[Federal Register Volume 75, Number 96 (Wednesday, May 19, 2010)]
[Notices]
[Pages 28082-28083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11936]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62081; File No. SR-NASDAQ-2010-058]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Fees for Members Using the NASDAQ Market Center
May 11, 2010.
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 May 3, 2010, The NASDAQ Stock Market LLC (``NASDAQ'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by NASDAQ. Pursuant to Section 19(b)(3)(A)(ii) of the Act
\3\ and Rule 19b-4(f)(2) thereunder,\4\ NASDAQ has designated this
proposal as establishing or changing a due, fee, or other charge, which
renders the proposed rule change effective upon filing. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
NASDAQ proposes to modify pricing for NASDAQ members using the
NASDAQ Market Center. NASDAQ will implement the proposed change on May
3, 2010. The text of the proposed rule change is available at http://nasdaqomx.cchwallstreet.com/, at NASDAQ'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, NASDAQ 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. NASDAQ 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
In response to announced execution rate changes at the New York
Stock Exchange (``NYSE''), NASDAQ is making minor modifications to its
pricing schedule for the routing of orders through the NASDAQ Market
Center. First, NASDAQ is increasing the per share credits and fees for
members using the STGY, SCAN, SKNY, SKIP, or DOTI routing strategies to
either add liquidity or execute at the NYSE.\5\ The credit for orders
adding liquidity after routing will increase to $0.0013 from $0.0010
per share. The fee for other orders will increase to $0.0021 from
$0.0018 per share. For orders using these strategies that execute in
destinations other than the NYSE (or NASDAQ OMX BX, in the case of DOTI
orders), the fee will remain $0.0030 per share executed.\6\
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\5\ Orders designated to use these routing strategies check the
NASDAQ book for the full size of the order prior to routing. The
terms and conditions of NASDAQ's routing strategies are described in
NASDAQ Rule 4758.
\6\ For DOTI orders that execute in NASDAQ OMX BX, NASDAQ will
continue to pass through fees and rebates associated with order
execution on that venue.
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Second, NASDAQ is modifying the fees for members using the TFTY or
MOPP routing strategies, and directed orders that execute in a venue
other than the NASDAQ Market Center as
[[Page 28083]]
follows: (1) The fees for directed orders designated as Intermarket
Sweep Orders that execute at the NYSE will increase to $0.0023 from
$0.0020 per share executed; (2) The fee for other directed orders that
execute at the NYSE will increase to $0.0022 from $0.0019 per share
executed for members with an average daily volume through the NASDAQ
Market Center in all securities during the month of more than 35
million shares of liquidity provided; (3) The fee for all for other
directed orders that execute at the NYSE from members that do not reach
the 35 million threshold will increase to $0.0023 from $0.0020 per
share; (4) The fee for MOPP orders that execute at the NYSE will
increase to $0.0023 from $0.0020 per share; and (5) The fee for TFTY
orders that execute at the NYSE will increase to $0.0017 from $0.0014
per share. All other fees and pass-through fees remain unchanged.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and with Section
6(b)(4) of the Act,\8\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system
which NASDAQ operates or controls. The impact of the modest price
increases upon the net fees paid by a particular market participant
will depend upon a number of variables, including the routing
strategies that it uses, the relative availability of liquidity on
NASDAQ and other venues, the prices of the market participant's quotes
and orders relative to the national best bid and offer (i.e., its
propensity to add or remove liquidity), and the types of securities
that it trades. NASDAQ notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive. Accordingly, if particular market participants object to the
proposed fee increases, they can avoid paying the fees by directing
orders to other venues or using routing strategies and order types that
are not subject to the increases. NASDAQ believes that its fees
continue to be reasonable and equitably allocated to members on the
basis of whether they opt to direct orders to NASDAQ.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ 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. Because the market
for order execution and routing is extremely competitive, members may
readily direct orders to NASDAQ's competitors if they object to the
proposed rule change.
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 foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\10\ At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-NASDAQ-2010-058 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-2010-058. This
file number should be included on the subject line if e-mail 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 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 a.m. and 3 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-NASDAQ-2010-058, and should be submitted on or before
June 9, 2010.
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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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11936 Filed 5-18-10; 8:45 am]
BILLING CODE 8010-01-P