[Federal Register Volume 75, Number 105 (Wednesday, June 2, 2010)]
[Notices]
[Pages 30887-30889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13158]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62176; File No. SR-NASDAQ-2010-063]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Routing Fees
May 26, 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 26, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to modify Rule 7050 governing pricing for
NASDAQ members using the NASDAQ Options Market (``NOM''), NASDAQ's
facility for executing and routing standardized equity and index
options. Specifically, NOM proposes to expand the list of options that
will be assessed routing fees of $0.30 per contract for customer orders
and $0.55 per contract for Firm and Market Maker orders that are routed
from NOM to NASDAQ OMX PHLX, Inc. (``Phlx'').
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative for transactions on June 1, 2010.
The text of the proposed rule change is set forth below. Proposed
new text is in italics and deleted text is in brackets.
* * * * *
7050. NASDAQ Options Market
The following charges shall apply to the use of the order execution
and routing services of the NASDAQ Options Market by members for all
securities.
(1)-(3) No Change.
(4) Fees for routing contracts to markets other than the NASDAQ
Options Market shall be assessed as provided below. The current fees
and a historical record of applicable fees related to orders routed to
other exchanges shall be posted on the NasdaqTrader.com Web site.
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Exchange Customer Firm MM
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BATS........................................................................... 0.36 0.55 0.55
BOX............................................................................ 0.06 0.55 0.55
CBOE........................................................................... 0.06 0.55 0.55
ISE............................................................................ 0.06 0.55 0.55
NYSE Arca Penny Pilot.......................................................... 0.50 0.55 0.55
NYSE Arca Non Penny Pilot...................................................... 0.06 0.55 0.55
NYSE AMEX...................................................................... 0.06 0.55 0.55
PHLX (for all options other than the below listed options)..................... 0.06 0.55 0.55
PHLX (for the following options only): AA, AAPL, ABK, ABX, AIG, ALL, AMD, AMR, 0.30 0.55 0.55
AMZN, ARIA, AXP, BAC, BRCD, C, CAT, CIEN, CIGX, CSCO, DELL, DIA, DNDN, DRYS,
EBAY, EK, F, FAS, FAZ, GDX, GE, GLD, GLW, GS, HAL, IBM, INTC, IWM, IYR, JPM,
LVS, MGM, MOT, MSFT, MU, NEM, NOK, NVDA, ONNN, ORCL, PALM, PFE, POT, QCOM,
QID, QQQQ, RIG, RIMM, RMBS, SBUX, SDS, SIRI, SKF, SLV, SMH, SNDK, SPY, T, TBT,
TZA, UAUA, UNG, USO, UYG, V, VALE, VZ, WYNN, X, XHB, XLF, XRX and YHOO........
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* * * * *
The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaqomx.cchwallstreet.com, at
[[Page 30888]]
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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is proposing to modify Rule 7050 governing the fees assessed
for options orders entered into NOM but routed to and executed on Phlx.
Specifically, NASDAQ is proposing to expand the number of options to
which certain routing fees apply to reflect the expansion of Phlx's Fee
Schedule for rebates for adding and fees for removing liquidity.\3\
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\3\ See SR-Phlx-2010-73 (May 20, 2010). For a description of the
rebates for adding and fees for removing liquidity on Phlx's Fee
Schedule, See Securities Exchange Act Release Nos. 61684 (March 10,
2010), 75 FR 13189 (March 18, 2010) (SR-Phlx-2010-33); 61961 (April
22, 2010), 75 FR 22881 (April 30, 2010) (SR-Phlx-2010-61).
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NASDAQ currently assesses a $0.30 per contract routing fee for
customer orders, and a $0.55 per contract routing fee for Firm and
Market Maker orders routed from NOM to Phlx for options that are
subject to rebates for adding and fees for removing liquidity as
described in the Phlx Fee Schedule. To reflect the additions Phlx is
making to its Fee Schedule, NASDAQ proposes to add the following
twenty-five options to the table set forth in Rule 7050(4): Ambac
Financial Group, Inc. (``ABK''), Barrick Gold Corporation (``ABX''),
Ariad Pharmaceuticals, Inc. (``ARIA''), American Express Company
(``AXP''), Ciena Corp. (``CIEN''), Star Scientific, Inc. (``CIGX''),
Dendreon Corp. (``DNDN''), eBay Inc. (``EBAY''), Corning Inc.
(``GLW''), Halliburton Company (``HAL''), iShares Dow Jones US Real
Estate (``IYR''), Motorola, Inc., (``MOT''), NVIDIA Corporation
(``NVDA''), ON Semiconductor Corp. (``ONNN''), Oracle Corp. (``ORCL''),
ProShares UltraShort, QQQ (``QID''), Transocean Ltd. (``RIG''), Rambus,
Inc. (``RMBS''), ProShares UltraShort S&P500 (``SDS''), ProShares
UltraShort 20+ Year Treasury (''TBT''), Visa, Inc. (``V''), Vale S.A.
(``VALE''), SPDR S&P Homebuilders (``XHB''), Xerox Corp. (``XRX'') and
Yahoo! Inc. (``YHOO'').
The Exchange is proposing these fees to recoup the majority of
transaction and clearing costs associated with routing orders to Phlx.
As with all fees, the Exchange may adjust these routing fees by filing
a new proposed rule change.
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative for transactions on June 1, 2010.
2. Statutory Basis
NASDAQ believes that the proposed rule changes are consistent with
the provisions of Section 6 of the Act,\4\ in general, and with Section
6(b)(4) of the Act,\5\ 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 Exchange believes the proposed
fee changes are equitable in that they apply uniformly to all similarly
situated participants on NOM. The Exchange also believes that the
proposed fee changes are reasonable because the Exchange is seeking to
recoup the costs incurred for options orders entered into NOM but
routed to and executed on Phlx.
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\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
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NASDAQ is one of eight options market in the national market system
for standardized options. Joining NASDAQ and electing to trade options
is entirely voluntary. Under these circumstances, NASDAQ's fees must be
competitive and low in order for NASDAQ to attract order flow, execute
orders, and grow as a market. NASDAQ thus believes that its fees are
fair and reasonable and consistent with the Exchange Act.
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 not necessary or appropriate in
furtherance of the purposes of the Act.
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 \6\ and paragraph (f)(2) of Rule 19b-4 \7\
thereunder. 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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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 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-2010-063 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-2010-063. 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
[[Page 30889]]
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
a.m. and 3 p.m. Copies of such 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 publicly available. All
submissions should refer to File Number SR-NASDAQ-2010-063 and should
be submitted on or before June 23, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-13158 Filed 6-1-10; 8:45 am]
BILLING CODE 8011-01-P