Document ID: SEC-2011-0935-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.
Posted Date: 2011-07-06T04:00Z

[Federal Register Volume 76, Number 129 (Wednesday, July 6, 2011)]
[Notices]
[Pages 39450-39451]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16823]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64768; File No. SR-BX-2011-040]

Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX BX, Inc. To Amend 
the BOX Fee Schedule

June 29, 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 June 28, 2011, NASDAQ OMX BX, Inc. (the ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change as described in Items I and II, below, which Items have been 
prepared by the self-regulatory organization. The Exchange filed the 
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ 
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Fee Schedule of the Boston 
Options Exchange Group, LLC (``BOX'').\5\ While changes to the BOX Fee 
Schedule pursuant to this proposal will be effective upon filing, the 
changes will become operative on July 1, 2011. The text of the proposed 
rule change is available from the principal office of the Exchange, at 
the Commission's Public Reference Room, on the Exchange's Internet Web 
site at http://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings and on 
the Commission's Web site at http://www.sec.gov.
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    \5\ The BOX Fee Schedule can be found on the BOX Web site at 
http://bostonoptions.com/pdf/BOX_Fee _Schedule.pdf.
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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 IV below. The self-regulatory organization 
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
    Section 8 of the BOX Fee Schedule currently imposes a fee of $0.50 
per contract for all Eligible Orders sent to Away Exchanges in excess 
of 10,000 contracts per month for each BOX Options Participant.\6\ 
Additionally, BOX currently exempts outbound Eligible Orders sent to 
Away Exchanges, up to a maximum of 10,000 contracts per month, from the 
fees and credits of Section 7 of the BOX Fee Schedule, as these 
transactions are deemed to neither `add' nor `take' liquidity from the 
BOX Book. The Exchange proposes an amendment to Section 8 of the BOX 
Fee Schedule to eliminate the $0.50 per contract fee on Eligible Orders 
sent to Away Exchanges. Additionally, the Exchange proposes a 
corresponding change to Section 7 so that all Eligible Orders sent to 
Away Exchanges are exempt from Section 7 of the BOX Fee Schedule. 
Therefore, Eligible Orders sent to Away Exchanges will be subject only 
to the applicable transaction fees listed in Sections 1 through 3 of 
the BOX Fee Schedule.
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    \6\ See Securities Exchange Act Release No. 64583 (June 2, 
2011), 76 FR 33014 (June 7, 2011) (SR-BX-2011-031). The proposed 
change will have no effect on the billing of orders of non-BOX 
Options Participants.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\7\ in general, and Section 
6(b)(4) of the Act,\8\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees, and other charges among 
BOX Participants and other persons using its facilities.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that it is equitable to permit BOX 
Participants to have orders routed to away exchanges without being 
assessed a fee. The Exchange believes that BOX Options Participants may 
send additional order flow to BOX, to the benefit of all market 
participants, if there is no fee assessed when Participant orders may 
be sent to an Away Exchange. The Exchange believes that the proposed 
change is an equitable allocation of fees because the order routing fee 
structure applies to all BOX Participants.
    Further, the Exchange believes the proposed change and the 
resulting order routing fee structure are fair and reasonable and must 
be competitive with similar fees in place on other exchanges. BOX 
operates within a highly competitive market in which market 
participants can readily direct order flow to any of eight other 
competing venues if they deem fee levels at a particular venue to be 
excessive. The change to allow BOX Participants to have more orders 
routed away at no cost is intended to attract order flow to BOX and 
provide BOX Participants additional flexibility in their execution 
decisions. The Exchange believes all market participants can benefit 
from greater liquidity on BOX and that it is appropriate to provide a 
fee structure intended to attract additional order flow. In particular, 
the proposed change will allow BOX to remain competitive with other 
exchanges, and allow BOX to maintain a fee structure which is equitable 
among all BOX Participants. The Exchange believes that this competitive 
marketplace impacts the fees present on BOX today and influences this 
proposal.

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. 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 \9\ and Rule 19b-

[[Page 39451]]

4(f)(2) thereunder,\10\ because it establishes or changes a due, fee, 
or other charge applicable only to a member.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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    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.

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-BX-2011-040 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-2011-040. 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 Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street, NW., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such 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-2011-040 and should be 
submitted on or before July 27, 2011.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-16823 Filed 7-5-11; 8:45 am]
BILLING CODE 8011-01-P