12784 Federal Register / Vol. 76, No. 45 / Tuesday, March 8, 2011 / Notices 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3A member achieving the requisite level through 

one MPID would be eligible to receive the higher 

credit with respect to trading activity through its 

other MPIDs as well. 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–FICC–2011–02 and should 

be submitted on or before March 29, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5138 Filed 3–7–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64003; File No. SR– 

NASDAQ–2011–028] 

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 

March 2, 2011. 

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 February 

22, 2011, The NASDAQ Stock Market 

LLC (the ‘‘Exchange’’ or ‘‘NASDAQ’’) 

filed with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of 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 

March 1, 2011. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NASDAQ is amending Rule 7018 to 

make modifications to its pricing 

schedule for execution of orders through 

the NASDAQ Market Center. NASDAQ 

offers a credit to liquidity providers, 

with the size of the credit varying based 

on overall monthly volumes of liquidity 

provision. Currently, the highest credit 

is $0.00295 per share executed for 

displayed liquidity and $0.0015 per 

share executed for non-displayed 

liquidity. The availability of this credit 

level is based on volume of liquidity 

provision during a month, with the 

required volume adjusted each month in 

accordance with a sliding scale that 

takes account of overall market volumes 

during the month. Specifically, a 

member qualifies for the highest credit 

if it has an average daily volume 

through the NASDAQ Market Center in 

all securities during the month of: (i) 

More than 95 million shares of liquidity 

provided, if average total consolidated 

volume reported to all consolidated 

transaction reporting plans by all 

exchanges and trade reporting facilities 

is more than 10 billion shares per day 

during the month; (ii) more than 85 

million shares of liquidity provided, if 

average total consolidated volume is 

between 9,000,000,001 and 10 billion 

shares per day during the month; (iii) 

more than 75 million shares of liquidity 

provided, if average total consolidated 

volume is between 8,000,000,001 and 9 

billion shares per day during the month; 

and (iv) more than 65 million shares of 

liquidity provided, if average total 

consolidated volume is 8 billion or 

fewer shares per day during the month. 

Effective March 1, 2011, NASDAQ 

will modify the conditions for 

qualifying for this rebate tier by 

stipulating that a member must achieve 

the requisite volume levels through a 

single market participant identifier 

(‘‘MPIDs’’).3 An MPID is a four-letter 

code used by a member to categorize its 

trading activity for a specific purpose. 

All members have at least one MPID, 

but a member may request the 

assignment of additional MPIDs. For 

example, a member may conduct market 

making activity through one MPID, 

while using a second MPID for trading 

on behalf of institutional customers. In 

addition, certain members aggregate the 

trading activity of several firms under 

their own membership rubric, for the 

purposes of obtaining more favorable 

pricing, but will generally acquire a 

separate MPID for each firm that they 

aggregate, so as to distinguish the 

trading activity of one firm from 

another. NASDAQ has concluded that 

its most favorable rebate tier should be 

paid to those firms that do the most to 

enhance NASDAQ’s market quality 

through unified management of a high 

volume of quotes/orders. NASDAQ also 

wishes to ensure that its fee schedule 

does not provide excessive 

encouragement to members to aggregate 

the activity of several firms (some of 

whom may not themselves be members 

of the exchange) for the sole purpose of 

earning a higher rebate. Thus, a member 

or a sponsored non-member that is not 

able to achieve the requisite level of 

liquidity provision will not be able to 

meet the threshold by coordinating and 

consolidating with the trading activity 

of other firms using multiple MPIDs. 

NASDAQ notes, however, that the 

impact of the change on firms that 

currently qualify for the most favorable 

rebate rate but that are not able to 

achieve the required volume thresholds 

through a single MPID is mitigated by 

the fact that qualification for other 

rebate tiers may continue to be achieved 

through one or more MPIDs. Notably, 

members that provide a daily average of 

more than 35 million shares of liquidity 

during the month through one or more 

MPIDs are eligible to receive a rebate of 

$0.0029 per share executed for 

displayed liquidity and $0.0015 per 

share executed for non-displayed 

liquidity (versus the top rebate of 

$0.00295 per share executed for 

displayed liquidity and $0.0015 per 

share executed for non-displayed 

liquidity). 

Separately, NASDAQ currently offers 

a rebate of $0.0029 per share executed 

for displayed liquidity and $0.0015 per 

share executed for non-displayed in 

circumstances where a market 

participant achieves certain specified 

levels of activity in both the NASDAQ 

Market Center and the NASDAQ 

Options Market. Currently, the required 

levels of monthly activity are an average 

daily volume of more than 25 million 

shares of liquidity provided through the 

NASDAQ Market Center and an average 

daily volume of more than 200,000 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 45 / Tuesday, March 8, 2011 / Notices 12785 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 

6Securities Exchange Act Release No. 59879 (May 

6, 2009), 74 FR 22619 (May 13, 2009) (SR– 

NASDAQ–2009–041). 7 15 U.S.C. 78s(b)(3)(a)(ii). 

options contracts accessed through the 

NASDAQ Options Market. NASDAQ 

has determined that broadening the 

availability of this tier to encourage and 

reward active participation in both of its 

markets has the potential to enhance 

market quality and will recognize the 

increase [sic] prevalence of members 

that are active on both markets. 

Accordingly, NASDAQ is reducing the 

required level of activity on the 

NASDAQ Market Center to an average 

daily volume of more than 10 million 

shares of liquidity provided, while 

setting the required volume of activity 

on the NASDAQ Options Market at 

more than 130,000 options contracts 

accessed or provided through the 

NASDAQ Options Market. 

NASDAQ is also making several nonsubstantive amendments to Rule 7018 to 

clarify where required volume levels 

may continue to be achieved through 

one or more MPIDs, and is also making 

several minor formatting changes to the 

rule text. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is 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. First, all 

similarly situated members will be 

subject to the same fee structure, and 

access to NASDAQ is offered on fair and 

non-discriminatory terms. Moreover, 

NASDAQ believes that it is reasonable 

and equitable to stipulate that members 

qualifying for NASDAQ’s most favorable 

liquidity rebate tier must achieve 

requisite volume thresholds through a 

single MPID, thereby enhancing market 

quality through unified management of 

the member’s quotes and orders and 

discouraging aggregation arrangements 

that exist solely for pricing reasons. 

Specifically, liquidity provider rebate 

tiers exist to enhance market quality by 

encouraging participants to post large 

numbers of quotes/orders on a 

particular venue and thereby allow the 

exchange to serve a robust price 

discovery function and absorb larger 

volumes of incoming orders at a given 

price. NASDAQ believes that it is 

reasonable and equitable to offer its 

highest rebate tier to firms that provide 

volume through a single MPID, because 

NASDAQ believes that such firms are 

most likely to provide consistent 

liquidity during periods of market stress 

and to manage their quotes/orders in a 

coordinated manner that promotes price 

discovery and market stability. 

NASDAQ further believes that it is 

less equitable to pay a high rebate to a 

member that aggregates the activity of 

multiple smaller firms, since the higher 

rebate is not being paid with respect to 

the active quote/order management of a 

particular market maker or active 

liquidity provider, but rather simply 

due to the member’s willingness to 

allow other members and sponsored 

participants to channel low volumes of 

quote/order activity through another 

member. Accordingly, NASDAQ 

believes that the proposal is not 

unreasonably discriminatory because it 

is consistent with the overall goals of 

enhancing market quality that undergird 

the liquidity provider rebate. Finally, 

NASDAQ notes that firms no longer 

eligible for the highest rebate tier would 

remain eligible for a rebate tier that is 

identical with respect to non-displayed 

liquidity and only $0.00005 per share 

executed lower with respect to 

displayed liquidity. 

NASDAQ further notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues if they 

deem fee levels at a particular venue to 

be excessive. In particular, because 

many other trading venues do not 

stipulate that volume thresholds must 

be achieved through a single MPID, 

market participants that currently 

receive the highest rebate but that will 

be unable to do so in the future may 

readily favor competing venues in an 

effort to receive more favorable pricing. 

With respect to its pricing change for 

members active on both the NASDAQ 

Market Center and the NASDAQ 

Options Market, NASDAQ noted in its 

prior filing to establish a rebate tier 

focused on such members that the tier 

is responsive to the convergence of 

trading in which members 

simultaneously trade different asset 

classes within a single strategy.6 Thus, 

to the extent that a member decreases 

volume in cash equities while trading 

higher volumes of options, the tier 

recognizes that the member nevertheless 

remains an active member of the 

NASDAQ Stock Market and should 

remain eligible for pricing discounts 

that recognize the overall volume of its 

activity. NASDAQ also notes that cash 

equities and options markets are linked, 

with liquidity and trading patterns on 

one market affecting those on the other. 

Accordingly, the tier recognizes that 

activity in the options markets also 

supports price discovery and liquidity 

provision in the NASDAQ Market 

Center. 

After over one year of experience with 

the existing pricing tier, however, 

NASDAQ has concluded that the level 

of the activity required to qualify for the 

tier was not low enough to provide the 

benefit to an appropriately wide range 

of members that are active in both the 

NASDAQ Market Center and the 

NASDAQ Options Market. Accordingly, 

NASDAQ has decided to lower the 

required thresholds so as to make the 

associated discount more widely 

available. 

NASDAQ further notes, however, that 

the tier is one of several means of 

qualifying for the rebate levels 

associated with the tier, and that the 

other means do not require any activity 

on the NASDAQ Options Market. 

Accordingly, NASDAQ believes that the 

tier and the proposed change in 

required levels of activity are not 

unreasonably discriminatory. 

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 opt to disfavor 

NASDAQ’s execution services if they 

believe that alternatives offer them 

better value. Accordingly, NASDAQ 

does not believe that the proposed 

changes will impair the ability of 

members or competing order execution 

venues to maintain their competitive 

standing in the financial markets. 

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.7 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 


srobinson on DSKHWCL6B1PROD with NOTICES
12786 Federal Register / Vol. 76, No. 45 / Tuesday, March 8, 2011 / Notices 

8 17 CFR 200.30–3(a)(12). 

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. 

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 rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2011–028 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–2011–028. 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 the 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–2011–028 and should be 

submitted on or before March 29, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5137 Filed 3–7–11; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 7358] 

Culturally Significant Objects Imported 

for Exhibition Determinations: ‘‘Double 

Sexus’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, and Delegation of 

Authority No. 236–3 of August 28, 2000, 

I hereby determine that the objects to be 

included in the exhibition ‘‘Double 

Sexus,’’ imported from abroad for 

temporary exhibition within the United 

States, are of cultural significance. The 

objects are imported pursuant to loan 

agreements with the foreign owners or 

custodians. I also determine that the 

exhibition or display of the exhibit 

objects at the Wexner Center for the Arts 

at The Ohio State University, Columbus, 

Ohio, from on or about March 26, 2011, 

until on or about July 31, 2011, and at 

possible additional exhibitions or 

venues yet to be determined, is in the 

national interest. I have ordered that 

Public Notice of these Determinations 

be published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Paul W. 

Manning, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6469). The 

mailing address is U.S. Department of 

State, SA–5, L/PD, Fifth Floor (Suite 

5H03), Washington, DC 20522–0505. 

Dated: March 2, 2011. 

Ann Stock, 

Assistant Secretary, Bureau of Educational 

and Cultural Affairs, Department of State. 

[FR Doc. 2011–5240 Filed 3–7–11; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice: 7356] 

Culturally Significant Objects Imported 

for Exhibition Determinations: 

‘‘Charlotte Salomon: Life? Or Theatre?’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, and Delegation of 

Authority No. 236–3 of August 28, 2000, 

I hereby determine that the objects to be 

included in the exhibition ‘‘Charlotte 

Salomon: Life? Or Theatre?’’ imported 

from abroad for temporary exhibition 

within the United States, are of cultural 

significance. The objects are imported 

pursuant to a loan agreement with the 

foreign owner or custodian. I also 

determine that the exhibition or display 

of the exhibit objects at the 

Contemporary Jewish Museum, San 

Francisco, CA, from on or about March 

31, 2011, until on or about July 31, 

2011, and at possible additional 

exhibitions or venues yet to be 

determined, is in the national interest. 

I have ordered that Public Notice of 

these Determinations be published in 

the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Julie 

Simpson, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6467). The 

mailing address is U.S. Department of 

State, SA–5, L/PD, Fifth Floor (Suite 

5H03), Washington, DC 20522–0505. 

Dated: March 2, 2011. 

Ann Stock, 

Assistant Secretary, Bureau of Educational 

and Cultural Affairs, Department of State. 

[FR Doc. 2011–5254 Filed 3–7–11; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice: 7357] 

Culturally Significant Objects Imported 

for Exhibition Determinations: ‘‘Poetry 

in Clay: Korean Buncheong Ceramics 

from the Leeum, Samsung Museum of 

Art’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 


srobinson on DSKHWCL6B1PROD with NOTICES