46132 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

9 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). 

5See SR–NASDAQ–2008–058 (filed June 30, 

2008), and SR–NASDAQ–2008–059 (filed July 1, 

2008). 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–2008–025 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2008–025. 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–NASDAQ–2008–025 and 

should be submitted on or before 

August 28, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18155 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58279; File No. SR–

NASDAQ–2008–066] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of a Proposed Rule Change To 

Modify Rule 7050 Governing Pricing 

for Nasdaq Members Using the 

NASDAQ Options Market (‘‘NOM’’) 

July 31, 2008. 

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 July 24, 

2008, 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. Nasdaq 

has filed this proposal 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 applicable only to 

members, which renders the proposed 

rule change effective upon filing. The 

Commission is publishing this notice 

and order 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 

Nasdaq has filed a proposed rule 

change 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. The text of the proposed rule 

change is available at http:// 

nasdaqomx.cchwallstreet.com, the 

principal offices of Nasdaq, and 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. The text of these 

statements may be examined at the 

places specified in Item III below, and 

is set forth in Sections A, B, and C 

below. 

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 

execution of options orders entered into 

NOM but routed to away markets. When 

Nasdaq began trading standardized 

option on March 31, 2008, it assessed a 

routing fee based upon an 

approximation of the cost to Nasdaq of 

executing such orders at those markets. 

Nasdaq later determined that the 

superior approach for executions on 

away markets is to pass-through to 

exchange members the actual fees 

assessed by away markets plus the 

clearing fees for the execution of orders 

routed from Nasdaq. To support that 

approach, Nasdaq collected and 

organized in chart format the fees to be 

assessed for executions at each 

destination exchange. 

Nasdaq has determined that it is 

impractical to reflect and maintain in its 

rule manual the chart of fees assessed by 

each of the six away markets. Nasdaq 

filed two proposed rule changes to make 

changes to the chart of fees for 

executions on away markets during the 

month of July.5 Nasdaq expects that the 

current rule convention would require 

Nasdaq to file up to six changes each 

month in order to accurately reflect the 

changing fees for all six markets. 

Accordingly, under Nasdaq’s current 

proposed rule change, Nasdaq will 

preserve the pass-through approach to 

fees for executions on away markets but 

modify the way those fees appear in 

Nasdaq’s rule manual. Rather than 

reflect the actual fees in its rule manual, 

Nasdaq will cross-reference a location 

on its primary website for members, 

NasdaqTrader.com, where it will 

maintain a fee schedule applicable to 

options executions at away markets. 

Nasdaq will maintain a current fee 

schedule as well as an historical record 


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Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 46133 

6 15 U.S.C. 78f. 

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

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

of fees applicable on prior trading days 

in order to permit members to 

understand and evaluate their invoices 

from Nasdaq. 

Nasdaq believes that these routing 

fees and the proposed approach to 

displaying them are competitive, fair 

and reasonable, and non-discriminatory 

in that they replicate the fees assessed 

by away markets executing orders 

routed from Nasdaq. Nasdaq believes 

that displaying its fees on a wellpublicized and accessible Web site and 

maintaining an historical record of fee 

changes will provide sufficient 

transparency for Nasdaq members that 

voluntarily choose to use Nasdaq 

systems to route orders in standardized 

options. 

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. 

Nasdaq is one of seven 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. The various exchanges have 

filed these fees with the Commission 

and it is reasonable for Nasdaq to pass 

those fees through to its members. As 

such, Nasdaq believes that its fees are 

fair and reasonable and consistent with 

the Exchange Act. 

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. 

To the contrary, Nasdaq has designed its 

fees to compete effectively for the 

execution and routing of options 

contracts and to reduce the overall cost 

to investors of options trading. 

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 

Pursuant to Section 19(b)(3)(A)(ii) of 

the Act 8 and Rule 19b–4(f)(2) 

thereunder,9 Nasdaq has designated this 

proposal as establishing or changing a 

due, fee, or other charge applicable only 

to members, which renders the 

proposed rule change effective upon 

filing. Nasdaq will make the proposed 

pricing schedule operational on August 

1, 2008. 

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–2008–066 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, Station Place, 100 F Street, 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2008–066. 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 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–2008–066 and 

should be submitted on or before 

August 28, 2008 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18159 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58258; File No. SR–OCC–

2008–12] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Order Granting 

Accelerated Approval of a Proposed 

Rule Change Relating to CrossMargining 

July 30, 2008. 

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

Securities Exchange Act of 1934,1 notice 

is hereby given that on June 10, 2008, 

The Options Clearing Corporation 

(‘‘OCC’’) 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 primarily by OCC. 

The Commission is publishing this 

notice and order to solicit comments on 

the proposed rule change from 

interested persons and to grant 

accelerated approval of the proposal. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The proposed rule change would 

amend OCC Rule 705 to add shares of 

money market funds as a form of 

collateral that may be deposited and 

recognized with respect to cross-margin 

(‘‘XM’’) accounts. In addition, the 

proposed rule change revises the crossVerDate Aug<31>2005 16:49 Aug 06, 2008 Jkt 214001 PO 00000 Frm 00197 Fmt 4703 Sfmt 4703 E:\FR\FM\07AUN1.SGM 07AUN1

sroberts on PROD1PC70 with NOTICES