80102 Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Notices 

6See e-mail from Clare F. Saperstein, Vice 

President, Regulatory Policy and Management, 

NYSE Regulation, Inc., to Nathan Saunders, Special 

Counsel, Division of Trading and Markets, 

Commission, dated December 10, 2010 (amending 

the proposed rule change by replacing the reference 

to ‘‘Rule 123C(2) and (3)’’ with ‘‘Rule 123C(2)(b)(ii) 

and 123C(2)(c)(iii)’’). 

7See id. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A)(i). 

11 17 CFR 240.19b–4(f)(1). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

123C(2)(b)(ii) 6 and 123C(2)(c)(iii) 7

pertaining to a ‘‘no imbalance’’ 

notification after dissemination of an 

Informational Imbalance as well as the 

text of current Rule 123C(2)(b)(iii), 

because these provisions are no longer 

necessary due to the system-enforced 

compliance with MOC/LOC order entry. 

In addition, the Exchange proposes to 

amend Rule 123C(3)(c) to clarify that 

Exchange systems will reject 

cancellations of MOC, LOC and CO 

orders after 3:58 p.m. and to add a 

reference to Rule 123C(9), which 

pertains to alternative procedures in the 

case of extreme order imbalances at the 

close. 

Because the Exchange previously 

disclosed this system functionality to 

member organizations, the Exchange 

believes that this rule proposal would 

not require technical programming and/ 

or modification by members or member 

organizations. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,9

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. Specifically, the changes 

proposed herein would reflect that 

Exchange systems enforce compliance 

with Rule 123C(2) and (3) and therefore 

clarify that Exchange members and 

member organizations are not 

responsible for ensuring such 

compliance. 

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 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 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 proposed rule change 

will take effect upon filing with the 

Commission pursuant to Section 

19(b)(3)(A)(i) of the Act 10 and Rule 19b– 

4(f)(1) thereunder,11 because it 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule. 

Specifically, the change proposed 

herein would reflect that Exchange 

systems enforce compliance with Rule 

123C(2) and (3) and therefore clarify 

that Exchange members and member 

organizations are not responsible for 

ensuring such compliance. 

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–NYSE–2010–75 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–NYSE–2010–75. 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–NYSE– 

2010–75 and should be submitted on or 

before January 11, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31928 Filed 12–20–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63536; File No. SR– 

NASDAQ–2010–163] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Collection of Exchange Fees 

December 14, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that, on December 

8, 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 and II below, which Items 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Notices 80103 

3The Exchange will not debit accounts for fees 

that are unusually large or for special 

circumstances, unless such debiting is requested by 

the member. 

4Exchange Rule 1002(c)(1) titled Payment of 

Fees, Dues, Assessments, and Other Charges by 

Members and Associated Persons, states that fees, 

dues, assessments, and other charges shall be called 

and payable by members and associated persons as 

determined by Nasdaq from time to time. 

5The monthly invoice will indicate that the 

amount on the invoice will be debited from the 

designated NSCC account. Each month, the 

Exchange will send a file to the member’s clearing 

firm which will indicate the amounts to be debited 

from each member. If a member is ‘‘self-clearing,’’ 

no such file would be sent as the member would 

receive the invoice, as noted above, which would 

indicate the amount to be debited. 

6See applicable Exchange fees at Rule 7050 and 

Rule 7053. 

7This includes, among other things, fines which 

result from: violations of the Minor Rule Plan 

pursuant to Chapter X, Section 7 and monetary 

sanctions pursuant to Rule 8310, 8320 or 8330. 

With respect to disciplinary sanctions, the 

Exchange would not debit any monies until such 

action is final. The Exchange would not consider 

an action final until all appeal periods have run 

and/or all appeal timeframes are exhausted. With 

respect to non-disciplinary actions, the Exchange 

would similarly not take action to debit a member 

account until all appeal periods have run and/or all 

appeal timeframes are exhausted. Any uncontested 

disciplinary or non-disciplinary actions will be 

debited, and the amount due will appear on the 

members invoice prior to the actual NSCC debit. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

have been prepared by the NASDAQ. 

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 NASDAQ Stock Market LLC 

proposes to create a new Rule 7007 

titled ‘‘Collection of Exchange Fees and 

Other Claims—NASDAQ Options 

Market’’ to require members to provide 

a clearing account number at the 

National Securities Clearing Corporation 

(‘‘NSCC’’) for purposes of permitting the 

Exchange to debit any undisputed or 

final fees, fines, charges and/or other 

monetary sanctions or monies due and 

owing to the Exchange. 

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. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to create an efficient method 

of collecting undisputed or final fees, 

fines, charges and/or other monetary 

sanctions or monies due and owing to 

the Exchange from NASDAQ Options 

Market (‘‘NOM’’) members.3 This 

proposal would provide a cost savings 

to the Exchange by alleviating 

administrative processes related to the 

collection of monies owed to the 

Exchange. Collection matters divert staff 

resources away from the Exchange’s 

regulatory and business purposes. In 

addition, the debiting process would 

prevent member accounts from 

becoming overdue. 

Currently, the Exchange issues 

monthly invoices to NOM members, 

which invoices are paid by NOM 

members directly to the Exchange’s 

accounting department. The Exchange 

proposes to require NOM members and 

applicants to provide a clearing account 

number for an account at NSCC in order 

to permit the Exchange to debit any 

undisputed or final fees, fines, charges 

and/or monetary sanctions or other 

monies due and owing to the Exchange 

or other charges related to Rule 

1002(c)(2).4

The Exchange would continue to send 

a monthly invoice 5 to each NOM 

member on approximately the 4th–6th 

business day of the following month. 

The Exchange would also send a file to 

NSCC each month on approximately the 

23rd of the following month to initiate 

the debit of the appropriate amount 

stated on the member’s invoice for the 

prior month. Because the members 

would receive an invoice well before 

any monies are debited (normally 

within two weeks), the members would 

have adequate time to contact the staff 

with any questions concerning their 

invoice. 

If a NOM member disagrees with the 

invoice, the Exchange would not 

commence the debit until the dispute is 

resolved. Specifically, if a member 

disputes an invoice, the Exchange will 

not include the disputed amount in the 

debit if the member has disputed the 

amount in writing to the Exchange’s 

designated staff by the 15th of the 

month, or the following business day if 

the 15th is not a business day, and the 

amount in dispute is at least $10,000 or 

greater. 

Once NSCC receives the file from the 

Exchange, NSCC would proceed to debit 

the amounts indicated from the clearing 

members’ account. In the instance 

where the member clears through an 

Exchange clearing member, the 

estimated transactions fees owed to the 

Exchange are typically debited by the 

clearing member on a daily basis in 

order to ensure adequate funds have 

been escrowed. The Exchange would 

debit any monies owed including 

undisputed or final fees,6 fines, charges 

and/or monetary sanctions or monies 

due and owed to the Exchange.7 The 

Exchange believes that the debit process 

would eliminate the risk of unpaid 

invoices because of the large amounts of 

capital held at NSCC by members. 

The Exchange is also proposing to 

amend Exchange Rules 1002, 

Qualifications of Nasdaq Members and 

Associated Persons, and Exchange Rule 

8320, Payment of Fines, Other Monetary 

Sanctions, or Costs; Summary Action for 

Failure to Pay, to reference new 

Exchange Rule 7007. 

The Exchange would provide NOM 

members with a thirty (30) day period, 

upon publication of this rule change, to 

provide the Membership Department 

with an NSCC number. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 9

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

providing its NOM members with an 

efficient process to pay undisputed or 

final fees, fines, charges and/or 

monetary sanctions or monies due and 

owing to the Exchange. The Exchange 

believes that this process of debiting 

NSCC accounts would ease the NOM 

member’s administrative burden in 

paying monthly invoices, avoid overdue 

balances and provide same day 

collection from all NOM members, who 

owe monies to the Exchange, which 

results in equitable treatment. 


srobinson on DSKHWCL6B1PROD with NOTICES
80104 Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. NASDAQ has satisfied this 

requirement. 

12The text of the proposed rule change is 

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

www.sec.gov. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 10 and Rule 19b–4(f)(6) 11

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–NASDAQ–2010–163 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–2010–163. 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,12 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– 

NASDAQ–2010–163 and should be 

submitted on or before January 11, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31925 Filed 12–20–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63544; File No. SR–C2– 

2010–011] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the C2 Fees 

Schedule 

December 14, 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 December 

8, 2010, C2 Options Exchange, 

Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) 

filed with the Securities and Exchange 

Commission (the ‘‘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 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 

C2 proposes to amend its Fees 

Schedule. 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, the 

self-regulatory organization 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 those 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

C2 proposes to amend its Fee 

Schedule to clarify that the transaction 

fees in the Fee Schedule also apply to 

equity options listed on C2 that are not 

in the options penny pilot. The current 

transaction fee section of the C2 Fee 


srobinson on DSKHWCL6B1PROD with NOTICES