Document ID: SEC-2012-0088-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market LLC
Posted Date: 2012-01-20T05:00Z

[Federal Register Volume 77, Number 13 (Friday, January 20, 2012)]
[Notices]
[Pages 3024-3026]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1068]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66158; File No. SR-NASDAQ-2012-006]

Self-Regulatory Organizations; NASDAQ Stock Market LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Options Fees

January 13, 2012.
    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 January 6, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``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 NASDAQ. 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 NASDAQ Stock Market LLC proposes to relocate certain rules in 
the NASDAQ Rulebook. Specifically, the Exchange proposes to relocate 
the following Rules: (i) Rule 7007, Collection of Exchange Fees and 
Other Claims--NASDAQ Options Market; (ii) Rule 7046, Nasdaq Options 
Maintenance Tool, (iii) Rule 7050, NASDAQ Options Market--Fees; (iv) 
Rule 7053, NASDAQ Options Market--Access Services; (v) Rule 7054, 
NASDAQ Options Market Data Distributor Fees; (vi) Rule 7056, NASDAQ 
Options Fee Disputes; and (vii) Rule 7059, NASDAQ Options Regulatory 
Fee. The Exchange is also proposing to relocate a portion of Rule 7002, 
Sales Fee, which applies to options, by replicating that fee in the new 
``Options Fees'' Chapter. The Exchange is proposing to relocate these 
Rules to a new Chapter under the Options Rules.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nasdaq.cchwallstreet.com, at the principal 
office of the Exchange, 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. 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
    NASDAQ proposes to create a new Chapter in the NASDAQ Rulebook and 
relocate certain options fees, which apply only to Options 
Participants, to this new Chapter to further clarify its fees. 
Specifically, the Exchange proposes to create a new ``Chapter XV,'' 
entitled ``Options Fees'' under the Options Rules portion of the 
Rulebook. The Exchange proposes to relocate the below listed Rules, 
currently in the 7000 Series of the Rulebook, to this new Chapter under 
the Options Rules.\3\ This is not a substantive change, but rather 
merely a relocation of Rule text within the Rulebook.
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    \3\ The Exchange is proposing to create two Sales Fee Rules, one 
for equities and one for options. Rule 7002 will be relocated in 
part. The Exchange proposes to create a new ``Sales Fee--Options'' 
Rule in Section 8 of Chapter XV which Rule would replicate the Sales 
Fee Rule, specifically relocating paragraphs 7002(b) and (d), 
applicable to options. Rule 7002(a) and (c) would remain in Rule 
7002, as those paragraphs apply to equities.
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    The Exchange proposes to specifically relocate the following Rules 
to the

[[Page 3025]]

corresponding Sections of new Chapter XV as follows:

Rule 7007. Collection of       Section 1.
 Exchange Fees and Other
 Claims--NASDAQ Options
 Market.
Rule 7050. NASDAQ Options      Section 2.
 Market--Fees.
Rule 7053. NASDAQ Options      Section 3.
 Market--Access Services.
Rule 7054. NASDAQ Options      Section 4.
 Market Data Distributor Fees.
Rule 7059. Options Regulatory  Section 5.
 Fee.
Rule 7046. NASDAQ Options      Section 6.
 Maintenance Tool.
Rule 7056. NASDAQ Options Fee  Section 7.
 Disputes.
Rule 7002. Sales Fee,          Section 8--renamed ``Sales Fees--
 excluding paragraphs (a) and   Options''.
 (c).
 

Options Participants are required, pursuant to Exchange Rules, to 
become members of the NASDAQ Stock Market LLC.\4\ An entity desiring to 
transact options may apply to become an Options Participant, in 
addition to a NASDAQ Stock Market member.\5\ Because participation in 
NOM requires Options Participants to also be members of the NASDAQ 
Stock Market, Options Participants are subject to the charges for 
membership, services and equipment in the Rule 7000 Series. Certain 
fees in the Rule 7000 Series apply only to NASDAQ Stock Market members 
that are Options Participants. In order to distinguish fees applicable 
to members transacting equities from fees applicable to members 
transacting options, the Exchange is proposing to relocate the 
aforementioned Rules to the Options Rules section of the Rulebook. With 
respect to Rule 7002, the Exchange is proposing to create a new Sales 
Fee Rule titled ``Sales Fee--Options'' which would be applicable only 
to options and which replicates the language in Rule 7002(b) and (d) 
specifically in new Section 8. Current Rule 7002 will remain in the 
Rulebook without paragraphs 7002(b) and (d) and the lettering will be 
changed to (a) and (b) only.
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    \4\ See Chapter II, Section 1(b)(iii) of Options Rules.
    \5\ See Chapter II, Section 1 of Options Rules.
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    In addition, the Exchange proposes to add the following language at 
the beginning of the Chapter to clarify that certain fees in the Rule 
7000 series may also be applicable to Options Participants: ``NASDAQ 
Options Market Participants may be subject to the Charges for 
Membership, Services and Equipment in the Rule 7000 Series as well as 
the fees in this Chapter XV.'' The Exchange also proposes to make 
corresponding changes to Rules 1002, Qualifications of Nasdaq Members 
and Associated Persons, 7015, Access Services, and 8320, Payment of 
Fines, Other Monetary Sanctions, or Costs; Summary Action for Failure 
to Pay, to provide updated cross-references to relocated Rules.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \7\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest, 
by organizing its Rules in such a way as to distinguish charges 
applicable to equity members from fees applicable to Options 
Participants.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal to relocate fees applicable 
only to Options Participants, and not applicable to NASDAQ members 
transacting equities, to a new Chapter in the Rulebook specific to 
Options will assist members in locating fees. The Exchange believes 
that creating a new section and relocating the fees will add greater 
clarity to NASDAQ's Rules and provide members further guidance on the 
applicability of those Rules. The Exchange also believes that adding a 
clarifying sentence to the new Chapter to indicate that the Rule 7000 
Series may also be applicable to Options Participants provides a cross-
reference for Options Participants to readily locate other charges 
applicable to them as NASDAQ Stock Market members.

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

    No written comments were either solicited or received.

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

    Pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(1) 
\9\ thereunder, the Exchange has designated this proposal as one that 
constitutes a stated policy, practice or interpretation with respect to 
the meaning, administration, or enforcement of an existing rule of the 
SRO, and therefore has become effective.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(1).
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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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

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-NASDAQ-2012-006 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-NASDAQ-2012-006. This 
file number should be included on the

[[Page 3026]]

subject line if email 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 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-NASDAQ-2012-006 and should be submitted on or before 
February 10, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1068 Filed 1-19-12; 8:45 am]
BILLING CODE 8011-01-P