[Federal Register Volume 75, Number 114 (Tuesday, June 15, 2010)]
[Notices]
[Pages 33878-33880]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14357]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62249; File No. SR-NASDAQ-2010-064]
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
June 9, 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 June 1, 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
[[Page 33879]]
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). [sic]
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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 June
1, 2010. The text of the proposed rule change is available at http://nasdaq.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
NASDAQ is making modifications to its pricing schedule for
execution and routing of orders in securities priced at $1 or more
through the NASDAQ Market Center.\5\ First, for securities listed on
exchanges other than NASDAQ or the New York Stock Exchange (``NYSE'')
(``Tape B Securities''), NASDAQ is modifying its liquidity provider
rebate so that the levels of the rebate revert to levels in effect
prior to April 1, 2010.\6\ As a result of the change, the rebate paid
with respect to execution of displayed quotes/orders posted by members
providing an average of between 20,000,001 and 35 million shares of
liquidity per day during the month will decrease from $0.0026 per share
executed to $0.0025 per share executed; and the rebate paid with
respect to execution of displayed quote/orders posted by members
providing an average of 20 million or fewer shares of liquidity per day
during the month will decrease from $0.0026 per share executed to
$0.0020 per share executed. The change will make the rebate for Tape B
Securities consistent with the rebate paid with respect to execution of
NASDAQ- and NYSE-listed securities. The rebate with respect to Tape B
Securities for non-displayed quotes/orders and for members providing an
average of more than 35 million shares of liquidity during the month
will remain unchanged.
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\5\ Fees and credits for execution and routing of orders in
securities priced below $1 remain unchanged.
\6\ See Securities Exchange Act Release No. 61854 (April 6,
2010), 75 FR 18932 (April 13, 2010) (SR-NASDAQ-2010-044).
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Second, NASDAQ is increasing the fee for orders using the TFTY
routing strategy that execute at the NYSE from $0.0017 per share
executed to $0.0020 per share executed. The change reflects the fact
that NYSE recently increased the fees it charges for execution of
orders routed to it.\7\
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\7\ See Securities Exchange Act Release No. 62082 (May 11,
2010), 75 FR 27848 (May 18, 2010) (SR-NYSE-2010-34).
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2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\8\ in general, and with Section
6(b)(4) of the Act,\9\ 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 price changes upon
the net fees paid by a particular market participant will depend upon a
number of variables, including the relative availability of liquidity
on NASDAQ and other venues, the routing strategies that a member uses,
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), the types of securities that it trades, and the member's
trading volumes.
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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(4).
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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 changes, they can avoid paying the fees by directing orders to
other venues. 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.
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 \10\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\11\ 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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\10\ 15 U.S.C. 78s(b)(3)(a)(ii).
\11\ 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-2010-064 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-2010-064.
This file number should be included on the subject line if e-mail is
used. To help the Commission process and review your
[[Page 33880]]
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-2010-064, and should
be submitted on or before July 6, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-14357 Filed 6-14-10; 8:45 am]
BILLING CODE 8010-01-P