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

69506 Federal Register / Vol. 75, No. 218 / Friday, November 12, 2010 / Notices 

5According to the Exchange, the tiered fee 

structure is being proposed in light of the nature of 

the NOM architecture, which makes it necessary for 

liquidity providers in options to utilize more ports 

in comparison to liquidity providers on the 

NASDAQ Stock Market. Liquidity providers on 

NOM may provide liquidity in up to 140,000 

different symbols versus approximately 8,500 

symbols in equities. Moreover, several options 

symbols for a given underlying may be directly 

correlated and may require updates to a large 

number of symbols simultaneously. For example, a 

liquidity provider in SPY options may need to 

update all 2401 SPY options simultaneously due to 

a change in the price of SPY in the equity market. 

Further, a NASDAQ Stock Market member, who 

is both an equity and options member, is required 

to have a distinct port(s) for each market and would 

be billed according to whether the particular port 

was assigned to the equity or options infrastructure. 

See e-mail from Angela Dunn, Assistant General 

Counsel, Exchange, to Richard Holley, Assistant 

Director, and Terri Evans, Special Counsel, Division 

of Trading and Markets, Commission, on November 

4, 2010. 

6 Id. 

7Currently, NOM members not subscribing to the 

Nasdaq Workstation using TradeInfo are charged a 

fee of $95 per user per month. 

8 15 U.S.C. 78f. 

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

10 15 U.S.C. 78f. 

11 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A)(ii). 

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. 

These tiered fees would allow NOM 

members to incur a lower fee after the 

first 25 ports. The NOM member would 

continue to be assessed a $500 per 

month, per port fee for the first 25 

ports.5

The Exchange is also proposing to 

amend the Other Port Fee pricing. 

Currently, NOM members are assessed 

the $500 per month fee for each port 

pair. The Exchange proposes to assess 

the following tiered fees: 

Quantity Price 

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

port pair. 

Additional ports 

above 25.

$250 per month for each 

port pair. 

These tiered fees would allow NOM 

members to incur a lower fee after the 

first 25 port pairs.6 The NOM member 

would continue to be assessed a $500 

per month, per port [sic] fee for the first 

25 port pairs. The Exchange does not 

intend to amend the TradeInfo fee.7

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on November 1, 2010. 

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 the proposed 

amendments to Rule 7053 to established 

tiered pricing for FIX and Other Port 

Fees pricing is reasonable to incentivize 

members by proving [sic] a discount for 

the quantity of ports or port pairs to 

which they subscribe. Also, the 

Exchange believes that the pricing 

proposal is equitable because all NOM 

members are assessed the same rates. 

2. Statutory Basis [sic] 

NASDAQ believes that the proposed 

rule changes are consistent with the 

provisions of Section 6 of the Act,10 in 

general, and with Section 6(b)(4) of the 

Act,11 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 the proposed 

amendments to Rule 7053 to establish 

tiered pricing for FIX and Other Port 

Fees pricing is reasonable to incentivize 

members by proving a discount for the 

quantity of ports or port pairs to which 

they subscribe. Also, the Exchange 

believes that the pricing proposal is 

equitable because all NOM members are 

assessed the same rates. 

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 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–NASDAQ–2010–144 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2010–144. 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 

mstockstill on DSKH9S0YB1PROD with NOTICES

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