57822 Federal Register / Vol. 75, No. 183 / Wednesday, September 22, 2010 / Notices 

4The statutory disqualification fee is payable 

whenever a person or entity is subject to a statutory 

disqualification under the Securities Exchange Act 

of 1934 and: (i) Is an applicant for Exchange 

membership, (ii) is seeking to be an associated 

person of an Exchange member (except where the 

Exchange is merely asked to concur in an SEC Rule 

19h–1 filing by another self regulatory 

organization), or (iii) is an existing Exchange 

member or associated person who makes an 

application in accordance with Rule 3.5 or with 

respect to whom a proceeding is initiated pursuant 

to Rule 3.5. This fee is in addition to any other 

membership fees that might be applicable. The Rule 

19h–1 Change in Status Fee is payable whenever a 

person or entity, on whose behalf the Exchange has 

filed a Rule 19h–1 filing that has been approved by 

the SEC, applies for a change in status that requires 

the Exchange to file an amended or additional Rule 

19h–1 filing, if the Exchange approves the 

requested change in status. This fee is in addition 

to any other membership fees that might be 

applicable. 

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

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

respectively) 4, exam fees ($500), permit 

transfer fees ($500), and fingerprint fees 

($50) are all being adopted. The 

proposed fee levels are comparable to 

those in place at CBOE. For the reasons 

stated above, these fees, with the 

exception of renewal fees (which are 

applicable on subsequent one-year 

anniversaries of C2 ‘‘membership’’), 

statutory disqualification fees, Rule 

19h–1 change in status fees, exam fees, 

permit transfer fees, and fingerprint fees 

will not be charged to CBOE permit 

holders seeking to trade on C2. 

The changes will take effect on 

September 13, 2010. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),5 in general, and furthers the 

objectives of Section 6(b)(4) 6 of the Act 

in particular, in that it is designed to 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among C2 members and other persons 

using its facilities. C2 notes that 

applicants, depending on whether they 

are organizations or sole-proprietors, 

will all be charged fixed fees which is 

[sic] intended to offset the Exchange’s 

costs of processing the permit holder 

applications and application-related 

matters, and that the proposed fee 

amounts are comparable to those 

charged by CBOE. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

C2 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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change is 

designated by the Exchange as 

establishing or changing a due, fee, or 

other charge, thereby qualifying for 

effectiveness on filing pursuant to 

Section 19(b)(3)(A)(ii) 7 of the Act and 

subparagraph (f)(2) of Rule 19b–4 8

thereunder. At any time within 60 days 

of the filing of such 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. 

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–C2–2010–003 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–C2–2010–003. 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 website 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 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–C2– 

2010–003 and should be submitted on 

or before October 13, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23595 Filed 9–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62925; File No. SR– 

NASDAQ–2010–096] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Order 

Granting Approval to a Proposed Rule 

Change Relating to the National 

Quotation Dissemination Service 

September 16, 2010. 

I. Introduction 

On August 2, 2010, The NASDAQ 

Stock Market LLC (‘‘NASDAQ’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘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 

amend NASDAQ Rule 7017(b) to reestablish retroactively from January 1, 

2008, a pilot program reducing the 

monthly fee that non-professional users 

pay to receive the National Quotation 

Dissemination Service (‘‘NQDS’’) from 

$50 to $10. The proposed rule change 

was published for comment in the 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 183 / Wednesday, September 22, 2010 / Notices 57823 

3See Securities Exchange Act Release No. 62629 

(August 3, 2010), 75 FR 47871 (‘‘Notice’’). 

4On July 27, 2010, NASDAQ filed a proposed 

rule change to make the pilot fee reduction 

permanent. See Securities Exchange Act Release 

No. 62614 (July 30, 2010), 75 FR 47668 (August 6, 

2010). 

5NQDS is a proprietary data product that 

contains the best bid and offer quotation of each 

registered market maker quoting in NASDAQ-listed 

securities on the NASDAQ Stock Market. NQDS 

data is used not only by firms, associated persons, 

and other market professionals, but also by nonprofessionals who receive the service through 

authorized vendors, including, for example, on-line 

brokerage firms. For a more detailed discussion of 

NQDS, see Notice. 

6See Securities Exchange Act Release No. 43190 

(August 22, 2000), 65 FR 52460 (August 29, 2000). 

7See Securities Exchange Act Release Nos. 44788 

(September 13, 2001), 66 FR 48303 (September 19, 

2001); 46446 (August 30, 2002), 67 FR 57260 

(September 9, 2002); 48386 (August 21, 2003), 68 

FR 51618 (August 27, 2003); 50318 (September 3, 

2004), 69 FR 54821 (September 10, 2004); 53531 

(March 21, 2006), 71 FR 15506 (March 28, 2006); 

and 55668 (April 25, 2007), 72 FR 24347 (May 2, 

2007). 

8 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78f(b)(8). 12 17 CFR 242.603(a). 13NASDAQ is an exclusive processor of its NQDS 

data under Section 3(a)(22)(B) of the Act, 15 U.S.C. 

78c(a)(22)(B), which defines an exclusive processor 

as, among other things, an exchange that distributes 

data on an exclusive basis on its own behalf. 

14 15 U.S.C. 78s(b)(2). 

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

2 17 CFR 240.19b–4. 

Federal Register on August 9, 2010.3

The Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

NASDAQ is proposing to re-establish 

retroactively from January 1, 2008 

through July 27, 2010,4 the fee reduction 

pilot program that reduced the monthly 

fee that non-professional users pay to 

receive NQDS from $50 to $10, to 

correct for the lapse in the pilot and to 

prevent the collection of the additional 

$40 in monthly fees from investors for 

the period during which the pilot had 

lapsed.5 Prior to August 31, 2000, NQDS 

data was available through authorized 

vendors at a monthly rate of $50 for 

professionals and non-professionals 

users alike. In August 2000, NASDAQ 

filed a proposed rule change to reduce 

from $50 to $10 the monthly fee that 

non-professional users pay to receive 

NQDS data. The Commission approved 

the pilot on August 22, 2000, and the fee 

reduction commenced on August 31, 

2000 on a one-year pilot basis.6 On 

September 5, 2001, August 30, 2002, 

August 18, 2003, August 23, 2004, 

January 24, 2006, and March 29, 2007, 

NASDAQ filed proposed rule changes to 

extend the pilot for additional one-year 

periods.7

NASDAQ believes that continuing the 

reduction of NQDS for non-professional 

users demonstrates NASDAQ’s 

continued commitment to provide data 

to non-professional market participants 

and individual investors. 

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.8 In particular, it is consistent 

with Section 6(b)(4) of the Act,9 which 

requires that the rules of a national 

securities exchange provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members and issuers and other parties 

using its facilities, and Section 6(b)(5) of 

the Act,10 which requires, among other 

things, that the rules of a national 

securities exchange be designed to 

promote just and equitable principles of 

trade, 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, and 

not be designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. The 

Commission also finds that the 

proposed rule change is consistent with 

the provisions of Section 6(b)(8) of the 

Act,11 which requires that the rules of 

an exchange not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. Finally, the 

Commission finds that the proposed 

rule change is consistent with Rule 

603(a) of Regulation NMS,12 adopted 

under Section 11A(c)(1) of the Act, 

which requires an exclusive processor 

that distributes information with respect 

to quotations for or transactions in an 

NMS stock to do so on terms that are 

fair and reasonable and that are not 

unreasonably discriminatory.13

The Commission notes that the 

proposed rule change involves the 

retroactive application of a fee reduction 

pilot that benefits non-professional 

market participants and that has been in 

effect in practice since 2000. The 

Commission approved the reduced fee 

pilot at its inception in 2000, and 

subsequently extended the pilot as cited 

above. NASDAQ charged the reduced 

fee, although its NQDS fee reduction 

pilot had expired, during the period 

from January 1, 2008 through July 27, 

2010, at which time NASDAQ filed an 

immediately effective proposal that 

made the reduced NQDS fee for nonprofessionals permanent. The 

Commission notes that no comments 

were received from any market 

participants, including NASDAQ 

members, information vendors, 

investors, non-professionals, or any 

other interested parties, on the initial 

pilot filing in 2000, on any of the pilot’s 

extensions, on the immediately effective 

filing for permanent approval of the 

reduced fee, or on this filing. For the 

reasons discussed above, the 

Commission believes that retroactive 

approval of the fee reduction pilot from 

January 1, 2008 is appropriate. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,14 that the 

proposed rule change (SR–NASDAQ– 

2010–096), be, and it hereby is, 

approved. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23631 Filed 9–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62909; File No. SR–BX– 

2010–063] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Adding the 

CBOE Volatility Index Futures to the 

Definition of a Futures Reference 

Asset in Chapter IV, Section 3(k)(i)(5) 

September 14, 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 

September 8, 2010, NASDAQ OMX BX, 

Inc. (the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Chapter IV, Section 3 (Criteria for 

Underlying Securities) of the Rules of 

the Boston Options Exchange Group, 

LLC (‘‘BOX’’) to permit options on 


emcdonald on DSK2BSOYB1PROD with NOTICES