Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 76511 

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

2 17 CFR 240.19b–4. 

3NASDAQ Stock Market LLC and the NASDAQ 

Options Market both utilize trade date billing. 

4 In the United States options settle on a trade 

date (‘‘T’’) + 1 basis or one day after the trade took 

place. 

5The Exchange invoices its members for fees on 

a monthly basis. 

6The Commission notes that the references in 

this sentence to 2010 should be to 2011. 

7The Exchange intends to issue an Options 

Trader Alert specifying the exact days that would 

be included in both the December 2010 and January 

2011 billing cycles as notice to members. 

8See Securities Exchange Act Release No. 62783 

(August 27, 2010), 75 FR 54204 (September 3, 2010) 

(SR–Phlx–2010–104) (a rule change to amend 

NASDAQ OMX PHLX from a Delaware corporation 

to a Delaware limited liability company). 

9See Securities Exchange Act Release No. 63036 

(October 4, 2010), 75 FR 62621 (October 12, 2010) 

(SR–Phlx–2010–131) (a rule change to amend 

Exchange Rule 1014 to among other things amend 

the definitions of Streaming Quote Traders and 

Remote Streaming Quote Traders). 

10See Securities Exchange Act Release No. 63252 

(November 5, 2010), 75 FR 69486 (November 12, 

2010) (SR–Phlx–2010–150) (a rule change to add 

the KBW Bank Index (‘‘BKX’’) to the Equity Option 

Fees). 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(4). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63406; File No. SR–Phlx– 

2010–165] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Transaction Billing and Other 

Clarifying Amendments 

December 1, 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 November 

23, 2010, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ 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 amend its 

Fee Schedule to: (i) Amend the 

calculation of transaction fees for billing 

purposes from a settlement date to trade 

date; and (ii) make other minor 

technical conforming amendments to 

the Fee Schedule. 

While changes to the Exchange’s Fee 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be operative 

for invoices received by members and 

member organizations for January 2011 

monthly billing, except for the minor 

technical amendments, which are 

effective upon filing. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXfilings, 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 

The purpose of the proposed rule 

change is to amend the Exchange’s Fee 

Schedule to include language to specify 

that the Exchange will calculate 

transaction fees on a calendar month 

trade date basis. The Exchange is 

proposing to enhance its billing system 

to be consistent with that of other 

NASDAQ OMX self-regulatory 

organizations.3

Currently, the Exchange calculates its 

transaction fees, except the Options 

Regulatory Fee, on a settlement date 

basis.4 For example, a member or 

member organization who will receive a 

billing invoice for the month of 

November 2010 will be assessed fees for 

trades which settled on November 1, 

2010 through November 30, 2010 

(‘‘settlement date billing’’). In other 

words, the member is being assessed 

fees for trades that occurred on October 

29, 2010 (trade date) through November 

29, 2010 (trade date).5 This is an 

example of the Exchange’s current 

settlement date billing. 

The Exchange is proposing to bill its 

members on a trade date basis beginning 

with the January monthly billing. The 

impact to members would be as follows 

for the December and January monthly 

billing periods. A member who receives 

an invoice for the month of December 

2010 would be assessed fees from 

November 30, 2010 (trade date) through 

December 31, 2010 (trade date) instead 

of through December 30, 2010 (trade 

date). A member who receives an 

invoice for the month of January 2011 

would be assessed fees from January 3, 

2010 (trade date) through January 31, 

2010 (trade date) (‘‘trade date billing’’) 

[sic].6 This January monthly invoice 

would include fees for trade date 

January 3, 2010. In the current billing 

system, the member would have been 

assessed fees for settlement date January 

3, 2010 in the December billing invoice, 

but because of the conversion to trade 

date billing, the Exchange would assess 

fees for January 3, 2010 as trade date 

billing and include that day in the 

January monthly billing invoice. The 

Exchange would then continue to bill 

members for each month thereafter 

including in that month’s invoice the 

first trade day of the month as the first 

billing date and the last trade day of that 

month as the last billing date for that 

monthly invoice.7

Additionally, the Exchange intends to 

make a few minor technical conforming 

amendments to the Fee Schedule to 

reflect the Exchange’s recent conversion 

to an LLC,8 recent amendments to Rule 

1014 9 and recent amendments to 

Section II of the Fee Schedule.10

While changes to the Exchange’s Fee 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated this proposal to be operative 

for invoices received by members and 

member organizations for January 2011 

monthly billing, except for the minor 

technical amendments, which are 

effective upon filing. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 11

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 12 in 

particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members and 

other persons using its facilities. The 

Exchange believes that the proposed 

conversion from settlement date billing 

to calendar month trade date billing is 

equitable because it would apply 

uniformly to all members. The Exchange 

also believes that the proposal is 

reasonable because other self-regulatory 

organizations already assess transaction 

fees on a trade date basis. 

The proposed technical conforming 

amendments to the Fee Schedule are 

minor in nature and provide clarity to 


jlentini on DSKJ8SOYB1PROD with NOTICES
76512 Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 

15 17 CFR 200.30–3(a)(12). 

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

2The text of the proposed rule change is attached 

as Exhibit 5 to NSCC’s filing, which is available at 

http://www.dtcc.com/downloads/legal/rule_filings/ 

2010/nscc/2010-17.pdf. 

3 15 U.S.C. 78s(b)(3)(A)(iii) and 17 CFR 240.19b– 

4(f)(4). 

4The Commission has modified the text of the 

summaries prepared by the NSCC. 

the Fee Schedule by conforming the text 

of the Fee Schedule to the other Rules 

of the Exchange. 

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 Act13 and 

paragraph (f)(2) of Rule 19b–414

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–Phlx–2010–165 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–Phlx–2010–165. 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 the 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 Number SR–Phlx– 

2010–165 and should be submitted on 

or before December 29, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30702 Filed 12–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63417; File No. SR–NSCC– 

2010–17] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Discontinue the Cost 

Basis Reporting Service 

December 2, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

November 23, 2010, National Securities 

Clearing Corporation (‘‘NSCC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change described in Items 

I and II below, which items have been 

prepared primarily by NSCC.2 NSCC 

filed the proposed rule change pursuant 

to Section 19(b)(3)(A)(iii) and Rule 19b– 

4(f)(4) thereunder so that the proposed 

rule change was effective upon filing 

with the Commission.3 The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change will 

discontinue NSCC’s Cost Basis 

Reporting Service (‘‘CBRS’’). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NSCC 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. NSCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of the proposed rule 

change is to delete the rule regarding 

NSCC’s CBRS as the CBRS offered by 

NSCC will be terminated. The effective 

date of the termination of CBRS as a 

NSCC service offering will be December 

10, 2010. 

For purposes of efficiency and 

enhanced customer service, DTCC 

Solutions LLC (‘‘DTCC Solutions’’), a 

wholly-owned subsidiary of The 

Depository Trust & Clearing 

Corporation, which offers services 

similar in nature to the CBRS, will offer 

the CBRS. CBRS as offered by DTCC 

Solutions will support a broader group 

of financial institutions and entities that 

are currently not eligible to become 

NSCC members, such as transfer agents 

and securities issuers. NSCC believes 

that discontinuing CBRS at NSCC and 

reestablishing the service at DTCC 

Solutions will not disadvantage NSCC 

members in any way. 


jlentini on DSKJ8SOYB1PROD with NOTICES