Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Notices 67791 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(5). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

interest where such conflicts might act 

to the detriment of investors, and to 

review and approve any transactions 

where such conflicts have been 

identified. This should include any 

material amendment to the management 

agreement, including any change with 

respect to the compensation of the 

manager. 

Nasdaq believes that these additional 

requirements will help protect investors 

by ensuring that CSCs remain 

committed to their described investment 

objectives and strategy; that adequate 

information will be available to 

investors on an ongoing basis regarding 

the value of their underlying 

investment; and that additional 

safeguards will exist in the form of 

independence and oversight of certain 

activities. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,7 in 

general and with Sections 6(b)(5) of the 

Act,8 in particular. Section 6(b)(5) 

requires, among other things, that a 

registered national securities exchange’s 

rules must be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, and, in general, to 

protect investors and the public interest. 

The proposed rule change is consistent 

with these requirements in that it 

imposes additional requirements on 

CSCs, which are designed to protect 

investors and the public interest and 

prevent fraudulent and manipulative 

acts and practices on the part of the CSC 

and their promoters. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: 

(a) By order approve or disapprove 

such proposed rule change, or 

(b) Institute proceedings to determine 

whether the proposed rule change 

should be 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–2010–134 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–2010–134. 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 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 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 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2010–134 and should be 

submitted on or before November 24, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27722 Filed 11–2–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63197; File No. SR– 

NASDAQ–2010–136] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

Stock Market, LLC Relating to Access 

Service Fees 

October 27, 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 

20, 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 7015, related to fees 

governing pricing for NASDAQ 

members using The NASDAQ Stock 

Market LLC and the NASDAQ Options 

Market (‘‘NOM’’), NASDAQ’s facility for 

executing and routing standardized 

equity and index options, to apply only 

to The NASDAQ Stock Market LLC. The 

Exchange also proposes to create a new 

Rule 7053 which would include Access 

Services applicable only to NOM. 

The text of the proposed rule change 

is set forth below. Proposed new text is 

in italics and deleted text is in 

[brackets]. 

* * * * * 


jlentini on DSKJ8SOYB1PROD with NOTICES
67792 Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Notices 

7015. Access Services 

The following charges are assessed by 

Nasdaq for connectivity to systems 

operated by NASDAQ, including the 

Nasdaq Market Center, the FINRA/ 

NASDAQ Trade Reporting Facility, and 

FINRA’s OTCBB Service. The following 

fees are not applicable to the NASDAQ 

Options Market LLC. For related options 

fees for Access Services refer to Rule 

7053. 

(a) Nasdaq Information Exchange 

(QIX) 

Port pair (plus optional 

proprietary quote information port).

$1,200 per month. 

ECN direct connection 

port pair.

$1,200 per month. 

Unsolicited message 

port.

$1,000 per month. 

(b) Financial Information Exchange 

(FIX) 

[Options] Ports Price 

FIX Trading Port .............. $500/port/month. 

FIX Port for Services 

Other than Trading.

$500/port/month. 

(c) Computer to Computer Interface 

(CTCI) 

Stations 

Fee component Fee 

1st Station .................. $200/Station/month. 

Each Additional Station.$600/Station/month. 

The bandwidth-based fees in the table 

below apply to CTCI subscribers that 

have not transitioned off of Nasdaqsupported circuits. 

Bandwidth 

Fee component Fee 

Single 56kb line with single hub and router (for remote disaster recovery sites only) ........................... $900/month. 

Option 1: 

Dual 56kb lines (one for redundancy) and single hub and router .................................................... $1,000/month.

Option 2: 

Dual 56kb lines (one for redundancy), dual hubs (one for redundancy), and dual router (one for 

redundancy).

$1,200/month. 

Option 3: 

Dual T1 lines (one for redundancy), dual hubs (one for redundancy), and dual routers (one for 

redundancy). Includes base bandwidth of 128kb.

$2,500/month. 

Bandwidth Enhancement Fee (for T1 subscribers only): 

Per 64kb increase above 128kb T1 base ......................................................................................... $200/month. 

Option 1, 2, or 3 with Message Queue software enhancement ....................................................... Fee for Option 1, 2, or 3 (including any 

Bandwidth Enhancement Fee) plus 

20%. 

Installation Fee .................................................................................................................................. $2,000 per site for dual hubs and routers. 

$1,000 per site for single hub and router. 

Relocation Fee (for the movement of TCF/IP-capable lines within a single location) ..................... $1,700 per relocation. 

(d) New Nasdaq Workstation 

Nasdaq Workstation Trader ..................................................................................................................... $475 per user per month (including data 

entitlement package). 

Nasdaq Workstation Post Trade .............................................................................................................. See Rule 7015(e). 

(e) Specialized Services Related to 

FINRA/NASDAQ Trade Reporting 

Facility 

CTCI fee ................................................................................................................................................... $575/month. 

WebLink ACT or Nasdaq Workstation Post Trade .................................................................................. $375.00/month (full functionality) or 

$200.00/month (up to an average of 

twenty transactions per day each 

month) (For the purposes of this service only, a transaction is defined as an 

original trade entry, either on trade 

date or as-of transactions per month.) 

ACT Workstation ...................................................................................................................................... $525/logon/month. 

(f) TradeInfo 

Members not subscribing to the 

Nasdaq Workstation using TradeInfo 

will be charged a fee of $95 per user per 

month. 

(g) Other Port Fees 

The following port fees shall apply in 

connection with the use of other trading 

telecommunication protocols: 

• $500 per month for each port pair, 

other than Multicast ITCH® data feed 

pairs, for which the fee is $,000 per 

month. 

• An additional $200 per month for 

each port used for entering orders or 

quotes over the Internet. 

• An additional $600 per month for 

each port used for market data delivery 

over the Internet. 

(h) VTE Terminal Fees 

• Each ID is subject to a minimum 

commission fee of $100 per month 

unless it executes a minimum of 

100,000 shares. 

• Each ID receiving market data is 

subject to pass-through fees for use of 

these services. Pricing for these services 

is determined by the exchanges and/or 

market center. 

• Each ID that is given web access is 

subject to a $100 monthly fee. 

* * * * * 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Notices 67793 

3For FIX pricing, the Exchange would assess: A 

Fix Trading Port fee of $500 per month per port; 

and a FIX Port for Services Other than Trading fee 

of $500 per month, per port. 

4Currently, NOM members not subscribing to the 

Nasdaq Workstation using TradeInfo are charged a 

fee of $95 per user per month. TradeInfo allows 

users to scan for their Nasdaq-listed orders 

submitted in Nasdaq. Users can then perform 

actions on their orders. Users can scan for all orders 

in a particular security or all orders of a particular 

type, regardless of their status (open, canceled, 

executed, etc.). For example, after scanning for open 

orders the user is then able to select an open order 

and is allowed to make corrections to the order or 

cancel the order. TradeInfo also allows the users to 

scan other orders, such as executed, cancelled, 

broken, rejected and suspended orders. 

5Currently, NOM members are assessed the $500 

per month fee for each port pair. The remaining 

‘‘Other Port Fees’’ are not applicable to NOM 

members today; those fees apply to members of The 

NASDAQ Stock Market LLC. To further clarify, only 

certain features are available on the NOM system. 

The Other Port Fees that exist in Rule 7015 that 

were not duplicated in new proposed Rule 7053 are 

not available on the NOM system but rather are 

available to members transacting equities only. 

6The Commission notes that this is illustrated in 

note 5. See supra note 5 (clarifying that only certain 

features are available on the NOM system). 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

7053. NASDAQ Options Market— 

Access Services 

The following charges are assessed by 

Nasdaq for connectivity to the NASDAQ 

Options Market. 

(a) Financial Information Exchange 

(FIX) 

Ports Price 

FIX Trading Port .............. $500/port/month. 

FIX Port for Services 

Other than Trading.

$500/port/month. 

(b) TradeInfo 

• Members not subscribing to the 

Nasdaq Workstation using TradeInfo 

will be charged a fee of $95 per user per 

month. 

(c) Other Port Fees 

The following port fees shall apply in 

connection with the use of other trading 

telecommunication protocols: 

• $500 per month for each port pair. 

* * * * * 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

www.nasdaq.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 separate its 

equity and options fees which are 

assessed for connectivity to systems 

operated by NASDAQ. 

Currently Rule 7015, titled Access 

Services, contains fees assessed by 

Nasdaq for connectivity to systems 

operated by NASDAQ, including the 

Nasdaq Market Center, the FINRA/ 

NASDAQ Trade Reporting Facility, and 

FINRA’s OTCBB Service. Rule 7015 

applies to both The NASDAQ Stock 

Market LLC members, conducting an 

equities business, and NOM members, 

conducting an options business. Access 

Services fees relate to ports used to: 

Enter orders into the NASDAQ trading 

systems; receive market data; enter 

quotes; and enter trade reports into the 

FINRA/NASDAQ Trade Reporting 

Facility. 

The Exchange is proposing to add the 

following language to Rule 7015 so that 

it applies solely to The NASDAQ Stock 

Market LLC members: ‘‘The following 

fees are not applicable to the NASDAQ 

Options Market LLC. For related options 

fees for Access Services refer to Rule 

7053.’’ The Exchange is proposing to list 

those Access Service Fees which would 

apply to NOM members in a separate 

Rule. 

The Exchange proposes to create a 

new Rule 7053, titled ‘‘NASDAQ 

Options Market—Access Services’’ 

which would apply to NOM members 

conducting an options business. 

Specifically, this proposed new Rule 

would include pricing for the Financial 

Information Exchange or ‘‘FIX’’, 

TradeInfo and pricing for Other Port 

Fees. The pricing in Rule 7053 would be 

the same pricing that is currently 

assessed to NOM members today in 

Rule 7015 for FIX pricing, 3 TradeInfo 4

and applicable portion of Other Fees.5

The Exchange also proposes to make 

a technical amendment to Rule 7015 in 

section (b), titled Financial Information 

Exchange (FIX), to change the word 

‘‘Options’’ to the word ‘‘Ports’’ to clarify 

information contained in that section 

does not relate to options trading but 

rather that term is used to define the fee 

categories in that section. 

The remaining sections of Rule 7015 

which are not proposed in new Rule 

7053 do not apply to NOM members. 

Fees which are currently contained in 

Rule 7015 that were not duplicated in 

new proposed Rule 7053 are not 

available on the NOM system. Those 

fees are available to members 

transacting equities only.6 Today, the 

Exchange only assesses the applicable 

fees contained in Rule 7015 that apply 

to The NASDAQ Stock Market LLC 

members and/or NOM members, 

respectively. In other words, members 

transacting options only are assessed 

fees available on the NOM system. In 

creating this new Rule 7053, the 

Exchange is not changing which 

members are assessed certain fees, but 

rather the Exchange is proposing to 

separate the equities and options fees 

into two separate Rules. 

The Exchange believes that creating 

two separate Rules for Access Service 

pricing, one related to The NASDAQ 

Stock Market LLC and one related to 

NOM, would provide more clarity for 

members as well as ease of reference. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule changes are consistent with the 

provisions of Section 6 of the Act,7 in 

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

Act,8 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 Rule 7015 and the 

addition of proposed new Rule 7053 

provides more clarity to The NASDAQ 

Stock Market LLC and NOM members as 

to the Access Service Fees which are 

applicable to each market. The 

Exchange believes that creating different 

Rules applicable to the equities and 

options markets for Access Service Fees 

provides ease of reference for members 

of each market. Also, the technical 

amendment should serve to avoid 

confusion. 

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. 


jlentini on DSKJ8SOYB1PROD with NOTICES
67794 Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Notices 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Release No. 62880 

(September 9, 2010), 75 FR 56628. 

4ETNs are also known as ‘‘Index-Linked 

Securities,’’ which 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. Index-Linked Securities are nonconvertible debt of an issuer that have a term of at 

least one year but not greater than thirty years. 

Index-Linked Securities are traded as a single, 

exchange-listed security. As such, rules pertaining 

to the listing and trading of standard equity options 

apply to Index-Linked Securities. 

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.9 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–2010–136 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2010–136. 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 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–2010–136 and should be 

submitted on or before November 24, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27688 Filed 11–2–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63202; File No. SR–CBOE– 

2010–080] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Granting Approval 

of a Proposed Rule Change, as 

Modified by Amendment No. 1, to 

Trade Options on Leveraged 

Exchange-Traded Notes and To 

Broaden the Definition of ‘‘FuturesLinked Securities’’ 

October 28, 2010. 

I. Introduction 

On August 31, 2010, the Chicago 

Board Options Exchange (‘‘CBOE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) 1 of the Securities Exchange Act 

of 1934 (‘‘Act’’), and Rule 19b–4 

thereunder,2 a proposed rule change to: 

(a) Permit the trading of options on 

leveraged (multiple or inverse) 

exchange-traded notes (‘‘ETNs’’), and (b) 

broaden the definition of ‘‘FuturesLinked Securities.’’ On September 9, 

2010, the Exchange filed Amendment 

No. 1 to the proposed rule change. The 

proposed rule change, as modified by 

Amendment No. 1, was published for 

comment in the Federal Register on 

September 16, 2010.3 The Commission 

received no comment letters on the 

proposed rule change. This order 

approves the proposed rule change as 

modified by Amendment No. 1. 

II. Description of the Proposal 

The purpose of CBOE’s proposed rule 

change is to amend Interpretation and 

Policy .13 to Rule 5.3 to: (a) Permit the 

trading of options on leveraged 

(multiple or inverse) ETNs,4 and (b) 

broaden the definition of ‘‘FuturesLinked Securities.’’ 

Leveraged ETN Options 

Multiple leveraged ETNs seek to 

provide investment results that 

correspond to a specified multiple of the 

percentage performance of a particular 

Reference Asset on a given day. Inverse 

leveraged ETNs seek to provide 

investment results that correspond to 

the inverse (opposite) of the percentage 

performance of a particular Reference 

Asset by a specified multiple on a given 

day. Multiple leveraged ETNs and 

inverse leveraged ETNs differ from 

traditional ETNs in that they do not 

merely correspond to the performance 

of a given Reference Asset, but rather 

attempt to match a multiple or inverse 

of a Reference Asset’s performance. 

The Barclays Long B Leveraged S&P 

500 TR ETN (‘‘BXUB’’), the Barclays 

Long C Leveraged S&P 500 TR ETN 

(‘‘BXUC’’) and the UBS AG 2x Monthly 

Leveraged Long Exchange Traded 

Access Securities (‘‘E–TRACS’’) linked 

to the Alerian MLP Infrastructure Index 

due July 9, 2040 (‘‘MLPL’’) currently 

trade on the NYSE Arca Stock Exchange 

and are examples of multiple leveraged 

ETNs. In addition, the Barclays ETN + 

Inverse S&P 500 VIX Short-Term 

Futures ETN (‘‘XXV’’) currently trades 

on the NYSE Arca Stock Exchange and 

is an example of an inverse leveraged 

ETN. 

Currently, Interpretation and Policy 

.13 to Rule 5.3 provides that securities 

deemed appropriate for options trading 


jlentini on DSKJ8SOYB1PROD with NOTICES