28304 Federal Register / Vol. 74, No. 113 / Monday, June 15, 2009 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3For further details on the processing of Flash 

routing strategies, refer to Securities Exchange Act 

Release 59875 (May 6, 2009); 74 FR 22874 (May 14, 

2009) (SR–NASDAQ–2009–043). 

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 240.19b–4(f)(2). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13975 Filed 6–12–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60069; File No. SR– 

NASDAQ–2009–051] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Modify 

Pricing for NASDAQ ‘‘Flash’’ 

Functionality for Routable Orders 

June 8, 2009. 

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 June 4, 

2009, The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or the ‘‘Exchange’’) 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 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 

NASDAQ proposes a rule change to 

modify pricing for NASDAQ members 

that trade equities in the NASDAQ 

Market Center using the ‘‘Flash’’ 

functionality set forth in NASDAQ Rule 

4758(a)(1)(A). This proposed rule 

change, which is effective upon filing, 

will become operative when the Flash 

functionality becomes available, 

currently scheduled for June 8, 2009. 

The text of the proposed rule change is 

available at http:// 

nasdaqomx.cchwallstreet.com/, at 

NASDAQ’s principal office, 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, 

NASDAQ 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. 

NASDAQ 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 establishing the price for 

members trading equities in the 

NASDAQ Market Center using 

NASDAQ’s new pre-routing display or 

‘‘Flash’’ functionality described in 

NASDAQ Rule 4758(a)(1)(A). The Flash 

functionality provides an optional prerouting display period for orders using 

NASDAQ’s DOT, SCAN or STGY 

routing strategies. When voluntarily 

employed by a member, the Flashenabled routing strategies will first 

execute to the maximum extent possible 

in NASDAQ’s book, before displaying 

the remaining share amounts and prices 

to NASDAQ market participants and 

market data vendors for a period of time 

not to exceed one-half of one second. If 

at the end of the Flash period the order 

is not executed or is partially executed, 

NASDAQ will route the order 

automatically to the appropriate venue 

selected by the chosen routing strategy.3

When Flash routing functionality 

becomes available for use it will be 

assessed the following fees: $0.0015 per 

share executed during the Flash period 

for firms that add more than 35 million 

shares of liquidity daily on average for 

the month, and $0.0010 per share 

executed during the Flash period for all 

other firms. 

An order that is designated as Flash 

for routing can execute in a variety of 

ways. The following example will 

illustrate how an execution occurs and 

how NASDAQ will assess fees. An order 

that is designated as Flash for routing 

and that takes liquidity from the 

NASDAQ book prior to the Flash period 

will be assessed the standard fee of 

$0.0030 per share executed prior to the 

Flash period. If the unexecuted portion 

of that order provides liquidity on 

NASDAQ during the Flash period, it 

will be provided a liquidity rebate of 

either $0.0010 or $0.0015 per share 

executed during the Flash period based 

upon the member’s average daily 

volume of liquidity provided. If the still 

unexecuted portion of the order is then 

routed to an away market, NASDAQ 

will assess the standard rate for routing 

(generally $0.0026). The remaining 

unexecuted shares are posted on the 

NASDAQ book and provided the 

standard rebate based on the firms’ 

average daily liquidity provided based 

on the existing pricing tiers. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is 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 

proposed fee is consistent with that 

standard in that it applies equally to all 

members using the Flash functionality. 

It also recognizes the benefits of 

additional liquidity delivered to the 

NASDAQ market place when NASDAQ 

members utilize the Flash functionality. 

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 

The foregoing rule change has become 

effective pursuant to Section 

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

subparagraph (f)(2) of Rule 19b–4 

thereunder.7 At any time within 60 days 

of the filing of the proposed rule change, 

the Commission may summarily 

abrogate 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, 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 74, No. 113 / Monday, June 15, 2009 / Notices 28305 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange’s two modes of order interaction 

are described in NSX Rule 11.13(b). 

4Explanatory Endnote 3 of the Fee Schedule 

contains the definition of ‘‘Liquidity Adding ADV.’’ 

5 ‘‘Zero Display Orders’’ means ‘‘Zero Display 

Reserve Orders’’ as specified in NSX Rule 

11.11(c)(2)(A). 

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–2009–051 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–2009–051. 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, 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– 

NASDAQ–2009–051 and should be 

submitted on or before July 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13974 Filed 6–12–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60068; File No. SR–NSX– 

2009–04] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

the Fee and Rebate Schedule To (i) 

Increase From 50,000 to 5 Million the 

Liquidity Adding Average Daily Volume 

Thresholds in the Automatic Execution 

Mode of Order Interaction (‘‘AutoEx’’); 

(ii) Include Securities Less Than One 

Dollar in the Calculation of Liquidity 

Adding and Total Average Volume 

Thresholds in AutoEx; and (iii) 

Eliminate the Two Lower Tiers With 

Respect to the AutoEx Liquidity 

Adding Zero Display Order Rebate 

June 8, 2009. 

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 May 29, 

2009, National Stock Exchange, Inc. 

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 the Exchange. 

The Commission is publishing this 

notice to solicit comment on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

National Stock Exchange, Inc. 

(‘‘NSX®’’ or ‘‘Exchange’’) is proposing to 

amend the Fee and Rebate Schedule (the 

‘‘Fee Schedule’’) issued pursuant to 

Exchange Rule 16.1(c) in order to (i) 

increase from 50,000 to 5 million the 

liquidity adding average daily volume 

thresholds in the Automatic Execution 

Mode of order interaction (‘‘AutoEx’’); 

(ii) include securities less than one 

dollar in the calculation of liquidity 

adding and total average volume 

thresholds in AutoEx; and (iii) eliminate 

the two lower tiers with respect to the 

AutoEx liquidity adding zero display 

order rebate. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nsx.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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

Purpose 

With this rule change, the Exchange is 

proposing to make three changes to the 

Fee Schedule, in each case only with 

respect to AutoEx.3

First, the liquidity adding average 

daily volume (‘‘Liquidity Adding ADV’’) 

thresholds in AutoEx that are currently 

set at 50,000 are proposed to be 

increased to 5 million. This threshold is 

used to determine both the amount of 

the liquidity taking fee in AutoEx and 

eligibility for receipt of the liquidity 

adding zero display order rebate in 

AutoEx. Under the Fee Schedule in 

effect prior to effectiveness of the 

instant proposed rule change, an ETP 

Holder needs to achieve a Liquidity 

Adding ADV 4 of 50,000 in order to 

obtain a reduced liquidity taking fee 

from $0.0030 to $0.0028 per share. The 

instant rule filing proposes to increase 

the Liquidity Adding ADV used with 

respect to AutoEx liquidity taking fees 

from 50,000 to 5 million. In addition, 

under the Fee Schedule in effect prior 

to effectiveness of the instant proposed 

rule change, an ETP Holder needs to 

achieve a Liquidity Adding ADV of 

50,000 in order to become eligible to 

receive rebates for submitting liquidity 

adding Zero Display Orders 5 in AutoEx. 

If an ETP Holder fails to achieve a 

Liquidity Adding ADV of 50,000, such 

ETP Holder is not eligible to receive a 

liquidity adding Zero Display Order 

rebate. The instant rule filing proposes 

to increase the Liquidity Adding ADV 

used with respect to eligibility to 

receive a liquidity adding Zero Display 


pwalker on PROD1PC71 with NOTICES