20420 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

12For the purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The Penny Pilot was established in March 2008 

and in October 2009 was expanded and extended 

through December 31, 2010. See Securities 

Exchange Act Release Nos. 57579 (March 28, 2008), 

73 FR 18587 (April 4, 2008) (SR–NASDAQ–2008– 

026)(notice of filing and immediate effectiveness 

establishing Penny Pilot); 60874 (October 23, 2009), 

74 FR 56682 (November 2, 2009) (SR–NASDAQ– 

2009–091) (notice of filing and immediate 

effectiveness expanding and extending Penny 

Pilot); 60965 (November 9, 2009), 74 FR 59292 

(November 17, 2009) (SR–NASDAQ–2009–097) 

(notice of filing and immediate effectiveness adding 

seventy-five classes to Penny Pilot); 61455 

(February 1, 2010), 75 FR 6239 (February 8, 2010) 

(SR–NASDAQ–2010–013)(notice of filing and 

immediate effectiveness adding seventy-five classes 

to Penny Pilot); and 62029 (May 4, 2010), 75 FR 

25895 (May 10, 2010) (SR–NASDAQ–2010– 

053)(notice of filing and immediate effectiveness 

adding seventy-five classes to Penny Pilot). See also 

Exchange Rule Chapter VI, Section 5. 

4An order that adds liquidity is one that is 

entered into NOM and rests on the NOM book. 

5An order that removes liquidity is one that is 

entered into NOM and that executes against an 

order resting on the NOM book. 

operative delay is consistent with the 

protection of investors and the public 

interest, as it will allow the pilot 

program to continue uninterrupted, 

thereby avoiding the investor confusion 

that could result from a temporary 

interruption in the pilot program.12 For 

this reason, the Commission designates 

the proposed rule change to be operative 

upon filing. 

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 

change 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, 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 rulecomments@sec.gov. Please include File 

Number SR–NYSEAmex–2011–23 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–NYSEAmex–2011–23. 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 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–NYSEAmex–2011–23, and 

should be submitted on or before May 

3, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8626 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64210; File No. SR– 

NASDAQ–2011–046] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Rebates and Fees in Penny Pilot and 

Non-Penny Pilot Options 

April 6, 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 March 31, 

2011, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify 

Rule 7050 governing pricing for 

NASDAQ members using the NASDAQ 

Options Market (‘‘NOM’’), NASDAQ’s 

facility for executing and routing 

standardized equity and index options. 

Specifically, NOM proposes to: 

(i) Modify pricing for the Penny Pilot 3

Options with respect to the Customer 

Rebate to Add Liquidity; 4 and (ii) 

modify pricing for both Penny Pilot 

Options and All Other Options with 

respect to the Fees for Removing 

Liquidity.5

While changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative for transactions on April 

1, 2011. 

The text of the proposed rule change 

is set forth below. Proposed new text is 

in italics and deleted text is in brackets. 

* * * * * 

7050. NASDAQ Options Market 

The following charges shall apply to 

the use of the order execution and 

routing services of the NASDAQ 

Options Market for all securities. 

(1) Fees for Execution of Contracts on 

the NASDAQ Options Market 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 20421 

6A Firm would continue to receive $0.10 per 

contract, a Non-NOM Market Maker would 

continue to receive $0.25 per contract and a NOM 

Market Makers would continue to receive $0.30 per 

contract to add liquidity. 

7A Firm, Non-NOM Market Makers and NOM 

Market Makers would continue to be assessed $0.45 

per contract for removing liquidity. 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

10See BATS’ BZX Exchange Fee Schedule. 

11See NYSE Arca’s Fee Schedule. 

FEES AND REBATES

[Per executed contract] 

Customer Firm Non-NOM 

market maker 

NOM market 

maker 

Penny Pilot Options: 

Rebate to Add Liquidity ............................................................................ $0.3[2]6 $0.10 $0.25 $0.30 

Fee for Removing Liquidity ....................................................................... 0.4[3]5 0.45 0.45 0.45 

NDX and MNX: 

Rebate to Add Liquidity ............................................................................ 0.10 0.10 0.10 0.20 

Fee for Removing Liquidity ....................................................................... 0.50 0.50 0.50 0.40 

All Other Options: 

Fee for Adding Liquidity ........................................................................... 0.00 0.45 0.45 0.30 

Fee for Removing Liquidity ....................................................................... 0.4[3]5 0.45 0.45 0.45 

Rebate to Add Liquidity ............................................................................ 0.20 0.00 0.00 0.00 

(2) No Change 

(3) No Change 

(4) No Change 

* * * * * 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

www.nasdaq.cchwallstreet.com, at the 

principal office of the Exchange, 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, the 

Exchange 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. The 

Exchange 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 modify Rule 

7050 governing the rebates and fees 

assessed for options orders entered into 

NOM. Specifically, NASDAQ is 

proposing to modify pricing for the 

Penny Pilot Options with respect to the 

Customer Rebate to Add Liquidity and 

also modify both Penny Pilot Options 

and All Other Options with respect to 

the Customer Fees for Removing 

Liquidity. 

Customer Rebate To Add Liquidity 

The Exchange currently pays a Rebate 

to Add Liquidity of $0.32 per executed 

contract to members providing liquidity 

through NOM in options included in the 

Penny Pilot and in the clearing capacity 

of ‘‘Customer.’’ The Exchange proposes 

to amend this rebate so that a Customer 

would receive a Rebate to Add Liquidity 

of $0.36 per contract.6 The Exchange 

believes that this increase in the Rebate 

to Add Liquidity would serve to 

incentivize Customers to add greater 

liquidity to the options listed for trading 

on NOM. 

Customer Fees for Removing Liquidity 

The Exchange assesses a Fee for 

Removing Liquidity of $0.43 per 

executed contract to members removing 

liquidity through NOM in options 

included both the Penny Pilot and All 

Other Options and in the clearing 

capacity of ‘‘Customer.’’ The Exchange 

proposes to amend these fees so that a 

Customer would pay a Fee to Remove 

Liquidity of $0.45 per contract.7 The 

Exchange is proposing to uniformly 

assess all market participants the same 

fee to remove liquidity. 

While changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative for transactions on April 

1, 2011. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule changes are 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 Exchange believes that the 

proposed increase in the Customer 

Rebate to Add Liquidity in the Penny 

Pilot Options is both equitable and 

reasonable because the Exchange is 

seeking to provide the appropriate 

incentives to broker-dealers acting as 

agent for Customer orders to select the 

Exchange as a venue to post Customer 

orders. The Exchange believes that the 

proposed increase in the rebate is also 

reasonable because the rebate is 

consistent with other rebates being paid 

at the BATS Exchange, Inc. (‘‘BATS’’) for 

orders that add liquidity to the BATS 

Options book.10

The Exchange believes that the 

proposed increase in the Fee to Remove 

Liquidity for Customers in both the 

Penny Pilot Options and All Other 

Options is both reasonable and 

equitable because the Exchange would 

uniformly assess a $0.45 per contract 

Fee to Remove Liquidity on all market 

participants. 

The Exchange believes its proposal to 

increase the Fee for Adding Liquidity 

for Customers in both the Penny Pilot 

Options and All Other Options is also 

reasonable because the fees are within 

the range of fees assessed by other 

exchanges employing similar pricing 

schemes. Specifically, NYSE Arca, Inc. 

(‘‘NYSE Arca’’) assesses a customer fee 

for taking liquidity of $0.45 for 

electronic executions in penny pilot 

issues and foreign currency options and 

assesses a firm and broker dealer 

standard execution fee of $0.50 for 

electronic executions in options not 

included in the penny pilot.11

The Exchange operates in a highly 

competitive market comprised of nine 

U.S. options exchanges in which 

sophisticated and knowledgeable 

market participants can readily send 

order flow to competing exchanges if 


srobinson on DSKHWCL6B1PROD with NOTICES
20422 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

12 15 U.S.C. 78s(b)(3)(A)(ii). 

13 17 CFR 240.19b–4(f)(2). 14 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

they deem fee levels at a particular 

exchange to be excessive. The Exchange 

believes that the proposed rebate and 

fees are competitive and similar with 

rebates and fees in place on other 

exchanges. The Exchange believes that 

this competitive marketplace impacts 

the rebates and fees present on the 

Exchange today and substantially 

influences the proposals set forth above. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the 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 either 

solicited or 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; 12 and 

paragraph (f)(2) of Rule 19b–4 13

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–NASDAQ–2011–046 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–2011–046. 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 No. SR–NASDAQ– 

2011–046 and should be submitted on 

or before May 3, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8627 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64209; File No. SR– 

NYSEArca–2011–14] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Equities Rule 7.11, Trading Pauses in 

Individual Securities Due to 

Extraordinary Market Volatility, To 

Extend the Effective Date of the Pilot 

Until the Earlier of August 11, 2011 or 

the Date on Which a Limit Up/Limit 

Down Mechanism To Address 

Extraordinary Market Volatility, if 

Adopted, Applies 

April 6, 2011. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b-4 thereunder,3

notice is hereby given that on March 31, 

2011, NYSE Arca, Inc. (the ‘‘Exchange’’ 

or ‘‘NYSE Arca’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

NYSE Arca Equities Rule 7.11, which 

provides for trading pauses in 

individual securities due to 

extraordinary market volatility, to 

extend the effective date of the pilot by 

which such rule operates from the 

current scheduled expiration date of 

April 11, 2011, until the earlier of 

August 11, 2011 or the date on which 

a limit up/limit down mechanism to 

address extraordinary market volatility, 

if adopted, applies. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 


srobinson on DSKHWCL6B1PROD with NOTICES