Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 46695 

9 15 U.S.C. 78q–1. 

10 15 U.S.C. 78q–1. 

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

2 17 CFR 240.19b–4. 

four calendar months, for each Profile 

transaction submitted by a participant 

in order to offset the up-front 

remuneration made by DTC to DRS 

Limited Participants. DTC will 

eliminate the surcharge at the end of 

twenty-four calendar months or sooner 

if the total amount of up-front 

remuneration paid by DTC is collected 

before the twenty-four month period has 

expired. 

DTC also proposed to charge 

participants $.75 per Profile transaction 

to offset the on-going cost to DRS 

Limited Participants of supporting the 

‘‘move all’’ function. The transaction fee 

will be adjusted annually to reflect DRS 

Profile transactional volume changes. 

The proposed rule change will require 

DRS Limited Participants that wish to 

receive a transaction fee to submit their 

project plan by September 1, 2008. The 

DRS Limited Participants represented 

on the DRS Ad Hoc Committee have 

agreed that the monthly transactional 

fee will be no more than $25,000 per 

year per DRS Limited Participant. DTC 

will pay each eligible DRS Limited 

Participant with 2,000 or more Profile 

transactions monthly a set monthly 

amount of $2,080, or $24,960 annually. 

DTC will pay each eligible DRS Limited 

Participant with at least 200 

transactions monthly but less than 2,000 

transactions monthly a set monthly 

amount of $800, or $9,600 annually. 

DTC will not pay DRS Limited 

Participants with less than 200 

transactions a month. 

c. Proposed DRS Limited Participant 

Eligibility Requirements 

DTC proposes to amend its DRS 

Limited Participant rules to require 

transfer agents to be able to process 

Profile instructions requesting the 

‘‘move all’’ options and instructions 

including dual TIN or Social Security 

numbers. To maintain eligibility as a 

DRS Limited Participant, all current 

DRS Limited Participants must provide 

‘‘move all’’ and dual TIN or Social 

Security number processing capability 

by no later than December 31, 2008. 

2. Statutory Basis 

DTC believes the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act, 

as amended,9 and the rules and 

regulations thereunder because it 

improves efficiency and reduces risks 

associated with processing DRS 

transaction through Profile and 

improves the standards relating to the 

eligibility of transfer agents effecting 

DRS transactions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the 

proposed rule change will impose any 

burden on competition that is 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 

DTC has neither solicited nor received 

written comments on the proposed rule 

change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within thirty-five days of the date of 

publication of this notice in the Federal 

Register or within such longer period: 

(i) As the Commission may designate up 

to ninety days of such date if it finds 

such longer period to be appropriate 

and publishes its reasons for so finding 

or (ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change or 

(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–DTC–2008–07 in 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–DTC–2008–07. 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 

Section, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3:30 

p.m. Copies of such filings also will be 

available for inspection and copying at 

the principal office of the DTC and on 

the DTC’s Web site, http:// 

www.dtcc.com. 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–DTC–

2008–07 and should be submitted on or 

before September 2, 2008. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18421 Filed 8–8–08; 8:45 am] 

BILLING CODE 8025–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58298; File No. SR–

NASDAQ–2008–055] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Order 

Approving Proposed Rule Change 

Regarding Fees for Orders Routed Via 

the Options Intermarket Linkage 

I. Introduction 

On June 18, 2008, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to section 

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

of 1934 (the ‘‘Act’’),1 and Rule 19b–4 

thereunder,2 a proposed rule change 

regarding fees for orders routed via the 

Options Intermarket Linkage (‘‘Options 

Linkage’’). The proposed rule change 

was published for comment in the 


rmajette on PRODPC74 with NOTICES
46696 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

3See Securities Exchange Act Release No. 58014 

(June 24, 2008), 73 FR 37520. 

4 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 

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

6 15 U.S.C. 78s(b)(2). 

7 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). 

4Changes are marked to the rule text that appears 

in the electronic Nasdaq Manual found at http:// 

nasdaq.complinet.com. 

Federal Register on July 1, 2008.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

Nasdaq proposes to amend its fees 

related to orders routed to the NASDAQ 

Options Market (‘‘NOM’’) via the 

Options Linkage to establish a Linkage 

Fee Pilot Program that is effective 

through July 31, 2009 and to clarify the 

application of options transaction fees 

for trades executed through Options 

Linkage on the Exchange. Under this 

pilot, the fees applicable to Nasdaq 

members entering orders directly into 

NOM systems will apply to Nasdaq 

members and non-members that enter 

orders into other options exchanges that 

are then routed to Nasdaq via the 

Options Linkage and executed on NOM. 

Under the Exchange’s current Rule 

7050(1), members are charged a fee of 

$0.45 per executed contract for orders 

entered and then executed on the NOM. 

Nasdaq’s current rule does not 

differentiate between orders entered 

directly into the NOM via Nasdaq 

systems and orders received by Nasdaq 

via the Linkage. Since the launch of the 

NOM, Nasdaq has been assessing the 

same fee for all orders executed on 

behalf of members on its market 

regardless of whether such orders were 

entered directly into Nasdaq systems or 

via the Options Linkage. 

III. Discussion and Commission 

Findings 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.4 In particular, the 

Commission finds that the proposal is 

consistent with section 6(b)(4) of the 

Act,5 which requires that an exchange 

have rules that provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities. 

Under the Exchange’s current rule, 

the fee for members entering an order 

that executes on the NOM is $0.45 per 

executed contract. Nasdaq’s current rule 

does not specifically provide that the 

same $0.45 options transaction fee is 

charged for trades routed to Nasdaq via 

the Options Linkage. The Exchange’s 

proposal would establish a Linkage Fee 

Pilot Program, for a period ending July 

31, 2009, that would charge $0.45 per 

executed contract to members or nonmembers entering orders via the 

Options Linkage that execute in NOM. 

Accordingly, the Commission believes 

that the Exchange’s proposed rule 

change and Linkage Fee Pilot Program 

clearly sets forth the fees imposed on 

Linkage Orders. 

Because the Exchange may have 

assessed the options transaction fee on 

Linkage Orders prior to this approval 

and, therefore, without authority, any 

parties assessed the options transaction 

fee for Linkage Orders prior to the 

approval of this proposed rule change 

may seek reimbursement. In addition, 

the Commission notes that the Options 

Linkage fees are assessed pursuant to a 

pilot scheduled to end July 31, 2009 and 

that the Commission is continuing to 

evaluate whether such fees are 

appropriate and consistent with the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act,6 that the 

proposed rule change (SR–NASDAQ–

2008–055) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18427 Filed 8–8–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58305; File No. SR–

NASDAQ–2008–063] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Modify the 

Rules Governing the Requirements for 

Market Maker Quotations on the 

NASDAQ Options Market 

August 5, 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 15, 

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 

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 Substance of 

the Proposed Rule Change 

Nasdaq proposes to modify Chapter 

VII, Section 6 of the Nasdaq rules 

governing the requirements for market 

maker quotations on the NASDAQ 

Options Market (‘‘NOM’’). The text of 

the proposed rule change is below. 

Proposed new language is italicized; 

proposed deletions are in brackets.4

* * * * * 

Chapter VII, Sec. 6 Market Maker 

Quotations 

(a) Size Associated with Quotes. A 

Market Maker’s bid and offer for a series 

of options contracts shall be 

accompanied by the number of contracts 

at that price the Market Maker is willing 

to buy or sell. The best bid and best 

offer entered by a Market Maker must 

have a size of at least [ten (10)] one (1) 

contract[s]. 

(b)–(e) No Change. 

* * * * * 

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 

On March 12, 2008, the Commission 

approved SR–NASDAQ–2007–004 and 

SR–NASDAQ–2007–080, proposals to 

create the NASDAQ Options Market or 


rmajette on PRODPC74 with NOTICES