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
Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Notices 21133 

4 15 U.S.C. 78f. 

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

6 Despite the fact that SOX, HGX and OSX will 

be Multiply Listed, Phlx will continue to assess 

market participants the fees for Singly Listed 

Options to transact index options in SOX, HGX and 

OSX. See SR–Phlx–2012–35. See also Section III of 

Phlx’s Pricing Schedule. Accordingly, Phlx would 

continue to assess the following fees to transact 

index options in SOX, HGX and OSX as of April 

2, 2012: Customers $0.35 per contract, Professionals 

$0.45 per contract, Firms $0.45 per contract, Market 

Makers $0.35 per contract, and Broker-Dealers $0.45 

per contract. Non-NOM Market Makers are 

registered market makers on another options market 

that append the market maker designation to orders 

routed to NOM. This is the equivalent of a BrokerDealer on Phlx. While Phlx does not assess both a 

Fee for Adding Liquidity and Fee for Removing 

Liquidity, it assesses each side of the transaction 

the Options Transaction Charge. 

7See Chapter XV, Section 2(1) fees. 

8See Phlx’s Pricing Schedule at Section III. 

9See Exchange Rules Section VII, Market 

Participants, Sections 5, Obligations of Market 

Makers, and Section 6, Market Maker Quotations. 

10Phlx utilizes the term non-Penny Pilot in 

Section II of its Fee Schedule. See Phlx’s Pricing 

Schedule. 

Customer Professional Firm Non-NOM 

market maker 

NOM market 

maker 

SOX, HGX and OSX: 

Fee for Adding Liquidity ....................................................... $0.35 $0.45 $0.45 $0.45 $0.35 

Fee for Removing Liquidity .................................................. $0.35 $0.45 $0.45 $0.45 $0.35 

Other Amendments 

The Exchange also proposes to amend 

the title of Chapter XV, currently 

entitled ‘‘Options Fees,’’ to ‘‘Options 

Pricing’’ to more specifically describe 

this Rule. The Exchange also proposes 

to amend the title of ‘‘All Other 

Options’’ in Section 2(1) to ‘‘Non-Penny 

Pilot Options’’ to more specifically 

describe those fees. Finally, the 

Exchange proposes to reorder the Fees 

and Rebates in Section 2(1) to move the 

current ‘‘All Other Options’’ after the 

‘‘Penny Pilot Options’’ fees and rebates. 

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 they provide 

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 its 

proposal to adopt Fees for Adding 

Liquidity and Fees for Removing 

Liquidity for transactions in SOX, HGX 

and OSX is reasonable because the 

Exchange proposes to assess the same 

fees that are currently assessed by 

NASDAQ OMX PHLX LLC (‘‘Phlx’’) for 

these proprietary products.6 The 

Exchange has previously distinguished 

other index products from the NonPenny Pilot Options fees and rebates.7

The Exchange assesses lower Fees for 

Removing Liquidity in SOX, HGX and 

OSX as compared to the Fees for 

Removing Liquidity in Non-Penny Pilot 

Options, which should encourage NOM 

Participants to transact these newly 

listed index options. The Fees for 

Adding Liquidity for transactions in 

SOX, HGX and OSX are the same or 

higher than the Fees for Adding 

Liquidity in Non-Penny Pilot Options. 

The Exchange believes that these fees 

are reasonable because these fees 

correspond to comparable fees in place 

at Phlx for executions in SOX, HGX, and 

OSX.8

The Exchange believes that its 

proposal to adopt Fees for Removing 

Liquidity for transactions in SOX, HGX 

and OSX is equitable and not unfairly 

discriminatory in that Customers and 

NOM Market Makers are assessed lower 

Fees for Removing Liquidity, $0.35 per 

contract, as compared to other market 

participants because Customer liquidity 

benefits all market participants and 

NOM Market Makers have certain 

obligations to the market and regulatory 

requirements, which normally do not 

apply to other market participants.9 The 

Exchange’s proposal to assess all other 

market participants, Professionals, 

Firms and Non-NOM Market Makers, a 

$0.45 per contract Fee for Removing 

Liquidity for transactions in SOX, HGX 

and OSX is equitable and not unfairly 

discriminatory because these 

participants are uniformly assessed the 

same fee. 

The Exchange believes that its 

proposal to adopt Fees for Adding 

Liquidity for transactions in SOX, HGX 

and OSX is equitable and not unfairly 

discriminatory because the Customer 

Fee for Adding Liquidity for transacting 

SOX, HGX and OSX of $0.35 per 

contract is lower than fees assessed 

other market participants for transacting 

SOX, HGX and OSX, except NOM 

Market Makers. This is because, as 

previously stated, the Exchange desires 

to attract Customer order flow to the 

market, which liquidity benefits all 

market participants. The NOM Market 

Maker Fee for Adding Liquidity for 

transactions in SOX, HGX and OSX of 

$0.35 per contract is also lower than 

other market participants, except 

Customers, because NOM Market 

Makers have certain obligations to the 

market and regulatory requirements 

which are not borne by Customers, 

Professionals, Non-NOM Market Makers 

and Firms. The Exchange uniformly 

assesses Professionals, Firms and NonNOM Market Makers a Fee for Adding 

Liquidity for transactions in SOX, HGX 

and OSX of $0.45 per contract. 

The Exchange also believes its 

proposal to amend the title of Chapter 

XV to ‘‘Options Pricing’’ is reasonable, 

equitable and not unfairly 

discriminatory because the Exchange 

believes that the proposed title more 

specifically describes the fees, rebates 

and other charges reflected in the 

Chapter. The Exchange also believes 

that amending the title of Section 2(1) 

from ‘‘All Other Options’’ to ‘‘NonPenny Pilot Options’’ conforms the 

description of these fees to that of other 

options exchanges.10 Finally, the 

Exchange believes that reordering the 

fees in Section 2(1) is reasonable, 

equitable and not unfairly 

discriminatory because the Exchange is 

grouping the fees for indexes for ease of 

reference. 

The Exchange operates in a highly 

competitive market comprised of nine 

U.S. options exchanges in which 

sophisticated and knowledgeable 

market participants can and do send 

order flow to competing exchanges if 

they deem fee levels at a particular 

exchange to be excessive. The Exchange 

believes that the proposed fee scheme is 

competitive and similar to other fees in 

place on other exchanges. The Exchange 

believes that this competitive 

marketplace materially impacts the fees 

present on the Exchange today and 

substantially influences the proposal set 

forth above. 

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. 


pmangrum on DSK3VPTVN1PROD with NOTICES
21134 Federal Register / Vol. 77, No. 68 / Monday, April 9, 2012 / Notices 

11 15 U.S.C. 78s(b)(3)(A)(ii). 

12 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). 

4 17 CFR 240.19b–4(f)(2). 

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 240.19b–4(f)(6). 

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.11 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–2012–037 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–2012–037. 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–2012–037 and should be 

submitted on or before April 30, 2012. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2012–8431 Filed 4–6–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66727; File No. SR–CBOE– 

2012–025] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to Exchange 

Trading Floor Booth Fees and Policy 

April 3, 2012. 

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 March 26, 

2012, Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or the 

‘‘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 CBOE. CBOE has 

designated the proposed rule change as 

it pertains to fees for non-standard 

booths as ‘‘establishing or changing a 

due, fee or other charge’’ under Section 

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

4(f)(2) thereunder,4 which renders the 

proposal effective upon receipt of this 

filing by the Commission. Additionally, 

CBOE has designated the proposed rule 

change as it pertains to the Exchange’s 

trading floor booth policy as 

constituting a ‘‘non-controversial’’ rule 

change under Section 19(b)(3)(A) of the 

Act 5 and Rule 19b–4(f)(6) thereunder,6

which renders the proposal effective 

upon receipt of this filing by 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend its 

Fees Schedule as it pertains to Exchange 

trading floor booth fees and to update 

the Exchange’s current policy regarding 

the rental and use of booths on the 

CBOE trading floor. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CBOE 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. CBOE 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 revise the Exchange’s Fees 

Schedule to include fees for a ‘‘nonstandard booth’’ (as defined below) and 

to update the Exchange’s policy 

(‘‘Policy’’) regarding the rental and use 

of booth space on the CBOE trading 

floor by Trading Permit Holder (‘‘TPH’’) 

organizations. 

Fees 

The Exchange has booth space located 

on its trading floor that it makes 


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