80 FR 18471 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify NASDAQ Rule 7001(c)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 65 (April 6, 2015)
Federal Register Volume 80, Issue 65 (April 6, 2015)
| Page Range | 18471-18472 | |
| FR Document | 2015-07883 |
[Federal Register Volume 80, Number 65 (Monday, April 6, 2015)] [Notices] [Pages 18471-18472] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-07883] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74629; File No. SR-NASDAQ-2015-030] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify NASDAQ Rule 7001(c) April 1, 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 March 26, 2015, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to modify NASDAQ Rule 7001(c) concerning market maker participant identifier \3\ (``MPID'') fees. The Exchange proposes to implement the proposed rule change on April 1, 2015. --------------------------------------------------------------------------- \3\ When applied to a market maker, sometimes referred to as a ``maker participant identifier.'' --------------------------------------------------------------------------- The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com at NASDAQ's principal office, 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 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 increase the fee assessed under Rule 7001(c) for MPIDs. MPIDs are special alphabetical identifiers assigned to certain broker-dealers to identify the firms' transaction and quoting activity. NASDAQ administers the assignment of MPIDs, which may be requested by a broker-dealer for use on NASDAQ systems, reporting to the Financial Industry Regulatory Authority (``FINRA''), or a combination of the two. NASDAQ member firms must subscribe to at least one MPID upon gaining NASDAQ membership, but may also request additional MPIDs. Member firms are not assessed a fee for an MPID used exclusively for reporting information to facilities of FINRA, such as the FINRA/NASDAQ Trade Reporting Facility. In December 2014, NASDAQ modified how the fee under Rule 7001(c) is assessed by reducing the fee, but applying the fee to all MPIDs subscribed.\4\ The rule had previously provided that the first MPID subscribed was available at no cost. In making the change, the Exchange more closely aligned the fee assessed with the benefit provided and the costs incurred in offering an MPID, which includes regulatory oversight associated with each MPID. The Exchange is now proposing to modestly increase the fee assessed for subscription to an MPID from $500 to $550 per month. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 73705 (December 1, 2015), 79 FR 72221 (December 5, 2014)(SR-NASDAQ-2014-118). --------------------------------------------------------------------------- 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\5\ in general, and with Sections 6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that 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 NASDAQ operates or controls, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f. \6\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- NASDAQ believes that the proposed change is reasonable because it has reviewed the impact of the prior change to the fee and is now proposing to modestly increase the fee to ensure that NASDAQ is able to realize a reasonable profit in addition to covering costs. The Exchange believes that it is reasonable to adjust fees from time to time so that it can continue to make a profit on the products and services it offers. Ensuring that its products and services provide the Exchange with a profit allows it continue to offer and enhance such products and services, such as MPIDs. Moreover, the Exchange notes that its membership fees will continue to remain substantially lower than the analogous fees assessed by the New York Stock Exchange for membership.\7\ The Exchange believes that the proposed change is both an equitable allocation and is not designed to permit unfair discrimination between member firms because the fee is applied to all member firms equally based on the number of MPIDs subscribed. --------------------------------------------------------------------------- \7\ The Exchange believes that the New York Stock Exchange (``NYSE'') Trading License Fee is analogous to membership fees of NASDAQ as they both provide access to the trading facilities of their respective exchanges. In this regard, NYSE assesses an annual fee of $50,000 for the first license held by a member organization, and $15,000 for each additional license. See https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf. By contrast, NASDAQ would assess the proposed monthly fee of $550 per MPID ($6,600 annually), an annual membership fee of $3,000, and a monthly trading rights fee of $1,000 ($12,000 annually). See NASDAQ Rule 7001(a). --------------------------------------------------------------------------- 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.\8\ NASDAQ does not believe that the proposed rule change places an unnecessary burden on competition because it is a modest fee increase that will allow NASDAQ to realize a reasonable profit in addition to covering costs. As noted above, NASDAQ's membership fees remain substantially lower than the analogous fees of the NYSE, and membership fees are subject to competition from other exchanges. Accordingly, if the changes proposed herein are unattractive to market participants, it is likely that NASDAQ will experience a decline in membership and/or order flow as a result. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- [[Page 18472]] 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,\9\ and paragraph (f) \10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-2015-030 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-2015-030. 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 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal offices of 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- 030, and should be submitted on or before April 27, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). Brent J. Fields, Secretary. [FR Doc. 2015-07883 Filed 4-3-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 18471
Please direct your written comments the proposed rule change and discussed controls, and is not designed to permit
to Pamela Dyson, Director/Chief any comments it received on the unfair discrimination between
Information Officer, Securities and proposed rule change. The text of those customers, issuers, brokers, or dealers.
Exchange Commission, C/O Remi statements may be examined at the NASDAQ believes that the proposed
Pavlik-Simon, 100 F Street NE., places specified in Item IV below. The change is reasonable because it has
Washington, DC 20549; or send an email Exchange has prepared summaries, set reviewed the impact of the prior change
to: PRA_Mailbox@sec.gov. forth in sections A, B, and C below, of to the fee and is now proposing to
Dated: March 31, 2015. the most significant parts of such modestly increase the fee to ensure that
Brent J. Fields,
statements. NASDAQ is able to realize a reasonable
Secretary. A. Self-Regulatory Organization’s profit in addition to covering costs. The
Statement of the Purpose of, and Exchange believes that it is reasonable
[FR Doc. 2015–07754 Filed 4–3–15; 8:45 am]
Statutory Basis for, the Proposed Rule to adjust fees from time to time so that
BILLING CODE 8011–01–P
Change it can continue to make a profit on the
products and services it offers. Ensuring
1. Purpose that its products and services provide
SECURITIES AND EXCHANGE
COMMISSION NASDAQ is proposing to increase the the Exchange with a profit allows it
fee assessed under Rule 7001(c) for continue to offer and enhance such
[Release No. 34–74629; File No. SR– MPIDs. MPIDs are special alphabetical products and services, such as MPIDs.
NASDAQ–2015–030] identifiers assigned to certain broker- Moreover, the Exchange notes that its
dealers to identify the firms’ transaction membership fees will continue to
Self-Regulatory Organizations; The
and quoting activity. NASDAQ remain substantially lower than the
NASDAQ Stock Market LLC; Notice of
administers the assignment of MPIDs, analogous fees assessed by the New
Filing and Immediate Effectiveness of
which may be requested by a broker- York Stock Exchange for membership.7
Proposed Rule Change To Modify
dealer for use on NASDAQ systems, The Exchange believes that the
NASDAQ Rule 7001(c)
reporting to the Financial Industry proposed change is both an equitable
April 1, 2015. Regulatory Authority (‘‘FINRA’’), or a allocation and is not designed to permit
Pursuant to Section 19(b)(1) of the combination of the two. NASDAQ unfair discrimination between member
Securities Exchange Act of 1934 member firms must subscribe to at least firms because the fee is applied to all
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 one MPID upon gaining NASDAQ member firms equally based on the
notice is hereby given that on March 26, membership, but may also request number of MPIDs subscribed.
2015, The NASDAQ Stock Market LLC additional MPIDs. Member firms are not B. Self-Regulatory Organization’s
(‘‘NASDAQ’’ or the ‘‘Exchange’’) filed assessed a fee for an MPID used Statement on Burden on Competition
with the Securities and Exchange exclusively for reporting information to
Commission (‘‘Commission’’) a facilities of FINRA, such as the FINRA/ NASDAQ does not believe that the
proposed rule change as described in NASDAQ Trade Reporting Facility. proposed rule change will result in any
Items I, II and III below, which Items In December 2014, NASDAQ burden on competition that is not
have been prepared by the Exchange. modified how the fee under Rule necessary or appropriate in furtherance
The Commission is publishing this 7001(c) is assessed by reducing the fee, of the purposes of the Act, as amended.8
notice to solicit comments on the but applying the fee to all MPIDs NASDAQ does not believe that the
proposed rule change from interested subscribed.4 The rule had previously proposed rule change places an
persons. provided that the first MPID subscribed unnecessary burden on competition
was available at no cost. In making the because it is a modest fee increase that
I. Self-Regulatory Organization’s change, the Exchange more closely will allow NASDAQ to realize a
Statement of the Terms of the Substance aligned the fee assessed with the benefit reasonable profit in addition to covering
of the Proposed Rule Change provided and the costs incurred in costs. As noted above, NASDAQ’s
The Exchange proposes to modify offering an MPID, which includes membership fees remain substantially
NASDAQ Rule 7001(c) concerning regulatory oversight associated with lower than the analogous fees of the
market maker participant identifier 3 each MPID. The Exchange is now NYSE, and membership fees are subject
(‘‘MPID’’) fees. The Exchange proposes proposing to modestly increase the fee to competition from other exchanges.
to implement the proposed rule change assessed for subscription to an MPID Accordingly, if the changes proposed
on April 1, 2015. from $500 to $550 per month. herein are unattractive to market
The text of the proposed rule change participants, it is likely that NASDAQ
is available at http://nasdaq.cchwall 2. Statutory Basis will experience a decline in
street.com at NASDAQ’s principal NASDAQ believes that the proposed membership and/or order flow as a
office, and at the Commission’s Public rule change is consistent with the result.
Reference Room. provisions of Section 6 of the Act,5 in
general, and with Sections 6(b)(4) and 7 The Exchange believes that the New York Stock
II. Self-Regulatory Organization’s Exchange (‘‘NYSE’’) Trading License Fee is
6(b)(5) of the Act,6 in particular, in that
Statement of the Purpose of, and analogous to membership fees of NASDAQ as they
it provides for the equitable allocation
Statutory Basis for, the Proposed Rule both provide access to the trading facilities of their
of reasonable dues, fees and other respective exchanges. In this regard, NYSE assesses
Change
charges among members and issuers and an annual fee of $50,000 for the first license held
In its filing with the Commission, other persons using any facility or by a member organization, and $15,000 for each
tkelley on DSK4VPTVN1PROD with NOTICES
NASDAQ included statements additional license. See https://www.nyse.com/
system which NASDAQ operates or publicdocs/nyse/markets/nyse/NYSE_Price_
concerning the purpose of, and basis for, List.pdf. By contrast, NASDAQ would assess the
4 See Securities Exchange Act Release No. 73705
proposed monthly fee of $550 per MPID ($6,600
1 15 U.S.C. 78s(b)(1). (December 1, 2015), 79 FR 72221 (December 5, annually), an annual membership fee of $3,000, and
2 17 CFR 240.19b–4. 2014)(SR–NASDAQ–2014–118). a monthly trading rights fee of $1,000 ($12,000
3 When applied to a market maker, sometimes 5 15 U.S.C. 78f. annually). See NASDAQ Rule 7001(a).
referred to as a ‘‘maker participant identifier.’’ 6 15 U.S.C. 78f(b)(4) and (5). 8 15 U.S.C. 78f(b)(8).
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![18472 Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices
C. Self-Regulatory Organization’s available for Web site viewing and requirements.1 The purpose of rule 154
Statement on Comments on the printing in the Commission’s Public is to reduce the amount of duplicative
Proposed Rule Change Received From Reference Room, 100 F Street NE., prospectuses delivered to investors
Members, Participants, or Others Washington, DC 20549 on official sharing the same address.
Written comments were neither business days between the hours of Under rule 154, a prospectus is
solicited nor received. 10:00 a.m. and 3:00 p.m. Copies of such considered delivered to all investors at
filing also will be available for a shared address, for purposes of the
III. Date of Effectiveness of the inspection and copying at the principal federal securities laws, if the person
Proposed Rule Change and Timing for offices of the Exchange. All comments relying on the rule delivers the
Commission Action received will be posted without change; prospectus to the shared address,
The foregoing change has become the Commission does not edit personal addresses the prospectus to the
effective pursuant to Section 19(b)(3)(A) identifying information from investors as a group or to each of the
of the Act,9 and paragraph (f) 10 of Rule submissions. You should submit only investors individually, and the investors
19b–4, thereunder. At any time within information that you wish to make consent to the delivery of a single
60 days of the filing of the proposed rule available publicly. All submissions prospectus. The rule applies to
change, the Commission summarily may should refer to File Number SR– prospectuses and prospectus
temporarily suspend such rule change if NASDAQ–2015–030, and should be supplements. Currently, the rule
it appears to the Commission that such submitted on or before April 27, 2015. permits householding of all
action is necessary or appropriate in the prospectuses by an issuer, underwriter,
For the Commission, by the Division
public interest, for the protection of or dealer relying on the rule if, in
of Trading and Markets, pursuant to
investors, or otherwise in furtherance of addition to the other conditions set forth
delegated authority.11
the purposes of the Act. in the rule, the issuer, underwriter, or
Brent J. Fields, dealer has obtained from each investor
IV. Solicitation of Comments Secretary. written or implied consent to
Interested persons are invited to [FR Doc. 2015–07883 Filed 4–3–15; 8:45 am] householding.2 The rule requires
submit written data, views, and BILLING CODE 8011–01–P issuers, underwriters, or dealers that
arguments concerning the foregoing, wish to household prospectuses with
including whether the proposed rule implied consent to send a notice to each
change is consistent with the Act. SECURITIES AND EXCHANGE investor stating that the investors in the
Comments may be submitted by any of COMMISSION household will receive one prospectus
the following methods: in the future unless the investors
Proposed Collection; Comment provide contrary instructions. In
Electronic Comments
Request addition, at least once a year, issuers,
• Use the Commission’s Internet underwriters, or dealers relying on rule
comment form (http://www.sec.gov/ Upon Written Request, Copies 154 for the householding of
rules/sro.shtml); or Available From: Securities and prospectuses relating to open-end
• Send an email to rule-comments@ Exchange Commission, Office of FOIA management investment companies that
sec.gov. Please include File Number SR– Services, 100 F Street NE., Washington, are registered under the Investment
NASDAQ–2015–030 on the subject line. DC 20549–2736. Company Act of 1940 (‘‘mutual funds’’)
Paper Comments Extension: Rule 154; SEC File No. must explain to investors who have
270–438, OMB Control No. 3235–0495. provided written or implied consent
• Send paper comments in triplicate
Notice is hereby given that, pursuant how they can revoke their consent.3
to Brent J. Fields, Secretary, Securities
to the Paperwork Reduction Act of 1995 Preparing and sending the notice and
and Exchange Commission, 100 F Street
(44 U.S.C. 3501–3520), the Securities the annual explanation of the right to
NE., Washington, DC 20549–1090.
and Exchange Commission revoke are collections of information.
All submissions should refer to File The rule allows issuers, underwriters,
(‘‘Commission’’) is soliciting comments
Number SR–NASDAQ–2015–030. This or dealers to household prospectuses if
on the collection of information
file number should be included on the certain conditions are met. Among the
summarized below. The Commission
subject line if email is used. To help the conditions with which a person relying
plans to submit this existing collection
Commission process and review your on the rule must comply are providing
of information to the Office of
comments more efficiently, please use notice to each investor that only one
Management and Budget for extension
only one method. The Commission will prospectus will be sent to the household
and approval.
post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ The federal securities laws generally 1 The Securities Act requires the delivery of
rules/sro.shtml). Copies of the prohibit an issuer, underwriter, or prospectuses to investors who buy securities from
submission, all subsequent dealer from delivering a security for sale an issuer or from underwriters or dealers who
amendments, all written statements unless a prospectus meeting certain participate in a registered distribution of securities.
requirements accompanies or precedes See Securities Act sections 2(a)(10), 4(1), 4(3), 5(b)
with respect to the proposed rule [15 U.S.C. 77b(a)(10), 77d(1), 77d(3), 77e(b); see
change that are filed with the the security. Rule 154 (17 CFR 230.154) also rule 174 under the Securities Act (17 CFR
Commission, and all written under the Securities Act of 1933 (15 230.174) (regarding the prospectus delivery
communications relating to the U.S.C. 77a) (the ‘‘Securities Act’’) obligation of dealers); rule 15c2–8 under the
permits, under certain circumstances, Securities Exchange Act of 1934 (17 CFR 240.15c2–
proposed rule change between the 8) (prospectus delivery obligations of brokers and
tkelley on DSK4VPTVN1PROD with NOTICES
Commission and any person, other than delivery of a single prospectus to dealers).
those that may be withheld from the investors who purchase securities from 2 Rule 154 permits the householding of
public in accordance with the the same issuer and share the same prospectuses that are delivered electronically to
address (‘‘householding’’) to satisfy the investors only if delivery is made to a shared
provisions of 5 U.S.C. 552, will be electronic address and the investors give written
applicable prospectus delivery consent to householding. Implied consent is not
9 15 U.S.C. 78s(b)(3)(A). permitted in such a situation. See rule 154(b)(4).
10 17 CFR 240.19b–4(f). 11 17 CFR 200.30–3(a)(12). 3 See Rule 154(c).
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Document Created: 2015-12-18 11:17:59
Document Modified: 2015-12-18 11:17:59
| 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 18471 |
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