[Federal Register Volume 75, Number 149 (Wednesday, August 4, 2010)]
[Notices]
[Pages 47053-47054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19219]
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SECURITIES AND EXCHANGE COMMISSION
Release No. 34-62592; File No. SR-NASDAQ-2010-095)
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Increase Closing Cross Fees for Market-on-Close and Limit-on-Close
Orders
July 29, 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 July 28, 2010, The NASDAQ Stock Market LLC (``NASDAQ'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by NASDAQ. 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
NASDAQ proposes to increase closing cross fees for Market-on-Close
and Limit-on-Close orders. NASDAQ will implement the proposed rule
change on August 2, 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
NASDAQ is proposing to increase the fee it charges for Market-on-
Close and Limit-on-Close orders executed in its closing cross from
$0.0007 per share executed to $0.0010 per share executed. NASDAQ will
continue to charge no fee for other quotes and orders executed in the
closing cross.
Since NASDAQ last modified the fee in July 2009, NASDAQ has made
significant enhancements to the crossing network operating technology
that have resulted in increased performance in the speed of closing
crosses executed at NASDAQ, thereby providing market participants with
more immediate information about the results of the closing cross.
NASDAQ believes this fee change is fair in that it will be incurred by
the market participants that benefit from the enhancements.
Market participants entering Market-on-Close and Limit-on-Close
orders seek a high probability of executing their orders at the closing
price. Other closing cross orders, however, can be entered in response
to the order imbalance indicator disseminated prior to the closing
cross. The order imbalance indicator provides market participants with
information about the number of shares that could not be matched in the
closing cross if it occurred at the time of the indicator's
dissemination. This information encourages market participants to enter
additional orders to eliminate the imbalance, thereby ensuring the
execution of more Limit-on-Close and Market-on-Close orders.
Accordingly, NASDAQ does not believe that it is appropriate to charge
for these orders, since they support the operation of an efficient
close process that promotes liquidity and order interaction.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act, \3\ in general, and with
Section 6(b)(4) of the Act, \4\ 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. NASDAQ is increasing its
closing cross fee for Market-on-Close and Limit-on-Close orders due to
technology enhancements to the NASDAQ crossing network that have
resulted in increased performance in the closing crosses executed at
NASDAQ. NASDAQ believes the increase is reasonable in comparison to the
benefit in expedited closing crosses executed at NASDAQ, and also notes
that the fee for executing orders in the closing cross remains much
lower than the $0.003 per share fee for executing orders during regular
market hours. NASDAQ also believes this fee is equitable, as the
technology enhancement to the crossing network benefits the market
participants that will incur the increase.
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\3\ 15 U.S.C. 78f.
\4\ 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.
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 \5\ and paragraph (f)(2) of Rule 19b-4
thereunder.\6\ At any time within 60 days of the filing of the 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.
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 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, as amended, 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
[[Page 47054]]
Number SR-NASDAQ-2010-095 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-2010-095. 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-2010-095, and
should be submitted on or before August 25, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19219 Filed 8-3-10; 8:45 am]
BILLING CODE 8010-01-P