29596 Federal Register / Vol. 75, No. 101 / Wednesday, May 26, 2010 / Notices 

10 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5The change is similar to changes recently made 

to the rebates offered by other trading venues. See 

Securities Exchange Act Release No. 62050 (May 6, 

2010), 75 FR 27029 (May 13, 2010) (SR–ISE–2010– 

37); Securities Exchange Act Release No. 62051 

(May 6, 2010), 75 FR 27034 (May 13, 2010) (SR– 

ISE–2010–38); Securities Exchange Act Release No. 

61996 (April 28, 2010), 75 FR 23829 (May 4, 2010) 

(SR–NSX–2010–04). 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–FINRA–2010–022 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–FINRA–2010–022. 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, 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 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2010–022 and 

should be submitted on or before June 

16, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12625 Filed 5–25–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62138; File No. SR– 

NASDAQ–2010–059] 

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 19, 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 14, 

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 

17, 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 

NASDAQ is proposing to modify its 

fees for orders that execute at prices 

below $1. Currently, NASDAQ charges 

0.2% (20 basis points) of the total dollar 

value of the execution to members 

accessing liquidity; provides a rebate of 

0.1% (10 basis points) of the total dollar 

value to members providing liquidity; 

and charges a fee for routing of 0.3% (30 

basis points) of the total dollar value. 

Through this filing, NASDAQ will 

modify the rebate paid to members 

providing liquidity. Specifically, the 

rebate will be $0.00009 per share 

executed for securities priced at $0.05 or 

more but less than $1, and there will be 

no rebate for securities priced at less 

than $0.05. Depending upon the price of 

the stock, the change will result in a 

decrease in the rebate in most cases but 

an increase in some cases. The change 

is designed to provide a constant per 

share rebate and to result in a closer 

alignment between the size of the rebate 

and the average quoted spread for 

securities trading below $1.5

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,6 in 

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

Act,7 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 price changes upon the 

net fees paid by a particular market 

participant will depend upon a number 

of variables, including 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 and prices of 

the securities that it trades. NASDAQ 

believes that the proposed changes are 

reasonable and equitable in that they 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Federal Register / Vol. 75, No. 101 / Wednesday, May 26, 2010 / Notices 29597 

8 15 U.S.C. 78s(b)(3)(a)(ii). [sic] 

9 17 CFR 240.19b–4(f)(2). 10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 In Amendment No. 1, CBOE made technical 

corrections to the rule text. 

4See Securities Exchange Act Release No. 61859 

(April 7, 2010), 75 FR 19439. 

apply uniformly to all similarly situated 

members. 

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 8 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.9 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–2010–059 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–2010–059. 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–2010–059, and 

should be submitted on or before June 

16, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12552 Filed 5–25–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62139; File No. SR–CBOE– 

2010–018] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Approving 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, To List and 

Trade CBOE Gold ETF Volatility Index 

Options 

May 19, 2010. 

I. Introduction 

On March 18, 2010, the Chicago 

Board Options Exchange, Incorporated 

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

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

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

of 1934 (‘‘Act’’)1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade options on the CBOE Gold 

ETF Volatility Index (‘‘GVZ’’). On March 

22, 2010, CBOE filed Amendment No. 1 

to the proposed rule change.3 The 

proposed rule change was published for 

comment in the Federal Register on 

April 14, 2010.4 The Commission 

received no comment letters on the 

proposal. This order approves the 

proposed rule change, as modified by 

Amendment No. 1. 

II. Description 

CBOE proposes to amend certain of its 

rules to allow the listing and trading of 

cash-settled, European-style options on 

GVZ. 

Index Design and Calculation 

The calculation of GVZ is based on 

the VIX methodology applied to options 

on the SPDR Gold Trust (‘‘GLD’’). GVZ 

is an up-to-the-minute market estimate 

of the expected volatility of GLD 

calculated by using real-time bid/ask 

quotes of CBOE listed GLD options. 

GVZ uses nearby and second nearby 

options with at least 8 days left to 

expiration and then weights them to 

yield a constant, 30-day measure of the 

expected (implied) volatility. 

For each contract month, CBOE will 

determine the at-the-money strike price. 

The Exchange will then select the atthe-money and out-of-the money series 

with non-zero bid prices and determine 

the midpoint of the bid-ask quote for 

each of these series. The midpoint quote 

of each series is then weighted so that 

the further away that series is from the 

at-the-money strike, the less weight that 

is accorded to the quote. To compute 

the index level, CBOE will calculate a 

volatility measure for the nearby options 

and then for the second nearby options, 

using the weighted mid-point of the 

prevailing bid-ask quotes for all 

included option series with the same 

expiration date. These volatility 

measures are then interpolated to arrive 

at a single, constant 30-day measure of 

volatility. 

CBOE will compute values for GVZ 

underlying option series on a real-time 

basis throughout each trading day, from 

8:30 a.m. until 3 p.m. (CT). GVZ levels 

will be calculated by CBOE and 

disseminated at 15-second intervals to 

major market data vendors. 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1