2106 Federal Register / Vol. 77, No. 9 / Friday, January 13, 2012 / Notices 

17 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 

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 Exchange 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 email to rulecomments@sec.gov. Please include File 

Number SR–CHX–2011–33 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–CHX–2011–33. This file 

number should be included on the 

subject line if email 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–CHX– 

2011–33 and should be submitted on or 

before February 3, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–533 Filed 1–12–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66121; File No. SR– 

NASDAQ–2012–001] 

Self-Regulatory Organizations; 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

January 9, 2012. 

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 January 3, 

2012, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘Exchange’’) 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 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 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. 

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. 

* * * * * 

(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 

be posted on the NasdaqTrader.com 

Web site. 

Exchange Customer Firm MM Professional 

BATS ................................................................................................................ $0.[36]50 $0.55 $0.55 $0 .[48]50 

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 

C2 .................................................................................................................... 0.50 0.55 0.55 0 .51 

ISE ................................................................................................................... 0.06 0.55 0.55 0 .24 

ISE Select Symbols* ........................................................................................ 0.18 0.55 0.55 0 .34 

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 

* 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. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 77, No. 9 / Friday, January 13, 2012 / Notices 2107 

3See BATS (BZX) Exchange Fee Schedule. See 

also BATS Options Exchange Pricing Update 

Effective January 3, 2012 (dated December 15, 

2011). 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 6 15 U.S.C. 78s(b)(3)(A)(ii). 

* * * * * 

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 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 proposes to modify Rule 

7050 governing fees assessed for option 

orders entered into NOM but routed to 

and executed on away markets 

(‘‘Routing Fees’’). Specifically, 

NASDAQ is proposing to amend its 

Customer and Professional Routing Fees 

for orders routed to the BATS Exchange, 

Inc. (‘‘BATS’’). 

The Exchange currently assesses the 

following Routing Fees to route orders 

to BATS: a Customer is assessed $0.36 

per contract; a Firm is assessed $0.55 

per contract; a Market Maker is assessed 

$0.55 per contract; and a Professional is 

assessed $0.48 per contract. The 

Exchange proposes to amend the 

Customer and Professional Routing Fees 

to BATS to $0.50 per contract. The other 

BATS Routing Fees for Firms and 

Market Makers would remain the same. 

Recently, BATS announced that it 

would amend its customer and 

professional fees to remove liquidity to 

$0.44 per contract on January 3, 2012.3

The Exchange is proposing to amend its 

Customer and Professional Routing Fees 

to BATS to $0.50 per contract to recoup 

this fee. 

In addition, 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 is proposing this amendment 

in order to recoup clearing and 

transaction charges incurred by the 

Exchange when Customer and 

Professional orders are routed to BATS. 

The Exchange proposes to recoup the 

$0.44 per contract customer and 

professional taker fee for option orders 

that are routed to BATS along with the 

$0.06 clearing fee which is incurred by 

the Exchange, as explained herein. 

As with all fees, the Exchange may 

adjust these Routing Fees in response to 

competitive conditions by filing a new 

proposed rule change. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule changes are 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. 

The Exchange believes that this fee is 

reasonable because it seeks to recoup 

costs that are incurred by the Exchange 

when routing Customer and 

Professional orders to BATS on behalf of 

its members. 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 

proposed Routing Fee would enable the 

Exchange to recover the customer and 

professional taker fees assessed by 

BATS, plus clearing fees for the 

execution of Customer and Professional 

orders. The Exchange also believes that 

the proposed Routing Fee is equitable 

and not unfairly discriminatory because 

it would be uniformly applied to all 

Customers and Professionals. 

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.6 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 email to rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2012–001 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–2012–001. This 

file number should be included on the 

subject line if email 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 

mstockstill on DSK4VPTVN1PROD with NOTICES

2108 Federal Register / Vol. 77, No. 9 / Friday, January 13, 2012 / Notices 

7 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. 

6As defined on the Exchange’s fee schedule, a 

‘‘Customer’’ order is any transaction identified by 

a Member for clearing in the Customer range at the 

Options Clearing Corporation (‘‘OCC’’). 

7As defined on the Exchange’s fee schedule, ADV 

is average daily volume calculated as the number 

of contracts added or removed, combined, per day 

on a monthly basis. The fee schedule also provides 

that routed contracts are not included in ADV 

calculation. 

8As defined on the Exchange’s fee schedule, TCV 

is total consolidated volume calculated as the 

volume reported by all exchanges to the 

consolidated transaction reporting plan for the 

month for which the fees apply. 

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–2012–001 and should be 

submitted on or before February 3, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–529 Filed 1–12–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66120; File No. SR–BATS– 

2011–053] 

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. 

January 9, 2012. 

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 December 

30, 2011, 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. The 

Exchange 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 [sic] amend 

the fee schedule applicable to 

Members 5 and non-members 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 January 3, 2012. 

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 aspects 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 the 

‘‘Options Pricing’’ section of its fee 

schedule to: (i) Adopt the ‘‘Grow with 

Us’’ pricing program, which will 

provide Members with some of the 

benefits of the Exchange’s tiered pricing 

structure to the extent such Members 

are increasing their activity on the 

Exchange’s options platform (‘‘BATS 

Options’’) month over month; (ii) 

modify the fees charged by the 

Exchange to remove liquidity from 

BATS Options; (iii) modify the rebates 

provided by the Exchange for 

Customer 6 orders that add liquidity to 

BATS Options; (iv) modify the NBBO 

Setter Program, which is a program 

intended to incentivize aggressive 

quoting on BATS Options; (v) modify 

the Quoting Incentive Program, which is 

a program intended to incentivize 

sustained, aggressive quoting on BATS 

Options; and (vi) adopt fees for logical 

ports used to access BATS Options for 

order entry and receipt of market data. 

The Exchange also proposes minor 

grammatical changes to conform various 

sections of the Exchange’s Options 

Pricing section. 

(i) Grow With Us Pricing Program 

The Exchange currently has volume 

tiers in place that provide Members that 

satisfy certain volume thresholds with 

additional rebates on executions for 

which they have added liquidity to the 

BATS Options order book and reduced 

fees for executions that remove liquidity 

from the BATS Options order book. 

Further, as described below, the 

Exchange is proposing to add certain 

additional tiers to its fee schedule. The 

Exchange’s tiered pricing structure 

includes and will continue to include a 

lower tier applicable to Members with 

an average daily volume (‘‘ADV’’) 7

equal to or greater than 0.30% of 

average total consolidated volume 

(‘‘TCV’’) 8 and a second tier applicable 

to Members with an ADV equal to or 

greater than 1% of average TCV. 

Pursuant to the ‘‘Grow with Us’’ pricing 

program, the Exchange proposes to 

provide a Member with one-half of the 

economic benefit such Member would 

achieve if such Member were in the next 

highest volume tier to the extent such 

Member shows a minimum of 5 basis 

points TCV improvement over the 

Member’s previous highest monthly 

TCV on BATS Options, or ‘‘High Water 

Mark.’’ The Exchange proposes to define 

High Water Mark as the greater of a 

Member’s fourth quarter 2011 TCV or a 

Member’s best monthly TCV on BATS 

Options thereafter. For example, assume 

that for the fourth quarter of 2011, a 

Member has an ADV of 0.10% of 

average TCV. Such Member would not 

qualify for volume tier pricing 

applicable to Members with an ADV of 

0.30% of average TCV. However, if, in 

January of 2012, such Member achieves 

an average TCV of 0.15% on BATS 

Options, such Member will receive onehalf of the economic benefit such 

mstockstill on DSK4VPTVN1PROD with NOTICES