Document ID: SEC-2010-0204-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2010-02-08T05:00Z

[Federal Register: February 8, 2010 (Volume 75, Number 25)]
[Notices]               
[Page 6245-6246]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe10-101]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61467; File No. SR-NASDAQ-2010-020]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify Fees for Members Using the NASDAQ Market Center

February 2, 2010.
    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 1, 2010, The NASDAQ Stock Market LLC (``NASDAQ'' or the 
``Exchange'') 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 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

    NASDAQ proposes to modify pricing for NASDAQ members using the 
NASDAQ Market Center. NASDAQ will implement the proposed change on 
February 1, 2010. The text of the proposed rule change is available at 
http://nasdaqomx.cchwallstreet.com/, at NASDAQ's principal office, 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, NASDAQ 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. 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 introducing pricing for its SAVE routing strategy, which 
was recently filed on an immediately effective basis in SR-NASDAQ-2010-
018.\3\ In the SAVE strategy, at the option of the entering party, 
orders either route to NASDAQ OMX BX (``BX''), check the NASDAQ book, 
and then route to other destinations on the routing table for SAVE, or 
check the NASDAQ book first and then route to routing table 
destinations, which may include BX. For orders pursuing this routing 
approach, NASDAQ will pass through all fees assessed and rebates 
offered by BX, charge $0.0010 per share executed for orders that 
execute at the New York Stock Exchange (``NYSE''), and charge $0.0026 
per share executed for orders that execute in other away venues. Orders 
that execute in the NASDAQ Market Center will be charged the normal 
NASDAQ execution charges.
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    \3\ Securities Exchange Act Release No. 34-61460 (February 1, 
2010) (SR-NASDAQ-2010-018).
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    NASDAQ is also amending its fee schedule to reflect recent 
modifications to Rule 4758, which governs order routing. NASDAQ amended 
that rule to describe various routing options with greater specificity 
than had previously been provided by the rule. Whereas the NASDAQ fee 
schedule contained in Rule 7018 had previously contained descriptive 
references to the routing parameters of particular routing options, the 
schedule is now being amended to refer to specific order routing 
options by the same name used in Rule 4758, such as SCAN, DOT, or TFTY. 
NASDAQ believes that this change will increase the clarity of both its 
routing rule and its fee schedule. The amended fee schedule also 
clarifies that TFTY, MOPP, SAVE, and directed orders are not counted 
for purposes of determining a member's shares of liquidity routed under 
provisions that base certain discounts on the number of shares of 
liquidity routed, removed and/or provided.
    NASDAQ is also removing several unnecessary provisions from Rule 
7018. Specifically, NASDAQ is deleting references to (i) orders in 
NASDAQ-listed securities that execute at BX prior to routing to NYSE or 
NYSE Amex, since neither venue trades NASDAQ-listed securities, and 
(ii) ``other orders'' that execute at BX without attempting to execute 
at NASDAQ, since all possible execution parameters for orders that 
execute at BX without checking the NASDAQ book are covered by other fee 
provisions.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\4\ in general, and with Section 
6(b)(4) of the Act,\5\ 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. NASDAQ is introducing fees for the 
new SAVE routing option, under which members pay a low fee to route to 
the NYSE and other destinations to encourage members to make greater 
use of NASDAQ's routing services. The changes will result in a 
reduction of fees paid by members that make use of SAVE, as compared 
with currently

[[Page 6246]]

available routing options offered by NASDAQ.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
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    NASDAQ notes that it operates in a highly competitive market in 
which market participants can readily direct order flow to competing 
venues if they deem fee levels at a particular venue to be excessive. 
NASDAQ believes that the change will further enhance the 
competitiveness of its fees in comparison with those charged by other 
venues, and that its fees are reasonable and equitably allocated to 
members on the basis of whether they opt to direct orders to NASDAQ.

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.

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 Act \6\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\7\ 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.
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    \6\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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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 rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2010-020 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-2010-020. 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,\8\ 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, 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-NASDAQ-2010-020 and should 
be submitted on or before March 1, 2010.
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    \8\ The text of the proposed rule change is available on the 
Commission's Web site at http://www.sec.gov/rules/sro.shtml.
    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-2631 Filed 2-5-10; 8:45 am]
BILLING CODE 8011-01-P