6246 Federal Register / Vol. 75, No. 25 / Monday, February 8, 2010 / Notices 

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

7 17 CFR 240.19b–4(f)(2). 

8The text of the proposed rule change is available 

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

www.sec.gov/rules/sro.shtml. 

9 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). 

available routing options offered by 

NASDAQ. 

NASDAQ notes that it operates in a 

highly competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive. NASDAQ believes that the 

change will further enhance the 

competitiveness of its fees in 

comparison with those charged by other 

venues, and that its fees are reasonable 

and equitably allocated to members on 

the basis of whether they opt to direct 

orders to NASDAQ. 

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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 6 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.7 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–2010–020 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–2010–020. 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,8 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 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–2010–020 and 

should be submitted on or before March 

1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2631 Filed 2–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61451; File No. SR– 

NASDAQ–2010–012] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Describing 

the NASDAQ Ouch BBO Feed 

February 1, 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 January 

22, 2010, The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’ or 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 Nasdaq. Nasdaq has 

designated the proposed rule change as 

constituting a 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 submits this proposal 

regarding the availability of the 

NASDAQ Ouch BBO Feed, a data feed 

that represents Nasdaq’s internal view 

of the best bid and offer among all 

market centers other than Nasdaq (the 

‘‘BBO’’), which is provided at no cost. 

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. 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 25 / Monday, February 8, 2010 / Notices 6247 

4Nasdaq also provides a time stamp and message 

type field for reference. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

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

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

the Commission written notice of its intent to file 

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. Nasdaq has satisfied this requirement. 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6). 

11For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq submits this proposal 

regarding the availability of the 

NASDAQ Ouch BBO Feed, a data feed 

that represents Nasdaq’s internal view 

of the best bid and offer among all 

market centers other than Nasdaq. The 

NASDAQ Ouch BBO Feed is available 

to all NASDAQ members equally at no 

charge, and offers all firms transparent, 

real-time data concerning Nasdaq’s 

internal view of the BBO. This data feed 

reflects Nasdaq’s view of the BBO, at 

any given time, based on orders 

executed on Nasdaq and updated quote 

information from the SIPs. Nasdaq 

makes the NASDAQ Ouch BBO Feed 

available to all market participants via 

subscription through an established 

connection to Nasdaq through extranets, 

direct connection, and Internet-based 

virtual private networks. 

The NASDAQ Ouch BBO Feed 

contains the following data elements: 

Symbol, bid price, and ask price.4

Unlike the Nasdaq TotalView feed, the 

Ouch BBO feed does not contain 

information about individual orders, 

either those residing within the Nasdaq 

system or those executed or routed by 

Nasdaq. Unlike the SIP feeds containing 

the National Best Bid and Offer 

(‘‘NBBO’’), the Ouch BBO Feed does not 

identify either the market center quoting 

the BBO or the size of the BBO quotes. 

It merely contains the symbol and bid 

and offer prices. 

By making the NASDAQ Ouch BBO 

Feed data available, Nasdaq enhances 

market transparency and fosters 

competition among orders and markets. 

Member firms may use the NASDAQ 

Ouch BBO Feed to more accurately 

price their orders based on Nasdaq’s 

view of what the BBO is at any point in 

time, which may not be reflected in the 

official NBBO due to latencies inherent 

in the NBBO’s dissemination. As a 

consequence, member firms may more 

accurately price their orders on Nasdaq, 

thus avoiding price adjustments by 

Nasdaq based on a quote that is no 

longer available. Additionally, members 

can price orders more aggressively to 

narrow the NBBO and provide better 

reference prices for investors. 

At this time, Nasdaq does not have 

plans to charge an additional fee 

associated with the receipt of the 

NASDAQ Ouch BBO Feed. Should 

Nasdaq determine to charge fees 

associated with the NASDAQ Ouch 

BBO Feed, Nasdaq will submit a 

proposed rule change to the 

Commission in order to implement 

those fees. 

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 Sections 6(b)(5) of the 

Act,6 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. 

Nasdaq believes that this proposal is in 

keeping with those principles by 

promoting increased transparency 

through the dissemination of NASDAQ 

Ouch BBO Feed data and by clarifying 

its availability. 

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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 9 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 10

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. Nasdaq requests that the 

Commission waive the 30-day operative 

delay because it would permit Nasdaq 

to immediately provide the information 

regarding the NASDAQ Ouch BBO Feed 

access requirements to market 

participants. The Commission believes 

that waiving the 30-day operative 

delay 11 is consistent with the protection 

of investors and the public interest and 

designates the proposal operative upon 

filing. 

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–2010–012 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–2010–012. 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/ 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

6248 Federal Register / Vol. 75, No. 25 / Monday, February 8, 2010 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission previously approved the 

trading of options on BRB. See Securities Exchange 

Act Release No. 55575 (April 3, 2007), 72 FR 17963 

(April 10, 2007) (SR–ISE–2006–59). 

4See Securities Exchange Act Release No. 60536 

(August 19, 2009), 74 FR 43204 (August 26, 2009) 

(SR–ISE–2009–59). 

5See Securities Exchange Act Release No. 61334 

(January 12, 2010) (SR–ISE–2009–115). 

6A FXPMM is a primary market maker selected 

by the Exchange that trades and quotes in FX 

Options only. See ISE Rule 2213. 

7A FXCMM is a competitive market maker 

selected by the Exchange that trades and quotes in 

FX Options only. See ISE Rule 2213. 

8Public Customer Order is defined in Exchange 

Rule 100(a)(39) as an order for the account of a 

Public Customer. Public Customer is defined in 

Exchange Rule 100(a)(38) as a person or entity that 

is not a broker or dealer in securities. 

9These fees will be charged only to Exchange 

members. Under a pilot program that is set to expire 

on July 31, 2010, these fees will also be charged to 

Linkage Principal Orders (‘‘Linkage P Orders’’) and 

Linkage Principal Acting as Agent Orders (‘‘Linkage 

P/A Orders’’). The amount of the execution fee 

charged by the Exchange for Linkage P Orders and 

Linkage P/A Orders is $0.27 per contract side and 

$0.18 per contract side, respectively. See Securities 

Exchange Act Release No. 60175 (June 25, 2009), 74 

FR 32026 (July 6, 2009) (SR–ISE–2009–36). 

10The Exchange applies a sliding scale, between 

$0.01 and $0.18 per contract side, based on the 

number of contracts an ISE market maker trades in 

a month. 

11The amount of the execution fee for non-ISE 

Market Maker transactions executed in the 

Exchange’s Facilitation and Solicitation 

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–2010–012 and 

should be submitted on or before March 

1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2580 Filed 2–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61459; File No. SR–ISE– 

2010–07] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Foreign Currency 

Options 

February 1, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 

19, 2010, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) 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 the selfregulatory organization. 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 

The ISE is proposing to amend its 

incentive plan for market makers in a 

newly listed foreign currency option 

and to establish fees for transactions in 

the newly listed foreign currency 

option. The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.ise.com), on the 

Commission’s Web site at http:// 

www.sec.gov, at the principal office of 

the Exchange, 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, 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend the Exchange’s 

incentive plan for market makers on a 

newly listed foreign currency option, 

specifically, the Brazilian real (‘‘BRB’’) 3

and to establish fees for transactions in 

options on BRB. Options on BRB began 

trading on the Exchange on January 19, 

2010. As such, this proposed fee change 

will be operative and effective on 

January 19, 2010. 

In order to promote trading in options 

on BRB, the Exchange proposes to add 

BRB to the incentive plan the Exchange 

currently has in place for market makers 

in options on the New Zealand dollar 

(‘‘NZD’’), the Mexican peso (‘‘PZO’’) and 

the Swedish krona (‘‘SKA’’).4 Market 

makers will be able to enter into the 

incentive plan until March 31, 2010.5

Participants in the incentive plan are 

known on the Exchange’s Schedule of 

Fees as Early Adopter Market Makers. 

Under the incentive plan, the Exchange 

will waive the applicable transaction 

fees for both the Early Adopter 

FXPMM 6 and all Early Adopter 

FXCMMs 7 that make a market in BRB 

for as long as the incentive plan is in 

effect. Further, pursuant to a revenue 

sharing agreement entered into between 

an Early Adopter Market Maker and ISE, 

the Exchange will pay the Early Adopter 

FXPMM forty percent (40%) of the 

transaction fees collected on any 

customer trade in BRB and will pay up 

to ten (10) Early Adopter FXCMMs that 

participate in the incentive plan twenty 

percent (20%) of the transaction fees 

collected for trades between a customer 

and that FXCMM. Market makers that 

do not participate in the incentive plan, 

i.e., market makers that begin to quote 

and trade in BRB after March 31, 2010, 

will be charged regular transaction fees 

for trades in this product. 

The Exchange is proposing to adopt 

an execution fee of $0.40 per contract 

for all Public Customer Orders 8 in 

options on BRB.9 The amount of the 

execution fee for all Firm Proprietary 

orders for options on BRB will be $0.20 

per contract and the execution fee for all 

non-Early Adopter ISE Market Makers 

in options on BRB shall be equal to the 

execution fee currently charged by the 

Exchange for ISE Market Maker orders 

in equity options.10 Finally, the amount 

of the execution fee for all non-ISE 

Market Maker orders for options on BRB 

shall be $0.45 per contract.11 The 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES