Self-Regulatory Organizations; NASDAQ OMX BX Inc.; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change To Adopt a Directed Order Process, 54941-54942 [2013-21632]

Download as PDF Federal Register / Vol. 78, No. 173 / Friday, September 6, 2013 / Notices BILLING CODE 8011–01–C SECURITIES AND EXCHANGE COMMISSION [Release No. 34–70295; File No. SR–BX– 2013–016) Self-Regulatory Organizations; NASDAQ OMX BX Inc.; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change To Adopt a Directed Order Process mstockstill on DSK4VPTVN1PROD with NOTICES August 30, 2013. On February 21, 2013, NASDAQ OMX BX, Inc. (‘‘Exchange’’ or ‘‘BX’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 a proposed rule change to establish a directed order process. The proposed rule change was published for comment in the Federal Register on March 11, 2013.3 The Commission received a comment letter 1 15 U.S.C. 78a. CFR 240.19b–4. 3 See Securities Exchange Act Release No. 69040 (March 5, 2013), 78 FR 15385 (March 11, 2013). 2 17 VerDate Mar<15>2010 18:05 Sep 05, 2013 Jkt 229001 from one commenter on the proposal,4 a letter responding to the comment,5 and a follow up comment letter from the same commenter.6 In addition, on April 17, 2013, the Exchange filed Amendment No. 1 to the proposed rule change.7 On April 22, 2013, the Exchange extended to June 6, 2013, the time period within which the Commission must approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change. On June 3, 2013, the Commission instituted proceedings to determine whether to approve or disapprove the proposed rule change.8 On July 1, 2013, BX submitted a letter in further support of its proposed rule change.9 On July 15, 2013, the 4 See Letter, dated April 2, 2013, to Elizabeth M. Murphy, Secretary, Commission, from Janet McGuiness, Executive Vice President, Secretary and General Counsel, NYSE Euronext. 5 See Letter, dated April 17, 2013, to Elizabeth M. Murphy, Secretary, Commission, from Edith Hallahan, Principal Associate General Counsel, BX. 6 See Letter, dated May 10, 2013, to Elizabeth M. Murphy, Secretary, Commission, from Janet McGuiness, Executive Vice President, Secretary and General Counsel, NYSE Euronext. 7 For a description of Amendment No. 1, see Securities Exchange Act Release No. 69684, 78 FR 34683 (June 10, 2013) (‘‘Order Instituting Proceedings’’). 8 See Order Instituting Proceedings, supra note 7. 9 See Letter, dated July 1, 2013 to Elizabeth M. Murphy, Secretary, Commission, from Edith Hallahan, Principal Associate General Counsel, BX. PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 Commission received a comment in response to BX’s letter,10 and on August 28, 2013, BX submitted a letter responding to the comment letter.11 Section 19(b)(2) of the Act 12 provides that, after initiating disapproval proceedings, the Commission shall issue an order approving or disapproving the proposed rule change not later than 180 days after the date of publication of the notice of the filing of the proposed rule change. The Commission may extend the period for issuing an order approving or disapproving the proposed rule change, however, by not more than 60 days if the Commission determines that a longer period is appropriate and publishes the reasons for such determination. The proposed rule change was published for notice and comment in the Federal Register on March 11, 2013. September 7, 2013 is 180 days from that date and November 6, 2013 is an additional 60 days from that date. The Commission finds it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed 10 See Letter, dated July 15, 2013 to Elizabeth M. Murphy, Secretary, Commission, from Janet McGuiness, Executive Vice President, Secretary and General Counsel, NYSE Euronext. 11 See Letter, dated August 28, 2013 to Elizabeth M. Murphy, Secretary, Commission, from Edith Hallahan, Principal Associate General Counsel, BX. 12 15. U.S.C. 78s(b)(2). E:\FR\FM\06SEN1.SGM 06SEN1 EN06SE13.005</GPH> [FR Doc. 2013–21642 Filed 9–5–13; 8:45 am] 54941 54942 Federal Register / Vol. 78, No. 173 / Friday, September 6, 2013 / Notices rule change so that it has sufficient time to consider the proposed rule change, the issues raised in the comment letters that have been submitted in connection with the proposed rule change, and the Exchange’s response to such issues in its response letter. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,13 designates November 6, 2013, as the date by which the Commission shall either approve or disapprove the Proposal. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Elizabeth M. Murphy, Secretary. [FR Doc. 2013–21632 Filed 9–5–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–70296; File No. SR-Topaz2013–03] Self-Regulatory Organizations; Topaz Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees August 30, 2013. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on August 26, 2013, the Topaz Exchange, LLC (the ‘‘Exchange’’ or ‘‘Topaz’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. mstockstill on DSK4VPTVN1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change Topaz is proposing to amend its Schedule of Fees to establish a surcharge fee of $0.22 per contract for non-Priority Customer orders in options on the Nasdaq-100 Stock Index. The text of the proposed rule change is available on the Exchange’s Internet Web site at https://www.ise.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 13 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(57). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. II. Self-Regulatory Organization’s Statement of the Purpose of, and the 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 self-regulatory organization has prepared summaries, set forth in Sections A, B and C below, of the most significant aspects of such statements. the costs of the license. The proposed fee is equitable and not unfairly discriminatory in that it applies uniformly to all similarly situated Exchange participants, and is assessed only on those non-Priority Customer participants who choose to transact in NDX options. The Exchange believes it is equitable and not unfairly discriminatory to assess this surcharge on all participants except Priority Customers because the Exchange seeks to encourage Priority Customer order flow and the liquidity such order flow brings to the marketplace, which in turn benefits all market participants. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,5 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. By providing all participants on the Exchange with the ability to hedge via NDX options, the Exchange is not placing any burden on competition among its various participants. The Exchange further notes that the licensing agreement it has secured is not an exclusive agreement as many other option exchanges currently trade NDX options and charge a fee related to such license.6 As such, there is no burden on competition among exchanges for the trading of NDX options. Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually review, and consider adjusting, its fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. 1. Purpose The Exchange has entered into a license agreement with The NASDAQ OMX Group, Inc. in connection with the listing and trading of options on the Nasdaq-100 Stock Index (‘‘NDX’’), and is proposing to adopt a surcharge fee of $0.22 per contract applicable to nonPriority Customer orders in these options to defray the licensing costs. Absent the license agreement, market participants would be unable to trade NDX options on the Exchange. This fee reflects the pass-through charges associated with the licensing of this product, and the Exchange believes that charging the participants that trade these instruments is the most equitable means of recovering the costs of the license. The Exchange notes that the proposed surcharge fee does not apply to Priority Customer orders in this product. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,3 in general, and Section 6(b)(4) of the Act,4 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. The proposed surcharge fee is reasonable because it is a direct result of the licensing fee charged to the Exchange by the index provider that owns the intellectual property associated with the index, and reflects the pass-through charges associated with obtaining the license to trade NDX options, which the Exchange believes is the most equitable means of recovering 14 17 VerDate Mar<15>2010 18:05 Sep 05, 2013 3 15 4 15 Jkt 229001 PO 00000 U.S.C. 78f. U.S.C. 78f(b)(4). Frm 00081 Fmt 4703 Sfmt 4703 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on 5 15 U.S.C. 78f(b)(8). example, NYSE Amex Options (‘‘Amex’’), NYSE Arca Options (‘‘Arca’’), BOX Options Exchange LLC (‘‘BOX’’), and the International Securities Exchange, LLC (‘‘ISE’’) each also charge a surcharge fee of $0.22 for trades in NDX options. See Amex Fee Schedule, Royalty Fees; Arca Fees and Charges, Royalty Fees; BOX Fee Schedule, Section I, Exchange Fees, Options Surcharge; and ISE Schedule of Fees, Section VI, Other Options Fees and Rebates, Non-Priority Customer License Surcharge for Index Options. 6 For E:\FR\FM\06SEN1.SGM 06SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 173 (Friday, September 6, 2013)]
[Notices]
[Pages 54941-54942]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21632]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70295; File No. SR-BX-2013-016)


Self-Regulatory Organizations; NASDAQ OMX BX Inc.; Notice of 
Designation of Longer Period for Commission Action on Proceedings To 
Determine Whether To Approve or Disapprove the Proposed Rule Change To 
Adopt a Directed Order Process

August 30, 2013.
    On February 21, 2013, NASDAQ OMX BX, Inc. (``Exchange'' or ``BX'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
establish a directed order process. The proposed rule change was 
published for comment in the Federal Register on March 11, 2013.\3\ The 
Commission received a comment letter from one commenter on the 
proposal,\4\ a letter responding to the comment,\5\ and a follow up 
comment letter from the same commenter.\6\ In addition, on April 17, 
2013, the Exchange filed Amendment No. 1 to the proposed rule 
change.\7\ On April 22, 2013, the Exchange extended to June 6, 2013, 
the time period within which the Commission must approve the proposed 
rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether to disapprove the proposed rule 
change. On June 3, 2013, the Commission instituted proceedings to 
determine whether to approve or disapprove the proposed rule change.\8\ 
On July 1, 2013, BX submitted a letter in further support of its 
proposed rule change.\9\ On July 15, 2013, the Commission received a 
comment in response to BX's letter,\10\ and on August 28, 2013, BX 
submitted a letter responding to the comment letter.\11\
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    \1\ 15 U.S.C. 78a.
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 69040 (March 5, 
2013), 78 FR 15385 (March 11, 2013).
    \4\ See Letter, dated April 2, 2013, to Elizabeth M. Murphy, 
Secretary, Commission, from Janet McGuiness, Executive Vice 
President, Secretary and General Counsel, NYSE Euronext.
    \5\ See Letter, dated April 17, 2013, to Elizabeth M. Murphy, 
Secretary, Commission, from Edith Hallahan, Principal Associate 
General Counsel, BX.
    \6\ See Letter, dated May 10, 2013, to Elizabeth M. Murphy, 
Secretary, Commission, from Janet McGuiness, Executive Vice 
President, Secretary and General Counsel, NYSE Euronext.
    \7\ For a description of Amendment No. 1, see Securities 
Exchange Act Release No. 69684, 78 FR 34683 (June 10, 2013) (``Order 
Instituting Proceedings'').
    \8\ See Order Instituting Proceedings, supra note 7.
    \9\ See Letter, dated July 1, 2013 to Elizabeth M. Murphy, 
Secretary, Commission, from Edith Hallahan, Principal Associate 
General Counsel, BX.
    \10\ See Letter, dated July 15, 2013 to Elizabeth M. Murphy, 
Secretary, Commission, from Janet McGuiness, Executive Vice 
President, Secretary and General Counsel, NYSE Euronext.
    \11\ See Letter, dated August 28, 2013 to Elizabeth M. Murphy, 
Secretary, Commission, from Edith Hallahan, Principal Associate 
General Counsel, BX.
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    Section 19(b)(2) of the Act \12\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of the notice of the filing of the proposed 
rule change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. The 
proposed rule change was published for notice and comment in the 
Federal Register on March 11, 2013. September 7, 2013 is 180 days from 
that date and November 6, 2013 is an additional 60 days from that date.
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    \12\ 15. U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission finds it is appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed

[[Page 54942]]

rule change so that it has sufficient time to consider the proposed 
rule change, the issues raised in the comment letters that have been 
submitted in connection with the proposed rule change, and the 
Exchange's response to such issues in its response letter.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\13\ designates November 6, 2013, as the date by which the 
Commission shall either approve or disapprove the Proposal.
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    \13\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(57).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-21632 Filed 9-5-13; 8:45 am]
BILLING CODE 8011-01-P

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