[Federal Register Volume 76, Number 248 (Tuesday, December 27, 2011)]
[Notices]
[Pages 81000-81002]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-33052]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66007; File No. SR-NSX-2011-15]


Self-Regulatory Organizations; National Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Its Fee and Rebate Schedule

December 20, 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 December 15, 2011, National Stock Exchange, Inc. 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 Exchange. The Commission is publishing this notice to 
solicit comment 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

    National Stock Exchange, Inc. (``NSX[supreg]'' or ``Exchange'') is 
proposing to continue to make available, without charge, the Exchange's 
data feed, the NSX depth-of-book feed (``DOB feed''), to authorized 
recipients.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nsx.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 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 Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant parts of such 
statements.

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

1. Purpose
    The purpose of the proposed rule change is to continue to make 
available, without charge, the Exchange's data feed, the NSX depth-of-
book feed (``DOB feed''), to authorized recipients.\3\ This rule change 
also describes the Exchange's practices for distributing the NSX DOB 
feed to authorized recipients.
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    \3\ An authorized recipient of the DOB feed must execute 
required documentation with, and be approved by, the Exchange prior 
to receiving the service. Currently, the required documentation 
consists of the NSX Market Data Feed License Agreement, which is 
available on the Exchange Web site (http://www.nsx.com/resources/content/2/4/documents/MarketDataFeed062009.pdf).
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    The Exchange first established its DOB feed in November, 2006. The 
Exchange does not and has never charged authorized recipients for 
receipt of its DOB feed.\4\ The NSX DOB feed

[[Page 81001]]

provides the real-time quotation and execution information, including 
price, size, and buy or sell, for all displayed orders in the NSX book. 
The DOB feed does not disclose the source of any order or identify any 
transaction party. A more specific description of the NSX DOB feed, 
including the type of data, data elements and format, is contained in 
two technical specification documents available for review on the NSX 
Web site (http://www.nsx.com/content/connect-to-nsx). The NSX DOB feed 
is available on a uniform basis to all ETP Holders authorized to 
receive the feed, as well as to any other authorized recipients. 
Authorized recipients must, before receiving the DOB feed, execute 
required Exchange documentation and be approved for receipt of the 
feed. A recipient's continuing eligibility to receive the feed, and the 
permitted uses of the data by a recipient, among other things, is 
governed by the Market Data Feed License Agreement, available on the 
NSX Web site, that must be executed by each authorized DOB feed 
recipient.
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    \4\ Although the Exchange does not charge authorized recipients 
for receipt of the NSX DOB feed, an ETP Holder recipient may incur 
third party costs associated with such feed, including pursuant to 
the Exchange's ability to pass through third party costs to ETP 
Holders pursuant to section III.B of the Fee Schedule.
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    Based on NSX system architecture, market data contained in the NSX 
DOB feed will not be distributed to authorized recipients prior to the 
equivalent data being transmitted to the securities information 
processor (``SIP'').\5\ In addition, the Exchange monitors, in real 
time, its data transmissions to the SIP such that, in the event of 
delay or interruption, the Exchange has policies and procedures in 
place designed to delay transmission of the equivalent data to NSX DOB 
feed recipients.
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    \5\ As measured, based on point in time that the data passes 
through the NSX firewall.
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    By making clear on the Fee Schedule that the DOB feed is available 
free of charge, the Exchange believes that market transparency is 
enhanced and competition is promoted. Should the Exchange determine at 
a later date to charge fees associated with the DOB feed, or develop 
and offer to qualified recipients any other market data feed product, 
the Exchange will submit a proposed rule change to the Commission 
concerning those subjects.
    The absence of an Exchange charge to recipients for receipt of the 
NSX DOB feed is reflected in Section III.C of the Fee Schedule under 
the header ``Depth of Book Feed'' and in corresponding Explanatory 
Endnote 13.
 2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) of the Securities and Exchange Act 
of 1934 (the ``Act''),\6\ in general, and Section 6(b)(5) of the 
Act,\7\ in particular, in that it is designed to promote just and 
equitable principles of trade, remove impediments to, and perfect the 
mechanism of, a free and open market and a national market system, and, 
in general, protect investors and the public interest. Moreover, the 
proposed rule change is not discriminatory in that all qualified ETP 
Holders, and other qualified recipients, are eligible to receive this 
feed. The Exchange also believes that the proposed change is consistent 
with Section 6(b)(5) of the Act,\8\ which requires, among other things, 
that the Exchange's rules are not designed to unfairly discriminate 
between customers, issuers, brokers or dealers. Specially, the Exchange 
believes that the proposed changes to the Fee Schedule are equitable in 
that they apply uniformly to all data recipients.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78f(b)(5).
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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 that is not necessary or appropriate 
in furtherance of the purposes of the Exchange 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 written comments on 
the proposed rule change.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\ 
thereunder.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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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 email to [email protected]. Please include 
File Number SR-NSX-2011-15 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-NSX-2011-15. This file 
number should be included on the 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-NSX-

[[Page 81002]]

2011-15 and should be submitted on or before January 17, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-33052 Filed 12-23-11; 8:45 am]
BILLING CODE 8011-01-P