Federal Register / Vol. 75, No. 198 / Thursday, October 14, 2010 / Notices 63237 

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

2 17 CFR 240.19b–4. 

3A Member is any registered broker or dealer, or 

any person associated with a registered broker or 

dealer, that has been admitted to membership in the 

Exchange. 

4 15 U.S.C. 78f. 

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

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

7 17 CFR 19b–4(f)(2). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63053; File No. SR–EDGA– 

2010–14] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Amendments 

to the EDGA Exchange, Inc. Fee 

Schedule 

October 6, 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 October 

5, 2010, the EDGA Exchange, Inc. (the 

‘‘Exchange’’ or the ‘‘EDGA’’) 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 change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

fees and rebates applicable to Members 3

of the Exchange pursuant to EDGA Rule 

15.1(a) and (c) by making an 

amendment to its fee schedule. 

All of the changes described herein 

are applicable to EDGA Members. The 

text of the proposed rule change is 

available on the Exchange’s Internet 

Web site at http://www.directedge.com. 

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 Exchange proposes to change the 

fees and rebates for adding and 

removing liquidity. For adding 

liquidity, the fee is proposed to be 

increased from $0.0002 per share to 

$0.00025 per share. Conforming 

amendments have been made to the B, 

V, Y, 3, and 4 Flags (‘‘add liquidity’’ 

flags) to reflect this change. For 

removing liquidity, the rebate is 

proposed to be decreased from $0.0002 

per share to $0.00015 per share. 

Conforming amendments have been 

made to the N, W, and 6 flag (‘‘remove 

liquidity’’ flags) to reflect this change. In 

addition, Flag ‘‘I’’ (routed to EDGX) is 

proposed to increased from $0.0029 per 

share to $0.0030 per share to reflect the 

anticipated increase on EDGX for 

October for removing liquidity (from 

$0.0029 per share to $0.0030 per share). 

The Exchange believes that these rate 

changes will enable it to maintain a 

competitive position with regards to 

other away market centers. 

The Exchange also proposes to make 

a technical amendment to footnote 2 to 

clarify that the rate of $0.0010 applies 

to when a Member adds greater than 

1,000,000 shares hidden on a daily 

basis, measured monthly (emphasis 

added). 

EDGA Exchange proposes to 

implement these amendments to the 

Exchange fee schedule on October 5, 

2010. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,4

in general, and furthers the objectives of 

Section 6(b)(4),5 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. The 

Exchange 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. The proposed rule change 

reflects a competitive pricing structure 

designed to incent market participants 

to direct their order flow to the 

Exchange. Finally, the Exchange 

believes that the proposed rates are 

equitable in that they apply uniformly 

to all Members. The Exchange believes 

the fees and credits remain competitive 

with those charged by other venues and 

therefore continue to be reasonable and 

equitably allocated to those members 

that opt to direct orders to the Exchange 

rather than competing venues. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

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) of 

the Act 6 and Rule 19b–4(f)(2) 7

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–EDGA–2010–14 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–EDGA–2010–14. This file 


jlentini on DSKJ8SOYB1PROD with NOTICES
63238 Federal Register / Vol. 75, No. 198 / Thursday, October 14, 2010 / Notices 

8The text of the proposed rule change is available 

on Exchange’s Web site at http:// 

www.directedge.com, on the Commission’s Web site 

at http://www.sec.gov, at EDGA, and at the 

Commission’s Public Reference Room. 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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, 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–EDGA– 

2010–14 and should be submitted on or 

before November 4, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–25743 Filed 10–13–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63040; File No. SR– 

NASDAQ–2010–128] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify the 

Requirements To Qualify for Credits as 

a Designated Liquidity Provider Under 

Rule 7018(i) 

October 5, 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 October 

1, 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 the 

requirements to qualify for credits as a 

designated liquidity provider under 

Rule 7018(i) and to make a minor 

technical change. NASDAQ will 

implement the proposed change on 

October 1, 2010. The text of the 

proposed rule change is below. 

Proposed new language is italicized. 

Deleted language is [bracketed]. 

* * * * * 

7018. Nasdaq Market Center Order 

Execution and Routing 

(a)–(h) No change. 

(i) Notwithstanding the foregoing, the 

following charges shall apply to 

transactions in a Qualified Security by 

one of its Designated Liquidity 

Providers: 

Charge to Designated 

Liquidity Provider 

entering Order that 

executes in the 

Nasdaq Market 

Center or attempts 

to execute in the 

Nasdaq Market 

Center prior to routing: 

$0.003 per share executed for securities priced at $1 or 

more per share 

(For securities 

priced at less than 

$1 per share, the 

normal execution 

fee under 7018(a) 

will apply). 

Credit to Designated 

Liquidity Provider 

providing displayed 

liquidity through the 

Nasdaq Market 

Center: 

$0.004 per share executed (or $0, in 

the case of executions against 

Quotes/Orders in 

the Nasdaq Market 

Center at less than 

$1.00 per share), 

up to 10 million 

shares average 

daily volume. 

Normal credits under 

7018(a) apply to 

shares greater than 

10 million average 

daily volume and 

non-displayed liquidity. 

For purposes of this paragraph: 

(1) A security may be designated as a 

‘‘Qualified Security’’ if: 

(A) it is an exchange-traded fund or 

index-linked security listed on Nasdaq 

pursuant to Nasdaq Rules 5705, 5710, or 

5720; 

(B) [there has been no time at which 

its average daily volume on Nasdaq has 

exceeded 10,000,000 shares during two 

calendar months of any three calendarmonth period; and 

(C)] it has at least one Designated 

Liquidity Provider. 

[The security will cease to be a 

Qualified Security at the end of the 

second calendar month that causes the 

condition described in paragraph (B) not 

to be satisfied.] 

(2) A ‘‘Designated Liquidity Provider’’ 

or ‘‘DLP’’ is a registered Nasdaq market 

maker for a Qualified Security that has 

committed to maintain minimum 

performance standards. [Designated 

Liquidity Providers]A DLP shall be 

selected by Nasdaq based on factors 

including, but not limited to, experience 

with making markets in exchangetraded funds and index-linked 

securities, adequacy of capital, 

willingness to promote Nasdaq as a 

marketplace, issuer preference, 

operational capacity, support personnel, 

and history of adherence to Nasdaq 

rules and securities laws. Nasdaq may 

limit the number of Designated 

Liquidity Providers in a security, or 

modify a previously established limit, 

upon prior written notice to members. 

The minimum performance standards 

applicable to a DLP[Designated 

Liquidity Provider] may be determined 

from time to time by Nasdaq and may 

vary depending on the price, liquidity, 

and volatility of the Qualified Security 

in which the DLP[Designated Liquidity 

Provider] is registered. The performance 

measurements will include (A) percent 

of time at the national best bid (best 

offer) (‘‘NBBO’’); (B) percent of 

executions better than the NBBO; (C) 

average displayed size; and (D) average 

quoted spread. 

(3) If a DLP does not meet the 

performance measurements for a given 

month, fees and credits will revert to the 

normal schedule under 7018(a). If a DLP 

does not meet the stated performance 

measurements for 3 out of the past 4 

months, the DLP is subject to forfeit of 

DLP status for that instrument, at 

NASDAQ’s discretion. A DLP must 

provide 30 days written notice if it 

wishes to withdraw its registration in a 

Qualified Security. 

(j) No change. 

* * * * * 


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