7644 Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Notices 

17 15 U.S.C. 78s(b)(3)(a)(ii). 

18 17 CFR 240.19b–4(f)(2). 

19 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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

5 17 CFR 240.19b–4(f)(2). 

another trading venue that has already 

introduced this pricing model for lowpriced securities. The change will result 

in a fee increase for firms when they 

access liquidity in these securities and 

a fee reduction for firms when they 

provide liquidity in these stocks. 

NASDAQ is also correcting a 

typographical error in Rule 7018. 

The impact of the changes upon the 

net fees paid by a particular market 

participant will depend upon a number 

of variables, including the prices of the 

market participant’s quotes and orders 

relative to the national best bid and offer 

(i.e., its propensity to add or remove 

liquidity) and the extent to which it 

trades in low-priced securities. 

NASDAQ notes that it operates in a 

highly competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive. NASDAQ believes that the 

change will further enhance the 

competitiveness of its fees in 

comparison with those charged by other 

venues, and that its fees are reasonable 

and equitably allocated to members on 

the basis of whether they opt to direct 

orders to NASDAQ. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ 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 has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 17 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.18 At any time within 60 

days of the filing of the proposed rule 

change, the Commission may summarily 

abrogate 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–2010–014 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–2010–014. 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 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 offices 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–2010–014, and 

should be submitted on or before March 

15, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–3332 Filed 2–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61512; File No. SR– 

NYSEArca–2010–05] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Its Fee 

Schedule 

February 12, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

28, 2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ 

or the ‘‘Exchange’’) through its whollyowned subsidiary NYSE Arca Equities, 

Inc. (‘‘NYSE Arca Equities’’), filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. NYSE Arca 

filed the proposal pursuant to Section 

19(b)(3)(A) 4 of the Act and Rule 19b– 

4(f)(2) 5 thereunder. 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 

Schedule of Fees and Charges for 

Exchange Services (the ‘‘Schedule’’). 

While changes to the Schedule pursuant 

to this proposal will be effective upon 

filing, the changes will become 

operative on February 1, 2010. The text 

of the proposed rule change is available 

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

www.nyse.com, on the Commission’s 

Web site at http://www.sec.gov, at the 

Exchange, and at the Commission’s 

Public Reference Room. A copy of this 

filing is available on the Exchange’s 

Web site at http://www.nyse.com, at the 

Exchange’s principal office and at the 

Commission’s Public Reference Room. 


cprice-sewell on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Notices 7645 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(2). 

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 

The Exchange proposes to make 

multiple changes to its fee schedule 

effective February 1, 2010. A more 

detailed description of the proposed 

changes follows. 

Super Tier: 

The Exchange proposes to introduce a 

new Super Tier. For ETP Holders and 

Market Makers with an average daily 

share volume (‘‘ADV’’) per month of 

more than 70 million shares added and 

more than 120 million total shares 

(added, removed, and routed) in all U.S. 

securities, the pricing structure for 

trading in Tape A and Tape C securities 

will be a rebate of $0.0030 per share for 

adding liquidity and a fee of $0.0028 per 

share for removing liquidity. All other 

fees within the Super Tier will match 

the Tier 1 rates effective on February 1, 

2010. 

Tier 1: 

The Exchange also proposes changes 

to the Tier 1 rates and volume levels. 

Currently Tier 1 rates are applied to ETP 

Holders and Market Makers that provide 

liquidity on the Exchange with an ADV 

per month of greater than 25 million 

shares and transact a total ADV per 

month of greater than 80 million shares 

(includes both adding and removing). 

Under this proposal, Tier 1 rates will be 

applied to ETP Holders and Market 

Makers that provide liquidity on the 

Exchange with an ADV per month of 

greater than 60 million shares. The 

Exchange proposes to eliminate the total 

share requirement. 

Currently, the rebate for adding 

liquidity in Tape A and Tape C 

securities in Tier 1 is set at $0.0027 per 

share, and the fee for removing liquidity 

is set at $0.0027 per share. Under this 

proposal the rebate for adding liquidity 

in Tape A and Tape C securities will be 

$0.0029 per share and the fee for 

removing liquidity will be $0.0029 per 

share. The Exchange also proposes to 

change the rebate for PO and PO+ orders 

routed to Amex that provide liquidity to 

the NYSE Amex Book to $0.0015 

(currently $0.0030 per share). All other 

Tier 1 rates remain the same. 

Tier 2: 

The Exchange also proposes changes 

to the Tier 2 rates and volume levels. 

Currently Tier 2 rates are applied to ETP 

Holders and Market Makers that provide 

liquidity on the Exchange with an ADV 

per month of greater than 15 million 

shares and transact a total ADV per 

month of greater than 50 million shares. 

Under this proposal, Tier 2 rates will be 

applied to ETP Holders and Market 

Makers that provide liquidity on the 

Exchange with an ADV per month of 

greater than 25 million shares. The 

Exchange proposes to eliminate the total 

share requirement. 

Currently, the rebate for adding 

liquidity in Tape A and Tape C 

securities in Tier 2 is set at $0.0026 per 

share, and the fee for removing liquidity 

is set at $0.0028 per share. Under this 

proposal the rebate for adding liquidity 

in Tape A and Tape C securities will be 

$0.0029 per share and the fee for 

removing liquidity will be $0.0030 per 

share. The Exchange also proposes to 

change the fee for orders routed to away 

markets other than the NYSE in Tape A 

and Tape C securities to $0.0030 

(currently $0.0029 per share). The 

Exchange is also changing the rebate for 

PO and PO+ orders routed to Amex that 

provide liquidity to the NYSE Amex 

Book to $0.0015 (currently $0.0030 per 

share). All other Tier 2 rates remain the 

same. 

Provide Tier: 

The Exchange proposes to remove the 

current Provide Tier from the Schedule. 

Basic Rates: 

Finally, the Exchange proposes to 

change the Basic Rate pricing. 

Currently, the rebate for adding 

liquidity in Tape A and Tape C 

securities is set at $0.0023 per share, 

and the fee for removing liquidity is set 

at $0.0030 per share. Under this 

proposal the rebate for adding liquidity 

in Tape A and Tape C securities will be 

$0.0021 per share and the fee for 

removing liquidity will remain $0.0030 

per share. The Exchange also proposes 

to change the rebate for PO and PO+ 

orders routed to Amex that provide 

liquidity to the NYSE Amex Book to 

$0.0015 (currently $0.0030 per share). 

All other Basic Rates will remain the 

same. 

The proposed changes to the 

Schedule are part of the Exchange’s 

continued effort to attract and enhance 

participation on the Exchange, by 

offering attractive rates and rebates with 

volume-based incentives. The Exchange 

believes the proposed fees are 

reasonable and equitable in that they 

apply uniformly to all ETP Holders. The 

proposed changes will become operative 

on February 1, 2010. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),6 in general, and Section 6(b)(4) 

of the Act,7 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities. The 

proposed changes to the Schedule are 

part of the Exchange’s continued effort 

to attract and enhance participation on 

the Exchange, by offering attractive rates 

and rebates with volume-based 

incentives. The proposed changes to the 

Schedule are equitable in that they 

apply uniformly to all Users. 

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 rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 8 of the Act and 

subparagraph (f)(2) of Rule 19b–4 9

thereunder, because it establishes a due, 

fee, or other charge imposed by NYSE 

Arca on its members. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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. 


cprice-sewell on DSK2BSOYB1PROD with NOTICES
7646 Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

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–NYSEArca–2010–05 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–NYSEArca–2010–05. 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– 

NYSEArca–2010–05 and should be 

submitted on or before March 15, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–3331 Filed 2–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61508; File No. SR–BATS– 

2010–001] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

February 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 January 

29, 2010, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the Exchange. BATS has designated 

the proposed rule change as one 

establishing or changing a member due, 

fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. 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 its 

fee schedule applicable to Members 5 of 

the Exchange pursuant to BATS Rules 

15.1(a) and (c). While changes to the fee 

schedule pursuant to this proposal will 

be effective upon filing, the changes will 

become operative on February 1, 2010. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.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 

The Exchange proposes to modify its 

fee schedule applicable to use of the 

Exchange effective February 1, 2010, in 

order to (i) implement a fee of 0.10% of 

the total dollar value for trades that 

remove liquidity in securities priced 

below $1.00; (ii) increase the fee 

charged by the Exchange for its 

‘‘CYCLE’’ and ‘‘RECYCLE’’ routing 

strategies from $0.0026 per share to 

$0.0027 per share; and (iii) amend the 

fees for certain destination specific 

routing options to continue to offer a 

‘‘one under’’ pricing model. 

(i) Charge for Removing Liquidity in 

Securities Priced Below $1.00 

The Exchange has not previously 

charged Members for transactions that 

remove liquidity from or add liquidity 

to the Exchange’s book in securities 

priced below $1.00. The Exchange 

proposes to begin charging 0.10% of the 

total dollar value of the execution for 

any security (all Tapes) priced under 

$1.00 that removes liquidity from the 

Exchange’s book. The Exchange is not 

proposing to provide a liquidity rebate 

in such securities at this time. The 

Exchange believes that a nominal fee is 

warranted for securities priced below 

$1.00 for various reasons, including that 

such transactions inevitably contribute 

to the overall infrastructure costs 

incurred by the Exchange. 

(ii) Increase in Routing Fees for 

‘‘CYCLE’’ and ‘‘RECYCLE’’ Routing 

Based on increased fees at various 

market centers to remove liquidity, the 

Exchange proposes to modify the fee 

charged by the Exchange for its 

‘‘CYCLE’’ and ‘‘RECYCLE’’ routing 

strategies from $0.0026 per share to 

$0.0027 per share. To be consistent with 

this change, the Exchange proposes to 


cprice-sewell on DSK2BSOYB1PROD with NOTICES