20412 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange’s two modes of order interaction 

are described in NSX Rule 11.13(b). 

4 ‘‘Zero Display Orders’’ means ‘‘Zero Display 

Reserve Orders’’ as specified in NSX Rule 

11.11(c)(2)(A). 

Act 8 and subparagraph (f)(2) of Rule 

19b–4 9 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–2011–033 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–2011–033. 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 office of CBOE. 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–2011–033 and 

should be submitted on or before May 

3, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8631 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64208; File No. SR–NSX– 

2011–02] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

the NSX Fee and Rebate Schedule and 

NSX Rule 16.4 

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 29, 

2011, National Stock Exchange, Inc. 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The National Stock Exchange, Inc. 

(‘‘NSX® ’’ or the ‘‘Exchange’’) is 

proposing a rule change, operative at 

commencement of trading on April 1, 

2011, which proposes to amend the 

NSX Fee and Rebate Schedule (the ‘‘Fee 

Schedule’’) to adjust certain liquidity 

taking rebates and fees in the Automatic 

Execution Mode of order interaction, 

eliminate the Exchange’s market data 

rebate in the Order Delivery Mode of 

order interaction and establish an 

exchange regulatory fee. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nsx.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 

With this rule change, the Exchange is 

proposing to modify the Fee Schedule 

and related text of Rule 16 in four 

respects. First, the proposed rule change 

would increase the highest rebate, and 

adjust the tier thresholds, for liquidity 

adding displayed orders in the 

Automatic Execution Mode of order 

interaction (‘‘AutoEx’’) 3 priced at least 

one dollar. Certain conforming changes 

are also proposed for rebates for 

liquidity adding Zero Display Orders 4

in AutoEx priced at least one dollar. 

Second, the proposed rule change 

would eliminate the $0.0028 taker fee 

on orders that take liquidity in AutoEx 

for securities one dollar and above. 

Third, the proposed rule change would 

eliminate the market data revenue 

rebate currently available in the Order 

Delivery Mode of order interaction 

(‘‘Order Delivery’’). Finally, the 

proposed rule change would establish a 

monthly exchange regulatory fee. Each 

of the proposed changes is further 

addressed below. 

AutoEx Liquidity Adding Rebate for 

Securities Priced at Least One Dollar 

Currently, for displayed orders in 

securities priced one dollar and above 

that provide liquidity in AutoEx, the 

Fee Schedule provides a (‘‘Tier 1’’) 

rebate of $0.0026 per share if an ETP 

Holder’s liquidity adding average daily 

volume (as such term is defined in 

Endnote 3 of the Fee Schedule, 

‘‘Liquidity Adding ADV’’) is less than 20 

basis points of Total Consolidated 

Average Daily Volume (as defined in 

Endnote 13 of the Fee Schedule, 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 20413 

5NSX Rule 16.4(b). 

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

7 15 U.S.C. 78f(b)(4). 

‘‘TCADV’’), and a (‘‘Tier 2’’) rebate of 

$0.0028 per share if Liquidity Adding 

ADV is at or above 20 basis points of 

TCADV. 

The instant rule change modifies the 

AutoEx liquidity adding rebate 

thresholds described above by 

increasing the Tier 2 rebate from 

$0.0028 to $0.0029 per share. In 

addition, the instant rule change 

eliminates the measurement of TCADV 

and replaces it with a tier of 10 million 

shares of Liquidity Adding ADV, where 

such measurement includes only 

liquidity providing Tape A and C 

securities in AutoEx priced at least one 

dollar. With respect to the rebate for 

Zero Display Orders that add liquidity 

in AutoEx that are priced at least one 

dollar, the calculation of an ETP 

Holder’s Liquidity Adding ADV would 

be made consistent with the rebate 

calculation for liquidity adding 

displayed orders priced at least one 

dollar in AutoEx. 

The proposed edits discussed above 

are reflected in Section I of the Fee 

Schedule under the header ‘‘Securities 

$1 and Above’’ and across from the 

header ‘‘Displayed Orders that Add 

Liquidity’’ and in corresponding 

Endnotes 3 and 13. 

AutoEx Taker Fee for Securities Priced 

at Least One Dollar 

The Exchange is also proposing to 

modify the Fee Schedule’s taker fee 

structure with respect to orders that take 

liquidity in AutoEx. Prior to the 

effective date of the proposed rule 

change, the Exchange charges a taker fee 

of $.0028 per share on securities one 

dollar or above from all tapes that take 

liquidity if an ETP Holder’s Liquidity 

Adding ADV is at least 50,000 (‘‘Tier 1’’), 

and a fee of $0.0030 per share if 

Liquidity Adding ADV is less than 

50,000 (‘‘Tier 2’’). In the proposed rule 

change, the Exchange is proposing to 

eliminate Tier 1 and all volume 

thresholds. Accordingly, after the 

effective date, a taker fee of $0.0030 per 

share, on all securities one dollar or 

above on all orders that take liquidity on 

all tapes, will be charged in AutoEx, 

regardless of the ETP Holder’s Liquidity 

Adding ADV. 

The proposed edits discussed above 

are reflected in Section I of the Fee 

Schedule, under the header ‘‘Securities 

$1 and Above’’ and across from the 

header ‘‘Orders That Take Liquidity’’. 

Order Delivery Market Data Rebate 

The Exchange is also proposing to 

eliminate the market data rebate in 

Order Delivery. Prior to the effective 

date of the proposed rule change, under 

the Fee Schedule and NSX Rule 16.4, an 

ETP Holder that has selected the Order 

Delivery mode of order interaction is 

eligible (depending on achievement of 

volume thresholds) to receive a rebate of 

a specified percentage of Tape ‘‘A’’, ‘‘B’’, 

and ‘‘C’’ market data revenue attributable 

to such ETP Holder’s trading and 

quoting of non-Zero Display Reserve 

Orders priced at or above one dollar in 

Order Delivery Mode.5 Under the 

proposed rule change, the Exchange is 

proposing to eliminate the current 

market data rebate. Accordingly, 

reference to rebates of market data 

revenue would be deleted from Section 

II of the Fee Schedule (together with 

Endnote 8), and NSX Rule 16.4 would 

be deleted in its entirety. 

To the extent that the Consolidated 

Tape Association or the Nasdaq 

Securities Information Processor 

subsequently adjusts any Tape A, Tape 

B or Tape C revenue earned by the 

Exchange for any period(s) during 

which the tape revenue rebate program 

was in effect, rebates provided to ETP 

Holders would be adjusted, as 

necessary, in accordance with Rule 16.4 

(c) as in effect during the period such 

rebates accrued. Similarly, current 

Exchange Rules 16.4(d) (De Minimis 

Rebates) and 16.4(e) (Quarterly 

Payments) will apply to any market data 

rebates based on an ETP Holder’s 

trading activity pursuant to Rule 16.4(b) 

prior to the effective date of the instant 

rule filing eliminating the market data 

rebate. 

Regulatory Fee 

Finally, the Exchange is proposing to 

establish a monthly regulatory fee 

payable by each ETP Holder on a 

monthly basis. Prior to the effective date 

of the proposed rule change, NSX did 

not impose a regulatory fee. After the 

effective date, a monthly regulatory fee 

of $500 per ETP Holder will be charged, 

payable monthly. New text has been 

added as Section IV of the Fee Schedule 

to reflect this charge. 

Rationale 

The Exchange has determined that 

these changes are necessary to increase 

the revenues of the Exchange for the 

purpose of continuing to adequately 

fund its regulatory and general business 

functions. The Exchange believes that 

these changes will not impair the 

Exchange’s ability to fulfill its 

regulatory responsibilities. 

The proposed modifications are 

reasonable and equitably allocated to 

ETP Holders that submit orders in 

AutoEx and Order Delivery, as either 

display or non-display orders and as 

liquidity taking or liquidity providing, 

and are not discriminatory because ETP 

Holders are free to elect whether or not 

to submit such orders. Based upon the 

information above, the Exchange 

believes that the proposed rule change 

is consistent with the protection of 

investors and the public interest. 

Operative Date and Notice 

The Exchange intends to make the 

proposed modifications, which are 

effective on filing of this proposed rule, 

operative as of commencement of 

trading on April 1, 2011. Pursuant to 

Exchange Rule 16.1(c), the Exchange 

will ‘‘provide ETP Holders with notice 

of all relevant dues, fees, assessments 

and charges of the Exchange’’ through 

the issuance of a Regulatory Circular of 

the changes to the Fee Schedule and 

will post a copy of the rule filing on the 

Exchange’s website (http:// 

www.nsx.com). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) of the 

Act,6 in general, and Section 6(b)(4) of 

the Act,7 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using the facilities of the 

Exchange. Moreover, the proposed rule 

change is not discriminatory in that all 

qualified ETP Holders are eligible to 

submit (or not submit) trades and quotes 

at any price in AutoEx and Order 

Delivery in all tapes, as either displayed 

or undisplayed and as liquidity adding 

or liquidity taking, and may do so at 

their discretion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any inappropriate burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change has taken 

effect upon filing pursuant to Section 


srobinson on DSKHWCL6B1PROD with NOTICES
20414 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4. 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

19(b)(3)(A)(ii) of the Act8 and 

subparagraph (f)(2) of Rule 19b–49

thereunder, because, as provided in 

(f)(2), it changes ‘‘a due, fee or other 

charge applicable only to a member’’ 

(known on the Exchange as an ETP 

Holder). 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. 

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–NSX–2011–02 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–NSX–2011–02. 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 

will also 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–NSX–2011– 

02 and should be submitted on or before 

May 3, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8630 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64211; File No. SR–BATS– 

2011–012] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

April 6, 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 April 1, 

2011, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange has designated the proposed 

rule change as one establishing or 

changing a due, fee, or other charge 

imposed by the Exchange under Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 

4(f)(2) thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. 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 [sic] amend 

the fee schedule applicable to 

Members 5 and non-members of the 

Exchange pursuant to BATS Rules 

15.1(a) and (c). Changes to the fee 

schedule pursuant to this proposal will 

be effective upon filing. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.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 parts 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 proposes to modify the 

‘‘Options Pricing’’ section of its fee 

schedule to: (i) Adopt a definition for 

Total Consolidated Volume (‘‘TCV’’), to 

be used for purposes of the tiered 

pricing structure offered by the BATS 

options market (‘‘BATS Options’’); (ii) 

modify the fees applicable to removing 

liquidity from BATS Options; (iii) 

modify the program that provides a 

rebate specifically for orders that set 

either the national best bid (the ‘‘NBB’’) 

or the national best offer (the ‘‘NBO’’) 

subject to average daily volume 

requirements; and (iv) adopt other 

changes to other definitions used for 

purposes of the fee schedule. 

(i) Definition and Use of Total 

Consolidated Volume for Pricing 

Rather than basing its pricing 

structure on a static number of 

contracts, the Exchange proposes to 

modify its tiered pricing structure such 

that it is based on Total Consolidated 

Volume, or TCV, and is thus variable 


srobinson on DSKHWCL6B1PROD with NOTICES