to remove liquidity in securities priced at or above $1.00.9 The Exchange believes the proposed fee will encourage (i) ETP Holders that want to interact with Midpoint-Seeker Orders to post additional liquidity on the NSX Book, and (ii) ETP Holders that are seeking executions at prices better than the Protected NBBO to use the MidpointSeeker Order. The Exchange does not propose to amend the fee for securities priced below $1.00. Operative Date and Notice The Exchange intends to make the proposed modifications, which are effective upon filing, operative as of the commencement of trading on March 1, 2013. Pursuant to Exchange Rule 16.1(c), the Exchange will ‘‘provide ETP Holders with notice of all relevant dues, fees, assessments and charges of the Exchange’’ through the issuance of an Information Circular and will post a copy of the rule filing on the Exchange’s Web site (www.nsx.com). mstockstill on DSK4VPTVN1PROD with NOTICES 2. Statutory Basis The Exchange believes that the proposed fixed fee for Midpoint-Seeker Orders that remove liquidity is consistent with the provisions of Section 6(b) of the Act,10 in general, and Section 6(b)(4) of the Act,11 in particular, in that it is reasonable and equitably allocated amongst ETP Holders because all ETP Holders are eligible to submit (or not submit) these types of orders, and may do so at their discretion during the course of the 8 Exchange Rule 1.5. ‘‘Protected NBBO’’ is defined as ‘‘the national best bid or offer that is a protected quotation.’’ 9 Executed Midpoint-Seeker Orders will be included in the ADV calculation but not be subject to additional fees under Section I of the Fee Schedule. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4). VerDate Mar<15>2010 18:44 Mar 07, 2013 Jkt 229001 month. The lower per share fee for the Midpoint-Seeker Order is a reasonable method to encourage (i) ETP Holders that want to interact with MidpointSeeker Orders to post additional liquidity on the NSX Book, and (ii) ETP Holders that are seeking executions at prices better than the Protected NBBO to use the Midpoint-Seeker Order. The increased liquidity provided by additional order flow to the Exchange benefits all investors by offering additional potential for execution and cost savings. Furthermore, the Exchange believes that the proposed lower fee for Midpoint Seeker Orders is consistent with the provisions of Section 6(b)(5) of the Act,12 because it is not unfairly discriminatory amongst ETP Holders. As stated above, ETP Holders are eligible to submit (or not submit) these types of orders, and may do so at their discretion during the course of the month. Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and rebates to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. ETP Holders using the Midpoint-Seeker Order will be charged a lower per share fee for removing liquidity rather than being charged the Exchange’s standard fees under Section I of the Fee Schedule. The lower per share fee is designed to increase liquidity by encouraging ETP Holders to use Midpoint Seeker Orders. As stated above, the Exchange operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and rebates to remain competitive with other exchanges. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has taken effect upon filing pursuant to Section 19(b)(3)(A)(ii) of the Exchange Act 13 and subparagraph (f)(2) of Rule 19b–4.14 At any time within 60 days of the filing of such 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–NSX–2013–08 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–NSX–2013–08. 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 (http://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 13 15 12 15 PO 00000 U.S.C. 78f(b)(5). Frm 00108 Fmt 4703 14 17 Sfmt 4703 E:\FR\FM\08MRN1.SGM U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4. 08MRN1 Federal Register / Vol. 78, No. 46 / Friday, March 8, 2013 / Notices 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 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 the principal offices 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–NSX– 2013–08, and should be submitted on or before March 29, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–05415 Filed 3–7–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69033; File No. SR– NYSEMKT–2013–10] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, Adopting Exchange Rule 953.1NY To Provide for How the Exchange Proposes To Treat Orders, Market-Making Quoting Obligations, and Errors in Response to the Regulation NMS Plan To Address Extraordinary Market Volatility; and Amending Exchange Rule 953NY To Codify That the Exchange Shall Halt Trading in All Options Overlying NMS Stocks When the Equities Markets Initiate a Market-Wide Trading Halt Due to Extraordinary Market Volatility mstockstill on DSK4VPTVN1PROD with NOTICES March 4, 2013. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on February 26, 2013, NYSE MKT LLC (the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory 15 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. 18:44 Mar 07, 2013 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to adopt (i) Exchange Rule 953.1NY to provide for how the Exchange proposes to treat orders, market-making quoting obligations, and errors in response to the Regulation NMS Plan to Address Extraordinary Market Volatility; and (ii) to amend Exchange Rule 953NY to codify that the Exchange shall halt trading in all options overlying NMS stocks when the equities markets initiate a market-wide trading halt due to extraordinary market volatility. 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, on the Commission’s Web site at www.sec.gov, 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 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes (i) to adopt Exchange Rule 953.1NY to provide for how the Exchange proposes to treat orders, market-making quoting obligations, and errors in response to the Regulation NMS Plan to Address Extraordinary Market Volatility (the ‘‘Plan’’), which is applicable to all NMS stocks, as defined in Regulation NMS Rule 600(b)(47); and (ii) to amend Exchange Rule 953NY to codify that the Exchange shall halt trading in all 4 See email from Brian O’Neill, Chief Counsel, NYSE Regulation, to Andrew Madar, Assistant Director, Division of Trading and Markets, dated March 1, 2013 (‘‘Amendment No. 1’’). 1 15 VerDate Mar<15>2010 organization. On March 1, 2013, the Exchange submitted Amendment No. 1 to the proposed rule change.4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. Jkt 229001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 15067 options when the equities markets initiate a market-wide trading halt due to extraordinary market volatility. The Exchange proposes to adopt new Rule 953.1NY for a pilot period that coincides with the pilot period for the Plan, which is currently scheduled as a one-year pilot to begin on February 4, 2013 [sic]. Background Since May 6, 2010, when the markets experienced excessive volatility in an abbreviated time period, i.e., the ‘‘flash crash,’’ the equities exchanges and FINRA have implemented market-wide measures designed to restore investor confidence by reducing the potential for excessive market volatility. The measures adopted include pilot plans for stock-by-stock trading pauses,5 related changes to the equities market clearly erroneous execution rules,6 and more stringent equities market maker quoting requirements.7 On May 31, 2012, the Commission approved the Plan, as amended, on a one-year pilot basis.8 In addition, the Commission approved changes to the equities market-wide circuit breaker rules on a pilot basis to coincide with the pilot period for the Plan.9 The Plan is designed to prevent trades in individual NMS stocks from occurring outside of specified Price Bands.10 As described more fully below, the requirements of the Plan are coupled with Trading Pauses to accommodate more fundamental price moves (as opposed to erroneous trades or momentary gaps in liquidity). All trading centers in NMS stocks, including both those operated by Participants and those operated by members of Participants, are required to establish, maintain, and enforce written policies and procedures that are 5 See, e.g., NYSE Rule 80C, Exchange Rule 80C. e.g., NYSE Rule 128, Exchange Rule 128. 7 See, e.g., NYSE Rule 104(a)(1)(B), Exchange Rule 104(a)(1)(B). 8 See Securities Exchange Act Release No. 67091 (May 31, 2012), 77 FR 33498 (June 6, 2012) (File No. 4–631) (Order Approving, on a Pilot Basis, the Plan). 9 See Securities Exchange Act Release No. 67090 (May 31, 2012), 77 FR 33531 (June 6, 2012) (SR– BATS–2011–038; SR–BYX–2011–025; SR–BX– 2011–068; SR–CBOE–2011–087; SR–C2–2011–024; SR–CHX–2011–30; SR–EDGA–2011–31; SR–EDGX– 2011–30; SR–FINRA–2011–054; SR–ISE–2011–61; SR–NASDAQ–2011–131; SR–NSX–2011–11; SR– NYSE–2011–48; SR–NYSEAmex–2011–73; SR– NYSEArca–2011–68; SR–Phlx–2011–129). 10 Unless otherwise specified, capitalized terms used in this rule filing are based on the defined terms of the Plan. 6 See, E:\FR\FM\08MRN1.SGM 08MRN1

Agencies

[Federal Register Volume 78, Number 46 (Friday, March 8, 2013)]
[Notices]
[Pages 15065-15067]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-05415]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69029; File No. SR-NSX-2013-08]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Its Fee and Rebate Schedule

March 4, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act '' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ 
notice is hereby given that on February 26, 2013, National Stock 
Exchange, Inc. (``NSX[supreg]'' 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 comment 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 is proposing to amend its Fee and Rebate Schedule (the 
``Fee Schedule'') issued pursuant to Exchange Rule 16.1(a) to charge 
Equity Trading Permit (``ETP'') Holders \3\ $0.0020 per share when 
using a Midpoint-Seeker Order \4\ in the Exchange's automatic execution 
mode of interaction (``Auto-Ex Mode'') \5\ to remove liquidity in a 
security that is priced at or above $1.00.
---------------------------------------------------------------------------

    \3\ Exchange Rule 1.5 defines the term ``ETP'' as an Equity 
Trading Permit issued by the Exchange for effecting approved 
securities transactions on the Exchange's Trading Facilities.
    \4\ NSX Rule 11.11(c)(13). See also SR-NSX-2013-07.
    \5\ Under Auto-Ex mode the Exchange matches and executes like-
priced orders in accordance with the process described in Exchange 
Rule 11.13(b)(1).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
Web site at www.nsx.com, at the Exchange's principal office, 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 parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Section I of its Fee Schedule to 
charge ETP Holders $0.0020 per share when using a Midpoint-Seeker Order 
in the Exchange's Auto-Ex Mode to remove liquidity in a security that 
is priced at or above $1.00. The Midpoint Seeker Order is an Immediate-
or-Cancel (``IOC'') \6\ order that ETP Holders may use to execute 
against orders that are posted on the NSX Book \7\ at a price equal to 
or better than the midpoint of

[[Page 15066]]

the Protected National Best Bid or Offer (``NBBO'').\8\
---------------------------------------------------------------------------

    \6\ Under Exchange Rule 11.11(b)(1), an ``Immediate-or-Cancel 
Order'' is a ``limit order that is to be executed in whole or in 
part as soon as such order is received, and the portion not so 
executed'' is to be cancelled.
    \7\ Exchange Rule 1.5. ``NSX Book'' is defined as ``System's 
electronic file of orders.''
    \8\ Exchange Rule 1.5. ``Protected NBBO'' is defined as ``the 
national best bid or offer that is a protected quotation.''
---------------------------------------------------------------------------

    Under Section I of the Fee Schedule, the Exchange currently charges 
ETP Holders that do not execute at least 50,000 shares of added 
liquidity in a month using the Exchange's Auto-Ex Mode a per share fee 
of $0.0030 for any marketable order that removes liquidity. ETP Holders 
that execute more than 50,000 shares of added liquidity per month in 
Auto-Ex Mode are eligible for fees and rebates under either the 
Variable or Fixed Fee Schedules under Section I. Instead of paying the 
above described fees when removing liquidity in Auto-Ex Mode, ETP 
Holders will now pay the proposed lower fixed fee of $0.0020 per share 
when using the Midpoint-Seeker Order to remove liquidity in securities 
priced at or above $1.00.\9\ The Exchange believes the proposed fee 
will encourage (i) ETP Holders that want to interact with Midpoint-
Seeker Orders to post additional liquidity on the NSX Book, and (ii) 
ETP Holders that are seeking executions at prices better than the 
Protected NBBO to use the Midpoint-Seeker Order. The Exchange does not 
propose to amend the fee for securities priced below $1.00.
---------------------------------------------------------------------------

    \9\ Executed Midpoint-Seeker Orders will be included in the ADV 
calculation but not be subject to additional fees under Section I of 
the Fee Schedule.
---------------------------------------------------------------------------

Operative Date and Notice

    The Exchange intends to make the proposed modifications, which are 
effective upon filing, operative as of the commencement of trading on 
March 1, 2013. Pursuant to Exchange Rule 16.1(c), the Exchange will 
``provide ETP Holders with notice of all relevant dues, fees, 
assessments and charges of the Exchange'' through the issuance of an 
Information Circular and will post a copy of the rule filing on the 
Exchange's Web site (www.nsx.com).
2. Statutory Basis
    The Exchange believes that the proposed fixed fee for Midpoint-
Seeker Orders that remove liquidity is consistent with the provisions 
of Section 6(b) of the Act,\10\ in general, and Section 6(b)(4) of the 
Act,\11\ in particular, in that it is reasonable and equitably 
allocated amongst ETP Holders because all ETP Holders are eligible to 
submit (or not submit) these types of orders, and may do so at their 
discretion during the course of the month. The lower per share fee for 
the Midpoint-Seeker Order is a reasonable method to encourage (i) ETP 
Holders that want to interact with Midpoint-Seeker Orders to post 
additional liquidity on the NSX Book, and (ii) ETP Holders that are 
seeking executions at prices better than the Protected NBBO to use the 
Midpoint-Seeker Order. The increased liquidity provided by additional 
order flow to the Exchange benefits all investors by offering 
additional potential for execution and cost savings. Furthermore, the 
Exchange believes that the proposed lower fee for Midpoint Seeker 
Orders is consistent with the provisions of Section 6(b)(5) of the 
Act,\12\ because it is not unfairly discriminatory amongst ETP Holders. 
As stated above, ETP Holders are eligible to submit (or not submit) 
these types of orders, and may do so at their discretion during the 
course of the month.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Finally, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues. In such an environment, the Exchange must continually 
review, and consider adjusting, its fees and rebates to remain 
competitive with other exchanges. For the reasons described above, the 
Exchange believes that the proposed rule change reflects this 
competitive environment.

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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. ETP Holders using the 
Midpoint-Seeker Order will be charged a lower per share fee for 
removing liquidity rather than being charged the Exchange's standard 
fees under Section I of the Fee Schedule. The lower per share fee is 
designed to increase liquidity by encouraging ETP Holders to use 
Midpoint Seeker Orders. As stated above, the Exchange operates in a 
highly competitive market in which market participants can readily 
favor competing venues. In such an environment, the Exchange must 
continually review, and consider adjusting, its fees and rebates to 
remain competitive with other exchanges.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change has taken effect upon filing pursuant to 
Section 19(b)(3)(A)(ii) of the Exchange Act \13\ and subparagraph 
(f)(2) of Rule 19b-4.\14\ At any time within 60 days of the filing of 
such 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.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \14\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NSX-2013-08 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-NSX-2013-08. 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 (http://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

[[Page 15067]]

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 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 the principal offices 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-NSX-2013-08, and should be 
submitted on or before March 29, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-05415 Filed 3-7-13; 8:45 am]
BILLING CODE 8011-01-P