
[Federal Register: August 11, 2008 (Volume 73, Number 155)]
[Notices]               
[Page 46695-46696]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au08-129]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58298; File No. SR-NASDAQ-2008-055]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order 
Approving Proposed Rule Change Regarding Fees for Orders Routed Via the 
Options Intermarket Linkage

I. Introduction

    On June 18, 2008, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change regarding fees for orders routed via the Options 
Intermarket Linkage (``Options Linkage''). The proposed rule change was 
published for comment in the

[[Page 46696]]

Federal Register on July 1, 2008.\3\ The Commission received no 
comments on the proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 58014 (June 24, 
2008), 73 FR 37520.
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II. Description of the Proposal

    Nasdaq proposes to amend its fees related to orders routed to the 
NASDAQ Options Market (``NOM'') via the Options Linkage to establish a 
Linkage Fee Pilot Program that is effective through July 31, 2009 and 
to clarify the application of options transaction fees for trades 
executed through Options Linkage on the Exchange. Under this pilot, the 
fees applicable to Nasdaq members entering orders directly into NOM 
systems will apply to Nasdaq members and non-members that enter orders 
into other options exchanges that are then routed to Nasdaq via the 
Options Linkage and executed on NOM.
    Under the Exchange's current Rule 7050(1), members are charged a 
fee of $0.45 per executed contract for orders entered and then executed 
on the NOM. Nasdaq's current rule does not differentiate between orders 
entered directly into the NOM via Nasdaq systems and orders received by 
Nasdaq via the Linkage. Since the launch of the NOM, Nasdaq has been 
assessing the same fee for all orders executed on behalf of members on 
its market regardless of whether such orders were entered directly into 
Nasdaq systems or via the Options Linkage.

III. Discussion and Commission Findings

    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.\4\ In 
particular, the Commission finds that the proposal is consistent with 
section 6(b)(4) of the Act,\5\ which requires that an exchange have 
rules that provide for the equitable allocation of reasonable dues, 
fees, and other charges among its members and other persons using its 
facilities.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(4).
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    Under the Exchange's current rule, the fee for members entering an 
order that executes on the NOM is $0.45 per executed contract. Nasdaq's 
current rule does not specifically provide that the same $0.45 options 
transaction fee is charged for trades routed to Nasdaq via the Options 
Linkage. The Exchange's proposal would establish a Linkage Fee Pilot 
Program, for a period ending July 31, 2009, that would charge $0.45 per 
executed contract to members or non-members entering orders via the 
Options Linkage that execute in NOM. Accordingly, the Commission 
believes that the Exchange's proposed rule change and Linkage Fee Pilot 
Program clearly sets forth the fees imposed on Linkage Orders.
    Because the Exchange may have assessed the options transaction fee 
on Linkage Orders prior to this approval and, therefore, without 
authority, any parties assessed the options transaction fee for Linkage 
Orders prior to the approval of this proposed rule change may seek 
reimbursement. In addition, the Commission notes that the Options 
Linkage fees are assessed pursuant to a pilot scheduled to end July 31, 
2009 and that the Commission is continuing to evaluate whether such 
fees are appropriate and consistent with the Act.

IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-NASDAQ-2008-055) be, and 
hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-18427 Filed 8-8-08; 8:45 am]

BILLING CODE 8010-01-P
