Federal Register / Vol. 75, No. 105 / Wednesday, June 2, 2010 / Notices 30887 

1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 

14. Kathryn Kasza, CMTW, ClerkTreasurer, Village of Greendale, Greendale, 

Wisconsin, dated August 19, 2009 

(‘‘Greendale Letter’’). 

15. Denise L. Nappier, Connecticut State 

Treasurer, dated August 20, 2009 

(‘‘Connecticut Letter I’’). 

16. Heather Traeger, Associate Counsel, 

Investment Company Institute (‘‘ICI’’), dated 

August 21, 2009 (‘‘ICI Letter’’). 

17. David Muir, President, Utah 

Government Finance Officers Association 

(‘‘Utah GFOA’’), Finance Director, 

Cottonwood Heights City, dated August 25, 

2009 (‘‘Utah GFOA Letter’’). 

18. Robert Scott, CPA, CPFO, Director of 

Finance, City of Brookfield, Wisconsin, dated 

August 30, 2009 (‘‘Brookfield Letter’’). 

19. Kenneth L. Rust, Chief Administrative 

Officer, and Eric H. Johansen, Debt Manager, 

City of Portland, Oregon, dated September 1, 

2009 (‘‘Portland Letter’’). 

20. Bernice Bagnall, President, Oregon 

Municipal Finance Officers Association 

(‘‘OMFOA’’), Tualatin Valley Water District, 

dated September 2, 2009 (‘‘OMFOA Letter’’). 

21. Gerry Fink, Village of Hinsdale, 

Illinois, dated September 3, 2009 (‘‘Hinsdale 

Letter’’). 

22. Beth Kellar, International City/County 

Management Association; Steve Traylor, 

National Association of Counties; Cornelia 

Chebinou, National Association of State 

Auditors, Comptrollers and Treasurers; Lars 

Etzkorn, National League of Cities; Larry 

Jones, U.S. Conference of Mayors; Amy Hille, 

American Public Power Association; and 

Rick Farrell, Council on Infrastructure 

Financing Authorities; dated September 3, 

2009 (‘‘Consortium Letter’’). 

23. Richard C. Kristof, Director of Financial 

Services, City of Rio Rancho, Rio Rancho, 

New Mexico, dated September 3, 2009 (‘‘Rio 

Rancho Letter’’). 

24. Eileen Bradley, Assistant Director of 

Finance, Township of Lower Merion, dated 

September 4, 2009 (‘‘Lower Merion Letter’’). 

25. R.T. McNamar, President, E-Certus, 

Inc., dated September 8, 2009 (‘‘E-Certus 

Letter’’). 

26. David B. Vehaun, Assistant City 

Manager, City of Rock Hill, South Carolina, 

dated September 23, 2009 (‘‘Rock Hill 

Letter’’). 

27. Jeb Spaulding, President, National 

Association of State Treasurers (‘‘NAST’’), 

Treasurer, State of Vermont, dated September 

25, 2009 (‘‘NAST Letter’’). 

Comments Relating to Amendment No. 1 

1. Jeffrey L. Esser, Executive Director and 

CEO, Government Finance Officers 

Association, dated January 25, 2010 (‘‘GFOA 

Letter III’’). 

2. Denise L. Nappier, Connecticut State 

Treasurer, dated January 27, 2010 

(‘‘Connecticut Letter II’’). 

3. Steven Apfelbacher, President, National 

Association of Independent Public Finance 

Advisors (‘‘NAIPFA’’), dated February 5, 2010 

(‘‘NAIPFA Letter’’). 

[FR Doc. 2010–13155 Filed 6–1–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62176; File No. SR– 

NASDAQ–2010–063] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

May 26, 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 26, 

2010, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘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 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 modify 

Rule 7050 governing pricing for 

NASDAQ members using the NASDAQ 

Options Market (‘‘NOM’’), NASDAQ’s 

facility for executing and routing 

standardized equity and index options. 

Specifically, NOM proposes to expand 

the list of options that will be assessed 

routing fees of $0.30 per contract for 

customer orders and $0.55 per contract 

for Firm and Market Maker orders that 

are routed from NOM to NASDAQ OMX 

PHLX, Inc. (‘‘Phlx’’). 

While changes to the Fee Schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated these changes to be operative 

for transactions on June 1, 2010. 

The text of the proposed rule change 

is set forth below. Proposed new text is 

in italics and deleted text is in brackets. 

* * * * * 

7050. NASDAQ Options Market 

The following charges shall apply to 

the use of the order execution and 

routing services of the NASDAQ 

Options Market by members for all 

securities. 

(1)–(3) No Change. 

(4) Fees for routing contracts to 

markets other than the NASDAQ 

Options Market shall be assessed as 

provided below. The current fees and a 

historical record of applicable fees 

related to orders routed to other 

exchanges shall be posted on the 

NasdaqTrader.com Web site. 

Exchange Customer Firm MM 

BATS .................................................................................................................................................................... 0.36 0.55 0.55 

BOX ..................................................................................................................................................................... 0.06 0.55 0.55 

CBOE ................................................................................................................................................................... 0.06 0.55 0.55 

ISE ....................................................................................................................................................................... 0.06 0.55 0.55 

NYSE Arca Penny Pilot ....................................................................................................................................... 0.50 0.55 0.55 

NYSE Arca Non Penny Pilot ............................................................................................................................... 0.06 0.55 0.55 

NYSE AMEX ........................................................................................................................................................ 0.06 0.55 0.55 

PHLX (for all options other than the below listed options) ................................................................................. 0.06 0.55 0.55 

PHLX (for the following options only): AA, AAPL, ABK, ABX, AIG, ALL, AMD, AMR, AMZN, ARIA, AXP, 

BAC, BRCD, C, CAT, CIEN, CIGX, CSCO, DELL, DIA, DNDN, DRYS, EBAY, EK, F, FAS, FAZ, GDX, 

GE, GLD, GLW, GS, HAL, IBM, INTC, IWM, IYR, JPM, LVS, MGM, MOT, MSFT, MU, NEM, NOK, 

NVDA, ONNN, ORCL, PALM, PFE, POT, QCOM, QID, QQQQ, RIG, RIMM, RMBS, SBUX, SDS, SIRI, 

SKF, SLV, SMH, SNDK, SPY, T, TBT, TZA, UAUA, UNG, USO, UYG, V, VALE, VZ, WYNN, X, XHB, 

XLF, XRX and YHOO ...................................................................................................................................... 0.30 0.55 0.55 

* * * * * The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

www.nasdaqomx.cchwallstreet.com, at 


sroberts on DSKD5P82C1PROD with NOTICES
30888 Federal Register / Vol. 75, No. 105 / Wednesday, June 2, 2010 / Notices 

3See SR–Phlx–2010–73 (May 20, 2010). For a 

description of the rebates for adding and fees for 

removing liquidity on Phlx’s Fee Schedule, See 

Securities Exchange Act Release Nos. 61684 (March 

10, 2010), 75 FR 13189 (March 18, 2010) (SR–Phlx– 

2010–33); 61961 (April 22, 2010), 75 FR 22881 

(April 30, 2010) (SR–Phlx–2010–61). 

4 15 U.S.C. 78f. 

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

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

7 17 CFR 240.19b–4(f)(2). 

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 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 Rule 

7050 governing the fees assessed for 

options orders entered into NOM but 

routed to and executed on Phlx. 

Specifically, NASDAQ is proposing to 

expand the number of options to which 

certain routing fees apply to reflect the 

expansion of Phlx’s Fee Schedule for 

rebates for adding and fees for removing 

liquidity.3

NASDAQ currently assesses a $0.30 

per contract routing fee for customer 

orders, and a $0.55 per contract routing 

fee for Firm and Market Maker orders 

routed from NOM to Phlx for options 

that are subject to rebates for adding and 

fees for removing liquidity as described 

in the Phlx Fee Schedule. To reflect the 

additions Phlx is making to its Fee 

Schedule, NASDAQ proposes to add the 

following twenty-five options to the 

table set forth in Rule 7050(4): Ambac 

Financial Group, Inc. (‘‘ABK’’), Barrick 

Gold Corporation (‘‘ABX’’), Ariad 

Pharmaceuticals, Inc. (‘‘ARIA’’), 

American Express Company (‘‘AXP’’), 

Ciena Corp. (‘‘CIEN’’), Star Scientific, 

Inc. (‘‘CIGX’’), Dendreon Corp. 

(‘‘DNDN’’), eBay Inc. (‘‘EBAY’’), Corning 

Inc. (‘‘GLW’’), Halliburton Company 

(‘‘HAL’’), iShares Dow Jones US Real 

Estate (‘‘IYR’’), Motorola, Inc., (‘‘MOT’’), 

NVIDIA Corporation (‘‘NVDA’’), ON 

Semiconductor Corp. (‘‘ONNN’’), Oracle 

Corp. (‘‘ORCL’’), ProShares UltraShort, 

QQQ (‘‘QID’’), Transocean Ltd. (‘‘RIG’’), 

Rambus, Inc. (‘‘RMBS’’), ProShares 

UltraShort S&P500 (‘‘SDS’’), ProShares 

UltraShort 20+ Year Treasury (’’TBT’’), 

Visa, Inc. (‘‘V’’), Vale S.A. (‘‘VALE’’), 

SPDR S&P Homebuilders (‘‘XHB’’), 

Xerox Corp. (‘‘XRX’’) and Yahoo! Inc. 

(‘‘YHOO’’). 

The Exchange is proposing these fees 

to recoup the majority of transaction 

and clearing costs associated with 

routing orders to Phlx. As with all fees, 

the Exchange may adjust these routing 

fees by filing a new proposed rule 

change. 

While changes to the Fee Schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated these changes to be operative 

for transactions on June 1, 2010. 

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 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 

Exchange believes the proposed fee 

changes are equitable in that they apply 

uniformly to all similarly situated 

participants on NOM. The Exchange 

also believes that the proposed fee 

changes are reasonable because the 

Exchange is seeking to recoup the costs 

incurred for options orders entered into 

NOM but routed to and executed on 

Phlx. 

NASDAQ is one of eight options 

market in the national market system for 

standardized options. Joining NASDAQ 

and electing to trade options is entirely 

voluntary. Under these circumstances, 

NASDAQ’s fees must be competitive 

and low in order for NASDAQ to attract 

order flow, execute orders, and grow as 

a market. NASDAQ thus believes that its 

fees are fair and reasonable and 

consistent with the Exchange Act. 

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. 

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 6 and paragraph 

(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–NASDAQ–2010–063 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–2010–063. 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 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 75, No. 105 / Wednesday, June 2, 2010 / Notices 30889 

8 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)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 59824 

(April 27, 2009), 74 FR 20518 (May 4, 2009) (SR– 

CBOE–2009–018). 

6 If the Exchange is not open for business on a 

Friday, the Short Term Opening Date will be the 

first business day immediately prior to that Friday. 

Similarly if the Exchange is not open for business 

on a Friday, the Short Term Option Expiration Date 

will be the first business day immediately prior to 

that Friday. 

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

8 15 U.S.C. 78f(b)(5). 

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 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 

publicly available. All submissions 

should refer to File Number SR– 

NASDAQ–2010–063 and should be 

submitted on or before June 23, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13158 Filed 6–1–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62170; File No. SR–CBOE– 

2010–048] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Permit CBOE To Open 

Short Term Option Series on 

Thursdays 

May 25, 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 May 19, 

2010, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) filed with the Securities and 

Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 

CBOE proposes to modify its rules to 

permit the Exchange, on any Thursday 

or Friday, to open Short Term Option 

Series that expire on the Friday of the 

following business week. The Exchange 

is not proposing any rule text changes. 

The rule proposal is available on the 

Exchange’s Web site (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, the 

self-regulatory organization 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 those 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 

The Securities and Exchange 

Commission previously approved 

CBOE’s proposed rule change to 

permanently establish the Short Term 

Option Series Pilot Program 

(‘‘Program’’).5 The Program allows CBOE 

to list and trade equity and index option 

series that expire one week after being 

opened for trading. Specifically, Rules 

5.5(d) and 24.9 provide that, after an 

option class has been approved for 

listing and trading on the Exchange, the 

Exchange may open for trading on any 

Friday that is a business day series of 

options on that class that expire on the 

next Friday that is a business day.6

Under the Program, CBOE may select up 

to five approved option classes on 

which Short Term Options Series may 

be opened. The Exchange has selected 

the following four option classes to 

participate in the Program: S&P 500 

Index options (SPX), S&P 100 Index 

American-style options (OEX), MiniS&P 500 Index options (XSP), and S&P 

100 Index European-style options 

(XEO). 

The purpose of this filing is to permit 

the Exchange to open Short Term 

Option Series on any Thursday (or 

Friday) that expire on the Friday of the 

following business week. In support of 

this modification, the Exchange states 

that it has received requests to begin 

certain Short Term Options on 

Thursday so that market participants 

may have an opportunity to ‘‘roll’’ 

expiring positions; that is, trade out of 

an expiring Short Term Option Series 

and re-establish a new position in Short 

Term Option Series expiring one week 

later. Since the last trading day for 

A.M.-settled Short Term Options on 

indexes is generally a Thursday, and 

new A.M.-settled Short Term Option 

Series on indexes are generally listed on 

Friday, new and expiring A.M.-settled 

Short Term Option Series on indexes 

are never available concurrently. 

As a result, it is impossible to 

implement a position roll in A.M.- 

settled Short Term Options on indexes. 

The Exchange has been advised that 

opening A.M.-settled Short Term 

Options on indexes just one day earlier, 

and providing an opportunity to roll, 

would enhance the value A.M.-settled 

Short Term Options on indexes as a risk 

management tool. 

In order to avoid investor confusion, 

the Exchange is proposing to permit the 

listing of all Short Term Option series 

(equity and index) on any Thursday or 

Friday. As proposed, the rule changes 

give the Exchange the flexibility to list 

Short Term Option series on any 

Thursday or Friday, and do not restrict 

listing to a particular day. 

2. Statutory Basis 

The Exchange believes this rule 

proposal is consistent with the Act and 

the rules and regulations under the Act 

applicable to a national securities 

exchange and, in particular, the 

requirements of Section 6(b) of the Act.7

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with the Section 6(b)(5) Act 8

requirements that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, to 

prevent fraudulent and manipulative 

acts and, in general, to protect investors 

and the public interest. In particular, the 


sroberts on DSKD5P82C1PROD with NOTICES