28082 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices 

22See paragraph 2 of the proposed 17d–2 Plan. 

23See paragraph 3 of the proposed 17d–2 Plan. 

24The Commission also notes that the addition to 

or deletion from the Certification of any federal 

securities laws, rules, and regulations for which 

FINRA would bear responsibility under the Plan for 

examining, and enforcing compliance by, Dual 

Members, also would constitute an amendment to 

the Plan. 

25See paragraph 12 of the proposed 17d–2 Plan. 

26The Commission notes that paragraph 12 of the 

Plan reflects the fact that FINRA’s responsibilities 

under the Plan will continue in effect until the 

Commission approves any termination of the Plan. 

27 17 CFR 200.30–3(a)(34). 

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). 

5Orders designated to use these routing strategies 

check the NASDAQ book for the full size of the 

order prior to routing. The terms and conditions of 

NASDAQ’s routing strategies are described in 

NASDAQ Rule 4758. 

6For DOTI orders that execute in NASDAQ OMX 

BX, NASDAQ will continue to pass through fees 

and rebates associated with order execution on that 

venue. 

included in the then-current list of 

Common Rules that are no longer 

substantially similar to FINRA rules; 

and confirm that the remaining rules on 

the list of Common Rules continue to be 

EDGX rules that are substantially 

similar to FINRA rules.22 FINRA will 

then confirm in writing whether the 

rules listed in any updated list are 

Common Rules as defined in the Plan. 

Under the Plan, EDGX will also provide 

FINRA with a current list of Dual 

Members and shall update the list no 

less frequently than once each quarter.23

The Commission is hereby declaring 

effective a plan that, among other 

things, allocates regulatory 

responsibility to FINRA for the 

oversight and enforcement of all EDGX 

rules that are substantially similar to the 

rules of FINRA for Dual Members of 

EDGX and FINRA. Therefore, 

modifications to the Certification need 

not be filed with the Commission as an 

amendment to the Plan, provided that 

the Parties are only adding to, deleting 

from, or confirming changes to EDGX 

rules in the Certification in conformance 

with the definition of Common Rules 

provided in the Plan. However, should 

the Parties decide to add a EDGX rule 

to the Certification that is not 

substantially similar to a FINRA rule; 

delete a EDGX rule from the 

Certification that is substantially similar 

to a FINRA rule; or leave on the 

Certification a EDGX rule that is no 

longer substantially similar to a FINRA 

rule, then such a change would 

constitute an amendment to the Plan, 

which must be filed with the 

Commission pursuant to Rule 17d–2 

under the Act and noticed for public 

comment.24

The Plan also permits EDGX and 

FINRA to terminate the Plan, subject to 

notice.25 The Commission notes, 

however, that while the Plan permits 

the Parties to terminate the Plan, the 

Parties cannot by themselves reallocate 

the regulatory responsibilities set forth 

in the Plan, since Rule 17d–2 under the 

Act requires that any allocation or reallocation of regulatory responsibilities 

be filed with the Commission.26

IV. Conclusion 

This Order gives effect to the Plan 

filed with the Commission in File No. 

4–598. The Parties shall notify all 

members affected by the Plan of their 

rights and obligations under the Plan. 

It is therefore ordered, pursuant to 

Section 17(d) of the Act, that the Plan 

in File No. 4–598, between FINRA and 

EDGX, filed pursuant to Rule 17d–2 

under the Act, is approved and declared 

effective. 

It is therefore ordered that EDGX is 

relieved of those responsibilities 

allocated to FINRA under the Plan in 

File No. 4–598. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11934 Filed 5–18–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62081; File No. SR– 

NASDAQ–2010–058] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for Members Using the NASDAQ 

Market Center 

May 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 May 3, 

2010, The NASDAQ Stock Market LLC 

(‘‘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 NASDAQ. Pursuant to 

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

Rule 19b–4(f)(2) thereunder,4 NASDAQ 

has designated this proposal as 

establishing or changing a due, fee, or 

other charge, which renders the 

proposed rule change effective upon 

filing. 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 

NASDAQ proposes to modify pricing 

for NASDAQ members using the 

NASDAQ Market Center. NASDAQ will 

implement the proposed change on May 

3, 2010. The text of the proposed rule 

change is available at http:// 

nasdaqomx.cchwallstreet.com/, at 

NASDAQ’s principal office, 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, 

NASDAQ 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. 

NASDAQ 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 

In response to announced execution 

rate changes at the New York Stock 

Exchange (‘‘NYSE’’), NASDAQ is making 

minor modifications to its pricing 

schedule for the routing of orders 

through the NASDAQ Market Center. 

First, NASDAQ is increasing the per 

share credits and fees for members using 

the STGY, SCAN, SKNY, SKIP, or DOTI 

routing strategies to either add liquidity 

or execute at the NYSE.5 The credit for 

orders adding liquidity after routing will 

increase to $0.0013 from $0.0010 per 

share. The fee for other orders will 

increase to $0.0021 from $0.0018 per 

share. For orders using these strategies 

that execute in destinations other than 

the NYSE (or NASDAQ OMX BX, in the 

case of DOTI orders), the fee will remain 

$0.0030 per share executed.6

Second, NASDAQ is modifying the 

fees for members using the TFTY or 

MOPP routing strategies, and directed 

orders that execute in a venue other 

than the NASDAQ Market Center as 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices 28083 

7 15 U.S.C. 78f. 

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

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

10 17 CFR 240.19b–4(f)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

follows: (1) The fees for directed orders 

designated as Intermarket Sweep Orders 

that execute at the NYSE will increase 

to $0.0023 from $0.0020 per share 

executed; (2) The fee for other directed 

orders that execute at the NYSE will 

increase to $0.0022 from $0.0019 per 

share executed for members with an 

average daily volume through the 

NASDAQ Market Center in all securities 

during the month of more than 35 

million shares of liquidity provided; (3) 

The fee for all for other directed orders 

that execute at the NYSE from members 

that do not reach the 35 million 

threshold will increase to $0.0023 from 

$0.0020 per share; (4) The fee for MOPP 

orders that execute at the NYSE will 

increase to $0.0023 from $0.0020 per 

share; and (5) The fee for TFTY orders 

that execute at the NYSE will increase 

to $0.0017 from $0.0014 per share. All 

other fees and pass-through fees remain 

unchanged. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is 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 

impact of the modest price increases 

upon the net fees paid by a particular 

market participant will depend upon a 

number of variables, including the 

routing strategies that it uses, the 

relative availability of liquidity on 

NASDAQ and other venues, the prices 

of the market participant’s quotes and 

orders relative to the national best bid 

and offer (i.e., its propensity to add or 

remove liquidity), and the types of 

securities that it trades. NASDAQ notes 

that it operates in a highly competitive 

market in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive. 

Accordingly, if particular market 

participants object to the proposed fee 

increases, they can avoid paying the fees 

by directing orders to other venues or 

using routing strategies and order types 

that are not subject to the increases. 

NASDAQ believes that its fees continue 

to be reasonable and equitably allocated 

to members on the basis of whether they 

opt to direct orders to NASDAQ. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

Because the market for order execution 

and routing is extremely competitive, 

members may readily direct orders to 

NASDAQ’s competitors if they object to 

the proposed rule change. 

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 

The foregoing rule change has become 

effective pursuant to Section 

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

subparagraph (f)(2) of Rule 19b–4 

thereunder.10 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–NASDAQ–2010–058 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–2010–058. 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–NASDAQ–2010–058, and 

should be submitted on or before June 

9, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11936 Filed 5–18–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62085; File No. SR–CHX– 

2010–08] 

Self-Regulatory Organizations; The 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Establish 

a Fixed Provide Credit for CHXRegistered Institutional Brokers 

May 12, 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 April 30, 

2010, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 


jlentini on DSKJ8SOYB1PROD with NOTICES