[Federal Register Volume 76, Number 109 (Tuesday, June 7, 2011)]
[Notices]
[Pages 33014-33015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-13994]
[[Page 33014]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64583; File No. SR-BX-2011-031]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX BX, Inc. To Amend
the Fee Schedule of BOX
June 2, 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 May 31, 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 June 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, and also on the Exchange's
Internet Web site at http://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings.
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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
The Exchange proposes an amendment to the BOX Fee Schedule to
increase the number of contracts per month of Eligible Orders that BOX
will route to Away Exchanges before assessing a $0.50 per contract fee.
BOX currently exempts outbound Eligible Orders routed to Away
Exchanges, up to a maximum of 4,000 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.\6\
Additionally, Section 8 of the BOX Fee Schedule currently imposes a fee
of $0.50 per contract for all Eligible Orders routed to Away Exchanges
in excess of 4,000 contracts per month for an individual BOX Options
Participant.\7\ The Exchange proposes to raise this maximum for the
exemption in Section 7 and the fee assessment in Section 8 to 10,000
contracts per month, per Options Participant.
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\6\ See Securities Exchange Act Release No. 60504 (August 14,
2009), 74 FR 42724 (August 24, 2009) (SR-BX-2009-047).
\7\ See Securities Exchange Act Release No. 60610 (September 1,
2009), 74 FR 46285 (September 8, 2009) (SR-BX-2009-058). 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,\8\ in general, and Section
6(b)(4) of the Act,\9\ 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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\8\ 15 U.S.C. 78f(b).
\9\ 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, up to a maximum of 10,000 contracts per month. Each BOX
Participant will then be assessed a $0.50 per contract fee for orders
routed to away exchanges beyond 10,000 contracts per month. The
Exchange believes that increasing this maximum will attract additional
order flow to BOX to the benefit of all market participants. The
Exchange believes that it is an equitable allocation of the fees
because the order routing fee structure applies to all BOX
Participants.
Further, the Exchange believes the proposed change and its
resulting order routing fees 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, allow BOX to
assess the appropriate fees with respect to orders routed to away
exchanges, and to apply such fees in a manner 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 \10\ and Rule 19b-4(f)(2) thereunder,\11\
because it establishes or changes a due, fee, or other charge
applicable only to a member.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 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
[[Page 33015]]
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 [email protected]. Please include
File Number SR-BX-2011-031 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-2011-031. 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. The text of the proposed rule change is available on
the Commission's Web site at http://www.sec.gov. 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-2011-031 and should be submitted on or before June 28, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13994 Filed 6-6-11; 8:45 am]
BILLING CODE 8011-01-P