Federal Register / Vol. 75, No. 214 / Friday, November 5, 2010 / Notices 68387 

10 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). 

4The product measures latency of orders whether 

the orders are rejected, executed, or partially 

executed. 

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–2010–140 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–2010–140. 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–2010–140, and should be 

submitted on or before November 26, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27943 Filed 11–4–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63219; File No. SR–Phlx– 

2010–152] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Establish a 

Revenue Sharing Program With 

Correlix, Inc. and Free Trial Period for 

New Users 

November 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 October 

26, 2010, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘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 the Exchange. The Exchange has 

designated the proposed rule change as 

effecting a change described 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 the Substance 

of the Proposed Rule Change 

The Exchange is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to establish a revenue sharing program 

with Correlix, Inc. and a free trial period 

for new users. The text of the proposed 

rule change is available at http:// 

www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

Exchange’s principal office, on the 

Commission’s Web site at http:// 

www.sec.gov, and at the Commission’s 

Public Reference Room. The Exchange 

will implement the proposed rule 

change immediately. 

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 

The Exchange is filing a proposed rule 

change to establish a revenue sharing 

program with Correlix. The Exchange 

has entered into an agreement with 

Correlix to provide to users of the 

Exchange real-time analytical tools to 

measure the latency of orders to and 

from its systems. Under the agreement, 

the Exchange will receive 30% of the 

total monthly subscription fees received 

by Correlix from parties who have 

contracted directly with Correlix to use 

their RaceTeam latency measurement 

service for the Exchange’s systems. The 

Exchange will not bill or contract with 

any Correlix RaceTeam customer 

directly. 

Pricing for the Correlix RaceTeam 

product for the Exchange varies 

depending on the number of unique 

MPIDs and ports selected by the 

customer for monitoring by Correlix. For 

the Exchange, the fee will be an initial 

$1,000 monthly base fee for the first 

unique MPID monitored. For each 

additional unique MIPD sought to be 

monitored, an additional monthly 

charge of $1,000 will be assessed. The 

monthly price for each unique MPID 

includes the monitoring of up to 25 

Exchange port connections associated 

with that particular MPID. Customers 

that wish to exceed 25 ports per-MPID 

for monitoring can purchase additional 

25 port blocks for an additional fee of 

$1000 per month per MPID. 

Under the program, Correlix will see 

an individualized unique Exchangegenerated identifier that will allow 

Correlix RaceTeam to determine round 

trip order time 4, from the time the order 

reaches the Exchange extranet, through 

the Exchange matching engine, and back 

out of the Exchange extranet. The 

RaceTeam product offering does not 

measure latency outside of the Exchange 

extranet. The unique identifier serves as 

a technological information barrier so 

that the RaceTeam data collector will 

only be able to view data for Correlix 

RaceTeam subscriber firms related to 

latency. Correlix will not see 

subscriber’s individual order detail such 

as security, price or size. Individual 

mstockstill on DSKH9S0YB1PROD with NOTICES

68388 Federal Register / Vol. 75, No. 214 / Friday, November 5, 2010 / Notices 

5 15 U.S.C. 78f. 

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

7 15 U.S.C. 78f. 

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

9See Exchange Act Release Nos. 62605 (July 30, 

2010) (Approval of Correlix fee sharing for 

NASDAQ Exchange), 62928 (September 17, 2010) 

(Approval of Correlix fee sharing for EDGEA 

Exchange), and 62929 (September 17, 2010) 

(Approval of Correlix fee sharing for EDGEX 

Exchange). 

10For the 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. 78(c)(f). 

RaceTeam subscribers’ logins will 

restrict access to only their own latency 

data. Correlix will see no specific 

information regarding the trading 

activity of non-subscribers. The 

Exchange believes that the above 

arrangement will provide users of its 

systems greater transparency into the 

processing of their trading activity and 

allow them to make more efficient 

trading decisions. 

In addition, the Exchange seeks 

Commission approval to establish a 

flexible 60-day free trial so parties will 

be eligible for one free 60-day trial 

period of Correlix services whenever 

they initially elect to sign-up for the 

service, now or in the future. The 

Exchange is proposing the flexible trial 

to ensure that all Correlix users have an 

equal opportunity to take advantage of 

an initial free trial period. NASDAQ 

also notes that the introduction of more 

flexibility in determining when to 

participate in the free trial period will 

allow Correlix users to introduce the 

product into their own technology 

infrastructure at a time of their own 

choosing and in coordination with other 

scheduled technology initiatives. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,5

in general, and with Section 6(b)(5) of 

the Act,6 in particular, in that the 

proposal 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. In 

particular, the filing makes transparent 

uniform fees imposed for latency 

measurement services. 

In addition, the Exchange believes 

that the proposed rule change is 

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 the Exchange 

operates or controls. In particular, the 

Exchange notes that the use of Correlix 

latency measurement services is entirely 

voluntary and made available on a nondiscriminatory basis. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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 proposed rule change is effective 

upon filing pursuant to Section 

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

(f)(6) of Rule 19b–4 thereunder, in that 

the proposed rule change: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) does not become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest; provided the selfregulatory organization has given the 

Commission written notice of its intent 

to file the proposed rule change, along 

with a brief description and text of 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. 

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. The 

Commission notes that the Correlix 

service and its fee sharing model have 

been previously approved by the 

Commission for other markets.9 Waiver 

of the 30-day operative delay will 

ensure that the free period is made 

available to all interested parties 

without delay. Accordingly, the 

Commission designates the proposed 

rule change operative upon filing with 

the Commission.10

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–Phlx–2010–152 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–Phlx–2010–152. 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., 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 214 / Friday, November 5, 2010 / Notices 68389 

11 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). 

4The product measures latency of orders whether 

the orders are rejected, executed, or partially 

executed. 

5 15 U.S.C. 78f. 

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

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–Phlx– 

2010–152, and should be submitted on 

or before November 26, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27944 Filed 11–4–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63220; File No. SR–BX– 

2010–072] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Establish a 

Revenue Sharing Program With 

Correlix, Inc. and Free Trial Period for 

New Users 

November 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 October 

26, 2010, NASDAQ OMX BX, Inc. (‘‘BX’’ 

or ‘‘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 BX. The Exchange has designated the 

proposed rule change as effecting a 

change described 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 the Substance 

of the Proposed Rule Change 

BX proposes to establish a revenue 

sharing program with Correlix, Inc. and 

a free trial period for new users. BX will 

implement the proposed change 

immediately. The text of the proposed 

rule change is available at http:// 

nasdaqomxbx.cchwallstreet.com, at 

BX’s principal office, on the 

Commission’s Web site at http:// 

www.sec.gov, 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, BX 

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. BX 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 is filing a proposed rule 

change to establish a revenue sharing 

program with Correlix. The Exchange 

has entered into an agreement with 

Correlix to provide to users of the 

Exchange real-time analytical tools to 

measure the latency of orders to and 

from its systems. Under the agreement, 

the Exchange will receive 30% of the 

total monthly subscription fees received 

by Correlix from parties who have 

contracted directly with Correlix to use 

their RaceTeam latency measurement 

service for the Exchange’s systems. The 

Exchange will not bill or contract with 

any Correlix RaceTeam customer 

directly. 

Pricing for the Correlix RaceTeam 

product for the Exchange varies 

depending on the number of unique 

MPIDs and ports selected by the 

customer for monitoring by Correlix. For 

the Exchange, the fee will be an initial 

$1,000 monthly base fee for the first 

unique MPID monitored. For each 

additional unique MIPD sought to be 

monitored, an additional monthly 

charge of $1,000 will be assessed. The 

monthly price for each unique MPID 

includes the monitoring of up to 25 

Exchange port connections associated 

with that particular MPID. Customers 

that wish to exceed 25 ports per MPID 

for monitoring can purchase additional 

25 port blocks for an additional fee of 

$1,000 per month per MPID. 

Under the program, Correlix will see 

an individualized unique Exchangegenerated identifier that will allow 

Correlix RaceTeam to determine round 

trip order time,4 from the time the order 

reaches the Exchange extranet, through 

the Exchange matching engine, and back 

out of the Exchange extranet. The 

RaceTeam product offering does not 

measure latency outside of the Exchange 

extranet. The unique identifier serves as 

a technological information barrier so 

that the RaceTeam data collector will 

only be able to view data for Correlix 

RaceTeam subscriber firms related to 

latency. Correlix will not see 

subscriber’s individual order detail such 

as security, price or size. Individual 

RaceTeam subscribers’ logins will 

restrict access to only their own latency 

data. Correlix will see no specific 

information regarding the trading 

activity of non-subscribers. 

The Exchange believes that the above 

arrangement will provide users of its 

systems greater transparency into the 

processing of their trading activity and 

allow them to make more efficient 

trading decisions. 

In addition, the Exchange seeks 

Commission approval to establish a 

flexible 60-day free trial so parties will 

be eligible for one free 60-day trial 

period of Correlix services whenever 

they initially elect to sign up for the 

service, now or in the future. The 

Exchange is proposing the flexible trial 

to ensure that all Correlix users have an 

equal opportunity to take advantage of 

an initial free trial period. NASDAQ 

also notes that the introduction of more 

flexibility in determining when to 

participate in the free trial period will 

allow Correlix users to introduce the 

product into their own technology 

infrastructure at a time of their own 

choosing and in coordination with other 

scheduled technology initiatives. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,5

in general, and with Section 6(b)(5) of 

the Act,6 in particular, in that the 

proposal 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 

mstockstill on DSKH9S0YB1PROD with NOTICES