Federal Register / Vol. 75, No. 85 / Tuesday, May 4, 2010 / Notices 23829 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange’s two modes of order interaction 

are described in NSX Rule 11.13(b). 

4See Explanatory Endnote (6) to the Fee 

Schedule. 

5See Explanatory Endnote (12) to the Fee 

Schedule. 

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–BX–2010–029 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–BX–2010–029. 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 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–BX–2010–029 and should 

be submitted on or before May 25, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–10309 Filed 5–3–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61996; File No. SR–NSX– 

2010–04] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

the Fee and Rebate Schedule Issued 

Pursuant to Exchange Rule 16.1(c) 

With Respect to the Liquidity Adding 

Rebate for Securities Priced Under 

One Dollar 

April 28, 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 April 9, 

2010, National Stock Exchange, Inc. 

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 Commission is publishing this 

notice to solicit comment 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 

National Stock Exchange, Inc. 

(‘‘NSX® ’’ or ‘‘Exchange’’) is proposing to 

amend the Fee and Rebate Schedule (the 

‘‘Fee Schedule’’) issued pursuant to 

Exchange Rule 16.1(c) to adjust the 

liquidity adding rebate for securities 

priced under one dollar. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nsx.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 

With this rule change, the Exchange is 

proposing to modify the Fee Schedule to 

adjust the liquidity adding rebate for 

securities priced under one dollar in 

both the Automatic Execution mode of 

order interaction (‘‘AutoEx’’) and the 

Order Delivery mode of order 

interaction (‘‘Order Delivery’’).3

AutoEx Liquidity Adding Rebate For 

Securities Priced Under One Dollar 

For orders in securities priced under 

one dollar that provide liquidity in 

AutoEx, the Fee Schedule currently 

provides that an ETP Holder receives a 

rebate of 0.25% of trade value, where 

‘‘trade value’’ is defined as the dollar 

amount equal to the price per share 

multiplied by the number of shares 

executed.4 The proposed rule change 

adjusts such rebate to be the lesser of 

the foregoing amount and 25% of the 

quote spread, where ‘‘quote spread’’ is 

defined as the dollar amount equal to 

the number of shares executed 

multiplied by the difference at the time 

of execution between (x) the price per 

share of the national best bid, and (y) 

the price per share of the national best 

offer.5

Order Delivery Liquidity Adding Rebate 

For Securities Priced Under One Dollar 

For orders in securities priced under 

one dollar that provide liquidity in 

Order Delivery, the Fee Schedule 

currently provides that an ETP Holder 

receives a rebate of 0.20% of trade 

value. The proposed rule change adjusts 

such rebate to be the lesser of 0.20% of 

trade value and 20% of the quote 

spread. 

In both Order Delivery and AutoEx, 

no quote spread rebate is payable in the 

event of locked or crossed quotations. 

Finally, the proposed rule change 

modifies for purposes of internal 

consistency the language in the Fee 

Schedule to make clear that Zero 

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23830 Federal Register / Vol. 75, No. 85 / Tuesday, May 4, 2010 / Notices 

6Specifically, the parenthetical ‘‘(except for Zero 

Display Orders)’’ is deleted in the Fee Schedule text 

describing the amounts of the sub-dollar liquidity 

adding rebates and, consistent with the discussion 

of dollar-and-higher securities, the word 

‘‘Displayed’’ is being added to the types of orders 

under discussion. The net result (that Zero Display 

Reserve Orders are not eligible to receive rebates for 

adding liquidity in sub-dollar securities) remains 

unchanged. 

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

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

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

10 17 CFR 240.19b–4. 11 17 CFR 200.30–3(a)(12). 

Display Reserve Orders of sub-dollar 

securities in both AutoEx and Order 

Delivery remain ineligible to receive the 

liquidity adding rebate.6

Rationale 

The Exchange has determined that 

these changes are necessary to maintain 

an appropriate incentive for ETP 

Holders to submit increased order 

volumes of sub-dollar securities in 

AutoEx and Order Delivery and, 

ultimately, to increase the revenues of 

the Exchange for the purpose of 

continuing to adequately fund its 

regulatory and general business 

functions. The Exchange has further 

determined that the proposed fee 

adjustments are necessary for 

competitive reasons. The Exchange 

believes that these rebate changes will 

not impair the Exchange’s ability to 

fulfill its regulatory responsibilities. 

The proposed modifications are 

reasonable and equitably allocated to 

those ETP Holders that opt to submit 

orders of sub-dollar securities, and are 

not discriminatory because ETP Holders 

are free to elect whether or not to send 

such orders. The proposed 

modifications continue to incentivize 

ETP Holders to submit liquidity adding 

displayed orders over Zero Display 

Reserve Orders, and AutoEx orders over 

orders in Order Delivery. Based upon 

the information above, the Exchange 

believes that the proposed rule change 

is consistent with the protection of 

investors and the public interest. 

Operative Date and Notice 

The Exchange intends to make the 

proposed modifications, which are 

effective on filing of this proposed rule, 

operative for trading on April 12, 2010. 

Pursuant to Exchange Rule 16.1(c), the 

Exchange will ‘‘provide ETP Holders 

with notice of all relevant dues, fees, 

assessments and charges of the 

Exchange’’ through the issuance of a 

Regulatory Circular of the changes to the 

Fee Schedule and will post a copy of the 

rule filing on the Exchange’s Web site 

(http://www.nsx.com). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) of the 

Act,7 in general, and Section 6(b)(4) of 

the Act,8 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 the facilities of the 

Exchange. Moreover, the proposed fee 

rule change is not discriminatory in that 

all ETP Holders are eligible to submit 

(or not submit) trades and quotes at any 

price in AutoEx and Order Delivery in 

all tapes, as either displayed or 

undisplayed, liquidity adding or 

liquidity taking and sub-dollar or dollarand-above, and may do so at their 

discretion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any inappropriate burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change has taken 

effect upon filing pursuant to Section 

19(b)(3)(A)(ii) of the Act 9 and 

subparagraph (f)(2) of Rule 19b–4 10

thereunder, because, as provided in 

(f)(2), it changes ‘‘a due, fee or other 

charge applicable only to a member’’ 

(known on the Exchange as an ETP 

Holder). At any time within sixty (60) 

days of the filing of such 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–NSX–2010–04 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–NSX–2010–04. 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–NSX–2010–04, and should 

be submitted on or before May 25, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–10363 Filed 5–3–10; 8:45 am] 

BILLING CODE 8011–01–P 

mstockstill on DSKH9S0YB1PROD with NOTICES