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
63236 Federal Register / Vol. 75, No. 198 / Thursday, October 14, 2010 / Notices 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 6 15 U.S.C. 78s(b)(3)(A)(ii). 7 17 CFR 200.30–3(a)(12). 

increased order flow during the 

Opening Cross. 

The Exchange currently does not 

assess transaction fees during the 

Opening Cross. The Exchange is 

proposing to amend its fees to pay a 

rebate for Customer orders that are 

executed during the Opening Cross. The 

Exchange would not pay the rebate if a 

Customer were the contra-side of the 

trade. 

Additionally, the Exchange is 

proposing to assess a Fee for Removing 

Liquidity to Firms, Non-Nom Market 

Makers and NOM Market Makers for 

executed transactions during the 

Exchange’s Opening Cross. 

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. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule changes are consistent with the 

provisions of Section 6 of the Act,4 in 

general, and with Section 6(b)(4) of the 

Act,5 in particular, in that it provides for 

the equitable allocation of reasonable 

dues, fees and other charges among 

members and issuers and other persons 

using any facility or system which 

NASDAQ operates or controls. The 

Exchange believes the proposed 

amendments to the fees and rebates for 

adding and removing liquidity are 

equitable and reasonable because they 

are within the range of fees assessed by 

other exchanges employing similar 

pricing schemes and that the proposed 

fees apply fairly to all similarly situated 

participants on NOM for reasons 

discussed in greater detail below. 

With respect to the proposed rebates 

to Customer for executing orders during 

the Opening Cross, the Exchange 

believes that Customers will benefit 

from this rebate. Currently, there is no 

rebate and the rebate will only be 

proposed to be paid if another Customer 

is not on the contra-side of the 

transactions. This proposal will benefit 

Customers and incentivize market 

participant to route Customer orders to 

the Exchange. For these reasons, the 

Exchange believes that this proposal is 

both equitable and reasonable. 

The Exchange’s proposal to assess a 

Fee for Removing Liquidity on all 

market participants other than 

Customers, namely Firms, Non-NOM 

Market Makers and NOM Market 

Makers, during the Opening Cross is 

reasonable because the fees are within 

the range of fees assessed by other 

exchanges employing similar pricing 

schemes. The proposal is equitable 

because it is being equally assessed on 

all market participants, other than 

Customers. 

NASDAQ is one of eight options 

market in the national market system for 

standardized options. It is a mature, 

robust market that is highly competitive. 

Joining NASDAQ and electing to trade 

options is entirely voluntary. Under 

these circumstances, NASDAQ’s fees 

must be competitive, fair and just in 

order for NASDAQ to attract order flow, 

execute orders, and grow as a market. 

NASDAQ thus believes that its fees are 

equitable, fair and reasonable and 

consistent with the Exchange Act. 

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 

No written comments were either 

solicited or 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 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. If the Commission 

takes such action, the Commission shall 

institute proceedings to determine 

whether the proposed rule should be 

approved or disapproved. 

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–2010–124 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–2010–124. 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 inspection and copying in 

the Commission’s Public Reference 

Room. 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–2010–124 and 

should be submitted on or before 

November 4, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–25745 Filed 10–13–10; 8:45 am] 

BILLING CODE 8011–01–P 


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