13692 Federal Register / Vol. 76, No. 49 / Monday, March 14, 2011 / Notices 

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

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

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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 Commission notes that the 

Exchange satisfied this five-day pre-filing 

requirement. 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

the provisions of the Securities 

Exchange Act of 1934 (‘‘Act’’),4 in 

general, and with Section 6(b)(5) 5 of the 

Act 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 

proposal will provide greater 

transparency into trade and information 

processing and thus allow market 

participants to make better informed 

and more efficient trading decisions. 

In addition, the Exchange believes 

that the proposed rule change is 

consistent with the provisions of 

Section 6 of the Act in general, and with 

Section 6(b)(4) 6 of the Act in particular, 

in that it provides for the equitable 

allocation of reasonable dues, fees and 

other charges among C2 Trading Permit 

Holders 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 nondiscriminatory basis. In addition, the 

Exchange believes the proposed fees are 

equitable and reasonable in that they are 

charged uniformly to all market 

participants and are comparable to the 

fees charged by Correlix in connection 

with its revenue sharing programs with 

other exchanges. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

C2 does not believe that the proposed 

rule change will impose any burden on 

competition that is not necessary or 

appropriate in furtherance of 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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(6) thereunder.8 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

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. 

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–C2–2011–010 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–C2–2011–010. 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–C2– 

2011–010 and should be submitted on 

or before April 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5720 Filed 3–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64051; File No. SR–CBOE– 

2011–023] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated: Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Establish a Revenue 

Sharing Program With Correlix, Inc. 

March 8, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that, on March 1, 

2011, Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 49 / Monday, March 14, 2011 / Notices 13693 

3The product measures latency of orders whether 

the orders are rejected, executed or partially 

executed. 

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

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

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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 Commission notes that the 

Exchange satisfied this five-day pre-filing 

requirement. 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by CBOE. 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 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) 

proposes to establish a revenue sharing 

program with Correlix, Inc. The text of 

the proposed rule change is available on 

the Exchange’s Web site (http:// 

www.cboe.org/legal), at the Exchange’s 

Office of the Secretary and at the 

Commission. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CBOE 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. CBOE 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 

The Exchange is filing a proposed rule 

change to establish a revenue sharing 

program with Correlix. The Exchange 

has entered into an agreement with 

Correlix to provide to users of the 

Exchange real-time analytical tools to 

measure the latency of orders to and 

from its systems. Under the agreement, 

the Exchange will receive 30% of the 

total monthly subscription fees received 

by Correlix from parties who have 

contracted directly with Correlix to use 

their RaceTeam latency measurement 

service for the Exchange’s systems. The 

Exchange will not bill or contract with 

any Correlix RaceTeam customer 

directly. 

Pricing for the Correlix RaceTeam 

product for the Exchange varies 

depending on the number of unique 

acronyms and logons selected by the 

customer for monitoring by Correlix. For 

the Exchange, the fee will be an initial 

$1,500 monthly base fee for the first 

unique acronym monitored. For each 

additional unique acronym sought to be 

monitored, an additional monthly 

charge of $1,500 will be assessed. The 

monthly price for each unique acronym 

includes the monitoring of up to 25 

Exchange logons associated with that 

particular acronym. Customers that 

wish to exceed 25 logons per-acronym 

for monitoring can purchase additional 

25 logon blocks for an additional fee of 

$750 per month per acronym. 

Under the program, Correlix will see 

an individualized unique Exchangegenerated identifier that will allow 

Correlix RaceTeam to determine round 

trip order time,3 from the time the order 

reaches the Exchange extranet, through 

the Exchange matching engine, and back 

out of the Exchange extranet. The 

RaceTeam product offering does not 

measure latency outside of the Exchange 

extranet. The unique identifier serves as 

a technological information barrier so 

that the RaceTeam data collector will 

only be able to view data for Correlix 

RaceTeam subscriber firms related to 

latency. Correlix will not see 

subscriber’s individual order detail such 

as security, price or size. Individual 

RaceTeam subscribers’ logins will 

restrict access to only their own latency 

data. Correlix will see no specific 

information regarding the trading 

activity of non-subscribers. The 

Exchange believes that the above 

arrangement will provide users of its 

systems greater transparency into the 

processing of their trading activity and 

allow them to make more efficient 

trading decisions. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of the Securities 

Exchange Act of 1934 (‘‘Act’’),4 in 

general, and with Section 6(b)(5) 5 of the 

Act 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 

proposal will provide greater 

transparency into trade and information 

processing and thus allow market 

participants to make better informed 

and more efficient trading decisions. 

In addition, the Exchange believes 

that the proposed rule change is 

consistent with the provisions of 

Section 6 of the Act in general, and with 

Section 6(b)(4)6 of the Act in particular, 

in that it provides for the equitable 

allocation of reasonable dues, fees and 

other charges among CBOE Trading 

Permit Holders 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. 

In addition, the Exchange believes the 

proposed fees are equitable and 

reasonable in that they are charged 

uniformly to all market participants and 

are comparable to the fees charged by 

Correlix in connection with its revenue 

sharing programs with other exchanges. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of 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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(6) thereunder.8 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

mstockstill on DSKH9S0YB1PROD with NOTICES

13694 Federal Register / Vol. 76, No. 49 / Monday, March 14, 2011 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3For a detailed description of the Investor 

Support Program, see Securities Exchange Act 

Release No. 63270 (November 8, 2010), 75 FR 69489 

(November 12, 2010) (NASDAQ–2010–141) (notice 

of filing and immediate effectiveness) (the ‘‘ISP 

Filing’’). See also Securities Exchange Act Release 

Nos. 63414 (December 2, 2010), 75 FR 76505 

(December 8, 2010) (NASDAQ–2010–153) (notice of 

filing and immediate effectiveness); 63628 (January 

3, 2011), 76 FR 1201 (January 7, 2011) (NASDAQ– 

2010–154) (notice of filing and immediate 

effectiveness); and 63891 (February 11, 2011), 76 FR 

9384 (February 17, 2011) (NASDAQ–2011–022) 

(notice of filing and immediate effectiveness). 

4The Commission has recently expressed its 

concern that a significant percentage of the orders 

of individual investors are executed at over the 

counter (‘‘OTC’’) markets, that is, at off-exchange 

markets; and that a significant percentage of the 

orders of institutional investors are executed in 

dark pools. Securities Exchange Act Release No. 

61358 (January 14, 2010), 75 FR 3594 (January 21, 

2010) (Concept Release on Equity Market Structure, 

‘‘Concept Release’’). In the Concept Release, the 

Commission has recognized the strong policy 

preference under the Act in favor of price 

transparency and displayed markets. The 

Commission published the Concept Release to 

invite public comment on a wide range of market 

structure issues, including high frequency trading 

and un-displayed, or ‘‘dark,’’ liquidity. See also 

Mary L. Schapiro, Strengthening Our Equity Market 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

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. 

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–CBOE–2011–023 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–CBOE–2011–023. 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–CBOE– 

2011–023 and should be submitted on 

or before April 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5719 Filed 3–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64050; File No. SR– 

NASDAQ–2011–034] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Enhance 

the Investor Support Program 

March 8, 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 

28, 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 changes to the fee 

provisions of Rule 7014 (Investor 

Support Program) to increase the rebate 

for adding targeted liquidity within the 

Investor Support Program. The 

Exchange also proposes to amend a 

typographical error. 

NASDAQ has designated this fee 

change proposal effective and operative 

upon filing. 

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 

The Exchange is proposing changes to 

the fee provisions of Rule 7014 to 

increase the rebate for adding targeted 

liquidity within the Investor Support 

Program. The Exchange also proposes to 

amend a typographical error. 

The Exchange established an Investor 

Support Program (‘‘ISP’’) that enables 

NASDAQ members to earn a monthly 

fee credit for providing additional 

liquidity to NASDAQ and increasing the 

NASDAQ-traded volume of what are 

generally considered to be retail and 

institutional investor orders in 

exchange-traded securities (‘‘targeted 

liquidity’’).3 The goal of the ISP is to 

incentivize members to provide such 

targeted liquidity to the NASDAQ 

Market Center.4 The Exchange noted in 

mstockstill on DSKH9S0YB1PROD with NOTICES