Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices 48189 

8 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. 56390 

(September 12, 2007), 72 FR 53614 (September 19, 

2007) (SR–NASDAQ–2007–075). 

4 15 U.S.C. 78f. 

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

submissions. You should submit only 

information that you wish to make 

publicly available. All submissions 

should refer to File Number SR–ISE– 

2011–42 and should be submitted on or 

before August 29, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–19982 Filed 8–5–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65014; File No. SR– 

NASDAQ–2011–101] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Fees Assessed Under Rule 7015(h) 

August 2, 2011. 

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 July 26, 

2011, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’) 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 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 the Substance 

of the Proposed Rule Change 

NASDAQ is proposing to amend the 

fees assessed under Rule 7015(h). 

NASDAQ will implement the amended 

fees effective August 1, 2011. 

The text of the proposed rule change 

is below. Proposed new language is in 

italics; proposed deletions are in 

brackets. 

* * * * * 

7015. Access Services 

The following charges are assessed by 

Nasdaq for connectivity to systems 

operated by NASDAQ, including the 

Nasdaq Market Center, the FINRA/ 

NASDAQ Trade Reporting Facility, and 

FINRA’s OTCBB Service. The following 

fees are not applicable to the NASDAQ 

Options Market LLC. For related options 

fees for Access Services refer to Rule 

7053. 

(a)–(g) No change. 

(h) VTE Terminal Fees 

• Each ID is subject to a minimum 

commission fee of $125[100] per month 

unless it executes a minimum of 

100,000 shares. 

• Each ID receiving market data is 

subject to pass-through fees for use of 

these services. Pricing for these services 

is determined by the exchanges and/or 

market center. 

• Each ID that is given web access is 

subject to a $125[100] monthly fee. 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NASDAQ 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. 

NASDAQ 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 increase the 

fees assessed members under Rule 

7015(h) for use of VTE terminals. A VTE 

terminal is a basic front-end user 

interface used by NASDAQ members to 

connect to, and enter orders in, The 

Nasdaq Market Center. Members using 

VTE terminals pay the exchanges 

directly for data feeds and services 

provided by NASDAQ and other 

exchanges or market centers through 

VTE at the SEC-approved rate that they 

would pay to receive the data feeds 

through other means. These data feeds 

provide information that is necessary for 

users to enter orders through VTE. The 

two fees assessed under Rule 7015(h) 

relate to optional web access and 

commissions. 

Rule 7015(h) currently assesses 

monthly a minimum commission fee of 

$100 fee per ID, and a web access fee of 

$100 per ID. NASDAQ last raised fees 

assessed under Rule 7015(h) in 2007 

when it raised the fee for access to the 

terminal via the web from $50 monthly 

to $100 monthly, and raised the 

minimum commission fee for users 

executing orders totaling less than 

100,000 shares per month from $50 

monthly to $100 monthly.3 In light of 

increasing costs, NASDAQ is proposing 

to increase the fee for access to the 

terminal via the web from $100 monthly 

to $125 monthly, and increase the 

minimum commission fee for users 

executing orders totaling less than 

100,000 shares per month from $100 

monthly to $125 monthly. 

NASDAQ notes that web connectivity 

is one option available to NASDAQ 

users for accessing the VTE terminal. 

Another option is access through 

extranet connectivity, where a user 

contracts directly with a third-party 

extranet provider and pays fees to that 

provider. With respect to minimum 

commission fees, members that execute 

total orders above the 100,000 share 

threshold will continue to not be 

assessed a commission fee. 

Based on NASDAQ’s operation of the 

VTE since it was acquired from INET, 

NASDAQ believes that the pricing 

changes are warranted in order to 

appropriately balance the demand for 

the product with increasing platform, 

overhead and technology infrastructure 

costs. 

2. Statutory Basis 

NASDAQ 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 

NASDAQ operates or controls. All 

similarly situated members are subject 

to the same fee structure, and access to 

this NASDAQ service is offered on fair 

and non-discriminatory terms. As noted, 

NASDAQ has not increased the fees 

assessed under Rule 7015(h) since 2007 

despite incurring increased costs. Use of 

VTE terminals is voluntary and 

members can avail themselves of 

numerous other means of accessing The 

Nasdaq Market Center. NASDAQ further 

notes that it operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive. 

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 

mstockstill on DSK4VPTVN1PROD with NOTICES

48190 Federal Register / Vol. 76, No. 152 / Monday, August 8, 2011 / Notices 

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

7 17 CFR 240.19b–4(f)(2). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 3See PHLX Fee Schedule, page 9. 

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 6 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.7 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–2011–101 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–2011–101. 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–2011–101, and 

should be submitted on or before 

August 29, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–19983 Filed 8–5–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65007; File No. SR–CBOE– 

2011–071] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fee 

Schedule Concerning Facilitation 

Orders in Multiply-Listed FLEX Options 

August 2, 2011. 

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 August 1, 

2011, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) 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 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 hereby proposes to 

waive the Clearing Trading Permit 

Holder Proprietary Transaction Fee for 

Clearing Trading Permit Holders 

executing facilitation orders in 

multiply-listed FLEX Options classes. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Over-the-counter (‘‘OTC’’) trading and 

Flexible Exchange Options (‘‘FLEX’’) 

trading are similar in that both are 

highly customized, and largely involve 

customer-to-firm trades. Due to 

regulatory changes and other market 

forces, the Exchange believes that 

market participants interested in 

executing these types of customized, 

customer-to-firm trades will begin to 

transition from executing such trades in 

the OTC markets to executing them as 

FLEX trades. Currently, a number of 

other exchanges which also host FLEX 

trading, including the NASDAQ OMX 

PHLX LLC (‘‘PHLX’’), do not charge 

transaction fees on firm facilitation 

orders in multiply-listed FLEX Options 

classes 3 (the nature of a facilitation 

order is such that it provides a market 

for a trade, and only Clearing Trading 

Permit Holders (or firms, on other 

exchanges) can enter such orders). 

Because CBOE anticipates an increase in 

FLEX trading, and because CBOE would 

like to be able to compete with other 

exchanges for FLEX trades on an even 

mstockstill on DSK4VPTVN1PROD with NOTICES