Document ID: SEC-2009-0899-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Amend the Fee Schedule of the Boston Options Exchange Facility
Posted Date: 2009-07-07T04:00Z

[Federal Register: July 7, 2009 (Volume 74, Number 128)]
[Notices]               
[Page 32212-32214]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07jy09-108]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60198; File No. SR-BX-2009-034]

 
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Order Granting Accelerated Approval of Proposed Rule Change 
To Amend the Fee Schedule of the Boston Options Exchange Facility

June 30, 2009.
    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 26, 2009, 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 Commission is 
publishing this notice to solicit comments on the proposed rule from 
interested persons and approves the proposal on an accelerated basis.
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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 an amendment to the Fee Schedule of the 
Boston Options Exchange Group, LLC (``BOX''). The text of the proposed 
rule change is available from the principal office of the Exchange, at 
the Commission's Public Reference Room and also on the Exchange's 
Internet Web site at http://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/
Filings/.

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.

[[Page 32213]]

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
    Executions on BOX resulting from orders sent via the InterMarket 
Linkage System (``Linkage Orders'') are currently subject to the same 
billing treatment as other executions on BOX. This includes either 
`standard billing' or The Liquidity Make or Take Pricing Structure, as 
described in Section 7 of the BOX Fee Schedule, depending upon the 
particular options class.
    The Exchange recently submitted a proposed rule change \3\ with the 
Commission which removed the following three (3) classes from the 
Liquidity Make or Take Pricing Structure: (1) Standard & Poor's 
Depositary Receipts[reg] (SPY); (2) Powershares[supreg] QQQ Trust 
Series 1 (QQQQ); and (3) iShares Russell 2000[reg] Index Fund (IWM). 
Instead `standard' transaction fees shall apply. Currently, 
transactions in these three classes are charged the Take fee of $0.30. 
Under the new standard fees all executions for Market Makers or Firms 
will be charged $0.20 and there will be no fees for Public Customer 
executions.\4\
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    \3\ See SR-BX-2009-033.
    \4\ The $0.15 fee per executed contract of an Improvement Order 
for a Public Customer that is not submitted as a Customer Price 
Improvement Period Order (``CPO'') for a Price Improvement Period 
(``PIP'') auction--(``non-CPO'') will remain.
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    In conjunction with the above referenced rule change the Exchange 
is now proposing to remove the application of Liquidity Make or Take 
Pricing from Linkage Orders in these three classes sent to and executed 
on BOX. Standard Linkage Fees shall instead apply to transactions in 
these three classes.
2. Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\5\ in general, and 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 
its members and issuers and other persons using its facilities for the 
purpose of executing Linkage Orders that are routed to BOX from other 
market centers. These three particular classes are some of the most 
liquid and actively traded multiply-listed options classes so there is 
no need to entice liquidity by using the Make or Take pricing 
structure. The proposed rule change will apply fees more appropriate 
for the level of liquidity in the specific classes.
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    \5\ 15 U.S.C. 78f(b).
    \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 
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. 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-2009-034 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-2009-034. 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 inspection 
and copying 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 will also be available for 
inspection and copying at the principal office of the self-regulatory 
organization. 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-
2009-034 and should be submitted on or before July 29, 2009.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange \7\ and, in particular, with the requirements of Section 6(b) 
of the Act.\8\ Specifically, the Commission finds that the Exchange's 
proposal is consistent with Section 6(b)(4) of the Act,\9\ which 
requires that the rules of the Exchange provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and other persons using its facilities.
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    \7\ In approving this rule, the Commission notes that it has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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    The Exchange requests that the Commission approve the proposed rule 
change on an accelerated basis pursuant to Section 19(b)(2) of the 
Act.\10\ The Commission finds good cause, pursuant to Section 
19(b)(2)(B) of the Act,\11\ for approving the proposed rule change 
prior to the 30th day after the date of publication of the notice of 
the filing thereof in the Federal Register. An accelerated approval 
will allow the Exchange to immediately implement a lower fee for market 
participants executing certain Linkage Orders on the Exchange.
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 15 U.S.C. 78s(b)(2)(B).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\12\ that the proposed rule change (SR-BX-2009-034), is hereby approved 
on an accelerated basis.

[[Page 32214]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \12\ 15 U.S.C. 78s(b)(2).
    \13\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16036 Filed 7-6-09; 8:45 am]

BILLING CODE 8010-01-P