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
57824 Federal Register / Vol. 75, No. 183 / Wednesday, September 22, 2010 / Notices 

3For the purposes of Chapter IV, Section 3(k) of 

the BOX Rules, Equity Reference Assets, 

Commodity Reference Assets, Currency Reference 

Assets, Fixed Income Reference Assets, Futures 

Reference Assets together with Multifactor 

Reference Assets, collectively will be referred to as 

‘‘Reference Assets’’, as defined in Chapter IV, 

Section 3(k)(ii) of the BOX Rules. 

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

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

Futures-Linked Securities to be based 

on products linked to CBOE Volatility 

Index Futures (‘‘VIX Futures’’). The text 

of the proposed rule change is available 

from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Chapter IV, Section 3(k) of the BOX 

Rules designates the listing and trading 

of options on equity index-linked 

securities (‘‘Equity Index-Linked 

Securities’’, ‘‘Commodity-Linked 

Securities’’, ‘‘Currency-Linked 

Securities’’, ‘‘Fixed Income Index-Linked 

Securities’’, ‘‘Futures-Linked Securities’’ 

and ‘‘Multifactor Index-Linked 

Securities’’, collectively known as 

‘‘Index-Linked Securities’’) that are 

principally traded on a national 

securities exchange and are defined as 

an ‘‘NMS Stock’’ (as defined in Rule 600 

of Regulation NMS under the Securities 

and [sic] Exchange Act of 1934). BOX 

proposes to amend the definition of 

Futures-Linked Securities for the 

trading of options on Index-Linked 

Securities to include products linked to 

CBOE Volatility Index (VIX) Futures. 

Specifically, the Exchange proposes to 

add the CBOE Volatility Index (VIX) 

Futures to the definition of a Futures 

Reference Asset in Chapter IV, Section 

3(k)(i)(5) of the BOX Rules. 

Index-Linked Securities are designed 

for investors who desire to participate in 

a specific market segment by providing 

exposure to one or more identifiable 

underlying securities, commodities, 

currencies, derivative instruments or 

market indexes of the foregoing 

(‘‘Underlying Index’’ or ‘‘Underlying 

Indexes’’). Index-Linked Securities are 

the non-convertible debt of an issuer 

that have a term of at least one (1) year 

but not greater than thirty (30) years. 

Despite the fact that Index-Linked 

Securities are linked to an underlying 

index, each trades as a single, exchangelisted security. Accordingly, rules 

pertaining to the listing and trading of 

standard equity options apply to IndexLinked Securities. 

Currently, the Exchange will consider 

listing and trading options on IndexLinked Securities provided the IndexLinked Securities meet the criteria for 

underlying securities set forth in 

Chapter IV, Section 3(a)–(b) of the BOX 

Rules. 

Index-Linked Securities must meet 

the criteria and guidelines for 

underlying securities set forth in 

Chapter IV, Section 3(b) of the BOX 

Rules; or the Index-Linked Securities 

must be redeemable at the option of the 

holder at least on a weekly basis 

through the issuer at a price related to 

the applicable underlying Reference 

Asset.3 In addition, the issuing company 

is obligated to issue or repurchase the 

securities in aggregation units for cash 

or cash equivalents satisfactory to the 

issuer of Index-Linked Securities which 

underlie the option as described in the 

Index-Linked Securities prospectus. 

Options on Index-Linked Securities 

will continue to be subject to all BOX 

rules governing the trading of equity 

options. The current continuing or 

maintenance listing standards for 

options traded on BOX will continue to 

apply. 

The VIX 

The information in this filing relating 

to the VIX was taken from the Web site 

of the Chicago Board Options Exchange 

(the ‘‘CBOE’’). 

The VIX was originally developed by 

the CBOE in 1993 and was calculated 

using S&P 100® Index options. The 

current methodology for the VIX was 

introduced by the CBOE in September 

2003 and it is now an index that uses 

the quotes of certain S&P 500® Index 

(‘‘SPX’’) option series to derive a 

measure of the volatility of the U.S. 

equity market. The VIX measures 

market expectations of near term 

volatility conveyed by the prices of 

options on the SPX. It provides 

investors with up-to-the-minute market 

estimates of expected stock market 

volatility over the next 30 calendar days 

by extracting implied volatilities from 

real-time index option bid/ask quotes. 

VIX Futures 

Information regarding VIX Futures 

can be found on the Web site of the 

CBOE Futures Exchange (the ‘‘CFE’’). 

The CFE began listing and trading VIX 

Futures since March 26, 2004 under the 

ticker symbol VX. VIX Futures trade 

between the hours of 8:30 a.m.–3:15 

p.m. Central Time (Chicago Time). 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,4

in general, and Section 6(b)(5) of the 

Act,5 in particular, in that it is designed 

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 for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, Exchange 

believes that the proposed rules 

applicable to trading pursuant to generic 

listing and trading criteria, together with 

the Exchange’s surveillance procedures 

applicable to trading in the securities 

covered by the proposed rules, serve to 

foster investor protection. 

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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 183 / Wednesday, September 22, 2010 / Notices 57825 

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

7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has fulfilled this requirement. 

8For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

9See Securities Exchange Act Release No. 60857 

(Oct. 21, 2009), 74 FR 55611 (Oct. 28, 2009) (SR– 

CBOE–2009–074); See also Securities Exchange Act 

Release No. 60822 (Oct. 14, 2009), 74 FR 54114 

(Oct. 21, 2009) (SR–NYSEArca–2009–77); and 

Securities Exchange Act Release No. 60823 (Oct. 14, 

2009), 74 FR 54112 (Oct. 21, 2009) (SR– 

NYSEAmex–2009–59). 

10The text of the proposed rule change is 

available on the Commission’s Web site at http:// 

www.sec.gov. 

11 17 CFR 200.30–3(a)(12). 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 6 and Rule 

19b–4(f)(6) thereunder.7

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay so that 

the Exchange can list and trade options 

on Futures-Linked Securities linked to 

CBOE VIX Futures immediately. The 

Commission believes that waiving the 

30-day operative delay to permit the 

Exchange to list and trade options on 

Futures-Linked Securities linked to 

CBOE VIX Futures without delay is 

consistent with the protection of 

investors and the public interest.8 The 

Commission notes the proposal is 

substantively identical to proposals that 

were recently approved by the 

Commission, and does not raise any 

new regulatory issues.9 For these 

reasons, the Commission designates the 

proposed rule change as operative upon 

filing. 

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. 

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–BX–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–BX–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 website (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.10 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–BX– 

2010–063 and should be submitted on 

or before October 13, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23603 Filed 9–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 7182] 

Culturally Significant Objects Imported 

for Exhibition Determinations: 

‘‘Artifacts From Auschwitz-Birkenau’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, and Delegation of 

Authority No. 236–3 of August 28, 2000, 

I hereby determine that the objects to be 

included in the exhibition ‘‘Artifacts 

from Auschwitz-Birkenau,’’ imported 

from abroad for temporary exhibition 

within the United States, are of cultural 

significance. The objects are imported 

pursuant to a loan agreement with the 

foreign owner or custodian. I also 

determine that the exhibition or display 

of the exhibit objects at the Los Angeles 

Museum of the Holocaust, Los Angeles, 

CA, from on or about October 14, 2010, 

until on or about October 13, 2014, and 

at possible additional exhibitions or 

venues yet to be determined, is in the 

national interest. I have ordered that 

Public Notice of these Determinations 

be published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Julie 

Simpson, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6467). The 

mailing address is U.S. Department of 

State, SA–5, L/PD, Fifth Floor (Suite 

5H03), Washington, DC 20522–0505. 

Dated: September 16, 2010. 

Ann Stock, 

Assistant Secretary, Bureau of Educational 

and Cultural Affairs, Department of State. 

[FR Doc. 2010–23687 Filed 9–21–10; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 7181] 

Culturally Significant Objects Imported 

for Exhibition Determinations: 

‘‘Ancient Chinese Bronzes From the 

Shouyang Studio: The Katherine and 

George Fan Collection’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 


emcdonald on DSK2BSOYB1PROD with NOTICES