[Federal Register Volume 75, Number 214 (Friday, November 5, 2010)]
[Notices]
[Pages 68385-68387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-27943]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63218; File No. SR-NASDAQ-2010-140]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Establish a Flexible 60-Day Trial Period for New Users of Correlix
Latency Measurement Services
November 1, 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 October 26, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') 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 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
NASDAQ proposes to change to establish a flexible 60-day free trial
period for new users of Correlix latency measurement services, and to
codify prices for those services.
The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at NASDAQ's principal office, on the
Commission's Web site at http://www.sec.gov, and at the Commission's
Public Reference Room. The Exchange will implement the proposed rule
change immediately.
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.
[[Page 68386]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Correlix provides users of the NASDAQ Market Center (``System'')
real-time analytical tools to measure the latency of orders to and from
that System. Correlix shares with the Exchange a portion of the
revenues it receives from subscribers.\3\ Recently, the Commission
approved a one-time 60-day free trial period for parties wishing to
evaluate the Correlix RaceTeam offering for the NASDAQ Market
Center.\4\ That initial one-time free trial period expired on August
28, 2010. The instant filing seeks Commission approval to: (1) Modify
the free trial period so that all parties will be eligible for one free
60-day trial period whenever they initially elect to sign-up for the
service now or in the future; and (2) codify and make transparent the
current fees imposed by Correlix on those using the service to measure
latency to and from the Exchange.
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\3\ The specifics of the NASDAQ/Correlix relationship are
detailed in SR-NASDAQ-2010-068, a separate filing also recently
approved by the Commission. See Exchange Act Release No. 62605 (July
30, 2010), 75 FR 47651 (August 6, 2010).
\4\ See Exchange Act Release No. 62391 (June 28, 2010), 75 FR
38858 (July 6, 2010).
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The Exchange is proposing the flexible trial period so as to ensure
that all potential Correlix users have an equal opportunity to take
advantage of an initial free trial period to evaluate the product.
NASDAQ also notes that the introduction of more flexibility in
determining when to participate in the free trial period will allow
Correlix users to introduce the product into their own technology
infrastructure at a time of their own choosing and in coordination with
other scheduled technology initiatives.
Current pricing for the Correlix RaceTeam product for the NASDAQ
market varies depending on the number of unique MPIDs and ports
selected by the customer for monitoring by Correlix. For NASDAQ
(including the NASDAQ Options Market), the fee is an initial $3,000
monthly base fee for the first unique MPID monitored. For each
additional unique MIPD sought to be monitored, an additional monthly
charge of $1,000 is assessed. The monthly price for each unique MPID
includes the monitoring of up to 25 NASDAQ port connections associated
with that particular MPID. Customers that wish to exceed 25 ports per-
MPID for monitoring can purchase additional 25 port blocks for an
additional fee of $1000 per month per MPID. To enhance transparency,
the Exchange proposed to codify these fees.
The Exchange believes that the above proposals will provide users
of the NASDAQ Market Center greater transparency into the fees
associated with latency measurement services and encourage the use of
such services on a trial basis.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\5\ in general, and with
Section 6(b)(5) of the Act,\6\ in particular, in that the proposal is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. In
particular, the filing makes transparent uniform fees imposed for
latency measurement services.
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
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In addition, the Exchange 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 the Exchange operates or controls. In
particular, the Exchange notes that the use of Correlix latency
measurement services is entirely voluntary and made available on a non-
discriminatory basis.
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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.
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 proposed rule change is effective upon filing pursuant to
Section 19(b)(3)(A) of the Act and paragraph (f)(6) of Rule 19b-4
thereunder, in that the proposed rule change: (i) Does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) does not become operative for 30 days after the date of the
filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest;
provided the self-regulatory organization has given the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. The Commission notes that the Correlix service and
fees sought to be codified here have already been approved by the
Commission, and that accelerated approval of the flexible initial trial
period will ensure that the free period is made available to all
interested parties without delay. Accordingly, the Commission
designates the proposed rule change operative upon filing with the
Commission.\9\
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\9\ For the purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78(c)(f).
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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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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.
[[Page 68387]]
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-2010-140 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-2010-140. 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, 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
available publicly. All submissions should refer to File Number SR-
NASDAQ-2010-140, and should be submitted on or before November 26,
2010.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-27943 Filed 11-4-10; 8:45 am]
BILLING CODE 8011-01-P