Document ID: SEC-2009-1125-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NASDAQ OMXBX, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Amend the Fee Schedule of the Boston Options Exchange Group, LLC
Posted Date: 2009-08-10T04:00Z

[Federal Register: August 10, 2009 (Volume 74, Number 152)]
[Notices]               
[Page 39981-39983]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10au09-67]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60416; File No. SR-BX-2009-045]

 
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Order Granting Accelerated Approval of Proposed Rule Change 
To Amend the Fee Schedule of the Boston Options Exchange Group, LLC

July 31, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on July 31, 2009, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (the ``Commission'') 
the proposed rule change as described in Items I and II below, which 
Items have been prepared by the self-regulatory organization. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons and grant accelerated 
approval of the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.

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[[Page 39982]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing an amendment to the Fee Schedule of the 
Boston Options Exchange Group, LLC (``BOX''). 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 self-regulatory organization 
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 III below, and the most significant 
aspects of such statements are set forth in Sections A, B, and C below.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange recently submitted a proposed rule change \4\ with the 
Commission which added the Non-Penny Pilot Class Pricing Structure as 
Section 8 of the BOX Fee Schedule.\5\ Executions on BOX in these Non-
Penny Pilot Classes resulting from orders sent via the InterMarket 
Linkage System (``Linkage Orders'') are currently subject to 
``standard'' billing on BOX.
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    \4\ See SR-BX-2009-044.
    \5\ The Non-Penny Pilot Class Pricing Structure applies to all 
classes listed for trading on BOX that are not included in the Penny 
Pilot Program, as referenced in Chapter V, Section 33 of the BOX 
Rules (``Non-Penny Pilot Classes'').
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    In conjunction with the above referenced rule change the Exchange 
is now proposing to apply the Non-Penny Pilot Class Pricing Structure 
to all Linkage Orders in Non-Penny Pilot Classes sent to and executed 
on BOX. If approved, this proposal will conform Linkage Fees with the 
fees charged to BOX Participants for transactions in the in [sic] same 
Non-Penny Pilot Classes.
    For example, an inbound Linkage Order, whether a P or P/A Order, 
routed to BOX from an away market executes against an order resting on 
the BOX Book. The inbound Linkage Order is the remover of liquidity. 
The inbound Linkage Order will receive a $0.30 credit according to the 
Non-Penny Pilot Class pricing structure. The inbound Linkage Order will 
ultimately receive a $0.10 credit in total (the $0.30 Non-Penny Pilot 
Class Pricing Structure credit less the standard $0.20 inbound Linkage 
Order transaction fee). Prior to this proposal the inbound Linkage 
Order would be charged $0.20 in total.
    Alternatively, a Public Customer order is entered into the BOX 
Trading Host and is routed to an away market as an outbound Linkage 
Order. The Public Customer's Linkage Order is the remover of liquidity 
from the BOX Book. The Public Customer will ultimately receive a $0.30 
total credit according to the Non-Penny Pilot Class pricing structure 
as the standard transaction fee for the routing of Linkage Orders by 
BOX to away markets is free. Prior to this proposal the Public 
Customer's routed order neither received a credit nor was charged a 
fee.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\6\ in general, and Section 
6(b)(4) of the Act,\7\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees, and other charges among 
its members and issuers and other persons using its facilities. In 
particular, the proposed change will allow the fees charged on BOX to 
remain competitive with other exchanges.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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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 not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

III. 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 rule-comments@sec.gov.
    Please include File Number SR-BX-2009-045 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-2009-045. 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 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-2009-045 and should be 
submitted on or before August 31, 2009.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\8\ In

[[Page 39983]]

particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\9\ which requires that the 
rules of an exchange to provide for the equitable allocation of 
reasonable dues, fees and other charges among its members and other 
persons using its facilities.
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    \8\ In approving this rule change, the Commission notes that it 
has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Commission finds good cause for approving this proposal before 
the 30th day after the publication of notice thereof in the Federal 
Register. The proposal seeks to conform the Exchange's fees charged for 
linkage transactions in Non-Penny Pilot Classes with the fees charged 
for transactions to BOX Participants in the same Non-Penny Pilot 
Classes. The Commission notes that the proposal would reduce net costs 
for both inbound and outbound Linkage Orders. The Exchange requests 
that the effective date of the proposed rule change be August 3, 2009. 
The Commission believes that accelerating approval of this proposal 
would allow the Exchange to implement this new Linkage Fee in 
conjunction with the implementation of other related transactions fees 
on August 3, 2009 and would allow the fees/credits applicable to 
Linkage Orders to conform to such other fees.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-BX-2009-045) be, and it 
hereby is, approved on an accelerated basis.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19016 Filed 8-7-09; 8:45 am]

BILLING CODE 8010-01-P