Federal Register / Vol. 75, No. 218 / Friday, November 12, 2010 / Notices 69503 

5 15 U.S.C. 78s(b)(3)(a)(ii). 

6 17 CFR 240.19b–4(f)(2). 7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

subscribers equally based on the 

number of test ports subscribed. This 

proposed charge would apply to both 

members that obtain test ports for direct 

access and non-member service bureaus 

that act as a conduit for orders entered 

by NASDAQ members that are their 

customers. The proposed fees will cover 

the costs associated with separately 

offering the service, responding to 

customer requests, configuring 

NASDAQ’s systems, programming to 

user specifications, and administering 

the service, among other things, and 

may provide NASDAQ with a profit to 

the extent costs are covered. NASDAQ 

believes that the proposed fee structure 

strikes a balance between covering these 

costs, and providing incentives to 

subscribers to make efficient use of Test 

Facility ports. 

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 Regarding 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 5 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.6 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–2010–145 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–2010–145. 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 

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 

publicly available. All submissions 

should refer to File Number SR– 

NASDAQ–2010–145 and should be 

submitted on or before December 3, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28466 Filed 11–10–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63256; File No. SR–FINRA– 

2010–055] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change To Amend 

FINRA Rule 6140 (Other Trading 

Practices) 

November 5, 2010. 

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 October 

29, 2010, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 FINRA. 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 

FINRA is proposing to amend FINRA 

Rule 6140 to eliminate the provisions 

regarding the handling of stop orders, 

delete definitions relating to stop stock 

transactions and to relocate the 

definition of ‘‘initial public offering.’’ 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

FINRA Rule 6140(h) (the ‘‘Rule’’) 

addresses the handling of stop orders in 

mstockstill on DSKH9S0YB1PROD with NOTICES

69504 Federal Register / Vol. 75, No. 218 / Friday, November 12, 2010 / Notices 

3Stop buy orders generally are entered by 

investors with short positions to limit losses should 

the stock price increase. Stop sell orders generally 

are entered in a stock whose price has increased 

substantially in order to protect the investor’s 

profits should the stock price decline. 

4These requirements were initially adopted by 

NASD (and the national securities exchanges) in 

1975. See Notice to Members 75–42 (June 10, 1975) 

(Rules Governing Reporting of Transactions to 

Consolidated Tape). 

5For the purposes of Rule 6130(a), ‘‘initial public 

offering’’ means: (1) The offering of the security is 

registered under the Securities Act; and (2) the 

issuer of the security, immediately prior to filing 

the registration statement with respect to such 

offering, was not subject to the reporting 

requirements of Section 13 or 15(d) of the Act. 

6 15 U.S.C. 78o–3(b)(6). 

7The text of the proposed rule change is available 

on the Commission’s Web site at http:// 

www.sec.gov/rules/sro.shtml. 

NMS stocks, as defined in Rule 

600(b)(47) of SEC Regulation NMS.3

Specifically, the Rule provides that 

members may, but are not obligated to, 

accept stop orders. The Rule further 

provides that a stop order becomes a 

market order (or a stop limit order 

becomes a limit order) when a 

transaction takes place at or above the 

stop price (in the case of a buy stop 

order) or at or below the stop price (in 

the case of a sell stop order). Thus, as 

defined in the Rule, a stop order cannot 

be triggered by the publication of a 

quotation at the stop price (only by a 

transaction). However, members have 

stated that they believe quotations may 

be a better indicator of the current price 

of a security than transactions, and 

requested that FINRA provide members 

the flexibility to determine whether the 

trigger of a stop order will be based on 

transactions or quotations in the subject 

security at the stop price. 

FINRA rules do not typically define 

the parameters of the various order 

types that members may accept and we 

agree that members should have the 

ability to define the triggering event for 

stop orders as well as to design their 

systems consistent with such 

determination.4 Therefore, FINRA is 

proposing to delete Rule 6140(h). 

FINRA is also deleting Rule 6140(i), 

which defines the terms ‘‘stop stock 

price’’ and ‘‘stop stock transaction.’’ 

Members that also are members of 

another self-regulatory organization 

(‘‘SRO’’) will continue to be subject to 

any applicable provisions adopted by 

such other SRO with respect to the 

handling of stop orders. FINRA expects 

that, irrespective of whether a 

transaction or quotation is used as the 

trigger for a customer stop order, each 

member will apply the approach 

consistently firm-wide to all customer 

orders and fully disclose its practice to 

its customers. 

FINRA also is proposing to move the 

definition of ‘‘initial public offering’’ 

from Rule 6220 (Definitions) to Rule 

6130 (Transactions Related to Initial 

Public Offerings).5 FINRA is not 

proposing substantive changes to the 

definition of ‘‘initial public offering.’’ 

FINRA believes that Rule 6130 is the 

more appropriate location for the 

definition of ‘‘initial public offering’’ and 

that relocating this definition, as 

proposed, will reduce confusion for 

members. 

FINRA will announce the 

implementation date of the proposed 

rule change no later than 30 days 

following Commission approval. The 

implementation date will be no more 

than 60 days following Commission 

approval. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,6 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade and, in 

general, to protect investors and the 

public interest. FINRA believes that 

adopting the proposed rule change will 

provide members with the flexibility to 

determine whether the execution of stop 

orders will be triggered by transactions 

or quotations in the subject security 

without compromising investor 

protection. In addition, FINRA believes 

that relocating the definition of ‘‘initial 

public offering’’ to Rule 6130 is 

appropriate and will reduce member 

confusion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA 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. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be 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–FINRA–2010–055 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–FINRA–2010–055. 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,7 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 the filing also will be 

available for inspection and copying at 

the principal office of FINRA. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 218 / Friday, November 12, 2010 / Notices 69505 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3FIX is a protocol used by NOM market 

participants for order entry, modification and 

cancellation and message transmittal. 

4Other Port Fees refer to non-Fix ports used by 

NOM market participants for order entry and 

quotes. 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–FINRA–2010–055 and 

should be submitted on or before 

December 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28462 Filed 11–10–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63253; File No. SR– 

NASDAQ–2010–144] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

Stock Market, LLC Relating To Access 

Service Fees 

November 5, 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 

28, 2010, 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 

Exchange Rule 7053, related to fees 

governing pricing for NASDAQ 

members using the NASDAQ Options 

Market (‘‘NOM’’), NASDAQ’s facility for 

executing and routing standardized 

equity and index options. Specifically, 

the Exchange proposes to adopt a tiered 

fee structure for certain Access Services 

fees. 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on November 1, 2010. 

The text of the proposed rule change 

is set forth below. Proposed new text is 

underlined and deleted text is in 

brackets. 

* * * * * 

7053. NASDAQ Options Market—Access 

Services 

The following charges are assessed by 

Nasdaq for connectivity to the NASDAQ 

Options Market. 

(a) Financial Information Exchange (FIX) 

[Ports] [Price] 

[FIX Trading Port] ......... [$500/port/month]. 

[FIX Port for Services 

Other than Trading].

[$500/port/month]. 

Ports Quantity Price 

FIX Trading Port .................................................................. First 25 ports ....................................................................... $500/port/month. 

Additional ports above 25 ................................................... $250/port/month. 

FIX Port for Services Other than Trading ............................ First 25 ports ....................................................................... $500/port/month 

Additional ports above 25 ................................................... $250/port/month. 

(b) TradeInfo 

• Members not subscribing to the Nasdaq 

Workstation using TradeInfo will be charged 

a fee of $95 per user per month. 

(c) Other Port Fees 

The following port fees shall apply in 

connection with the use of other trading 

telecommunication protocols: 

[• $500 per month for each port pair.] 

Quantity Price 

First 25 ports ...... $500 per month for each 

port pair. 

Additional ports 

above 25.

$250 per month for each 

port pair. 

* * * * * 

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 amend Rule 

7053, titled NASDAQ Options Market— 

Access Services, to create a tiered fee 

structure for its Financial Information 

Exchange (‘‘FIX’’) 3 Fees and Other Port 

Fees 4 pricing. 

Currently Rule 7053 contains fees 

assessed by Nasdaq for connectivity to 

NOM. Access Services fees relate to 

ports used to: Enter orders into the 

NASDAQ trading systems; receive 

market data; and enter quotes. 

The Exchange proposes to amend the 

current FIX fees, which are currently 

$500 per month/per port for a Fix 

Trading Port or a FIX Port for Services 

Other than Trading. The Exchange 

proposes to assess the following tiered 

fees: 

mstockstill on DSKH9S0YB1PROD with NOTICES