[Federal Register Volume 78, Number 112 (Tuesday, June 11, 2013)]
[Notices]
[Pages 35083-35085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13775]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69700; File No. SR-NASDAQ-2013-080]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Adopt Fees for the MOPB Routing Option under Rule 7018(a)

June 5, 2013.
    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 24, 2013 The NASDAQ Stock Market LLC (``NASDAQ'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change as described in Items I, II and 
III below, which Items have been prepared by the Exchange. 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

    NASDAQ proposes to adopt fees for the new MOPB routing option under 
Rule 7018(a). The Exchange has designated the proposed changes as 
immediately effective, and proposes to implement the changes effective 
with the implementation of the MOPB order on June 14, 2013. 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, NASDAQ included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the

[[Page 35084]]

proposed rule change. The text of those 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NASDAQ is proposing to adopt fees for the new MOPB routing option. 
On May 15, 2013, NASDAQ adopted the MOPB routing option, which will be 
implemented in mid-June.\3\ NASDAQ is amending Rule 7018(a), which 
concerns fees assessed to members for the use of the order execution 
and routing services of the Nasdaq Market Center, to adopt associated 
fees assessed for execution of MOPB routing option orders. NASDAQ has 
determined to assess fees for the MOPB routing option that are 
identical to the fees assessed for execution of MOPP routing option 
orders. The MOPB routing option is very similar to the MOPP routing 
option, in that both order types require the member firm to enter the 
size and limit price of the order, which then routes only to protected 
quotations (``Protected Quotes''),\4\ including the NASDAQ Market 
Center, but only for displayed size. Unlike the MOPP routing option, an 
order with the MOPB routing option will not route if, at the time of 
entry, the MOPB order's quantity is insufficient to clear the entire 
size of Protected Quotes, which are better than or equal to the order's 
limit price. In such a case, a MOPB order will instead cancel back 
immediately thus avoiding any execution. Also unlike the MOPP routing 
option, if shares of an order with the MOPB routing option remain un-
executed after routing they will be immediately cancelled back to the 
member rather than posting to the NASDAQ book.
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    \3\ Securities Exchange Act Release No. 69631 (May 23, 2011) 
(SR-NASDAQ-2013-078).
    \4\ As defined by Rule 600(b)(58) of Regulation NMS.
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    NASDAQ is proposing to assess the same fees for execution of MOPB 
routing option orders as are assessed for execution of MOPP routing 
option orders because of the similarity of the two routing options. 
Specifically, NASDAQ is proposing to assess a fee of $0.0035 per share 
executed for a MOPB order in a NASDAQ- \5\ or NYSE-listed \6\ security 
or a Tape B security,\7\ except for those MOPB orders that execute at 
the New York Stock Exchange, which will be charged $0.0027 per share 
executed. NASDAQ notes that the fees assessed for MOPP routing option 
orders are assessed only on a shares executed basis. As such, both MOPP 
and MOPB routing options operate in the same manner for all executed 
shares, with the only difference being that some MOPB orders are 
canceled back in part or in full, as described above. Accordingly, 
NASDAQ believes that it is appropriate to assess the same fee, based on 
shares executed.
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    \5\ Rule 7018(a)(1).
    \6\ Rule 7018(a)(2).
    \7\ Rule 7018(a)(3).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \8\ in general, and with Section 6(b)(4) \9\ of the 
Act, in particular. The Exchange believes it is consistent with Section 
6(b)(4) of the Act because it provides for the equitable allocation of 
reasonable dues, fees and other charges among members and issuers and 
other persons using any facility or system which the Exchange operates 
or controls. The proposed fee structure is equitable and not unfairly 
discriminatory because the Exchange would uniformly assess members the 
same fee structure to access the NASDAQ service. As noted, the MOPB 
order routing option is very similar to the MOPP order routing option, 
differing only in the initial requirements for order entry and how 
unexecuted shares are handled. Both order routing options route to all 
displayed protected quotes, including NASDAQ. As such, the costs 
incurred by NASDAQ in the execution and routing of the shares for both 
MOPP and MOPB routing options are identical and therefore assessing the 
same fees is reasonable.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NASDAQ does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended. The proposed fees 
allow NASDAQ to recapture the costs associated with offering an order 
routing option and the proposed fees are identical to the fees assessed 
for a very similar order routing option. For these reasons, NASDAQ does 
not believe that the proposed rule change will result in any burden on 
competition whatsoever.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

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

    The foregoing change has become effective pursuant to Section 
19(b)(3)(A) of the Act,\10\ and paragraph (f) \11\ of Rule 19b-4, 
thereunder. 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f).
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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-NASDAQ-2013-080 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-2013-080. 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

[[Page 35085]]

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 10:00 a.m. and 3:00 p.m. Copies of 
such filing also will be available for inspection and copying at the 
principal offices of NASDAQ. 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-2013-080, and should be submitted on or before 
July 2, 2013.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-13775 Filed 6-10-13; 8:45 am]
BILLING CODE 8011-01-P