Document ID: SEC-2012-0314-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.
Posted Date: 2012-02-24T05:00Z

[Federal Register Volume 77, Number 37 (Friday, February 24, 2012)]
[Notices]
[Pages 11184-11186]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4280]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66414; File No. SR-BX-2012-009]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to BX Rule 
7021

February 16, 2012.
    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 February 8, 2012, 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 the Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to [sic] a rule change to BX Rule 7021 to 
make available at no cost and on a voluntary basis certain market data 
about market participants' own trading on BX.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxbx.cchwallstreet.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 self-regulatory organization 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 make available to members the Trading and 
Compliance Data Package under BX Rule 7021 (``Data Package''). The Data 
Package allows member firms to obtain via NasdaqTrader.com information 
regarding their own historical quoting and trading activity on BX. The 
Data Package will provide BX Participants with historical data reports 
containing trade reporting information about the Participant's own 
trades in BX, for delivery on an end-of-day or T+1 basis. The Exchange 
may modify the contents of the BX Trading and Compliance Data Package 
from time to time based on subscriber interest.
    The Data Package also provides member firms with information 
concerning their compliance with BX and FINRA rules. In this regard, 
member firms that subscribe to the Data Package can obtain the 
following reports: (1)

[[Page 11185]]

Monthly Compliance Report Cards, which outline firm's own compliance 
with various FINRA rules; (2) Monthly Summaries, which provide monthly 
trading volume statistics for the top 50 market participants broken 
down by industry sector, security or type of trading; and (3) 
Historical Research Reports, which provide a variety of historical 
trading data such as a market maker's quote updates, order activity, 
and detailed trade reporting information.
    Use of this service is voluntary and member firms have the option 
of subscribing or not as they choose. Users will have the option to 
request and download these reports as a standalone product, and 
subscribers to the existing NASDAQ Exchange Trading and Compliance Data 
package who are BX Participants will also have the option to request BX 
reports through their existing service. In either case, the Exchange 
will not charge a fee for the BX version at this time.
2. Statutory Basis
    NASDAQ [sic] believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\3\ in general, and Section 
6(b)(4) and 6(b)(5) of the Act.\4\ The proposed rule change is 
consistent with Section 6(b)(4) because 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 that BX operates 
or controls, and it does not unfairly discriminate between customers, 
issuers, brokers or dealers.
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    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(4) and (b)(5).
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    BX believes it is fair and reasonable to offer the Data Package 
service at no cost and on a voluntary basis to users. The product is 
designed to enhance members' ability to provide liquidity and to trade 
on BX by making market data available quickly and in a useful format. 
In the event BX decides at a later date to assess a fee for the Data 
Package, BX will file a proposed rule change in accordance with the 
Act. Additionally, the proposal is not unreasonably discriminatory in 
that the Data Package will be offered at no charge to all members 
equally.
    Additionally, the proposed rule change is consistent with Section 
6(b)(5) of the Act which requires that exchange rules be 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. As described above, the Data 
Package is designed to enhance the quality of trading on BX by 
providing members with tools to assess their trading results. 
Additionally, the Data Package enables members to assess their trading 
practices from a regulatory and compliance perspective.

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. To 
the contrary, the proposed rule change is pro-competitive in that it 
will allow the Exchange to disseminate a new product on a voluntary 
basis. The Data Package is voluntary on the part of the Exchange which 
is not required to offer such products, and voluntary on the part of 
prospective users that are not required to use it.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-
4(f)(6) thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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 satisfied the five-day prefiling requirement.
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    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.

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 email to rule-comments@sec.gov. Please include 
File Number SR-BX-2012-009 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-2012-009. This file 
number should be included on the subject line if email 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 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-BX-2012-009 and should be 
submitted on or before March 16, 2012.

[[Page 11186]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Kevin M. O'Neill,
Deputy Secretary.
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    \7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2012-4280 Filed 2-23-12; 8:45 am]
BILLING CODE 8011-01-P