21130 Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Notices 

17See Securities Exchange Act Release No. 63291 

(Nov. 9, 2010). 

18 15 U.S.C. 78s(b)(3)(A)(ii). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

of data to consume on the basis of the 

total cost of interacting with NASDAQ 

or other exchanges. Of course, the 

explicit data fees are but one factor in 

a total platform analysis. Some 

competitors have lower transactions fees 

and higher data fees, and others are vice 

versa. The market for this Depth-of-Book 

information is highly competitive and 

continually evolves as products develop 

and change. 

Additional evidence cited by NYSE 

Arca in SR–NYSE Arca–2010–097 17

which was not before the NetCoalition 

court also demonstrates that availability 

of Depth-of-Book data attracts order 

flow and that competition for order flow 

can constrain the price of market data: 

1. Terrence Hendershott & Charles M. 

Jones, Island Goes Dark: Transparence, 

Fragmentation, and Regulation, 18 

Review of Financial Studies 743 (2005); 

2. Charts and Tables referenced in 

Exhibit 3B to that filing; 

3. PHB Hagler Bailly, Inc., ‘‘Issues 

Surrounding Cost-Based Regulation of 

Market Data Prices;’’ and 

4. PHB Hagler Bailly, Inc., ‘‘The 

Economic Perspective on Regulation of 

Market Data.’’ 

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 

Pursuant to Section 19(b)(3)(A)(ii) of 

the Act,18 NASDAQ has designated this 

proposal as establishing or changing a 

due, fee, or other charge imposed by the 

self-regulatory organization on any 

person, whether or not the person is a 

member of the self-regulatory 

organization, which renders the 

proposed rule change effective upon 

filing. 

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–2012–044 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–2012–044. 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– 

NASDAQ–2012–044 and should be 

submitted on or before April 30, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2012–8462 Filed 4–6–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66719; File No. SR– 

NASDAQ–2012–046] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

Customer Routing Fees 

April 3, 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 March 28, 

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 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 

NASDAQ proposes to modify Chapter 

XV, Options Pricing, Section 2, of the 

Options Rules portion of the NASDAQ 

Rulebook governing pricing for 

NASDAQ members using The NASDAQ 

Options Market (‘‘NOM’’), NASDAQ’s 

facility for executing and routing 

standardized equity and index options. 

The proposed rule change amends 

certain Customer Routing Fees to recoup 

costs incurred by the Exchange in 

routing to away markets. While changes 

proposed herein are effective upon 

filing, the Exchange has designated 

these changes to be operative on April 

2, 2012. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaq.cchwallstreet.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 


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Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Notices 21131 

3See ISE’s Schedule of Fees for the complete list 

of symbols that are subject to these fees. 4See ISE’s Schedule of Fees. See also Securities 

Exchange Act Release No. 66597 (March 14, 2012), 

77 FR 16295 (March 20, 2012) (SR–ISE–2012–17). 5See Securities Exchange Act Release No. 66367 

(February 9, 2012), 77 FR 8934 (February 15, 2012) 

(SR–Phlx-2012–15). See also Section I of PHLX’s 

Pricing Schedule. 

6The Exchange is therefore increasing the ISE 

Select Symbols Customer Routing Fee to $0.31 per 

contract to account for the $0.20 ISE taker fee, the 

$0.06 clearing cost and another $0.05 per contract 

associated with administrative and technical costs 

associated with operating NOS. It is also increasing 

the PHLX Select Symbols Customer Routing Fee to 

$0.50 per contract to account for the $0.39 PHLX 

Customer Single contra-side Fee for Removing 

Liquidity for its Select Symbols, the $0.06 clearing 

cost and another $0.05 per contract associated with 

with administrative and technical costs associated 

with operating NOS. 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to recoup 

costs that the Exchange incurs for 

routing and executing certain Customer 

orders in equity and index options to 

the International Securities Exchange, 

LLC (‘‘ISE’’) and to the NASDAQ OMX 

PHLX, LLC (‘‘PHLX’’). Chapter XV, 

Section 2 currently includes the 

following Routing Fees for routing 

Customer, Firm, Market Maker and 

Professional orders to away markets. 

Exchange Customer Firm MM Professional 

BATS ................................................................................................................ $0.55 $0.55 $0.55 $0.55 

BOX ................................................................................................................. 0.11 0.55 0 .55 0.11 

CBOE ............................................................................................................... 0.11 0.55 0. 55 0.31 

CBOE orders greater than 99 contracts in NDX, MNX ETFs, ETNs & 

HOLDRs ....................................................................................................... 0.29 0.55 0.55 0.3 1 

C2 .................................................................................................................... 0.55 0.55 0.55 0.55 

ISE ................................................................................................................... 0.11 0.55 0.55 0.29 

ISE Select Symbols * ....................................................................................... 0.23 0.55 0.55 0.39 

NYSE Arca Penny Pilot ................................................................................... 0.55 0.55 0.55 0.55 

NYSE Arca Non Penny Pilot ........................................................................... 0.11 0.55 0.55 0.11 

NYSE AMEX .................................................................................................... 0.11 0.55 0.55 0.31 

PHLX (for all options other than PHLX Select Symbols) ................................ 0.11 0.55 0.55 0.31 

PHLX Select Symbols ** .................................................................................. 0.35 0.55 0.55 0.51 

* These fees are applicable to orders routed to ISE that are subject to Rebates and Fees for Adding and Removing Liquidity in Se lect 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. 

* * * * * 

The Exchange is proposing to amend 

the ‘‘ISE Select Symbols’’ 3 Customer 

Routing Fee from $0.23 per contract to 

$0.31 per contract. ISE recently 

amended its ‘‘taker’’ fee for regular, or 

non-complex, Priority Customer orders 

in the Select Symbols, regardless of size, 

from $0.15 per contract to $0.20 per 

contract.4 In addition to the ISE taker 

fee, the Exchange also incurs other 

routing costs which it seeks to recoup. 

The Exchange is also proposing to 

amend the ‘‘PHLX Select Symbols’’ 

Customer Routing Fee from $0.35 per 

contract to $0.50 per contract. PHLX 

recently amended its Single contra-side 

Customer Fee for Removing Liquidity 

for its Select Symbols from $0.31 per 

contract to $0.39 per contract.5 In 

addition to the PHLX Single contra-side 

Customer Fee for Removing Liquidity 

for its Select Symbols, the Exchange 

also incurs other routing costs which it 

seeks to recoup. 

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 currently recoups clearing 

and transaction charges incurred by the 

Exchange as well as certain other costs 

incurred by the Exchange when routing 

to away markets, such as administrative 

and technical costs associated with 

operating NOS; the Exchange’s 

membership fees at away markets; and 

technical costs associated with routing.6

As with all fees, the Exchange may 

adjust these Routing Fees in response to 

competitive conditions by filing a new 

proposed rule change. While changes to 

the Fee Schedule pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on April 2, 2012. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule changes are consistent with the 

provisions of Section 6 of the Act,7 in 

general, and with Section 6(b)(4) of the 

Act,8 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 these fees 

are reasonable because they seek to 

recoup costs that are incurred by the 

Exchange when routing Customer orders 

to ISE and PHLX 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 Fees would enable 

the Exchange to recover the customer 

taker fees assessed by ISE and customer 

Single contra-side Fee for Removing 

Liquidity assessed by PHLX, plus 

clearing fees for the execution of 

customer orders. The Exchange also 

believes that the proposed Routing Fees 

are equitable and not unfairly 

discriminatory because they would be 

uniformly applied to all Customers. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 


pmangrum on DSK3VPTVN1PROD with NOTICES
21132 Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Notices 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange plans on listing these index 

options on April 2, 2012. 

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.9 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–2012–046 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–2012–046. 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 such filing 

will also 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 No. SR–NASDAQ– 

2012–046 and should be submitted on 

or before April 30, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to 

delegated authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2012–8461 Filed 4–6–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66729; File No. SR– 

NASDAQ–2012–037] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Fees for Newly Listed Indexes 

April 3, 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 March 28, 

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 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 

NASDAQ proposes to modify pricing 

for NASDAQ members using the 

NASDAQ Options Market (‘‘NOM’’), 

NASDAQ’s facility for executing and 

routing standardized equity and index 

options. Specifically, NASDAQ 

proposes to adopt fees for newly listed 

indexes and make other minor 

amendments to Chapter XV at Section 2 

entitled ‘‘NASDAQ Options Market— 

Fees.’’ 

While changes proposed herein are 

effective upon filing, the Exchange has 

designated these changes to be operative 

on April 2, 2012. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NASDAQ proposes to amend Chapter 

XV, Section 2 to adopt fees for the 

following newly listed index options: 

PHLX Semiconductor SectorSM

(SOXSM), PHLX Housing SectorTM

(HGXSM) and PHLX Oil Service 

SectorSM (OSXSM).3

Specifically, the Exchange proposes to 

assess the following Fees for Adding 

Liquidity and Fees for Removing 

Liquidity for transactions in SOX, HGX 

and OSX: 


pmangrum on DSK3VPTVN1PROD with NOTICES