34060 Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 

9 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). 

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://nasdaqomxbx.cchwallstreet.com. 

therefore in the income derived 

therefrom. The deletion of the obsolete 

references to Credits paid to Specialists 

and Fixed Fees charged to Specialists 

will eliminate a source of potential 

confusion about the operations of the 

Exchange and the application of its Fee 

Schedule. 

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. 

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 proposed rule change is 

effective upon filing pursuant to Section 

19(b)(3)(A)(ii) of the Act 7 and Rule 19b– 

4(f)(2) thereunder.8 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–CHX–2009–07 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–CHX–2009–07. 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 such filing will also 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–CHX–2009– 

07 and should be submitted on or before 

August 4, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16581 Filed 7–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60257; File No. SR–BX– 

2009–036] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change to Further 

Extend the Temporary Cap on Certain 

Fees for Members 

July 7, 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 30, 

2009, NASDAQ OMX BX, Inc. (‘‘BX’’) 

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. BX filed 

the proposal pursuant to Section 

19(b)(3)(A)3 of the Act and Rule 19b– 

4(f)(2)4 thereunder. The Commission is 

publishing this notice to solicit 

comments on the proposed rule from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

BX proposes to extend the temporary 

cap on fees charged for OUCH ports to 

the Equities Market due to 

unanticipated delays in developing and 

implementing an anti-internalization 

function. The text of the proposed rule 

change is below. Proposed new 

language is underlined; deleted 

language is in brackets.5

* * * * * 

7015. Access Services 

The following charges are assessed by 

the Exchange for ports to establish 

connectivity to the NASDAQ OMX BX 

Equities Market, as well as ports to 

receive data from the NASDAQ OMX 

BX Equities Market: 

• $400 per month for each port pair, 

other than Multicast ITCH® data feed 

pairs, for which the fee is $1000 per 

month. Additional OUCH port pairs 

beyond 15 are at no cost for the months 

of May[and], June and July 2009. 

• Internet Ports: An additional $200 

per month for each Internet port that 

requires additional bandwidth. 

* * * * * 

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 

BX is proposing to extend the 

temporary modification to its pricing for 

OUCH ports, which provide 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices 34061 

6See Securities Exchange Act Release No. 59894 

(May 8, 2009), 74 FR 23000 (May 15, 2009). 

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). 

connectivity to the NASDAQ OMX BX 

Equities Market. On May 1, 2009, BX 

filed an immediately effective rule 

change to eliminate fees for a member 

firm’s OUCH ports in excess of 15 for 

the months of May and June 2009.6 In 

that filing, BX noted member firms had 

complained that, because BX does not 

have an anti-internalization capability, 

they must purchase additional OUCH 

ports that they would otherwise not 

need to purchase solely to avoid 

unwanted execution against their 

customer orders. Internalization occurs 

when a member firm’s customer order is 

posted on the market and executed all 

or in part by the same member firm. 

Member firms must avoid 

internalization of certain customer 

orders to avoid violating rules and 

regulations of the Employee Retirement 

Income Security Act that preclude 

and/or limit managing broker-dealers of 

such customer accounts from trading as 

principal with orders generated for 

those accounts. Currently, some member 

firms are only able to avoid 

internalization by purchasing additional 

OUCH ports through which they place 

all order flow that must not be 

internalized. Such additional ports have 

a [sic] discrete MPID numbers, which 

allow these member firms to identify the 

orders and avoid internalization. 

BX determined to limit the number of 

OUCH port pairs that a member is 

charged monthly to 15 for the months of 

May and June 2009, so that those firms 

affected by BX’s lack of an antiinternalization function were provided 

relief until BX could implement such a 

function. BX noted in its rule change 

that it would either seek to remove the 

cap language from the rule upon its 

expiration or alternatively would seek to 

extend the cap until such time the antiinternalization function could be 

implemented. BX had originally 

anticipated developing and 

implementing the anti-internalization 

function by the end of June; however, 

BX has encountered unanticipated 

delays that will prevent the function 

from being implemented on schedule. 

As such, BX is proposing to further 

extend the temporary modification of its 

OUCH port pair pricing through July 

2009, at which time BX anticipates the 

implementation of the antiinternalization function will be 

complete and affected member firms can 

reduce the number of ports currently 

subscribed to solely due to the lack of 

such a function. BX will seek to remove 

the cap language from the rule upon its 

expiration or alternatively will seek to 

extend the cap until such time the antiinternalization function can be 

implemented. 

2. Statutory Basis 

BX 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 BX operates or 

controls. The proposed fee change 

applies uniformly to all BX members. 

BX has determined that temporarily 

instituting a cap on fees for OUCH ports 

in excess of 15 will provide relief to 

member firms required to purchase 

additional ports solely due to BX’s lack 

of an anti-internalization function. 

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 foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act9 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.10 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–BX–2009–036 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–2009–036. 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 filings 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–BX–2009–036 and should 

be submitted on or before August 4, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–16580 Filed 7–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

mstockstill on DSKH9S0YB1PROD with NOTICES