Federal Register / Vol. 74, No. 15 / Monday, January 26, 2009 / Notices 4493 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5Changes are marked to the rule text that appears 

in the electronic manual of Nasdaq found at 

http://nasdaqomx.cchwallstreet.com. 

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 

No. SR–BX–2009–003 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–BX–2009–003. 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, 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 No. 

SR–BX–2009–003 and should be 

submitted on or before February 17, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–1464 Filed 1–23–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59260; File No. SR– 

NASDAQ–2009–001] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify Rule 

7050 Governing Pricing for Nasdaq 

Members Using the NASDAQ Options 

Market (‘‘NOM’’) 

January 15, 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 January 9, 

2009, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) 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 Nasdaq. Nasdaq 

has filed the proposal pursuant to 

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

Rule 19b–4(f)(2) thereunder,4 Nasdaq 

has designated this proposal as 

establishing or changing a due, fee, or 

other charge applicable only to 

members, which renders the proposed 

rule change effective upon filing. 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 has filed a proposed rule 

change to modify 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. Proposed new language is in 

italics; proposed deletions are in 

brackets.5

* * * * * 

7050. NASDAQ Options Market 

The following charges shall apply to 

the use of the order execution and 

routing services of the NASDAQ 

Options Market by members for all 

securities that it trades. 

(1) Fees for Execution of Contracts on 

the NASDAQ Options Market 

Except as specified below, the [C]c harge to member entering order that executes in the NASDAQ Options Market $0.45 per executed contract. 

For a pilot period ending July 31, 2009, charge for members or non-members entering order via the Options Intermarket Linkage that executes in the Nasdaq Options Market.$0.45 per executed contract. 

Charge to members entering orders in options on QQQQ, SPY, DIA and IWM with an account type ‘‘Customer’’ 

that executes and remove liquidity entered by another member.

No fee. 

Credit to member providing liquidity through the NASDAQ Options Market ................................................................ $0.30 per executed contract. 

Credit to member providing liquidity using price-improving orders through the NASDAQ Options Market ................. $0.35 per executed contract. 

4494 Federal Register / Vol. 74, No. 15 / Monday, January 26, 2009 / Notices 

6An order that takes liquidity is one that is 

entered into NOM and that executes against an 

order resting on the NOM book. 

7 15 U.S.C. 78f. 

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

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

10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). 

(2)–(4) No change. 

* * * * * 

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. 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 proposing to lower the fee 

for the execution of options contracts for 

certain orders in certain options on the 

NASDAQ Options Market (‘‘NOM’’). 

Specifically, Nasdaq is proposing to 

permit orders with an account type of 

‘‘Customer’’ to take liquidity 6 for free in 

certain options. Nasdaq is proposing to 

apply the new fee provision to options 

on four exchange-traded funds: QQQQ, 

SPY, DIA, and IWM. This proposal is 

designed to attract liquidity to the 

Nasdaq Options Market and thereby to 

increase the quality and efficiency of 

executions. 

To ensure that this reduction applies 

only to customers, the fee reduction will 

apply only when a customer order 

entered by one member takes liquidity 

provided by a different member. When 

a trade occurs in an included options 

class and the trade involves a customer 

removing liquidity that has been 

provided by the same broker dealer, the 

customer side of the transaction will be 

charged the standard rate for removing 

liquidity. For example, if participant A 

enters an order and then participant A 

accesses that liquidity with an order 

with an account type of ‘‘Customer,’’ the 

‘‘Customer’’ order is still charged $0.45 

per executed contract. 

This proposed rule change does not 

impact the liquidity provider rebates set 

forth in Nasdaq Rule 7050. Nor does it 

impact the fees assessed for orders 

executed in the Opening and Closing 

Crosses, or those orders routed to away 

markets. 

Nasdaq believes that the proposed 

fees are competitive, fair and 

reasonable, and non-discriminatory in 

that they apply equally to all members 

and customers. As with all fees, Nasdaq 

may adjust these proposed fees in 

response to competitive conditions by 

filing a new proposed rule change. 

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 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. As the 

seventh options market in the national 

market system, Nasdaq’s fees must be 

competitive and low in order for Nasdaq 

to attract order flow, execute orders, and 

grow as a market. Nasdaq believes that 

its fees are fair and reasonable and 

consistent with the Exchange Act. 

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. 

To the contrary, Nasdaq has designed its 

fees to compete effectively for the 

execution of options contracts and to 

reduce the overall cost to investors of 

options trading. 

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 

Pursuant to Section 19(b)(3)(A)(ii) of 

the Act 9 and Rule 19b–4(f)(2) 

thereunder,10 Nasdaq has designated 

this proposal as establishing or changing 

a due, fee, or other charge applicable 

only to members, which renders the 

proposed rule change effective upon 

filing. Nasdaq will make the proposed 

pricing schedule operational on January 

12th, 2009. 

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, 

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–2009–001 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–2009–001. 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, 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 Nasdaq. 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–2009–001 and 

should be submitted on or before 

February 17, 2009. 

Federal Register / Vol. 74, No. 15 / Monday, January 26, 2009 / Notices 4495 

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

2 15 U.S.C. 78s(b)(3)(A)(iii). 

3 17 CFR 240.19b–4(f)(4). 

4The Commission has modified the text of the 

summaries prepared by NSCC. 

5 15 U.S.C. 78s(b)(3)(A)(iii). 

6 17 CFR 240.19b–4(f)(4). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–1465 Filed 1–23–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59252; File No. SR–NSCC– 

2008–10] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to an 

Enhancement to Its Insurance and 

Retirement Services To Allow for the 

Electronic Exchange of Attachments to 

Messages 

January 15, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

November 24, 2008, National Securities 

Clearing Corporation (‘‘NSCC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change described in Items 

I, II, and III below, which items have 

been prepared primarily by NSCC. 

NSCC filed the proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 2 and Rule 19b–4(f)(4) 

thereunder 3 so that the proposal was 

effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change is an 

enhancement to NSCC’s insurance and 

retirement services (‘‘IPS’’) called 

‘‘Attachments.’’ 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NSCC 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. NSCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of the proposed rule 

change is to enhance the IPS to allow for 

the electronic exchange of attachments 

to IPS messages, such as imaged data in 

PDF format. The enhancement is 

referred to as ‘‘Attachments.’’ The 

attachment may be any collection of 

data that is unstructured and is 

intended to pass through the network 

from sender to receiver without edit. 

The attachment data may but need not 

be in support of an existing IPS service 

message. 

Background 

Recent regulatory developments have 

highlighted a need for the annuity and 

insurance industry to have the 

capability of an electronic exchange of 

imaged documents, signatures, and 

forms during the presale, new business, 

and post-issue process. Industry 

standards developed by the industry 

through the straight-through processing 

(‘‘STP’’) initiative led by the National 

Association of Variable Annuities 

(‘‘NAVA’’) state that signature capture, 

either through e-signature or on imaged 

copies of forms, is required at point of 

sale. The signature and the associated 

documentation must be transmitted by 

the selling broker-dealer agent to the 

insurance carrier for the annuity to be 

processed ‘‘in-good-order.’’ 

NSCC’s Attachments service is in 

furtherance of the NAVA STP initiative. 

It will eliminate the need for a paper 

exchange of information in paper form 

and will enable STP when signatures 

are required at point of sale or when 

original documentation is required in 

connection with processing what is 

otherwise automated. Additionally, 

industry participants will realize 

savings from reduced mailing costs and 

from the processing efficiencies 

associated with expedited document 

processing. Automation of this process 

will also create an improved audit trail 

and will eliminate problems associated 

with lost paperwork. 

The proposed rule change will 

promote processing efficiencies between 

insurance companies and distributors of 

variable insurance products thereby 

facilitating the prompt and accurate 

processing of securities transactions, 

which is consistent with the 

requirements of the Act and the rules 

and regulations promulgated thereunder 

applicable to NSCC. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

NSCC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the 

proposed rule change have not yet been 

solicited or received. NSCC will notify 

the Commission of any written 

comments received by NSCC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A)(iii) of the Act 5 and Rule 

19b–4(f)(4) 6 thereunder because the 

proposed rule effects a change in an 

existing service of NSCC that (i) does 

not adversely affect the safeguarding of 

securities or funds in the custody or 

control of NSCC or for which it is 

responsible and (ii) does not 

significantly affect the respective rights 

or obligations of NSCC or persons using 

the service. At any time within sixty 

days of the filing of such 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, 

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–NSCC–2008–10 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary,