[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Notices]
[Pages 46287-46288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-21587]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60596; File No. SR-BX-2009-057]


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 Group, LLC

August 31, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on August 31, 2009, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (the ``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 change from interested persons and grant accelerated 
approval of the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 III below, and the most significant 
aspects of such statements are set forth in Sections A, B, and C below.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange recently submitted a proposed rule change \4\ with the 
Commission which eliminated the Liquidity Make or Take Pricing 
Structure on BOX, except for inbound P and P/A Order executions.\5\ 
Instead of the fees and credits that had previously been applied under 
the Liquidity Make or Take Pricing Structure ``standard'' transaction 
fees now apply to all classes listed for trading on BOX that are 
included in the Penny Pilot Program, as referenced in Chapter V, 
Section 33 of the BOX Rules (``Penny Pilot Classes'').\6\
---------------------------------------------------------------------------

    \4\ See SR-BOX-2009-057.
    \5\ Terms not otherwise defined herein shall have the meaning 
proscribed in the Options Order Protection and Locked/Crossed Market 
Plan, or the BOX Rules, respectively.
    \6\ A recent proposal submitted by the Exchange for immediate 
effectiveness previously removed the following three (3) exchange-
traded fund share classes from the Liquidity Make or Take pricing 
structure: (1) Standard & Poor's Depositary Receipts[reg] (SPY); (2) 
Powershares[reg] QQQ Trust Series 1 (QQQQ); and (3) iShares Russell 
2000[reg] Index Fund (IWM). See Securities Exchange Act Release No. 
60221 (July 1, 2009), 74 FR 32996 (July 9, 2009) (SR-BX-2009-033). 
These three classes remain subject only to ``standard'' fees.
---------------------------------------------------------------------------

    Executions on BOX resulting from inbound P and P/A Orders sent via 
the OCC Hub are subject to the same billing treatment as other 
executions on BOX. In conjunction with the above referenced rule change 
the Exchange is now proposing to remove Section 7 of the Fee Schedule 
in its entirety and the application of the Liquidity Make or Take 
Pricing to inbound P and P/A Orders sent to and executed on BOX in 
these Penny Pilot Classes. As a result the Liquidity Make or Take 
Pricing Structure will no longer exist on BOX. Standard P and P/A fees, 
as set forth in Section 4 of the BOX Fee Schedule, shall instead apply 
to inbound P and P/A Orders in all Penny Pilot Classes. In addition, 
the current Section 8 of the Fee Schedule will be renumbered as new 
Section 7. If approved, this proposal will conform inbound P and P/A 
fees with the fees charged to BOX Options Participants for the 
transactions in the same Penny Pilot Classes.
    For example, an inbound P or P/A Order, routed to BOX from an away 
market executes against an order resting on the BOX Book. The inbound P 
or P/A Order is the remover of the liquidity. Prior to this proposal, 
such a transaction may have been subject to the fees set forth in the 
Liquidity Make or Take Pricing Structure, resulting in the applicable 
``take'' fee (currently $0.45) of Section 7 of the Fee Schedule. Under 
this proposal, the standard $0.20 inbound P and P/A Order fee would 
apply.
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 
its members and issuers and other persons using its facilities for the 
purpose of executing inbound P and P/A Orders that are routed to BOX 
from other market centers. In particular, this proposed fee change will 
treat inbound P and P/A Orders the same as other orders in Penny Pilot 
Classes and amend pricing for executions on BOX so as to better compete 
with the current pricing in place on other exchanges.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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.

[[Page 46288]]

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 (www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-BX-2009-057 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-2009-057. 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 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-2009-057 and should be 
submitted on or before September 29, 2009.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the 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.\9\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(4) of the Act,\10\ which 
requires that the rules of an exchange provide for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and other persons using its facilities.
---------------------------------------------------------------------------

    \9\ In approving this rule change, the Commission notes that it 
has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Commission finds good cause for approving this proposal before 
the 30th day after the publication of notice thereof in the Federal 
Register pursuant to 19(b)(2)(B).\11\ The proposal conforms the 
Exchange's fees charged for P Order and P/A Order executions in Penny 
Pilot Classes with the fees charged for other executions to BOX 
Participants in such Penny Pilot Classes. An accelerated approval will 
allow the Exchange to immediately implement a lower fee for market 
participants executing P Orders and P/A Orders on the Exchange.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\12\ that the proposed rule change (SR-BX-2009-057) be, and it 
hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-21587 Filed 9-4-09; 8:45 am]
BILLING CODE 8010-01-P