Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Notices 37069 

13See supra note 10 and accompanying text. 

14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78k–1. 

2 17 CFR 242.608. 

3Each Participant executed the proposed 

amendment. The Participants are the American 

Stock Exchange LLC (n/k/a NYSE Amex LLC); 

Boston Stock Exchange, Inc. (n/k/a NASDAQ OMX 

BX, Inc.); Chicago Board Options Exchange, 

Incorporated; Chicago Stock Exchange, Inc.; 

Financial Industry Regulatory Authority, Inc., 

International Securities Exchange, LLC; The 

NASDAQ Stock Market LLC; National Stock 

Exchange, Inc.; New York Stock Exchange LLC; 

NYSE Arca, Inc.; and Philadelphia Stock Exchange, 

Inc. (n/k/a NASDAQ OMX PHLX, Inc.). 

4 17 CFR 242.608(b)(3)(ii). 

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. In 

addition, the Commission seeks 

comment generally on whether the 

proposed assessment of transaction fees 

is consistent with the Act, in particular 

whether the proposal provides for an 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members and issuers and other persons 

using its facilities under Section 6(b)(4) 

of the Act or whether the proposal 

permits unfair discrimination between 

customers, issuers, brokers, or dealers 

under Section 6(b)(5) of the Act. 

Specifically: 

1. The Exchange has determined that 

the previous $0.20 rebate for a Customer 

account for removing liquidity resulted 

in disproportionate payment for 

Customer orders relative to order 

volume growth. Do commenters believe 

that eliminating the rebate to Customers 

removing liquidity in non-Penny Pilot 

options when that Customer trades 

against a Customer order, while 

retaining the rebate to Customers that 

trade against a Firm or Market Maker 

order is consistent with the Act, 

including whether it is an equitable 

allocation of fees under Section 6(b)(4) 

and not unfairly discriminatory under 

Section 6(b)(5)? Why or why not? 

2. The Commission notes that the fee 

schedules of some options exchanges 

provide for different levels of 

transaction fees for different categories 

of market participants. Generally, if 

there is a distinction between 

transaction fees for market makers and 

other non-customers (e.g. brokerdealers, firms), the market maker 

transaction fee is less than the noncustomer fee. However, the Exchange 

notes that one exchange charges away 

market makers more than non-customer 

orders.13 The Exchange proposes to 

charge Market Makers $0.45 per contract 

to remove orders in non-Penny Pilot 

options and to charge Firms $0.20 per 

contract to remove such orders. Is this 

fee differential consistent with the Act, 

including whether it is an equitable 

allocation of fees under Section 6(b)(4) 

and not unfairly discriminatory under 

Section 6(b)(5)? Why or why not? 

3. In non-Penny Pilot options, the 

Exchange proposes to lower the fees 

charged to firms that remove liquidity 

from $0.45 to $0.20. The Exchange, 

however, maintains the fee of $0.45 for 

sending orders via the Options 

Intermarket Linkage that execute on 

NOM. Is creating a differential in this 

manner consistent with the Act, 

including whether it is an equitable 

allocation of fees under Section 6(b)(4) 

and not unfairly discriminatory under 

Section 6(b)(5)? Why or why not? 

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–2009–059 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–2009–059. 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–NASDAQ–2009–059 and should be 

submitted on or before August 17, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17819 Filed 7–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60320; File No. SR–CTA– 

2009–01] 

Consolidated Tape Association; Notice 

of Filing and Immediate Effectiveness 

of the Twelfth Charges Amendment to 

the Second Restatement of the 

Consolidated Tape Association Plan 

July 16, 2009. 

Pursuant to Section 11A of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 608 thereunder,2

notice is hereby given that on July 13, 

2009, the Consolidated Tape 

Association (‘‘CTA’’) Plan Participants 

(‘‘Participants’’) 3 filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposal to amend 

the Second Restatement of the CTA Plan 

(the ‘‘CTA Plan’’). The proposal 

represents the twelfth charges 

amendment to the Plan (‘‘Twelfth 

Charges Amendment’’) and reflects 

changes unanimously adopted by the 

Participants. The Twelfth Charges 

Amendment would delete the ticker 

display charge from Schedule A–1 of 

Exhibit E of the CTA Plan. 

Pursuant to Rule 608(b)(3)(ii) under 

the Act,4 the Participants designated the 

Amendment as concerned solely with 

the administration of the Plan. As a 

result, the Amendment has become 

effective upon filing with the 

Commission. At any time within 60 

days of the filing of the Amendment, the 

Commission may summarily abrogate 

the Amendment and require that the 

Amendment be refiled in accordance 

with paragraph (a)(1) of Rule 608 and 

reviewed in accordance with paragraph 

(b)(2) of Rule 608, if it appears to the 


jlentini on DSKJ8SOYB1PROD with NOTICES
37070 Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Notices 

5 15 U.S.C. 78k-1(c)(1)(D). 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or the maintenance of fair and orderly 

markets, to remove impediments to, and 

perfect the mechanisms of, a national 

market system or otherwise in 

furtherance of the purposes of the Act. 

The Commission is publishing this 

notice to solicit comments from 

interested persons on the proposed 

Twelfth Charges Amendment to the 

CTA Plan. 

I. Rule 608(a) 

A. Description and Purpose of the 

Amendment 

Schedule A–1 of Exhibit E to the CTA 

Plan sets forth the fees applicable to 

CTA Network A market data display 

services. The amendment proposes to 

delete from that schedule the monthly 

$30 nonprofessional subscriber ticker 

display charge. That charge applied to a 

nonprofessional subscriber’s receipt of a 

Network A ticker feed from a ticker 

network that Network A formerly 

maintained. Network A phased out that 

ticker network a number of years ago, 

but the Participants did not delete the 

charge from the fee schedule once they 

completed the phaseout. The Network A 

Participants have not imposed the 

nonprofessional subscriber ticker fee 

since then. 

The text of the proposed Amendment 

is available on the CTA’s Web site 

(http://www.nysedata.com/cta), at the 

principal office of the CTA, and at the 

Commission’s Public Reference Room. 

B. Additional Information Required by 

Rule 608(a) 

1. Governing or Constituent Documents 

Not applicable. 

2. Implementation of the Amendments 

Because the Amendment constitutes a 

‘‘Ministerial Amendment’’ under clause 

(ii) of Section IV(b) of the CTA Plan, the 

Chairman of CTA may submit this 

amendment to the Commission on 

behalf of the CTA Plan Participants. 

Because the Participants designate the 

Amendment as concerned solely with 

the administration of the Plan, the 

Amendment becomes effective upon 

filing with the Commission. 

3. Development and Implementation 

Phases 

Not applicable. 

4. Analysis of Impact on Competition 

The proposed Amendment does not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Participants do not believe that the 

proposed Amendment introduces terms 

that are unreasonably discriminatory for 

the purposes of Section 11A(c)(1)(D) of 

the Act.5

5. Written Understanding or Agreements 

Relating to Interpretation of, or 

Participation in, Plan 

Not applicable. 

6. Approval by Sponsors in Accordance 

With Plan 

See Item I.B(2) above. 

7. Description of Operation of Facility 

Contemplated by the Proposed 

Amendment 

a. Terms and Conditions of Access 

Not applicable. 

b. Method of Determination and 

Imposition, and Amount of, Fees and 

Charges 

See Item I.A above. 

c. Method of Frequency of Processor 

Evaluation 

Not applicable. 

d. Dispute Resolution 

Not applicable. 

II. Rule 601(a) 

A. Equity Securities for Which 

Transaction Reports Shall be Required 

by the Plan 

Not applicable. 

B. Reporting Requirements 

Not applicable. 

C. Manner of Collecting, Processing, 

Sequencing, Making Available and 

Disseminating Last Sale Information 

Not applicable. 

D. Manner of Consolidation 

Not applicable. 

E. Standards and Methods Ensuring 

Promptness, Accuracy and 

Completeness of Transaction Reports 

Not applicable. 

F. Rules and Procedures Addressed to 

Fraudulent or Manipulative 

Dissemination 

Not applicable. 

G. Terms of Access to Transaction 

Reports 

Not applicable. 

H. Identification of Marketplace 

Execution 

Not applicable. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed Plan 

Amendment 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–CTA–2009–01 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–CTA–2009–01. 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 Plan 

Amendment that are filed with the 

Commission, and all written 

communications relating to the 

proposed Plan Amendment 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 CTA. 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–CTA–2009–01 and should 

be submitted on or before August 17, 

2009. 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Notices 37071 

6 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). 

4Because only NASDAQ Exchange members who 

are Options Participants may enter orders into 

NOM, it also follows that routing by NOS is 

available only to NASDAQ Exchange members who 

are Options Participants. Pursuant to Chapter I, 

Section 1(a)(40) of the NOM Rules, the term 

‘‘Options Participant’’ means a firm, or organization 

that is registered with the NASDAQ Exchange for 

Continued 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–17763 Filed 7–24–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60349; File No. SR–BX– 

2009–035] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Establish 

Procedures To Prevent Information 

Advantages Resulting From the 

Affiliation Between BOX and NOS 

July 20, 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 July 17, 

2009, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’ or ‘‘SEC’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by the Exchange. The 

Exchange has designated the proposed 

rule change as constituting a noncontroversial rule change 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 Substance of 

the Proposed Rule Change 

The Exchange proposes a rule change 

to establish procedures designed to 

prevent potential informational 

advantages resulting from the affiliation 

between the Boston Options Exchange 

(‘‘BOX’’), a facility of the Exchange, and 

NASDAQ Options Services, LLC 

(‘‘NOS’’), a registered broker-dealer and 

a BOX market participant. The text of 

the proposed rule change is available 

from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 NASDAQ OMX Group, Inc. 

(‘‘NASDAQ OMX’’) acquired the 

Exchange in August 2008. Prior to the 

acquisition, the Exchange owned a 

21.87% interest in Boston Options 

Exchange Group, LLC (‘‘BOX LLC’’), the 

operator of BOX, a facility of the 

Exchange. Boston Options Exchange 

Regulation, LLC (‘‘BOXR’’) is a whollyowned subsidiary of the Exchange, to 

which the Exchange has delegated, 

pursuant to a delegation plan, certain 

self-regulatory responsibilities related to 

BOX. 

At the closing of the acquisition by 

NASDAQ OMX, the Exchange 

transferred its interest in BOX LLC to 

MX US, a wholly-owned subsidiary of 

the Montreal Exchange Inc. Although 

the Exchange no longer holds an 

ownership interest in BOX LLC, it 

continues to hold self-regulatory 

obligations with respect to BOX. The 

Exchange, together with BOXR, retains 

regulatory control over BOX and the 

Exchange, as the SRO, remains 

responsible for ensuring compliance 

with the federal securities laws and all 

applicable rules and regulations. 

NASDAQ OMX also currently 

indirectly owns NASDAQ Options 

Services, LLC (‘‘NOS’’), a registered 

broker-dealer and a BOX market 

participant. Thus, NOS is deemed an 

affiliate of the Exchange, BOX and 

BOXR. 

The Exchange is proposing that NOS 

be permitted to route certain orders 

from The NASDAQ Option Market 

(‘‘NOM’’) to BOX without checking the 

NOM book prior to routing. NOM is an 

options market operated by The 

NASDAQ Stock Market (the ‘‘NASDAQ 

Exchange’’) and NOS is the approved 

outbound routing facility of the 

NASDAQ Exchange for NOM. With the 

exception of Exchange Direct Orders, all 

routable orders for options that are 

trading on NOM check the NOM book 

prior to routing. In addition, NOS also 

routes orders in options that are not 

trading on NOM (referred to in the NOM 

Rules as ‘‘Non-System Securities’’). 

When routing orders in options that are 

not listed and open for trading on NOM, 

NOS is not regulated as a facility of the 

NASDAQ Exchange but rather as a 

broker-dealer regulated by its designated 

examining authority. As provided by 

Chapter IV, Section 5 of the NOM Rules, 

all orders routed by NOS under these 

circumstances are routed to away 

markets that are at the best price, and 

solely on an immediate-or-cancel basis. 

Under NOM Rule Chapter VI, Section 

11: (1) NOM routes orders in options via 

NOS, which serves as the sole ‘‘routing 

facility’’ of NOM; (2) the sole function 

of the routing facility is to route orders 

in options to away markets pursuant to 

NOM rules, solely on behalf of NOM; (3) 

NOS is a member of an unaffiliated selfregulatory organization, which is the 

designated examining authority for the 

broker-dealer; (4) the routing facility is 

subject to regulation as a facility of the 

NASDAQ Exchange, including the 

requirement to file proposed rule 

changes under Section 19 of the Act; (5) 

NOM must establish and maintain 

procedures and internal controls 

reasonably designed to adequately 

restrict the flow of confidential and 

proprietary information between the 

NASDAQ Exchange and its facilities 

(including the routing facility), and any 

other entity; and (6) the books, records, 

premises, officers, directors, agents, and 

employees of the routing facility, as a 

facility of the NASDAQ Exchange, shall 

be deemed to be the books, records, 

premises, officers, directors, agents, and 

employees of the NASDAQ Exchange 

for purposes of and subject to oversight 

pursuant to the Act, and the books and 

records of the routing facility, as a 

facility of the NASDAQ Exchange, shall 

be subject at all times to inspection and 

copying by the NASDAQ Exchange and 

the Commission. 

The Commission has approved NOS’s 

affiliation with the Exchange subject to 

the conditions that: (1) NOS is a facility 

of the NASDAQ Exchange; (2) use of 

NOS’s routing function by NASDAQ 

Exchange members is optional 4 and (3) 


jlentini on DSKJ8SOYB1PROD with NOTICES