53996 Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices 

8 15 U.S.C. 78f(b)(5). 9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Act,8 in particular in that it is designed 

to prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in regulating, clearing, 

settling, processing information with 

respect to, and facilitating transactions 

in securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. The 

proposed rule change is consistent with 

these requirements in that it would 

permit reasonable periods of time for 

companies to address instances of 

noncompliance with Nasdaq’s price 

requirement and would not adversely 

affect investors or the national market 

system. 

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. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate 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 or disapprove 

the 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, as amended, 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–2010–107 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–2010–107. 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 Web site 

viewing and printing at the principal 

office of Nasdaq. 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–2010–107 and should be 

submitted on or before September 23, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–21932 Filed 9–1–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62785; File No. SR– 

NASDAQ–2010–106] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

Assessed to Members Using the 

NASDAQ Market Center 

August 27, 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 August 

25, 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. 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 

assessed to NASDAQ members using 

the NASDAQ Market Center. NASDAQ 

will implement the proposed change on 

September 1, 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 reduce fees 

assessed members for routing odd-lot 

directed orders. NASDAQ assesses 


wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Federal Register / Vol. 75, No. 170 / Thursday, September 2, 2010 / Notices 53997 

3On July 27, 2010, the Commission approved a 

proposed rule change by the NYSE to incorporate 

the receipt and execution of odd-lot interest into the 

round lot market and decommission the use of the 

NYSE’s ‘‘Odd-lot System.’’ Securities Exchange Act 

Release No. 62578 (July 27, 2010), 75 FR 45185 

(August 2, 2010) (SR–NYSE–2010–43). 

4The NYSE is transitioning securities on a rolling 

basis during the month of August 2010. See http:// 

www.nyse.com/attachment/ 

Trading_In_Shares_Rollout_List.xls. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4). 7 15 U.S.C. 78s(b)(3)(a)(ii). 8 17 CFR 200.30–3(a)(12). 

different fees for orders directed to the 

New York Stock Exchange (‘‘NYSE’’) that 

do not attempt to execute in the Nasdaq 

Market Center prior to routing based on 

whether the order is an odd-lot or 

round-lot. In this regard, NASDAQ 

currently assesses a fee of $0.0021 for 

round-lot directed orders that execute 

on the NYSE, an amount equal to the fee 

assessed NASDAQ by NYSE for 

executing such orders. NASDAQ 

assesses a fee of $0.03 on directed 

orders that do not attempt to execute in 

the Nasdaq Market Center prior to 

routing and that execute at the NYSE as 

an odd-lot transaction, and $0.01 for the 

odd-lot portion of a [sic] partial roundlot orders that do not attempt to execute 

in the Nasdaq Market Center prior to 

routing and that execute at the NYSE. 

The NYSE executes odd-lot orders on 

the Odd-lot System, a separate system 

designed to execute odd-lot interest that 

does not expose odd-lot orders to the 

market in the NYSE Display Book, but 

rather executes such interest against a 

designated maker as a contra party using 

a complex pricing formula to determine 

the execution price. 

The NYSE recently made technical 

changes that allow odd-lot interest to be 

exposed to, and executed against, the 

general market in its Display Book and 

is thus decommissioning its separate 

Odd-lot System.3 In light of the 

elimination of any distinction between 

how odd-lot and round-lot orders are 

handled by the NYSE,4 NASDAQ is 

making minor modifications to its 

pricing schedule for the routing of oddlot orders directed to the NYSE through 

the NASDAQ Market Center. NASDAQ 

is proposing to lower the fees assessed 

for these directed odd-lot orders to 

$0.0021 so that the fee is harmonized 

with the fee assessed NASDAQ by the 

NYSE for any executed directed order. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,5 in 

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

Act,6 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 believes that, because NYSE 

no longer handles routed round-lot and 

routed odd-lot orders differently and 

assesses a single uniform fee for such 

orders, it is appropriate for NASDAQ to 

assess a uniform fee for routing both 

types of orders. The harmonized fees 

also equal the amount assessed 

NASDAQ by NYSE for executing such 

orders. Accordingly, NASDAQ believes 

that the reduced fees are both 

reasonable and equitably allocated to 

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. 

To the contrary, NASDAQ believes that 

the reduced fee will lower costs and 

encourage competition. 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.7 At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

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. If the Commission 

takes such action, the Commission shall 

institute proceedings to determine 

whether the proposed rule should be 

approved or 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–2010–106 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–2010–106. 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–2010–106, and 

should be submitted on or before 

September 23, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–21933 Filed 9–1–10; 8:45 am] 

BILLING CODE 8010–01–P 


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