Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 3773 

8The ADF, FINRA/Nasdaq TRF, FINRA/NYSE 

TRF and ORF are collectively referred to herein as 

the ‘‘FINRA Facilities.’’ 

9 17 CFR 200.30–3(a)(12). 

1See Securities Exchange Act Release No. 54804 

(November 21, 2006), 71 FR 69150 (November 29, 

2006). The Quoting Fee was amended three times. 

See Securities Exchange Act Release No. 56602 

(October 3, 2007), 72 FR 57620 (October 10, 2007); 

Securities Exchange Act Release No. 56927 

(December 7, 2007), 72 FR 70912 (December 13, 

2007); and Securities Exchange Act Release No. 

58513 (September 11, 2008), 73 FR 54186 

(September 18, 2008). 

2See CBOE Fees Schedule, Section 17. 

3See Securities Exchange Act Release No. 55154 

(January 23, 2007), 72 FR 4743 (February 1, 2007). 

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

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

general, to protect investors and the 

public interest. 

The proposed amendments are 

identical to the current rules relating to 

the FINRA/NYSE Trade Reporting 

Facility (‘‘FINRA/NYSE TRF’’) and 

would make FINRA rules governing the 

submission of trade cancellations 

consistent across the ‘‘FINRA 

Facilities.’’ 8 The Commission believes 

such consistency should enhance 

market transparency and eliminate 

systematically imposed delays in the 

reporting of trade cancellations to the 

FINRA/Nasdaq TRF and ORF. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act, that the 

proposed rule change (SR–FINRA– 

2009–082), be and hereby is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–1143 Filed 1–21–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61357; File No. SR–CBOE– 

2010–001] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Inc.; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change, and Amendment No. 1 

Thereto, Relating to the Elimination of 

the Hybrid Electronic Quoting Fee 

January 14, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934, 15 

U.S.C. 78s(b)(1), notice is hereby given 

that on January 4, 2010, 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. On 

January 12, 2010, CBOE filed 

Amendment No. 1 to the proposed rule 

change. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) 

proposes to amend its Fees Schedule to 

eliminate the Hybrid Electronic Quoting 

Fee. The text of the proposed rule 

change is available on the Exchange’s 

website (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, 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to eliminate the Hybrid 

Electronic Quoting Fee (‘‘Quoting Fee’’), 

which is applicable to all MarketMakers, DPMs, and e-DPMs (collectively 

‘‘liquidity providers’’). The Quoting Fee 

was implemented in February 2007 with 

the purpose of promoting and 

encouraging more efficient quoting.1

Under the Quoting Fee, CBOE assesses 

all liquidity providers who are 

submitting electronic quotations to 

CBOE in Hybrid option classes a 

monthly amount of $450 per 

membership utilized. CBOE also 

assesses or credits fees on liquidity 

providers that vary depending on: (i) 

The quality of the liquidity provider’s 

quotation (a quotation is a bid and an 

offer); and (ii) the value of the 

underlying security and CBOE’s bid in 

the option series.2 If a liquidity provider 

is assessed (or credited) the Quoting 

Fee, the liquidity provider does not pay 

a member dues fee under Section 10 of 

the Fees Schedule. 

The Exchange believes the Quoting 

Fee is no longer necessary to help 

mitigate quote message traffic. The 

Exchange believes liquidity providers 

generally are quoting more efficiently in 

response to the expansion of the Penny 

Pilot Program in order to remain 

competitive in the penny classes. In 

addition, the Exchange believes the 

other quote mitigation strategies it 

implemented at the inception of the 

Penny Pilot Program should continue to 

be effective in mitigating quotations.3

Also, since the adoption of the Quoting 

Fee the Exchange has invested heavily 

to increase its options system capacity 

to handle greater quote message traffic. 

Accordingly, the Exchange believes it 

would be appropriate to eliminate the 

Quoting Fee. 

Liquidity providers will continue to 

be charged $450 per month as member 

dues under Section 10 of the Fees 

Schedule instead of as a Hybrid 

Electronic Quoting Fee. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’),4 in general, and furthers 

the objectives of Section 6(b)(4) 5 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its members. The Exchange 

believes it is appropriate to eliminate 

the Quoting Fee because it is no longer 

necessary to help mitigate quote 

message traffic. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of 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 solicited 

or received with respect to the proposed 

rule change. 

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) 


erowe on DSK5CLS3C1PROD with NOTICES
3774 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 

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

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. 

3 17 CFR 240.19b–4(f)(6). 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

of the Act 6 and subparagraph (f)(2) of 

Rule 19b–4 7 thereunder. At any time 

within 60 days of the filing of the 

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–CBOE–2010–001 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–CBOE–2010–001. 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 inspection and copying 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–CBOE–2010–001 and 

should be submitted on or before 

February 12, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–1142 Filed 1–21–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61323; File No. SR– 

NASDAQ–2009–116] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Amend Rule 2240 and 2250 To Reflect 

Changes to Corresponding FINRA 

Rules 

January 11, 2010. 

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, 2009, The NASDAQ Stock Market 

LLC (the ‘‘Exchange’’ or ‘‘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 the Exchange. 

The Exchange has designated the 

proposed rule change as constituting a 

non-controversial rule change under 

Rule 19b–4(f)(6) under the Act,3 which 

renders the proposal 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 the Substance 

of the Proposed Rule Change 

Pursuant to the provisions of Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’),4 and Rule 19b–4 

thereunder,5 The NASDAQ Stock 

Market LLC (the ‘‘Exchange’’ or 

‘‘NASDAQ’’) is filing with the Securities 

and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to amend NASDAQ Rule 2240 and 2250 

to reflect recent changes to 

corresponding rules of the Financial 

Industry Regulatory Authority 

(‘‘FINRA’’). The text of the proposed rule 

change is below. Additions are in 

italics; deletions are in brackets. 

NASDAQ Stock Market Rules 

* * * * * 

[2240. Disclosure of Control 

Relationship with Issuer 

Nasdaq Members shall comply with 

NASD Rule 2240 as if such Rule were 

part of Nasdaq’s Rules.] 

* * * * * 

[2250. Disclosure of Participation or 

Interest in Primary or Secondary 

Distribution 

Nasdaq Members shall comply with 

NASD Rule 2250 as if such Rule were 

part of Nasdaq’s Rules.] 

* * * * * 

2262. Disclosure of Control Relationship 

with Issuer 

Nasdaq Members shall comply with 

FINRA Rule 2262 as if such Rule were 

part of Nasdaq’s Rules. 

* * * * * 

2269. Disclosure of Participation or 

Interest in Primary or Secondary 

Distribution 

Nasdaq Members shall comply with 

FINRA Rule 2269 as if such Rule were 

part of Nasdaq’s Rules. 

* * * * * 

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 

Many of NASDAQ’s rules are based 

on rules of FINRA (formerly the 

National Association of Securities 

Dealers (‘‘NASD’’)). During 2008, FINRA 

embarked on an extended process of 

moving rules formerly designated as 

‘‘NASD Rules’’ into a consolidated 

FINRA rulebook. In most cases, FINRA 


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