Federal Register / Vol. 75, No. 198 / Thursday, October 14, 2010 / Notices 63233 

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

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

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

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 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),5 in general, and Section 6(b)(4) 

of the Act,6 in particular, in that 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 believes that the proposal 

does not constitute an inequitable 

allocation of fees, as all similarly 

situated member organizations will be 

charged the same amount and access to 

the Exchange’s market is offered on fair 

and non-discriminatory terms. 

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 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 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 foregoing rule change is effective 

upon filing pursuant to Section 

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

subparagraph (f)(2) of Rule 19b–4 8

thereunder, because it establishes a due, 

fee, or other charge imposed on its 

members by the NYSE. 

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–NYSE–2010–70 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–NYSE–2010–70. 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 

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 the filing 

will also 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–NYSE– 

2010–70 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. 2010–25747 Filed 10–13–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63056; File No. SR– 

NYSEArca–2010–87] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Its Fee 

Schedule 

October 6, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

September 30, 2010, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘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 through its whollyowned subsidiary NYSE Arca Equities, 

Inc. (‘‘NYSE Arca Equities’’) proposes to 

amend the NYSE Arca Equities 

Schedule of Fees and Charges for 

Exchange Services (the ‘‘Schedule’’). 

While changes to the Schedule pursuant 

to this proposal will be effective on 

filing, the changes will become 

operative on October 1, 2010. The text 

of the proposed rule change is available 

at the Exchange, the Commission’s 

Public Reference Room, and the 

Exchange’s Web site at http:// 

www.nyse.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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 


jlentini on DSKJ8SOYB1PROD with NOTICES
63234 Federal Register / Vol. 75, No. 198 / Thursday, October 14, 2010 / Notices 

4 15 U.S.C. 78f(b). [sic] 

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

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

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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Effective October 1, 2010, the 

Exchange proposes to amend the 

Schedule to modify the structure of the 

transaction credits it provides to Lead 

Market Makers (‘‘LMMs’’) for providing 

displayed liquidity in the NYSE Arca 

marketplace primary listed securities in 

which they are registered as the LMM. 

Currently, an LMM receives a rebate of 

$0.004 per share for execution of orders 

that provide displayed liquidity in such 

a security, regardless of the trading 

volume in the security. The Exchange is 

proposing to replace this with a tiered 

rebate structure that is based on the 

consolidated average daily volume 

(‘‘CADV’’) of the security in the previous 

month. Specifically, the transaction 

credits under the new structure would 

be as follows: 

• $0.0035 per share for orders that 

provide displayed liquidity in securities 

that have a CADV in the previous month 

greater than 5 million shares 

• $0.004 per share for orders that 

provide displayed liquidity in securities 

that have a CADV in the previous month 

of between 1 million and 5 million 

shares inclusive 

• $0.0045 per share for orders that 

provide displayed liquidity in securities 

that have a CADV in the previous month 

of less than 1 million shares 

In addition, for each rate level of trade 

related fees in the Schedule, the 

Exchange proposes to institute a fee of 

$0.0005 per share for orders executed in 

the Opening Auction or Market Order 

Auction, as those terms are defined in 

NYSE Arca Equities Rule 7.35. The fee 

will be applicable to Tape A, Tape B 

and Tape C securities, and will be 

capped at $10,000 per month per Equity 

Trading Permit ID. 

Additionally, the Exchange proposes 

to change the pricing for Mid-Point 

Passive Liquidity (‘‘MPL’’) Orders. 

Currently the rebate for MPL Orders that 

provide liquidity, as well as the fee for 

orders that take liquidity, is $0.0010 in 

Tape A, Tape B and Tape C securities. 

Under this proposal, MPL orders will 

receive a rebate of $0.0015 for orders 

that provide liquidity and be charged a 

fee of $0.0025 for orders that take 

liquidity in Tape A, Tape B and Tape 

C securities. These changes apply to all 

pricing levels. 

Finally, the Exchange proposes to 

assess monthly fees for the use of all 

ports that provide connectivity to its 

equity trading systems. A number of 

other markets already charge such fees, 

but the Exchange has not previously 

done so. 

The level of activity with respect to a 

particular port will not affect the 

assessment of monthly fees, so even if 

a particular port that is available to a 

participant is not used, the participant 

will still be billed for that port. The 

monthly fee for ports will be $100 per 

pair per month up to five pairs, then 

$500 for each additional five pairs. For 

example, the fee for seven pairs of ports 

will be $1,000 per month. Billing for 

ports will be based on the number of 

ports on the third business day prior to 

the end of the month. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),4 in general, and Section 6(b)(4) 

of the Act,5 in particular, in that 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 believes that the proposal 

does not constitute an inequitable 

allocation of fees, as all similarly 

situated member organizations and 

other market participants will be 

charged the same amount and access to 

the Exchange’s market is offered on fair 

and non-discriminatory terms. 

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 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 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 foregoing rule change is effective 

upon filing pursuant to Section 

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

subparagraph (f)(2) of Rule 19b–4 7

thereunder, because it establishes a due, 

fee, or other charge imposed on its 

members by NYSE Arca. 

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–NYSEArca–2010–87 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–NYSEArca–2010–87. 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.8 All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 198 / Thursday, October 14, 2010 / Notices 63235 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 3See Exchange Chapter VI, Section 8 titled 

Nasdaq Opening Cross. 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSEArca–2010–87 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. 2010–25746 Filed 10–13–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63055; File No. SR– 

NASDAQ–2010–124] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

NASDAQ Stock Market LLC Relating to 

Fees During Opening Cross 

October 6, 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 29, 2010, The NASDAQ 

Stock Market LLC (‘‘NASDAQ’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, below, which Items have been 

prepared by the Exchange. 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 modify 

Exchange Rule 7050 governing pricing 

for NASDAQ members using the 

NASDAQ Options Market (‘‘NOM’’), 

NASDAQ’s facility for executing and 

routing standardized equity and index 

options. Specifically, NOM proposes to 

amend the applicability of its Fees for 

Execution of Contracts on the NASDAQ 

Options Market to the Opening Cross.3

While changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative for transactions on 

October 1, 2010. 

The text of the proposed rule change 

is set forth below. Proposed new text is 

in italics and deleted text is in 

øbrackets¿. 

* * * * * 

7050. NASDAQ Options Market 

The following charges shall apply to 

the use of the order execution and 

routing services of the NASDAQ 

Options Market for all securities. 

(1) Fees for Execution of Contracts on 

the NASDAQ Options Market 

FEES AND REBATES (PER EXECUTED CONTRACT) 

Customer Firm 

Non-NOM 

market 

maker 

NOM market maker 

Penny Pilot Options: .................... .................... .................... ....................

Rebate to Add Liquidity ............................................................................................ $0.32 $0.10 $0.25 $0.30 

Fee for Removing Liquidity ...................................................................................... $0.43 $0.45 $0.45 $0.45 

NDX and MNX: .................... .................... .................... ....................

Rebate to Add Liquidity ............................................................................................ $0.10 $0.10 $0.10 $0.20 

Fee for Removing Liquidity ...................................................................................... $0.50 $0.50 $0.50 $0.40 

All Other Options: .................... .................... .................... ....................

Fee for Adding Liquidity ........................................................................................... $0.00 $0.45 $0.45 $0.30 

Fee for Removing Liquidity ...................................................................................... $0.43 $0.45 $0.45 $0.45 

Rebate to Add Liquidity ............................................................................................ $0.20 $0.00 $0.00 $0.00 

(2) Opening Cross 

All orders executed in the Opening 

Cross: [No Charge] 

Customer orders will receive the 

Rebate to Add Liquidity during the 

Exchange’s Opening Cross, unless the 

contra-side is also a Customer. Firms, 

Non-NOM Market Makers and NOM 

Market Makers will be assessed the Fee 

for Removing Liquidity during the 

Exchange’s Opening Cross. 

(3) Closing Cross 

* * * * * 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.nasdaqomx. 

cchwallstreet.com, 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 

Exchange 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 

Exchange 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 modify Rule 

7050 governing the fees assessed for 

options orders entered into NOM. 

Specifically, NASDAQ is proposing to 

modify pricing for its Fees for Execution 

of Contracts on NOM with respect to 

orders during the Exchange’s Opening 

Cross. The Exchange believes that its 

proposal will incentivize routers to send 


jlentini on DSKJ8SOYB1PROD with NOTICES