Federal Register / Vol. 75, No. 218 / Friday, November 12, 2010 / Notices 69507 

13 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). 

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–2010–144 and should be 

submitted on or before December 3, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28461 Filed 11–10–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63251; File No. SR–NSX– 

2010–14] 

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 

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, 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 comment 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 November 

1, 2010, which proposes to amend the 

NSX Fee and Rebate Schedule (the ‘‘Fee 

Schedule’’) with respect to certain 

rebates payable in the Automatic 

Execution mode of order interaction. 

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 parts 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 to 

adjust volume threshold necessary to 

obtain rebates with respect to displayed 

orders in Tape A and C securities priced 

one dollar and above that add liquidity 

in the Automatic Execution mode of 

order interaction (‘‘AutoEx’’).3

For executions of displayed orders in 

Tape A and C securities priced one 

dollar and above that add liquidity in 

AutoEx, the proposed rule modifies the 

volume thresholds necessary to achieve 

rebates. Prior to the effective date of the 

proposed rule change, the Fee Schedule 

provides a rebate of $0.0026 per share 

if an ETP Holder’s liquidity adding 

average daily volume (as fully defined 

in Endnote 3 of the Fee Schedule, 

‘‘Liquidity Adding ADV’’) is less than 25 

million shares (‘‘Tier 1’’); a rebate of 

$0.0027 per share if Liquidity Adding 

ADV is at least 25 million shares and 

less than 40 million shares (‘‘Tier 2’’); 

and a rebate of $0.0028 per share if 

Liquidity Adding ADV is at least 40 

million shares (‘‘Tier 3’’). 

The proposed rule change modifies 

the rebate measurement criteria from a 

set number of shares to a percentage, 

expressed in basis points, of Total 

Consolidated Average Daily Volume 

(‘‘TCADV’’). As set forth in Explanatory 

Endnote 13, TCADV means average 

daily volume reported by all exchanges 

and trade reporting facilities to the 

consolidated transaction reporting plans 

for Tape A, B and C securities. The 

proposed rule change also eliminates a 

rebate tier. Accordingly, after the 

effective date, an ETP Holder would 

receive a rebate of $0.0026 per share 

with respect to its displayed Tape A and 

C orders priced one dollar or higher that 

add liquidity in AutoEx if such ETP 

Holder’s Liquidity Adding ADV is less 

than 20 basis points of TCADV. The Tier 

2 rebate of $0.0027 is proposed to be 

deleted entirely. An ETP Holder would 

receive a rebate of $0.0028 per share if 

such ETP Holder’s Liquidity Adding 

ADV is equal to or exceeds 20 basis 

points of TCADV. 

The proposed rule change does not 

modify other rebates or fees that are 

contained in the Fee Schedule. 

Rationale 

The Exchange has determined that 

these changes are necessary to create 

further incentive for ETP Holders to 

submit increased order volumes and, 

ultimately, to increase the revenues of 

the Exchange for the purpose of 

continuing to adequately fund its 

regulatory and general business 

functions. The Exchange has further 

determined that the proposed fee 

adjustments are necessary for 

competitive reasons. The Exchange 

believes that these rebate changes will 

not impair the Exchange’s ability to 

fulfill its regulatory responsibilities. 

The proposed modifications are 

reasonable and equitably allocated to 

those ETP Holders that submit orders in 

Tape A and C securities in AutoEx, and 

are not discriminatory because qualified 

ETP Holders are free to elect whether or 

not to send 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 for trading on November 1, 

2010. 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 Web site 

(http://www.nsx.com). 

mstockstill on DSKH9S0YB1PROD with NOTICES

69508 Federal Register / Vol. 75, No. 218 / Friday, November 12, 2010 / Notices 

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

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

6 15 U.S.C. 78s(b)(3)(A)(ii). 

7 17 CFR 240.19b–4. 8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62621 

(July 30, 2010), 75 FR 47863 (August 9, 2010) 

(‘‘Notice’’). 

4See letter from Brendan Daly, Legal and 

Compliance Counsel, Commonwealth Financial 

Network, to Elizabeth M. Murphy, Secretary, 

Commission, dated August 27, 2010 

(‘‘Commonwealth Letter’’); letter from Kristin Bulls, 

Products and Broker-Dealer Compliance Director, 

State Farm VP Management Corp., to Elizabeth M. 

Murphy, Secretary, Commission, dated August 30, 

2010 (‘‘State Farm Letter’’); letter from Joan 

Hinchman, Executive Director, President and CEO, 

National Society of Compliance Professionals, to 

Elizabeth M. Murphy, Secretary, Commission, dated 

August 30, 2010 (‘‘NSCP Letter’’); letter from Clifford 

E. Kirsch and Susan S. Krawczyk, Sutherland Asbill 

& Brennan LLP, on behalf of the Committee of 

Annuity Insurers, to Elizabeth M. Murphy, 

Secretary, Commission, dated August 30, 2010 

(‘‘CAI Letter’’); letter from Michael Lesutis, Assistant 

General Counsel, PFS Investments, Inc., to 

Elizabeth M. Murphy, Secretary, Commission, dated 

September 1, 2010 (‘‘PFS Letter’’); letter from James 

T. McHale, Managing Director and Associate 

General Counsel, Securities Industry and Financial 

Markets Association, to Elizabeth M. Murphy, 

Secretary, Commission, dated September 1, 2010 

(‘‘SIFMA Letter’’); letter from Dale E. Brown, 

President and CEO, Financial Services Institute, to 

Elizabeth M. Murphy, Secretary, Commission, dated 

September 15, 2010 (‘‘FSI Letter’’). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) of the 

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

the Act,5 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 

19(b)(3)(A)(ii) of the Act 6 and 

subparagraph (f)(2) of Rule 19b–4 7

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 sixty (60) 

days of the filing of such 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–NSX–2010–14 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–2010–14. 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 NSX. 

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–NSX–2010–14 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. 2010–28453 Filed 11–10–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63260; File No. SR–FINRA– 

2010–034] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filings of 

Amendments No. 1 and 2 and Order 

Granting Accelerated Approval of a 

Proposed Rule Change, as Amended, 

To Adopt FINRA Rule 4530 (Reporting 

Requirements) in the Consolidated 

FINRA Rulebook 

November 5, 2010. 

I. Introduction 

On July 30, 2010, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) (f/k/a National Association of 

Securities Dealers, Inc. (‘‘NASD’’)) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposal to (i) 

adopt NASD Rule 3070 (Reporting 

Requirements) as FINRA Rule 4530 in 

the Consolidated FINRA Rulebook, with 

certain amendments and the addition of 

a supplementary material section, and 

(ii) delete paragraphs (a) through (d) of 

Incorporated NYSE Rule 351 and 

Incorporated NYSE Rules 351.10 and 

351.13. The proposal was published for 

comment in the Federal Register on 

August 9, 2010.3 The Commission 

received seven comments on the 

proposal.4 On October 18, 2010, FINRA 

mstockstill on DSKH9S0YB1PROD with NOTICES