Document ID: SEC-2012-1853-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Stock Exchange, Inc.
Posted Date: 2012-11-14T05:00Z

[Federal Register Volume 77, Number 220 (Wednesday, November 14, 2012)]
[Notices]
[Pages 67849-67850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27598]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 68175; File No. SR-NSX-2012-17]

Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Its Fee and Rebate Schedule

November 7, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is 
hereby given that on October 31, 2012, National Stock Exchange, Inc. 
(``NSX[supreg]'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``SEC'' or ``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 comment 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 is proposing to amend its Fee and Rebate Schedule (the 
``Fee Schedule'') issued pursuant to Exchange Rule 16.1(a) to implement 
a monthly FIX Port fee for ETP Holders. The text of the proposed rule 
change is available on the Exchange's Web site at www.nsx.com, at the 
Exchange'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, 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 parts 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 proposing to amend its Fee Schedule to add a 
monthly FIX Port fee for ETP Holders of $100 per FIX Port. ETP Holders 
who participate in the NSX's Order Delivery mode of interaction are 
required to maintain at least two (2) FIX Ports (one to receive inbound 
trade notifications and another to send the Exchange order 
instructions.) To date, the NSX has not charged ETP Holders for FIX 
Port connections to the Exchange. NSX recently made sizable investments 
to upgrade computer equipment during a server relocation, including 
certain hardware technology and FIX Port enhancements. This fee will 
help recover some cost associated with the upgrade and help maintain 
the equipment in the future.
    The Exchange notes that the amount the port fee is identical to 
that charged by the Chicago Stock Exchange, Inc. (``CBSX'').\3\ 
Moreover, following these changes, NSX connectivity costs will still be 
lower than those assessed for connectivity at other exchanges. For 
example, (``BATS'') assesses a FIX fee of $400 per month,\4\ and the 
NASDAQ Stock Market LLC assesses a fee of $500 per FIX port per 
month.\5\
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    \3\ See CBSX's Fee Schedule at http://www.cboe.com/publish/cbsxfeeschedule/cbsxfeeschedule.pdf (dated September 7, 2012).
    \4\ See BAT's Fee Schedule at http://cdn.batstrading.com/resources/regulation/rule_book/BATS-Exchanges_Fee_Schedules.pdf 
(dated October 1, 2012).
    \5\ See Nasdaq's Fee Schedule at http://www.nasdaqtrader.com/trader.aspx?id=pricelisttrading2.
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Operative Date and Notice
    The Exchange currently intends to implement the proposed FIX Port 
Fee, which is effective on filing of this proposed rule, operative as 
of commencement of trading on November 1, 2012. Pursuant to NSX Rule 
16.1(c), the Exchange will ``provide ETP Holders with notice of all 
relevant dues, fees, assessments and charges of the Exchange'' through 
the issuance of a Regulatory Circular of the changes to the Fee 
Schedule and will post a copy of the rule filing on the Exchange's Web 
site (www.nsx.com). ETP Holders must notify the Exchange by November 
15, 2012 to reduce unused or unwanted FIX Ports so as not be charged 
for them for the month of November 2012.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) of the Securities Exchange Act of 
1934 \6\ (the ``Act''), in general, and Section 6(b)(4) of the Act,\7\ 
in particular in that it is designed to provide for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and other persons using the facilities of the Exchange. The proposed 
fee assessed FIX Ports is reasonable because the amounts of such fees 
are significantly lower than those assessed on other exchanges,\8\ and 
because such increases will assist in recovering expenditures recently 
made to upgrade the NSX connectivity equipment. This proposed change is 
equitable and not unfairly discriminatory because the fees will be 
assessed to all ETP Holders. Requiring ETP Holders who participate in 
the NSX's Order Delivery mode of interaction to maintain at least two 
(2) FIX Ports is not unfairly discriminatory because per port fee is 
significantly lower than those of other exchanges and more than one 
port is required for ETP Holders to efficiently send and receive trade 
notifications regarding their posted Order Delivery orders.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ See supra notes 3, 4, and 5.
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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 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

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

[[Page 67850]]

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change has taken effect upon filing pursuant to 
Section 19(b)(3)(A)(ii) of the Exchange Act \9\ and subparagraph (f)(2) 
of Rule 19b-4 \10\ thereunder, because, as provided in (f)(2), it 
changes ``a due, fee or other charge applicable only to a member'' 
(known on the Exchange as an ETP Holder). At any time within 60 days of 
the filing of such 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4.
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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-NSX-2012-17 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-NSX-2012-17. This file 
number should be included in the subject line if email is used. To help 
the Commission process and review 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. eastern time. Copies of such filings will also 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-NSX-2012-17 and should be 
submitted on or before December 5, 2012.

    For the Commission by the Division of Trading and Markets, 
pursuant to the delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-27598 Filed 11-13-12; 8:45 am]
BILLING CODE 8011-01-P