Document ID: SEC-2012-0015-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.
Posted Date: 2012-01-06T05:00Z

[Federal Register Volume 77, Number 4 (Friday, January 6, 2012)]
[Notices]
[Pages 832-834]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33858]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66074; File No. SR-BX-2011-088]

 Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Waive BX 
Port Pair Fees for Certain Newly-Added Routable Port Pairs

December 30, 2011.
    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 December 28, 2011, NASDAQ OMX BX, Inc. (``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

    The Exchange proposes to offer a waiver of BX Port Pair fees for 
certain newly-added routable port pairs during the months of January 
through March, 2012.
    The text of the proposed rule change is below. Proposed new 
language is italicized; proposed deletions are in [brackets].

7015. Access Services

    The following charges are assessed by the Exchange for ports to 
establish connectivity to the NASDAQ OMX BX Equities Market, as well as 
ports to receive data from the NASDAQ OMX BX Equities Market:
     $400 per month for each port pair, other than Multicast 
ITCH[supreg] data feed pairs, for which the fee is $1000 per month. The 
$400 port pair fee will be waived from January 2012 through March 2012 
for a single port pair subscribed to by a member used for routing 
during this free period. To be eligible for the fee waiver, the member 
must increase the number of routable ports it has as of December 31, 
2011 and must send routable order flow through the designated port pair 
at some point during the free period, otherwise the monthly fee will 
apply.
     Internet Ports: An additional $200 per month for each 
Internet port that requires additional bandwidth.

[[Page 833]]

     TradeInfo BX is available to Members for a fee of $95 per 
user per month.
* * * * *

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 Exchange is amending its fee schedule to waive fees assessed on 
a single port pair used for routing orders from BX, during the months 
of January through March, 2012. The Exchange recently began allowing 
orders placed on the Exchange to route away from BX for execution.\3\ 
The Exchange is proposing to waive, for a limited time, the fee 
assessed for a single port pair under Rule 7015, applicable to a member 
firm that adds an additional port and uses that port for routing on BX 
during the months of January through March, 2012. The Exchange believes 
that waiving the port pair fee will encourage market participants to 
utilize the routing function of the market, and to take advantage of 
new routing strategies made available to market participants.\4\
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    \3\ Securities Exchange Act Release No. 65470 (October 3, 2011), 
76 FR 62489 (October 7, 2011) (SR-BX-2011-048).
    \4\ Id.
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    A member is eligible to subscribe only one free port pair under the 
proposed fee waiver program and the port must be eligible for routing. 
The free port pair must be a newly-subscribed port pair and must be net 
additive to the number of port pairs a member firm is subscribed to as 
of December 31, 2011 (i.e., it cannot replace an existing port pair). 
Additional port pairs subscribed to by a member firm and used for 
routing purposes will not be eligible for the proposed fee waiver. A 
member firm may add a routable port pair that meets the requirements 
noted above at any point during the free period, and will not be 
assessed a fee for the port pair for the months remaining in the free 
period, so long as routable order flow is sent through the port pair at 
some point during the free period. If no routable order flow is sent 
through the designated port pair during the free period, the port pair 
fee will apply to all months the new port pair is subscribed to. For 
example, if on January 25, 2012, Firm ABCD adds a routable port on BX, 
the port pair would be free for the duration of the free period, so 
long as the member firm sends routable order flow through the port pair 
at some point during the free period. At the end of the free period, 
the member will be assessed the normal monthly fee, beginning with 
April 2012. If the member firm does not send routable order flow 
through the newly-added port pair, the member firm would be assessed 
the full fee for each of the months that it had subscribed to the new 
port pair during the free period (in the example above, all three 
months of the free period). A member firm is under no obligation to 
continue subscription to the routable port pair at the end of the free 
period, and may cancel its subscription at any time prior to the 
expiration of the free period with no charge.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\5\ in general, and with 
Section 6(b)(4) of the Act,\6\ 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 the Exchange operates or controls. The Exchange believes 
that the proposed fee waiver is reasonable as it is narrowly focused, 
of limited duration, and is designed to encourage BX member firms to 
use the full functionality of the market, thereby increasing liquidity 
available to investors. The Exchange believes that the proposed fee 
waiver is equitable since it applies to any BX member firm that seeks 
to use the routing function of the market and subscribes a new port 
pair for routing during the free period. To date, no member firms have 
subscribed new port pairs for the purpose of routing from BX. As noted, 
a member firm is not penalized for cancelling its routing port pair at 
the end of the free period.
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    \5\ 15 U.S.C. 78f.
    \6\ 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 
result in any burden on competition that is 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

    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 \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder.\8\ 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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.
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    \7\ 15 U.S.C. 78s(b)(3)(a)(ii).
    \8\ 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 email to rule-comments@sec.gov. Please include 
File Number SR-BX-2011-088 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-2011-088. 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

[[Page 834]]

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-2011-088 and 
should be submitted on or before January 27, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-33858 Filed 1-5-12; 8:45 am]
BILLING CODE 8011-01-P