76766 Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 63285 

(November 9, 2010), 75 FR 70310 (November 17, 

2010) (SR–BX–2010–074). 

4 15 U.S.C. 78f. 

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

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

7 17 CFR 240.19b–4(f)(2). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30944 Filed 12–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63432; File No. SR–BX– 

2010–082] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for the NASDAQ OMX BX Equities 

System 

December 3, 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, NASDAQ OMX BX, Inc. 

(‘‘BX’’) 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 BX. 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 

BX proposes to modify pricing for BX 

members using the NASDAQ OMX BX 

Equities System by clarifying that 

partial trading days will not be counted 

in the calculation of average daily 

trading volume for purposes of 

determining a member’s eligibility for 

recently adopted pricing tiers in BX’s 

fee schedule. BX will implement the 

proposed change immediatley [sic]. The 

text of the proposed rule change is 

available at http:// 

nasdaqomxbx.cchwallstreet.com, at 

BX’s principal office, 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, BX 

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. BX 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 

BX recently modified its fees for 

trades that execute at prices at or above 

$1.3 Effective November 1, 2010, BX 

introduced a tiered pricing structure for 

the fee that it charges to orders that add 

liquidity, under which members adding 

a daily average of more than 50 million 

shares of liquidity during a month are 

charged $0.00025 per share executed, 

while members adding a daily average 

of 50 million or fewer shares during the 

month are charged $0.0004 per share 

executed. 

Through this proposed rule change, 

BX is adding language to BX Rule 7018 

to clarify that any day that the market 

is not open for the entire trading day 

will be excluded from the calculation of 

a member’s average daily volume. The 

change recognizes that many members 

may have extremely light trading 

volumes on days such as the day after 

Thanksgiving, when the markets are not 

open for an entire trading day. 

Accordingly, excluding this day from 

average daily volume calculations 

provides a more accurate assessment of 

the member’s volume during the month. 

There have been no partial trading days 

during the month of November prior to 

the date of submission of this filing, so 

the filing is not retroactive in effect. 

2. Statutory Basis 

BX believes that the proposed rule 

change is consistent with the provisions 

of Section 6 of the Act,4 in general, and 

with Section 6(b)(4) of the Act,5 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 BX operates or 

controls. The change will clarify the 

application of a recent pricing change 

by excluding partial trading days from 

average daily volume calculations, 

making it easier for members to achieve 

more favorable pricing tiers by 

excluding trading days when their 

volume is likely to be lower. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

BX 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 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 

The foregoing rule change is effective 

upon filing pursuant to Section 

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

subparagraph (f)(2) of Rule 19b–4 7

thereunder, because it establishes a due, 

fee, or other charge imposed by BX on 

its members. 

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–BX–2010–082 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–BX–2010–082. 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 


erowe on DSK5CLS3C1PROD with NOTICES
Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Notices 76767 

8The text of the proposed rule change is available 

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

www.sec.gov. 

9 17 CFR 200.30–3(a)(12). 

1See CBOE Fees Schedule, Section 19. HAL is a 

system for automated handling of electronically 

received orders that are not automatically executed 

upon receipt by the Hybrid System. CBOE Rule 

6.14A governs the operation of the HAL system 

under the Options Order Protection and Locked/ 

Crossed Plan. 

2 15 U.S.C. 78f(b). 

3 15 U.S.C. 78f(b)(4). 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(2). 

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.8 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–BX– 

2010–082 and should be submitted on 

or before December 30, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30965 Filed 12–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63426; File No. SR–CBOE– 

2010–107] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated: Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Amendment 

of the Hybrid Agency Liaison Step-Up 

Rebate 

December 3, 2010. 

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

Securities Exchange Act of 1934, 15 

U.S.C. 78s(b)(1), notice is hereby given 

that on December 1, 2010, Chicago 

Board Options Exchange, Incorporated 

(‘‘CBOE’’ or the ‘‘Exchange’’) 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 CBOE. 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 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) 

proposes to amend the Hybrid Agency 

Liaison (‘‘HAL’’) step-up rebate. The text 

of the proposed rule change is available 

on the Exchange’s Web site (http:// 

www.cboe.org/legal), at the Exchange’s 

Office of the Secretary and at the 

Commission. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CBOE 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. CBOE 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, Proposed Rule 

Change 

1. Purpose 

In order to incent market makers to 

execute orders at CBOE versus routing 

orders to other exchanges pursuant to 

the Options Order Protection and 

Locked/Crossed Plan, the Exchange 

provides a rebate to market-makers that 

‘‘step-up’’ and trade all or part of certain 

orders on the HAL system.1 Specifically, 

the Exchange rebates to a market-maker 

$.20 per contract against transaction fees 

generated from a transaction on the HAL 

system in a penny pilot class, provided 

that at least 60% of the market-maker’s 

quotes in that class (excluding quotes in 

LEAPS series) in the prior calendar 

month were on one side of the national 

best bid or offer (‘‘NBBO’’) price. Marketmakers not meeting this 60% qualifying 

threshold are not eligible to receive a 

rebate. The Exchange proposes to 

reduce the amount of the rebate from 

$.20 per contract to $.15 per contract 

effective December 1, 2010. All other 

aspects of the rebate program would 

remain unchanged. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’),2 in general, and furthers 

the objectives of Section 6(b)(4) 3 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its trading permit holders. The 

Exchange believes the proposed rebate 

is reasonable because it provides an 

incentive for market-makers to compete 

better for order flow in the penny pilot 

classes. The Exchange believes the 

proposed rebate is equitable because it 

applies equally to all market makers that 

trade orders in penny pilot classes on 

the HAL system and that meet the 

qualifying quoting criteria. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of 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 solicited 

or received with respect to the proposed 

rule change. 

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) 

of the Act 4 and subparagraph (f)(2) of 

Rule 19b–4 5 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. 


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