Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 76513 

5 15 U.S.C. 78q–1(b)(3)(F). 

6 15 U.S.C. 78q–1. 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 17 CFR 240.19b–4(f)(4). 9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Section 17A(b)(3)(F) of the Act 

requires, among other things, that the 

rules of a clearing agency be designed to 

remove impediments to and perfect the 

mechanism of a national system for 

prompt and accurate clearance and 

settlement of securities transactions, to 

foster cooperation and coordination 

with persons engaged in the clearance 

and settlement of securities 

transactions, and, in general, to protect 

investors and the public interest.5 NSCC 

believes that the proposed rule change 

is consistent with these requirements of 

Section 17A of the Act 6 and the rules 

and regulations thereunder that are 

applicable to NSCC because 

discontinuing the CBRS will allow for 

more efficient allocation of NSCC’s 

resources. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

NSCC does not believe that the 

proposed rule change will impose 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 

No written comments relating to the 

proposed rule change have been 

solicited or received. NSCC will notify 

the Commission of any written 

comments received by NSCC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(4) 8 thereunder because it 

effects a change in an existing service of 

NSCC that: (i) Does not adversely affect 

the safeguarding of securities or funds 

in the custody or control of NSCC or for 

which it is responsible and (ii) does not 

significantly affect the respective rights 

or obligations of the clearing agency or 

persons using the service. At any time 

within sixty days of the filing of such 

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–NSCC–2010–17 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–NSCC–2010–17. 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 Section, 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 filings 

also will be available for inspection and 

copying at the principal office of NSCC 

and on NSCC’s Web site, http:// 

www.dtcc.com. 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–NSCC– 

2010–17 and should be submitted on or 

before December 29, 2010. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30881 Filed 12–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63419; File No. SR– 

NASDAQ–2010–149] 

Self-Regulatory Organizations; 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

December 2, 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 

24, 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 

Rule 7050 governing pricing for 

NASDAQ members using the NASDAQ 

Options Market (‘‘NOM’’), NASDAQ’s 

facility for executing and routing 

standardized equity and index options. 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on December 1, 2010. 

The text of the proposed rule change 

is set forth below. Proposed new text is 

italicized and deleted text is in brackets. 

* * * * * 

7050. NASDAQ Options Market 

The following charges shall apply to 

the use of the order execution and 

routing services of the NASDAQ 

Options Market for all securities. 

(1)–(3) No Change. 

(4) Fees for routing contracts to 

markets other than the NASDAQ 

Options Market shall be assessed as 

provided below. The current fees and a 

historical record of applicable fees shall 


jlentini on DSKJ8SOYB1PROD with NOTICES
76514 Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 

3See Chapter I, Section I (Definitions). The term 

‘‘Professional’’ means any person or entity that (i) is 

not a broker or dealer in securities, and (ii) places 

more than 390 orders in listed options per day on 

average during a calendar month for its own 

beneficial account(s). A Participant or a Public 

Customer may, without limitation, be a 

Professional. All Professional orders shall be 

appropriately marked by Participants. See 

Securities Exchange Act Release Nos. 63028 

(October 1, 2010), 75 FR 62443 (October 8, 2010) 

(SR–NASDAQ–2010–099); and 63151 (October 21, 

2010), 75 FR 66811 (October 29, 2010) (SR– 

NASDAQ–2010–132). 

4A Professional would also be assessed the 

proposed $0.26 per contract for a CBOE order 

greater than 99 contracts in NDX, MNX, ETFs, ETNs 

and HOLDRs. 

5See ISE’s Schedule of Fees for the complete list 

of Select Symbols. 

6See PHLX’s Fee Schedule for the complete list 

of Select Symbols. 

7See PHLX’s Fee Schedule for the complete list 

of Select Symbols. 

be posted on the NasdaqTrader.com 

Web site. 

Exchange Customer Firm MM Professional 

BATS ................................................................................................................ $0.36 $0.55 $0.55 $0.36 

BOX ................................................................................................................. 0.06 0.55 0.55 0.06 

CBOE ............................................................................................................... 0.06 0.55 0.55 0.26 

CBOE orders greater than 99 contracts in NDX, MNX ETFs, ETNs & 

HOLDRs ....................................................................................................... 0.24 0.55 0.55 0.26 

ISE ................................................................................................................... 0.06 0.55 0.55 0.24 

ISE Select Symbols * of 100 or more contracts .............................................. 0.26 0.55 0.55 0.31 

NYSE Arca Penny Pilot ................................................................................... 0.50 0.55 0.55 0.50 

NYSE Arca Non Penny Pilot ........................................................................... 0.06 0.55 0.55 0.06 

NYSE AMEX .................................................................................................... 0.06 0.55 0.55 0.26 

PHLX (for all options other than PHLX Select Symbols) ................................ 0.06 0.55 0.55 0.26 

PHLX Select Symbols ** ................................................................................... 0.30 0.55 0.55 0.46 

C2 .................................................................................................................... 0.21 0.55 0.55 0.46 

*These fees are applicable to orders routed to ISE that are subject to Rebates and Fees for Adding and Removing Liquidity in Select Symbols. 

See ISE’s Schedule of Fees for the complete list of symbols that are subject to these fees. **These fees are applicable to orders routed to PHLX that are subject to Rebates and Fees for Adding and Removing Liquidity in Select Symbols. See PHLX’s Fee Schedule for the complete list of symbols that are subject to these fees. 

* * * * * 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

www.nasdaqomx.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 modify Rule 

7050 governing the fees assessed for 

options orders entered into NOM but 

routed to and executed on away markets 

(‘‘routing fees’’). 

NASDAQ Options Services LLC 

(‘‘NOS’’), a member of the Exchange, is 

the Exchange’s exclusive order router. 

Each time NOS routes to away markets 

NOS is charged a $0.06 clearing fee and, 

in the case of certain exchanges, a 

transaction fee is also charged in certain 

symbols, which are passed through to 

the Exchange. 

The Exchange proposes to assess new 

fees for routing contracts to markets 

other than the NASDAQ Options Market 

to Rule 7050. Specifically, the Exchange 

is proposing to assess a routing fee of 

$0.24 per contract in Customer option 

orders that are routed to the Chicago 

Board Options Exchange, Incorporated 

(‘‘CBOE’’). This would apply to orders 

greater than 99 contracts in options 

traded under the symbol NDX (‘‘NDX’’) 

and options on the one-tenth value of 

the Nasdaq 100 Index traded under the 

symbol MNX (‘‘MNX’’) as well as 

exchange-traded funds (‘‘ETFs’’), 

exchange-traded notes (‘‘ETNs’’) and 

Holding Company Depositary Receipts 

(‘‘HOLDRs’’). The Exchange is proposing 

to caption these proposed fees ‘‘CBOE 

orders greater than 99 contracts in NDX, 

MNX, ETFs, ETNs and HOLDRs.’’ The 

CBOE current routing fee of $0.55 per 

contract would apply to Firms and 

Market Makers for CBOE orders greater 

than 99 contracts in NDX, MNX, ETFs, 

ETNs and HOLDRs. 

The Exchange is also proposing to 

adopt routing fees for a new type of 

participant called ‘‘Professional’’.3 The 

Exchange proposes to assess the 

following Professional routing fees, in 

addition to the current categories of 

Customer, Firm and Market Maker, to its 

members: (i) A $0.36 per contract fee for 

Professional orders routed to BATS 

Exchange, Inc. (‘‘BATS’’) in all options; 

(ii) a $0.06 per contract fee for 

Professional orders routed to the Boston 

Options Exchange Group LLC (‘‘BOX’’) 

in all options; (iii) a $0.26 per contract 

fee for Professional orders routed to the 

Chicago Board of Options Exchange, 

Inc. (‘‘CBOE’’) in all options 4; (iv) a $.24 

per contract fee for Professional orders 

routed to International Securities 

Exchange, LLC (‘‘ISE’’) in all options, 

except for Select Symbols of 100 or 

more contracts; (v) a $0.31 per contract 

fee for Professional orders routed to ISE 

in its Select Symbols of 100 or more 

contracts 5; (vi) a $0.50 per contract fee 

for Professional orders routed to NYSE 

Arca, Inc. (‘‘NYSE Arca’’) in Penny Pilot 

options; (vii) a $0.06 per contract fee for 

Professional orders routes to NYSE Arca 

in Non-Penny Pilot options; (viii) a 

$0.26 per contract fee for Professional 

orders routed to NYSE Amex LLC 

(‘‘NYSE Amex’’) in all options; (ix) a 

$0.26 per contract fee for Professional 

orders routed to NASDAQ OMX PHLX 

LLC (‘‘PHLX’’) in all option other than 

the PHLX Select Symbols; 6 (x) a $0.46 

per contract fee for Professional orders 

routed to PHLX in Select Symbols; 7 and 

(xi) a $0.46 per contract fee for 

Professional orders routed to C2 Options 

Exchange, Inc. (‘‘C2’’) in all options. 

The Exchange is proposing these fees 

in order to recoup clearing and 

transaction charges incurred by the 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 76515 

8See Securities Exchange Act Release No. 62902 

(September 14, 2010), 75 FR 57313 (September 20, 

2010) (SR–CBOE–2010–081) (a rule change to assess 

a transaction fee of $.18 per contract on public 

customer orders in options on Standard & Poor’s 

Depositary Receipts, except for orders of 99 

contracts or less). 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(4). 

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

12 17 CFR 240.19b–4(f)(2). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Exchange when certain Customer 

options orders are routed to CBOE 8 as 

well as when certain Professional 

options orders are routed to the various 

destination markets. Each destination 

market’s transaction charge varies and 

there is a standard clearing charge for 

each transaction incurred by the 

Exchange. The Exchange believes that 

the routing fees proposed will enable 

the Exchange to recover the transaction 

fees assessed by away markets, where 

applicable, plus clearing fees for the 

execution of Customer, Firm, Market 

Maker and Professional orders. As with 

all fees, the Exchange may adjust these 

Routing Fees in response to competitive 

conditions by filing a new proposed rule 

change. 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on December 1, 2010. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule changes are consistent with the 

provisions of Section 6 of the Act,9 in 

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

Act,10 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 that the 

proposed fees are reasonable because 

they seek to recoup costs that are 

incurred by the Exchange when routing 

Customer orders greater than 99 

contracts in NDX, MNX, ETFs, ETNs 

and HOLDRs to CBOE and also when 

routing orders designated as 

Professional to the various destination 

markets listed herein, on behalf of its 

members. The Exchange also believes 

that the proposed fees are equitable 

because they will be uniformly applied 

to all Customers and Professionals. 

NASDAQ is one of nine options 

markets in the national market system 

for standardized options. Joining 

NASDAQ and electing to trade options 

is entirely voluntary. Under these 

circumstances, NASDAQ’s fees must be 

competitive and low in order for 

NASDAQ to attract order flow, execute 

orders, and grow as a market. NASDAQ 

thus believes that its fees are fair and 

reasonable and consistent with the 

Exchange Act. 

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 11 and 

paragraph (f)(2) of Rule 19b–4 12

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. 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–2010–149 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–2010–149. 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 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–NASDAQ– 

2010–149 and should be submitted on 

or before December 29, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30833 Filed 12–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63404; File No. SR–NSCC– 

2010–16] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing of 

Proposed Rule Change To Amend 

Procedure II of the NSCC Rules & 

Procedures To Modify the Money 

Tolerance Comparison Provisions for 

Fixed Income Securities 

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 

19, 2010, the National Securities 


jlentini on DSKJ8SOYB1PROD with NOTICES