80 FR 13943 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Penny Pilot Options
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 51 (March 17, 2015)
Federal Register Volume 80, Issue 51 (March 17, 2015)
| Page Range | 13943-13946 | |
| FR Document | 2015-06018 |
[Federal Register Volume 80, Number 51 (Tuesday, March 17, 2015)] [Notices] [Pages 13943-13946] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-06018] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74475; File No. SR-NASDAQ-2015-019] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Penny Pilot Options March 11, 2015. 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 February 27, 2015, The NASDAQ Stock Market LLC (``NASDAQ'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by NASDAQ. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change NASDAQ proposes to modify Chapter XV, entitled ``Options Pricing,'' at Section 2 governing pricing for NASDAQ members using the NASDAQ Options Market (``NOM''),\3\ NASDAQ's facility for executing and routing standardized equity and index options. Specifically, NOM proposes to amend certain Fees for Removing Liquidity. --------------------------------------------------------------------------- \3\ NOM is a facility of NASDAQ. References in this proposal to Chapter and Series refer to NOM rules, unless otherwise indicated. --------------------------------------------------------------------------- While the changes proposed herein are effective upon filing, the Exchange has designated that the amendments be operative on March 2, 2015. 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, 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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose NASDAQ proposes to modify Chapter XV, entitled ``Options Pricing,'' at Section 2(1) governing the fees assessed for option orders entered into NOM. Specifically, the Exchange proposes to increase the Professional,\4\ Firm,\5\ NOM Market Maker,\6\ Non-NOM Market Maker,\7\ and Broker-Dealer \8\ Penny Pilot Options \9\ Fees for Removing Liquidity. [[Page 13944]] No change is proposed to Customer \10\ Penny Pilot Options Fees for Removing Liquidity. --------------------------------------------------------------------------- \4\ The term ``Professional'' means any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s) pursuant to Chapter I, Section 1(a)(48). All Professional orders shall be appropriately marked by Participants. The Exchange initially established Professional pricing in order to ``. . . bring additional revenue to the Exchange.'' See Securities Exchange Act Release No. 64494 (May 13, 2011), 76 FR 29014 (May 19, 2011) (SR-NASDAQ-2011-066). In this filing, the Exchange addressed the perceived favorable pricing of Professionals who were assessed fees and paid rebates like a Customer prior to the filing; and noted that a Professional, unlike a retail Customer, has access to sophisticated trading systems that contain functionality not available to retail Customers. \5\ The term ``Firm'' applies to any transaction that is identified by a member or member organization for clearing in the Firm range at The Options Clearing Corporation (``OCC''). \6\ The term ``NOM Market Maker'' means a Participant that has registered as a Market Maker on NOM pursuant to Chapter VII, Section 2, and must also remain in good standing pursuant to Chapter VII, Section 4. In order to receive NOM Market Maker pricing in all securities, the Participant must be registered as a NOM Market Maker in at least one security. See Chapter XV. ``Participant'' means a firm, or organization that is registered with the Exchange pursuant to Chapter II of these Rules for purposes of participating in options trading on NOM as a ``Nasdaq Options Order Entry Firm'' or ``Nasdaq Options Market Maker''. See Chapter I, Section (a)(40). \7\ The term ``Non-NOM Market Maker'' is a registered market maker on another options exchange that is not a NOM Market Maker. A Non-NOM Market Maker must append the proper Non-NOM Market Maker designation to orders routed to NOM. \8\ The term ``Broker-Dealer'' applies to any transaction which is not subject to any of the other transaction fees applicable within a particular category. \9\ The Penny Pilot was established in March 2008 and was last extended in 2014. See Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR 18587 (April 4, 2008) (SR-NASDAQ-2008-026) (notice of filing and immediate effectiveness establishing Penny Pilot); and 73686 (November 25, 2014), 79 FR 71477 (December 2, 2014) (SR-NASDAQ-2014-115) (notice of filing and immediate effectiveness extending the Penny Pilot through June 30, 2015). All Penny Pilot Options listed on the Exchange can be found at http://www.nasdaqtrader.com/Micro.aspx?id=phlx. \10\ The term ``Customer'' applies to any transaction that is identified by a Participant for clearing in the Customer range at the OCC which is not for the account of broker or dealer or for the account of a ``Professional'' (as that term is defined in Chapter I, Section 1(a)(48)). --------------------------------------------------------------------------- Section 2 NASDAQ Options Market--Fees and Rebates Penny Pilot Fees for Removing Liquidity The Exchange proposes to amend the Fees for Removing Liquidity in Penny Pilot Options in Chapter IV, Section 2(1) as follows: (1) Fees for Execution of Contracts on the NASDAQ Options Market ---------------------------------------------------------------------------------------------------------------- Fees and rebates (per executed contract) ------------------------------------------------------------------------------ Non-NOM Customer Professional Firm market NOM market Broker- maker maker dealer ---------------------------------------------------------------------------------------------------------------- Penny Pilot Options: Fee for Removing Liquidity... $0.48 $0.50 \d\ $0.50 \d\ $0.50 \d\ $0.50 \d\ $0.50 \d\ ---------------------------------------------------------------------------------------------------------------- Today, Professionals, Firms, Non-NOM Market Makers, NOM Market Makers, and Broker-Dealers are assessed a $0.49 per contract Fee for Removing Liquidity in a Penny Pilot Option.\11\ --------------------------------------------------------------------------- \11\ In addition, note d states that Participants that qualify for Customer or Professional Rebate to Add Liquidity Tiers 7 or 8 (the highest rebate tiers) in a given month will be assessed a Professional, Firm, Non-NOM Market Maker, NOM Market Maker, or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.48 per contract and a Customer Fee for Removing Liquidity in Penny Pilot Options of $0.47 per contract. See Chapter XV, Section 2(1). --------------------------------------------------------------------------- The Exchange proposes to increase the Penny Pilot Fee for Removing Liquidity for Professionals, Firms, Non-NOM Market Makers, NOM Market Makers, and Broker-Dealers by a penny, from $0.49 to $0.50 per contract.\12\ The Exchange is increasing the Fees for Removing Liquidity in Penny Pilot Options so that it will be able to continue to offer rebates to Customers, Professionals, Firms, Non-NOM Market Makers, NOM Market Makers, and Broker-Dealers to attract liquidity and encourage order interaction on NOM.\13\ The Exchange will still allow participants that qualify for Customer or Professional Rebate to Add Liquidity Tiers 7 or 8 in a given month to be assessed a Professional, Firm, Non-NOM Market Maker, NOM Market Maker, or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.48 per contract. --------------------------------------------------------------------------- \12\ Customers will continue to be assessed a Penny Pilot Option Fee for Removing Liquidity of $0.48 per contract. \13\ The Customer and Professional Rebate to Add Liquidity in Penny Pilot Options is earned pursuant to eight Monthly Volume Tiers. The NOM Market Maker Rebate to Add Liquidity in Penny Pilot Options is earned pursuant to six different Monthly Volume Tiers. The concept of ``Common Ownership'' (Participants under 75% common ownership or control) applies to pricing in Chapter XV, Section 2 for which a volume threshold or volume percentage is required to obtain the pricing. See Chapter XV, Section 2(1). --------------------------------------------------------------------------- 2. Statutory Basis NASDAQ believes that the proposed fee changes are consistent with the provisions of Section 6 of the Act,\14\ in general, and with Section 6(b)(4) of the Act,\15\ in particular, in that they provide for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which NASDAQ operates or controls as described in detail below. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f. \15\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Penny Pilot Fees for Removing Liquidity The Exchange's proposal to increase the Professional, Firm, Non-NOM Market Maker, NOM Market Maker, and Broker-Dealer Fees for Removing Liquidity in Penny Pilot Options from $0.49 to $0.50 per contract is reasonable because the increase will afford the Exchange the opportunity to offer additional and increased rebates to these Exchange participants, which should benefit all market participants through increased liquidity and order interaction. The Exchange believes that rebates incentivize Participants to select the Exchange as a venue to post liquidity and attract additional order flow to the benefit of all market participants. Incentivizing Participants to post liquidity will also benefit Participants through increased order interaction. Increased liquidity, and in particular Customer liquidity (as noted, the fee for removing Customer liquidity continues to be lower than for removing other liquidity) provides more trading opportunities, which attracts other Participants, including NOM Market Makers.\16\ An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants. Moreover, in constructing the Exchange's fee and rebate program, the Exchange aims to remain competitive with other venues so that it is a superior choice for market participants when posting orders. The Exchange believes that the fee resulting from the proposed increase is still less than the rates assessed by other options for certain Penny Pilot Options.\17\ --------------------------------------------------------------------------- \16\ For obligations of Market Makers, see Chapter VII, Section 5. For Market Maker quotations (e.g. firm quotes, continuous quotes), see Chapter VII, Section 6. \17\ See, for example, the Miami International Securities Exchange LLC (``MIAX'') Fee Schedule. Specifically, orders executed for the account of non-MIAX market makers will be assessed $0.55 per contract in options overlying EEM, GLD, IWM, QQQ, and SPY. --------------------------------------------------------------------------- The Exchange believes that it is equitable and not unfairly discriminatory to increase Fees for Removing Liquidity in Penny Pilot Options for Professionals, Firms, Non-NOM Market Makers, NOM Market Makers, and Broker-Dealers because all market participants, other than Customers, will continue to be assessed a uniform fee. As explained herein, order flow brings unique benefits to the market through increased liquidity which benefits all NOM Participants.\18\ --------------------------------------------------------------------------- \18\ See supra note 16 regarding continuous quoting and the commitment of capital by NOM Market Makers. --------------------------------------------------------------------------- Further, the Exchange believes it is reasonable, equitable and not unfairly discriminatory to offer Participants that qualify for Customer or Professional Rebate to Add Liquidity Tiers 7 or 8 in a given month to be assessed a Professional, Firm, Non-NOM Market Maker, NOM Market Maker, or Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.48 per contract instead of the proposed $0.50 per contract. The increase in the differential from $0.01 to $0.02 is reasonable, equitable and not unfairly discriminatory because it is consistent with differentials at competing options [[Page 13945]] exchanges. For example, NASDAQ OMX PHLX (``PHLX'') provides that any member or member organization under Common Ownership with another member or member organization that qualifies for Customer Rebate Tiers 2, 3, 4 or 5 in Section B of the Pricing Schedule will be assessed $0.60 per contract, a reduction of $0.10 from the standard rate of $0.70 assessed Professional, Firm and Broker-Dealer.\19\ --------------------------------------------------------------------------- \19\ See PHLX's Pricing Schedule. --------------------------------------------------------------------------- The Exchange, and its facility NOM, operates in a highly competitive market, comprised of twelve exchanges, in which market participants can easily and readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or rebates to be inadequate. Accordingly, the fees that are assessed and the rebates paid by the Exchange, as described in the proposal, are influenced by these robust market forces and therefore must remain competitive with fees charged and rebates paid by other venues and therefore must continue to be reasonable and equitably allocated to those members that opt to direct orders to the Exchange rather than competing venues. The proposed fees are designed to ensure a fair and reasonable use of Exchange resources by allowing the Exchange to recoup costs while continuing to attract liquidity and offer connectivity at competitive rates to Exchange members and member organizations. By offering competitive pricing, the Exchange desires to incentivize members and member organizations, through the Exchange's rebate and fee structure, to select NOM as a venue for bringing liquidity to the Exchange and trading. Such competitive, differentiated pricing exists today on other options exchanges. The Exchange's goal is creating and increasing incentives to attract orders that will, in turn, benefit all market participants through increased liquidity. B. Self-Regulatory Organization's Statement on Burden on Competition NASDAQ does not believe that the proposed rule changes will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. In the Exchange's fee schedule for Removing Liquidity in Penny Pilot Options, Customers have had to pay the lowest fee, and this continues to be reflected in the pricing schedule. The Exchange does not believe the proposed differential would result in any burden on competition as between Participants. The Exchange believes that continuing to assess Customers the current fee while increasing the fee for other Participants creates competition among options exchanges because the Exchange believes that this may cause market participants to select NOM as a venue to send Customer and other order flow. The Exchange believes that incentivizing Participants to post liquidity on NOM benefits NOM Participants through increased order interaction. The Exchange's proposal to increase the Professional, Firm, Non-NOM Market Maker, NOM Market Maker, and Broker-Dealer Fees for Removing Liquidity in Penny Pilot Options does not misalign the current fees on NOM. As noted, Customers were assessed less than other participants before the proposal, and will continue to be assessed less under the new fee. The Exchange believes that other market participants benefit from incentivizing order flow as explained herein. As noted, Customers continue to pay a lower Fee for Removing Liquidity in Penny Pilot Options, which is currently the case for most fees on NOM that are either not assessed to a Customer or where a Customer is assessed the lowest fee because of the liquidity such order flow brings to the Exchange. Also, NOM Market Makers have obligations \20\ to the market which are not borne by other market participants and therefore the Exchange believes that NOM Market Makers are entitled to a lower fee. --------------------------------------------------------------------------- \20\ See supra note 16. --------------------------------------------------------------------------- For the reasons specified herein, the Exchange does not believe this proposal will result in any burden on competition. The Exchange operates in a highly competitive market comprised of twelve U.S. options exchanges in which sophisticated and knowledgeable market participants can readily send order flow to competing exchanges if they deem fee levels or rebate incentives at a particular exchange to be excessive or inadequate. The Exchange believes that this competitive marketplace impacts the fees and rebates present on the Exchange today and substantially influences the proposals set forth above. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Pursuant to Section 19(b)(3)(A)(ii) of the Act,\21\ the Exchange has designated this proposal as establishing or changing a due, fee, or other charge imposed on any person, whether or not the person is a member of the self-regulatory organization, which renders the proposed rule change effective upon filing. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. 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 CommentsUse 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-2015-019 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASDAQ-2015-019. 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 [[Page 13946]] 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 10:00 a.m. and 3:00 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-NASDAQ-2015-019 and should be submitted on or before April 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ Brent J. Fields, Secretary. --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2015-06018 Filed 3-16-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 13943
of such transactions that meet the SECURITIES AND EXCHANGE Exchange has prepared summaries, set
Suppression Criteria. FINRA stated that COMMISSION forth in sections A, B, and C below, of
this additional information would the most significant aspects of such
[Release No. 34–74475; File No. SR– statements.
facilitate a more effective surveillance
NASDAQ–2015–019]
program and improve post-trade A. Self-Regulatory Organization’s
transparency. The Commission believes Self-Regulatory Organizations; The Statement of the Purpose of, and
that these new requirements are NASDAQ Stock Market LLC; Notice of Statutory Basis for, the Proposed Rule
reasonably designed to carry out these Filing and Immediate Effectiveness of Change
objectives and are therefore consistent Proposed Rule Change Relating to
with the Act. Furthermore, the Penny Pilot Options 1. Purpose
Commission does not believe that
March 11, 2015. NASDAQ proposes to modify Chapter
commenters raised any issue that would
Pursuant to Section 19(b)(1) of the XV, entitled ‘‘Options Pricing,’’ at
preclude approval of this proposal, and
Securities Exchange Act of 1934 Section 2(1) governing the fees assessed
that FINRA reasonably responded to the for option orders entered into NOM.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
comments in Amendment No. 1. Specifically, the Exchange proposes to
notice is hereby given that on February
VI. Accelerated Approval 27, 2015, The NASDAQ Stock Market increase the Professional,4 Firm,5 NOM
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed Market Maker,6 Non-NOM Market
The Commission finds good cause, with the Securities and Exchange Maker,7 and Broker-Dealer 8 Penny Pilot
pursuant to Section 19(b)(2) of the Commission (‘‘SEC’’ or ‘‘Commission’’) Options 9 Fees for Removing Liquidity.
Act,31 for approving the proposed rule the proposed rule change as described
change, as modified by Amendment No. in Items I, II, and III, below, which Items 4 The term ‘‘Professional’’ means any person or
1 thereto, prior to the 30th day after have been prepared by NASDAQ. The entity that (i) is not a broker or dealer in securities,
and (ii) places more than 390 orders in listed
publication of Amendment No. 1 in the Commission is publishing this notice to options per day on average during a calendar month
Federal Register. Amendment No. 1 solicit comments on the proposed rule for its own beneficial account(s) pursuant to
responds to the specific issue regarding change from interested persons. Chapter I, Section 1(a)(48). All Professional orders
the implementation timeframe raised by shall be appropriately marked by Participants. The
I. Self-Regulatory Organization’s Exchange initially established Professional pricing
both comment letters. Furthermore, Statement of the Terms of Substance of in order to ‘‘. . . bring additional revenue to the
Amendment No. 1 clarifies when the the Proposed Rule Change Exchange.’’ See Securities Exchange Act Release
Suppression Indicator should be No. 64494 (May 13, 2011), 76 FR 29014 (May 19,
included as well as when to determine NASDAQ proposes to modify Chapter 2011) (SR–NASDAQ–2011–066). In this filing, the
XV, entitled ‘‘Options Pricing,’’ at Exchange addressed the perceived favorable pricing
non-member affiliate status. The of Professionals who were assessed fees and paid
Commission notes that the rest of the Section 2 governing pricing for rebates like a Customer prior to the filing; and noted
NASDAQ members using the NASDAQ that a Professional, unlike a retail Customer, has
proposed rule change is not being
Options Market (‘‘NOM’’),3 NASDAQ’s access to sophisticated trading systems that contain
amended and was subject to a full functionality not available to retail Customers.
facility for executing and routing
notice-and-comment period. These 5 The term ‘‘Firm’’ applies to any transaction that
standardized equity and index options. is identified by a member or member organization
revisions add clarity to the proposal and Specifically, NOM proposes to amend for clearing in the Firm range at The Options
do not raise any novel regulatory certain Fees for Removing Liquidity. Clearing Corporation (‘‘OCC’’).
concerns. Accordingly, the Commission While the changes proposed herein 6 The term ‘‘NOM Market Maker’’ means a
finds that good cause exists to approve are effective upon filing, the Exchange Participant that has registered as a Market Maker on
the proposal, as modified by NOM pursuant to Chapter VII, Section 2, and must
has designated that the amendments be also remain in good standing pursuant to Chapter
Amendment No. 1, on an accelerated operative on March 2, 2015. VII, Section 4. In order to receive NOM Market
basis. The text of the proposed rule change Maker pricing in all securities, the Participant must
is available on the Exchange’s Web site be registered as a NOM Market Maker in at least one
VII. Conclusion security. See Chapter XV. ‘‘Participant’’ means a
at http:// firm, or organization that is registered with the
IT IS THEREFORE ORDERED www.nasdaq.cchwallstreet.com, at the Exchange pursuant to Chapter II of these Rules for
pursuant to Section 19(b)(2) of the Act 32 principal office of the Exchange, and at purposes of participating in options trading on
the Commission’s Public Reference NOM as a ‘‘Nasdaq Options Order Entry Firm’’ or
that the proposed rule change (SR– ‘‘Nasdaq Options Market Maker’’. See Chapter I,
FINRA–2014–050), as modified by Room. Section (a)(40).
Amendment No. 1, be and hereby is II. Self-Regulatory Organization’s
7 The term ‘‘Non-NOM Market Maker’’ is a
approved on an accelerated basis. registered market maker on another options
Statement of the Purpose of, and exchange that is not a NOM Market Maker. A Non-
For the Commission, by the Division of Statutory Basis for, the Proposed Rule NOM Market Maker must append the proper Non-
Trading and Markets, pursuant to delegated Change NOM Market Maker designation to orders routed to
NOM.
authority.33 In its filing with the Commission, the 8 The term ‘‘Broker-Dealer’’ applies to any
Brent J. Fields, Exchange included statements transaction which is not subject to any of the other
Secretary. concerning the purpose of and basis for transaction fees applicable within a particular
category.
[FR Doc. 2015–06012 Filed 3–16–15; 8:45 am] the proposed rule change and discussed 9 The Penny Pilot was established in March 2008
BILLING CODE 8011–01–P
any comments it received on the and was last extended in 2014. See Securities
proposed rule change. The text of these Exchange Act Release Nos. 57579 (March 28, 2008),
mstockstill on DSK4VPTVN1PROD with NOTICES
statements may be examined at the 73 FR 18587 (April 4, 2008) (SR–NASDAQ–2008–
places specified in Item IV below. The 026) (notice of filing and immediate effectiveness
establishing Penny Pilot); and 73686 (November 25,
2014), 79 FR 71477 (December 2, 2014) (SR–
1 15 U.S.C. 78s(b)(1). NASDAQ–2014–115) (notice of filing and
2 17 CFR 240.19b–4.
31 15
immediate effectiveness extending the Penny Pilot
U.S.C. 78s(b)(2). 3 NOM is a facility of NASDAQ. References in through June 30, 2015). All Penny Pilot Options
32 15 U.S.C. 78s(b)(2).
this proposal to Chapter and Series refer to NOM listed on the Exchange can be found at http://
33 17 CFR 200.30–3(a)(12). rules, unless otherwise indicated. www.nasdaqtrader.com/Micro.aspx?id=phlx.
VerDate Sep<11>2014 18:09 Mar 16, 2015 Jkt 235001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 E:\FR\FM\17MRN1.SGM 17MRN1](https://thefederalregister.org/doc/80_FR_13994/page/1.svg)
![13946 Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices
those that may be withheld from the Standards of Professional Conduct for established or will establish a QLCC.2
public in accordance with the Attorneys prescribed by the rule and Establishing the written procedures
provisions of 5 U.S.C. 552, will be required by Section 307 of the Sarbanes- required by the rule should not impose
available for Web site viewing and Oxley Act of 2002 (15 U.S.C. 7245). The a significant burden. We assume that an
printing in the Commission’s Public rules impose an ‘‘up-the-ladder’’ issuer would incur a greater burden in
Reference Room, 100 F Street NE., reporting requirement when attorneys the year that it first establishes the
Washington, DC 20549, on official appearing and practicing before the procedures than in subsequent years, in
business days between the hours of Commission become aware of evidence which the burden would be incurred in
10:00 a.m. and 3:00 p.m. Copies of the of a material violation by the issuer or updating, reviewing, or modifying the
filing also will be available for any officer, director, employee, or agent procedures. For purposes of the PRA,
inspection and copying at the principal of the issuer. An issuer may choose to we assume that an issuer would spend
office of the Exchange. All comments establish a qualified legal compliance 6 hours every three-year period on the
received will be posted without change; committee (‘‘QLCC’’) as an alternative procedures. This would result in an
the Commission does not edit personal procedure for reporting evidence of a average burden of 2 hours per year.
identifying information from material violation. In the rare cases in Thus, we estimate for purposes of the
submissions. You should submit only which a majority of a QLCC has PRA that the total annual burden
information that you wish to make concluded that an issuer did not act imposed by the collection of
available publicly. All submissions appropriately, the QLCC may information would be 746 hours.
should refer to File Number SR– communicate that information to the Assuming half of the burden hours will
NASDAQ–2015–019 and should be Commission. The collection of be incurred by outside counsel at a rate
submitted on or before April 7, 2015. information is, therefore, an important of $500 per hour would result in a cost
For the Commission, by the Division of component of the Commission’s of $186,500.
Trading and Markets, pursuant to delegated program to discourage violations of the The estimate of average burden hours
authority.22 federal securities laws and promote is made solely for the purposes of the
Brent J. Fields, ethical behavior of attorneys appearing Paperwork Reduction Act, and is not
Secretary. and practicing before the Commission. derived from a comprehensive or even
[FR Doc. 2015–06018 Filed 3–16–15; 8:45 am]
The respondents to this collection of a representative survey or study. An
information are attorneys who appear agency may not conduct or sponsor, and
BILLING CODE 8011–01–P
and practice before the Commission a person is not required to respond to,
and, in certain cases, the issuer, and/or a collection of information unless it
SECURITIES AND EXCHANGE officers, directors and committees of the displays a currently valid OMB control
COMMISSION issuer. In providing quality number.
representation to issuers, attorneys may Written comments are requested on:
Submission for OMB Review; report evidence of violations to others (a) Whether the collection of
Comment Request within the issuer, including the Chief information is necessary for the proper
Legal Officer, the Chief Executive performance of the functions of the
Upon Written Request, Copies Available
Officer, and, where necessary, the Commission, including whether the
From: U.S. Securities and Exchange
directors. In addition, officers and information has practical utility; (b) the
Commission, Office of FOIA Services,
directors investigate evidence of accuracy of the Commission’s estimate
100 F Street NE., Washington, DC
violations and report within the issuer of the burden[s] of the collection of
20549–2736.
the results of the investigation and the information; (c) ways to enhance the
Extension: remedial steps they have taken or quality, utility, and clarity of the
Reports of Evidence of Material Violations. sanctions they have imposed. Except as information collected; and (d) ways to
SEC File No. 270–514, OMB Control No.
3235–0572.
discussed below, we believe that the minimize the burden of the collection of
reporting requirements imposed by the information on respondents, including
Notice is hereby given that pursuant rule are ‘‘usual and customary’’ through the use of automated collection
to the Paperwork Reduction Act (PRA) activities that do not add to the burden techniques or other forms of information
of 1995, 44 U.S.C. Sections 3501–3520, that would be imposed by the collection technology.
the Securities and Exchange of information. The public may view the background
Commission (‘‘Commission’’) is Certain aspects of the collection of documentation for this information
soliciting comments on the collection of information, however, may impose a collection at the following Web site,
information summarized below. The burden. For an issuer to establish a www.reginfo.gov . Comments should be
Commission plans to submit the QLCC, the QLCC must adopt written directed: (i) to Desk Officer for the
existing collection of information to the procedures for the confidential receipt, Securities and Exchange Commission,
Office of Management and Budget for retention, and consideration of any Office of Information and Regulatory
extension of the previously approved report of evidence of a material Affairs, Office of Management and
collection of information discussed violation. We estimate for purposes of Budget, Room 10102, New Executive
below. the PRA that there are approximately Office Building, Washington, DC 20503
On February 6, 2003, the Commission 11,396 issuers that are subject to the or by sending an email to:
published final rules, effective August 5, rules.1 Of these, we estimate that Shagufta_Ahmed@omb.eop.gov; and (ii)
2003, entitled ‘‘Standards of approximately 3.3 percent, or 373, have to Pamela Dyson, Director/Chief
mstockstill on DSK4VPTVN1PROD with NOTICES
Professional Conduct for Attorneys Information Officer, Securities and
Appearing and Practicing Before the 1 This figure is based on the estimated 8,145
Exchange Commission, c/o Remi Pavlik-
Commission in the Representation of an operating companies that filed annual reports on Simon, 100 F St. NE., Washington, DC
Issuer’’ (17 CFR 205.1–205.7). The Form 10–K, Form 20–F, or Form 40–F during the
20549 or by sending an email to
information collection embedded in the 2013 fiscal year (the most recent data currently
available), and the estimated 3,251 investment
rules is necessary to implement the companies that filed periodic reports on Form N– 2 This estimate is based on the issuer-filings made
SAR between June 1, 2013 and May 31, 2014 (the with the Commission during the past three years
22 17 CFR 200.30–3(a)(12). most recent data currently available). that include a reference to the issuer’s QLCC.
VerDate Sep<11>2014 18:09 Mar 16, 2015 Jkt 235001 PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 E:\FR\FM\17MRN1.SGM 17MRN1](https://thefederalregister.org/doc/80_FR_13994/page/4.svg)
Document Created: 2015-12-18 12:02:11
Document Modified: 2015-12-18 12:02:11
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 13943 |
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