Document ID: SEC-2009-1335-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX Inc.
Posted Date: 2009-09-21T04:00Z

[Federal Register: September 21, 2009 (Volume 74, Number 181)]
[Notices]               
[Page 48115-48116]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21se09-88]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60668; File No. SR-BX-2009-043]

 
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order 
Approving Proposed Rule Change To Extend a Holiday for Certain 
Registration and Processing Fees for Associated Persons

September 14, 2009.

I. Introduction

    On July 23, 2009, NASDAQ OMX BX, Inc. (``Exchange''), filed with 
the Securities and Exchange Commission (``Commission'') pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to extend a fee 
holiday for initial registration and processing and/or transfer and 
relicensing fees collected by the Exchange via Web CRD for the 
registration of associated persons of Exchange members. The proposed 
rule change was published for comment in the Federal Register on August 
10, 2009.\3\ The Commission received no comments on the proposal. This 
order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60427 (August 4, 
2009), 74 FR 39986 (August 10, 2009) (``Notice'').
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II. Description of the Proposal

    The Exchange (as the Boston Stock Exchange), before its purchase by 
The NASDAQ OMX Group, Inc. in 2008,\4\ had ceased the trading of equity 
securities in 2007.\5\ In January 2009, when the Exchange's market 
center was launched, the Exchange adopted a new set of Equity Rules, 
which include rules governing fees charged to members for registration 
of associated persons with the Exchange. Equity Rule 7003(b) sets forth 
the fees collected by the Exchange via the Web CRD system for initial 
registration and transfer or re-licensing: $60 for each initial Form U4 
filed for the registration of a representative or principal,\6\ and $40 
for each transfer or re-licensing of a representative or principal.\7\
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    \4\ See Securities Exchange Act Release No. 58183 (July 17, 
2008), 73 FR 42850 (July 23,
    2008).
    \5\ See Securities Exchange Act Release No. 57757 (May 1, 2008), 
73 FR 26159 (May 8,
    2008).
    \6\ Rule 7003(b)(1).
    \7\ Rule 7003(b)(2).
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    The Exchange recognized that, in connection with the resumption of 
equities trading, additional firms might wish to become members of the 
Exchange, and if so, would need to register associated persons. 
Similarly, additional representatives or principals of pre-existing 
members might wish to trade equities on the Exchange and would thus 
need to register with the Exchange. Therefore, the Exchange waived 
these initial registration and transfer or re-licensing fees from 
January 1, 2009 to July 1, 2009.\8\ The Exchange proposed to extend 
this fee waiver period to cover the period from July 1, 2009 until 
October 1, 2009, to provide more time for associated persons that are 
new to equity trading through the Exchange to register, transfer, or 
re-license without incurring these costs. Registration events occurring 
after October 1, 2009 will be subject to the initial registration and/
or transfer or re-licensing fees.\9\
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    \8\ See Securities Exchange Act Release No. 59337 (February 2, 
2009), 74 FR 6441
    (February 9, 2009).
    \9\ Rule 7003(b)(3) sets forth an annual fee of $50 for each 
registered representative and principal for system processing. This 
annual fee was suspended on January 1, 2009 and will continue to be 
suspended until the Exchange submits a proposed rule change to 
reinstate it. See id. See also Notice.
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III. Discussion and Commission Findings

    The Commission has reviewed the proposed rule change and finds that 
it is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
exchange.\10\ In particular, the Commission finds that the proposed 
rule change is consistent with Section 6(b)(4) of the Act \11\ in that 
it provides for an equitable allocation of reasonable dues, fees, and 
other charges among the Exchange's members and other persons using its 
facilities. The fee waiver applies to initial registration, transfer,

[[Page 48116]]

and re-licensing fees of both representatives and principals, and 
therefore applies equally to all categories of associated persons who 
would incur fees pursuant to Rule 7003(b)(1) and (2). In addition, the 
Commission notes that the Exchange has been waiving these fees since 
January 1, 2009, and believes waiving the fees for an additional three 
months, retroactive from July 1, 2009 until October 1, 2009, is a 
reasonable extension of the fee holiday. Based on the above, the 
Commission believes the proposed rule change constitutes an equitable 
allocation of reasonable dues, fees, and other charges under Section 
6(b)(4) of the Act,\12\ and is otherwise consistent with the 
requirements of the Act.
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    \10\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \11\ 15 U.S.C. 78f(b)(4).
    \12\ Id.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\13\ that the proposed rule change (SR-BX-2009-043), be, and hereby 
is, approved.
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    \13\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22685 Filed 9-18-09; 8:45 am]

BILLING CODE 8010-01-P