80_FR_25435 80 FR 25350 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees, Dues and Other Charges

80 FR 25350 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees, Dues and Other Charges

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 85 (May 4, 2015)

Page Range25350-25352
FR Document2015-10281

Federal Register, Volume 80 Issue 85 (Monday, May 4, 2015)
[Federal Register Volume 80, Number 85 (Monday, May 4, 2015)]
[Notices]
[Pages 25350-25352]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-10281]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74821; File No. SR-NASDAQ-2015-039]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Fees, Dues and Other Charges

April 28, 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 April 17, 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 and II, 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.
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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 amend Chapter VI, Section 16, entitled ``Fees 
and Charges,'' which rule is applicable to NASDAQ members using the 
NASDAQ Options Market (``NOM''), NASDAQ's facility for executing and 
routing standardized equity and index options.
    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
    The purpose of the proposed rule change is to amend Chapter VI, 
Section 16, entitled ``Fees and Charges.'' Today, the Exchange's Rule 
at Chapter VI, Section 16 discusses participation Fees and notes that 
the Board in its discretion may fix participations fees payable by 
Options Participants on a quarterly basis.\3\ Also, Options 
Participants shall pay a fee for each transaction they execute on NOM, 
as may be determined by the Board in its discretion. The Board may 
prescribe different or no fees for different types of transactions 
conducted on NOM.\4\ The Board may fix and impose other fees, 
assessments or charges to be paid by Options Participants or by classes 
of Options Participants with respect to applications, registrations, 
approvals, use of NOM and Trading System facilities or other services 
or privileges granted.\5\ Finally, an Options Participant that does not 
pay any fees, assessments, charges, fines or other amounts due to NOM 
within thirty (30) days after they have become due and payable shall be 
reported to the Board or its delegate which may, after giving 
reasonable notice to the Options Participant of such arrearages, 
suspend the Options Participant until payment is made or terminate the 
Options Participant's

[[Page 25351]]

participation on NOM. An associated person of an Options Participant 
who fails to pay any fine or other amounts due to NOM within thirty 
(30) days after such amount has become due and payable and after 
reasonable notice of such arrearages, may be suspended from association 
with an Options Participant until payment is made.\6\
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    \3\ See Chapter VI, Section 16(a).
    \4\ See Chapter VI, Section 16(b).
    \5\ See Chapter VI, Section 16(c).
    \6\ See Chapter VI, Section 16(d).
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    The Exchange is proposing to amend the title of Chapter VI, Section 
16 to ``Fees, Dues and Other Charges'' and adopt the rule text of 
current NASDAQ OMX PHLX LLC (``Phlx'') Rule 52 into current Chapter VI, 
Section 16. The Exchange desires to harmonize Chapter VI, Section 16 
with Phlx Rule 52.
    The new rule text would continue to permit the Board of Directors 
to have the power to fix fees. The proposed new rule would permit the 
Board: (i) to establish, assess and levy such fees, dues and other 
charges (including, without limitation, any extraordinary assessments) 
upon members and any other persons using the facilities or services of 
the Exchange, and upon applicants for and persons being admitted, 
registered, qualified and/or initiated to any such status, in each case 
as the Board of Directors may from time to time establish by resolution 
or in the Rules of the Exchange (which shall be deemed to include any 
schedule of fees, dues, other charges and penalties as may be in effect 
from time to time), (ii) to establish rebates, credits and discounts 
with respect to any of the foregoing, (iii) to establish programs 
whereby the Exchange shares or permits any person to participate in any 
identified source of revenues (less any expenses or other charges as 
the Exchange shall determine) of the Exchange, (iv) to provide for the 
direct reimbursement to the Exchange of any cost, expense or category 
thereof, and (v) except insofar as otherwise specified or provided for 
in the By-Laws, to establish and assess penalties for failure to pay 
any fees, dues or charges owed to the Exchange, including, without 
limitation, termination of membership (which membership may be 
reissued) and forfeiture of all rights as a member. The Board of 
Directors may authorize any committee thereof or the Chair of the Board 
of Directors to exercise any powers of the Board of Directors with 
respect to the assessment of fees, dues, other charges and penalties 
authorized in accordance with this Section.\7\ The Exchange believes 
that the proposed rule text includes a more exhaustive list of powers 
that the Board, or its delegate, may exercise with respect to fees.
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    \7\ See proposed new Chapter VI, Section 16(a).
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    The Board of Directors may also, from time to time, fix and impose 
charges upon members, measured by their respective net commissions on 
transactions effected on the Exchange. Such charges shall be payable at 
such times and shall be collected in such manner as may be determined 
by the Board of Directors.\8\ The Exchange believes that this rule text 
is more expansive than the rule text in current rule Chapter VI, 
Section 16 and provides the board with additional flexibility in 
imposing fees. Participants shall abide by the provisions of the 
Exchange's By-Laws and the Rules, which shall include, without 
limitation, the obligation to pay all applicable fees, dues and other 
charges imposed thereon by the By-Laws or the Rules of the Exchange.\9\ 
Participants today are obligated to abide by the provisions of the 
Exchange's By-Laws and the Rules and pay all applicable fees, dues and 
other charges imposed thereon by the By-Laws or the Rules of the 
Exchange. This provision does not impose any new obligations on 
Participants.
---------------------------------------------------------------------------

    \8\ See proposed new Chapter VI, Section 16(b).
    \9\ See proposed new Chapter VI, Section 16(c).
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    Finally, the Board of Directors or their designee may suspend or 
terminate, after due notice, any permit or rights of any Participant or 
employee thereof using facilities or services of the Exchange, or 
enjoying any of the privileges therein, who shall not pay dues, fees, 
other charges, other monies due and owed the Exchange, fines and/or 
other monetary sanctions in accordance with the Rules of the 
Exchange.\10\ Today, the Exchange has the power to suspend Participants 
as noted in current rule Chapter VI, Section 16. The Exchange believes 
that this new provision provides the Board with greater flexibility in 
both suspending and now terminating Participants for failure to pay 
fees. The Exchange's Rules today provide a process for the suspension, 
cancellation and bar of its members.\11\
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    \10\ See proposed new Chapter VI, Section 16(d).
    \11\ See NASDAQ Rule 9553, entitled ``Failure to Pay Nasdaq 
Dues, Fees and Other Charges,'' specifies the process for 
suspension, cancellation and bar applicable to Nasdaq members.
---------------------------------------------------------------------------

    The Exchange is not proposing to adopt the provisions of Phlx Rule 
52(e) as those provisions apply today to NOM Participants.\12\
---------------------------------------------------------------------------

    \12\ See NASDAQ Rule 8320, entitled ``Payment of Fines, Other 
Monetary Sanctions, or Costs; Summary Action for Failure to Pay.''
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \13\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \14\ in particular, in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest. The Exchange believes that these proposed rule changes will 
harmonize the NOM's Rules related to fees with that of Phlx.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange's process for billing and collecting fees on NOM today 
is the same process which exists on Phlx. The Exchange therefore 
desires to adopt Rule 52 to better describe the Board's powers and the 
obligations of Participants with respect to fees. The Exchange believes 
that this new provision provides the Board with greater flexibility in 
both suspending and now terminating Participants for failure to pay 
fees. The Exchange's By-Laws at Article IX, Section 4 provide the Board 
with authority to fix and levy the amount of fees assessed to members 
and Rule 9553 contemplates the ramifications and process by which 
members are notified and sanctioned for a failure to pay such fees.
    The adoption of an Exchange Rule similar to Phlx Rule 52 will align 
the NOM Rules with that of Phlx, with respect to fees, and reflect the 
current process which exists at both exchanges. The new text adds 
clarity to the NOM Rules and better reflects the current process. The 
Exchange believes that the adoption of the new rule text will provide 
Participants with clear guidelines for the payment of fees and will 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.

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 Act. The proposed rule text does 
not impose an undue burden on competition, rather it seeks to clarify 
the power of the Exchange's Board and the manner in which the Exchange 
manages the assessment of fees. NOM Participants will all be subject to 
the same obligations as specified in the proposed rule with respect to 
fees.

[[Page 25352]]

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

    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 from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \15\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\16\
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 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. 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 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-2015-039 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-2015-039. 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 the filing will also 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-2015-039 and should 
be submitted on or before May 26, 2015.
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    \17\ 17 CFR 200.30-3(a)(12).
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    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\

Brent J. Fields,
Secretary.
[FR Doc. 2015-10281 Filed 5-1-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                  25350                           Federal Register / Vol. 80, No. 85 / Monday, May 4, 2015 / Notices

                                                  C. Self-Regulatory Organization’s                       public in accordance with the                          facility for executing and routing
                                                  Statement on Comments on the                            provisions of 5 U.S.C. 552, will be                    standardized equity and index options.
                                                  Proposed Rule Change Received From                      available for Web site viewing and                        The text of the proposed rule change
                                                  Members, Participants, or Others                        printing in the Commission’s Public                    is available on the Exchange’s Web site
                                                                                                          Reference Room, 100 F Street, NE.,                     at http://
                                                    No written comments were solicited
                                                                                                          Washington, DC 20549 on official                       www.nasdaq.cchwallstreet.com, at the
                                                  or received with respect to the proposed
                                                                                                          business days between the hours of                     principal office of the Exchange, and at
                                                  rule change.
                                                                                                          10:00 a.m. and 3:00 p.m. Copies of such                the Commission’s Public Reference
                                                  III. Date of Effectiveness of the                       filing also will be available for                      Room.
                                                  Proposed Rule Change and Timing for                     inspection and copying at the principal                II. Self-Regulatory Organization’s
                                                  Commission Action                                       offices of the Exchange. All comments                  Statement of the Purpose of, and
                                                    Within 45 days of the date of                         received will be posted without change;                Statutory Basis for, the Proposed Rule
                                                  publication of this notice in the Federal               the Commission does not edit personal                  Change
                                                  Register or up to 90 days (i) as the                    identifying information from
                                                                                                          submissions. You should submit only                       In its filing with the Commission, the
                                                  Commission may designate if it finds                                                                           Exchange included statements
                                                  such longer period to be appropriate                    information that you wish to make
                                                                                                          available publicly. All submissions                    concerning the purpose of and basis for
                                                  and publishes its reasons for so finding                                                                       the proposed rule change and discussed
                                                  or (ii) as to which the self-regulatory                 should refer to File Number SR–
                                                                                                          NYSEARCA–2015–29, and should be                        any comments it received on the
                                                  organization consents, the Commission                                                                          proposed rule change. The text of these
                                                  will:                                                   submitted on or before May 26, 2015.
                                                                                                             For the Commission, by the Division                 statements may be examined at the
                                                    (A) By order approve or disapprove                                                                           places specified in Item IV below. The
                                                  the proposed rule change, or                            of Trading and Markets, pursuant to
                                                                                                                                                                 Exchange has prepared summaries, set
                                                    (B) institute proceedings to determine                delegated authority.23
                                                                                                                                                                 forth in sections A, B, and C below, of
                                                  whether the proposed rule change                        Brent J. Fields,                                       the most significant aspects of such
                                                  should be disapproved.                                  Secretary.                                             statements.
                                                  IV. Solicitation of Comments                            [FR Doc. 2015–10311 Filed 5–1–15; 8:45 am]             A. Self-Regulatory Organization’s
                                                    Interested persons are invited to                     BILLING CODE 8011–01–P                                 Statement of the Purpose of, and
                                                  submit written data, views, and                                                                                Statutory Basis for, the Proposed Rule
                                                  arguments concerning the foregoing,                                                                            Change
                                                                                                          SECURITIES AND EXCHANGE
                                                  including whether the proposed rule                     COMMISSION                                             1. Purpose
                                                  change is consistent with the Act.
                                                  Comments may be submitted by any of                     [Release No. 34–74821; File No. SR–                       The purpose of the proposed rule
                                                                                                          NASDAQ–2015–039]                                       change is to amend Chapter VI, Section
                                                  the following methods:
                                                                                                                                                                 16, entitled ‘‘Fees and Charges.’’ Today,
                                                  Electronic comments                                     Self-Regulatory Organizations; The                     the Exchange’s Rule at Chapter VI,
                                                     • Use the Commission’s Internet                      NASDAQ Stock Market LLC; Notice of                     Section 16 discusses participation Fees
                                                  comment form (http://www.sec.gov/                       Filing and Immediate Effectiveness of                  and notes that the Board in its
                                                  rules/sro.shtml); or                                    Proposed Rule Change Relating to                       discretion may fix participations fees
                                                     • Send an email to rule-comments@                    Fees, Dues and Other Charges                           payable by Options Participants on a
                                                  sec.gov. Please include File Number SR–                                                                        quarterly basis.3 Also, Options
                                                                                                          April 28, 2015.                                        Participants shall pay a fee for each
                                                  NYSEARCA–2015–29 on the subject
                                                                                                             Pursuant to Section 19(b)(1) of the                 transaction they execute on NOM, as
                                                  line.
                                                                                                          Securities Exchange Act of 1934                        may be determined by the Board in its
                                                  Paper comments                                          (‘‘Act’’),1 and Rule 19b–4 thereunder,2                discretion. The Board may prescribe
                                                                                                          notice is hereby given that on April 17,               different or no fees for different types of
                                                     • Send paper comments in triplicate
                                                                                                          2015, The NASDAQ Stock Market LLC                      transactions conducted on NOM.4 The
                                                  to Secretary, Securities and Exchange
                                                                                                          (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with                Board may fix and impose other fees,
                                                  Commission, 100 F Street NE.,
                                                                                                          the Securities and Exchange                            assessments or charges to be paid by
                                                  Washington, DC 20549–1090.
                                                                                                          Commission (‘‘SEC’’ or ‘‘Commission’’)                 Options Participants or by classes of
                                                     All submissions should refer to File                 the proposed rule change as described                  Options Participants with respect to
                                                  Number SR–NYSEARCA–2015–29. This                        in Items I and II, below, which Items                  applications, registrations, approvals,
                                                  file number should be included on the                   have been prepared by NASDAQ. The                      use of NOM and Trading System
                                                  subject line if email is used. To help the              Commission is publishing this notice to                facilities or other services or privileges
                                                  Commission process and review your                      solicit comments on the proposed rule                  granted.5 Finally, an Options Participant
                                                  comments more efficiently, please use                   change from interested persons.                        that does not pay any fees, assessments,
                                                  only one method. The Commission will                                                                           charges, fines or other amounts due to
                                                  post all comments on the Commission’s                   I. Self-Regulatory Organization’s
                                                                                                                                                                 NOM within thirty (30) days after they
                                                  Internet Web site (http://www.sec.gov/                  Statement of the Terms of Substance of
                                                                                                                                                                 have become due and payable shall be
                                                  rules/sro.shtml). Copies of the                         the Proposed Rule Change                               reported to the Board or its delegate
                                                  submission, all subsequent                                NASDAQ proposes to amend Chapter                     which may, after giving reasonable
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  amendments, all written statements                      VI, Section 16, entitled ‘‘Fees and                    notice to the Options Participant of such
                                                  with respect to the proposed rule                       Charges,’’ which rule is applicable to                 arrearages, suspend the Options
                                                  change that are filed with the                          NASDAQ members using the NASDAQ                        Participant until payment is made or
                                                  Commission, and all written                             Options Market (‘‘NOM’’), NASDAQ’s                     terminate the Options Participant’s
                                                  communications relating to the
                                                  proposed rule change between the                          23 17 CFR 200.30–3(a)(12).                             3 See Chapter VI, Section 16(a).
                                                  Commission and any person, other than                     1 15 U.S.C. 78s(b)(1).                                 4 See Chapter VI, Section 16(b).
                                                  those that may be withheld from the                       2 17 CFR 240.19b–4.                                    5 See Chapter VI, Section 16(c).




                                             VerDate Sep<11>2014   19:40 May 01, 2015   Jkt 235001   PO 00000   Frm 00077    Fmt 4703   Sfmt 4703   E:\FR\FM\04MYN1.SGM    04MYN1


                                                                                    Federal Register / Vol. 80, No. 85 / Monday, May 4, 2015 / Notices                                               25351

                                                  participation on NOM. An associated                       of powers that the Board, or its delegate,            2. Statutory Basis
                                                  person of an Options Participant who                      may exercise with respect to fees.                       The Exchange believes that its
                                                  fails to pay any fine or other amounts                       The Board of Directors may also, from              proposal is consistent with Section 6(b)
                                                  due to NOM within thirty (30) days after                  time to time, fix and impose charges                  of the Act 13 in general, and furthers the
                                                  such amount has become due and                            upon members, measured by their                       objectives of Section 6(b)(5) of the Act 14
                                                  payable and after reasonable notice of                    respective net commissions on                         in particular, in that it is designed to
                                                  such arrearages, may be suspended from                    transactions effected on the Exchange.                promote just and equitable principles of
                                                  association with an Options Participant                   Such charges shall be payable at such                 trade, to remove impediments to and
                                                  until payment is made.6                                   times and shall be collected in such                  perfect the mechanism of a free and
                                                     The Exchange is proposing to amend                     manner as may be determined by the                    open market and a national market
                                                  the title of Chapter VI, Section 16 to                    Board of Directors.8 The Exchange                     system, and, in general to protect
                                                  ‘‘Fees, Dues and Other Charges’’ and                      believes that this rule text is more                  investors and the public interest. The
                                                  adopt the rule text of current NASDAQ                     expansive than the rule text in current               Exchange believes that these proposed
                                                  OMX PHLX LLC (‘‘Phlx’’) Rule 52 into                      rule Chapter VI, Section 16 and                       rule changes will harmonize the NOM’s
                                                  current Chapter VI, Section 16. The                       provides the board with additional                    Rules related to fees with that of Phlx.
                                                  Exchange desires to harmonize Chapter                     flexibility in imposing fees. Participants               The Exchange’s process for billing
                                                  VI, Section 16 with Phlx Rule 52.                         shall abide by the provisions of the                  and collecting fees on NOM today is the
                                                     The new rule text would continue to                    Exchange’s By-Laws and the Rules,                     same process which exists on Phlx. The
                                                  permit the Board of Directors to have                     which shall include, without limitation,              Exchange therefore desires to adopt
                                                  the power to fix fees. The proposed new                                                                         Rule 52 to better describe the Board’s
                                                                                                            the obligation to pay all applicable fees,
                                                  rule would permit the Board: (i) to                                                                             powers and the obligations of
                                                                                                            dues and other charges imposed thereon
                                                  establish, assess and levy such fees,                                                                           Participants with respect to fees. The
                                                                                                            by the By-Laws or the Rules of the
                                                  dues and other charges (including,                                                                              Exchange believes that this new
                                                                                                            Exchange.9 Participants today are
                                                  without limitation, any extraordinary                                                                           provision provides the Board with
                                                                                                            obligated to abide by the provisions of               greater flexibility in both suspending
                                                  assessments) upon members and any                         the Exchange’s By-Laws and the Rules                  and now terminating Participants for
                                                  other persons using the facilities or                     and pay all applicable fees, dues and                 failure to pay fees. The Exchange’s By-
                                                  services of the Exchange, and upon                        other charges imposed thereon by the                  Laws at Article IX, Section 4 provide the
                                                  applicants for and persons being                          By-Laws or the Rules of the Exchange.                 Board with authority to fix and levy the
                                                  admitted, registered, qualified and/or                    This provision does not impose any new                amount of fees assessed to members and
                                                  initiated to any such status, in each case                obligations on Participants.                          Rule 9553 contemplates the
                                                  as the Board of Directors may from time
                                                                                                               Finally, the Board of Directors or their           ramifications and process by which
                                                  to time establish by resolution or in the
                                                                                                            designee may suspend or terminate,                    members are notified and sanctioned for
                                                  Rules of the Exchange (which shall be
                                                                                                            after due notice, any permit or rights of             a failure to pay such fees.
                                                  deemed to include any schedule of fees,
                                                                                                            any Participant or employee thereof                      The adoption of an Exchange Rule
                                                  dues, other charges and penalties as                                                                            similar to Phlx Rule 52 will align the
                                                  may be in effect from time to time), (ii)                 using facilities or services of the
                                                                                                            Exchange, or enjoying any of the                      NOM Rules with that of Phlx, with
                                                  to establish rebates, credits and                                                                               respect to fees, and reflect the current
                                                  discounts with respect to any of the                      privileges therein, who shall not pay
                                                                                                            dues, fees, other charges, other monies               process which exists at both exchanges.
                                                  foregoing, (iii) to establish programs                                                                          The new text adds clarity to the NOM
                                                  whereby the Exchange shares or permits                    due and owed the Exchange, fines and/
                                                                                                            or other monetary sanctions in                        Rules and better reflects the current
                                                  any person to participate in any                                                                                process. The Exchange believes that the
                                                  identified source of revenues (less any                   accordance with the Rules of the
                                                                                                            Exchange.10 Today, the Exchange has                   adoption of the new rule text will
                                                  expenses or other charges as the                                                                                provide Participants with clear
                                                  Exchange shall determine) of the                          the power to suspend Participants as
                                                                                                                                                                  guidelines for the payment of fees and
                                                  Exchange, (iv) to provide for the direct                  noted in current rule Chapter VI,
                                                                                                                                                                  will remove impediments to and perfect
                                                  reimbursement to the Exchange of any                      Section 16. The Exchange believes that
                                                                                                                                                                  the mechanism of a free and open
                                                  cost, expense or category thereof, and                    this new provision provides the Board
                                                                                                                                                                  market and a national market system.
                                                  (v) except insofar as otherwise specified                 with greater flexibility in both
                                                  or provided for in the By-Laws, to                        suspending and now terminating                        B. Self-Regulatory Organization’s
                                                  establish and assess penalties for failure                Participants for failure to pay fees. The             Statement on Burden on Competition
                                                  to pay any fees, dues or charges owed                     Exchange’s Rules today provide a                        The Exchange does not believe that
                                                  to the Exchange, including, without                       process for the suspension, cancellation              the proposed rule change will impose
                                                  limitation, termination of membership                     and bar of its members.11                             any burden on competition that is not
                                                  (which membership may be reissued)                           The Exchange is not proposing to                   necessary or appropriate in furtherance
                                                  and forfeiture of all rights as a member.                 adopt the provisions of Phlx Rule 52(e)               of the purposes of the Act. The
                                                  The Board of Directors may authorize                      as those provisions apply today to NOM                proposed rule text does not impose an
                                                  any committee thereof or the Chair of                     Participants.12                                       undue burden on competition, rather it
                                                  the Board of Directors to exercise any                                                                          seeks to clarify the power of the
                                                  powers of the Board of Directors with                       8 See proposed new Chapter VI, Section 16(b).       Exchange’s Board and the manner in
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                                                  respect to the assessment of fees, dues,                    9 See proposed new Chapter VI, Section 16(c).       which the Exchange manages the
                                                  other charges and penalties authorized                      10 See proposed new Chapter VI, Section 16(d).      assessment of fees. NOM Participants
                                                  in accordance with this Section.7 The                       11 See NASDAQ Rule 9553, entitled ‘‘Failure to      will all be subject to the same
                                                  Exchange believes that the proposed                       Pay Nasdaq Dues, Fees and Other Charges,’’            obligations as specified in the proposed
                                                  rule text includes a more exhaustive list                 specifies the process for suspension, cancellation
                                                                                                            and bar applicable to Nasdaq members.
                                                                                                                                                                  rule with respect to fees.
                                                                                                              12 See NASDAQ Rule 8320, entitled ‘‘Payment of
                                                    6 See   Chapter VI, Section 16(d).                                                                              13 15   U.S.C. 78f(b).
                                                                                                            Fines, Other Monetary Sanctions, or Costs;
                                                    7 See   proposed new Chapter VI, Section 16(a).         Summary Action for Failure to Pay.’’                    14 15   U.S.C. 78f(b)(5).



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                                                  25352                              Federal Register / Vol. 80, No. 85 / Monday, May 4, 2015 / Notices

                                                  C. Self-Regulatory Organization’s                         file number should be included on the                  (‘‘OMB’’) a request for approval of
                                                  Statement on Comments on the                              subject line if email is used. To help the             extension of the previously approved
                                                  Proposed Rule Change Received From                        Commission process and review your                     collection of information provided for in
                                                  Members, Participants, or Others                          comments more efficiently, please use                  Rule 15g–6—Account Statements for
                                                    No written comments were either                         only one method. The Commission will                   Penny Stock Customers—(17 CFR
                                                  solicited or received.                                    post all comments on the Commission’s                  240.15g–6) under the Securities
                                                                                                            Internet Web site (http://www.sec.gov/                 Exchange Act of 1934 (15 U.S.C. 78a et
                                                  III. Date of Effectiveness of the                         rules/sro.shtml). Copies of the                        seq.).
                                                  Proposed Rule Change and Timing for                       submission, all subsequent
                                                  Commission Action                                         amendments, all written statements                        Rule 15g–6 requires brokers and
                                                                                                            with respect to the proposed rule                      dealers that sell penny stocks to provide
                                                     Because the foregoing proposed rule
                                                                                                            change that are filed with the                         their customers monthly account
                                                  change does not: (i) significantly affect
                                                                                                            Commission, and all written                            statements containing information with
                                                  the protection of investors or the public
                                                  interest; (ii) impose any significant                     communications relating to the                         regard to the penny stocks held in
                                                  burden on competition; and (iii) become                   proposed rule change between the                       customer accounts. The purpose of the
                                                  operative for 30 days from the date on                    Commission and any person, other than                  rule is to increase the level of disclosure
                                                  which it was filed, or such shorter time                  those that may be withheld from the                    to investors concerning penny stocks
                                                  as the Commission may designate, it has                   public in accordance with the                          generally and specific penny stock
                                                  become effective pursuant to Section                      provisions of 5 U.S.C. 552, will be                    transactions.
                                                  19(b)(3)(A) of the Act 15 and                             available for Web site viewing and                        The Commission estimates that
                                                  subparagraph (f)(6) of Rule 19b–4                         printing in the Commission’s Public                    approximately 221 broker-dealers will
                                                  thereunder.16                                             Reference Room, 100 F Street NE.,                      spend an average of 78 hours annually
                                                     At any time within 60 days of the                      Washington, DC 20549, on official                      to comply with this rule. Thus, the total
                                                  filing of the proposed rule change, the                   business days between the hours of
                                                                                                                                                                   compliance burden is approximately
                                                  Commission summarily may                                  10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                                                                                   17,238 burden-hours per year.
                                                  temporarily suspend such rule change if                   filing will also be available for
                                                  it appears to the Commission that such                    inspection and copying at the principal                   An agency may not conduct or
                                                  action is necessary or appropriate in the                 office of the Exchange. All comments                   sponsor, and a person is not required to
                                                  public interest, for the protection of                    received will be posted without change;                respond to, a collection of information
                                                  investors, or otherwise in furtherance of                 the Commission does not edit personal                  under the PRA unless it displays a
                                                  the purposes of the Act. If the                           identifying information from                           currently valid OMB control number.
                                                  Commission takes such action, the                         submissions. You should submit only                       The public may view background
                                                  Commission shall institute proceedings                    information that you wish to make                      documentation for this information
                                                  to determine whether the proposed rule                    available publicly. All submissions                    collection at the following Web site:
                                                  should be approved or disapproved.                        should refer to File Number SR–                        http://www.reginfo.gov. Comments
                                                                                                            NASDAQ–2015–039 and should be
                                                  IV. Solicitation of Comments                                                                                     should be directed to: (i) Desk Officer
                                                                                                            submitted on or before May 26, 2015.
                                                                                                               For the Commission, by the Division                 for the Securities and Exchange
                                                    Interested persons are invited to
                                                  submit written data, views, and                           of Trading and Markets, pursuant to                    Commission, Office of Information and
                                                  arguments concerning the foregoing,                       delegated authority.17                                 Regulatory Affairs, Office of
                                                  including whether the proposed rule                                                                              Management and Budget, Room 10102,
                                                                                                            Brent J. Fields,                                       New Executive Office Building,
                                                  change is consistent with the Act.
                                                                                                            Secretary.                                             Washington, DC 20503 or by sending an
                                                  Comments may be submitted by any of
                                                  the following methods:                                    [FR Doc. 2015–10281 Filed 5–1–15; 8:45 am]             email to:
                                                                                                            BILLING CODE 8011–01–P                                 Shagufta_Ahmed@omb.eop.gov; and (ii)
                                                  Electronic Comments                                                                                              Pamela Dyson, Director/Chief
                                                    • Use the Commission’s Internet                                                                                Information Officer, Securities and
                                                  comment form (http://www.sec.gov/                         SECURITIES AND EXCHANGE                                Exchange Commission, c/o Remi Pavlik-
                                                  rules/sro.shtml); or                                      COMMISSION                                             Simon, 100 F Street NE., Washington,
                                                    • Send an email to rule-comments@                                                                              DC 20549 or by sending an email to
                                                  sec.gov. Please include File Number SR–                   Submission for OMB Review;
                                                                                                            Comment Request                                        PRA_Mailbox@sec.gov. Comments must
                                                  NASDAQ–2015–039 on the subject line.                                                                             be submitted within 30 days of this
                                                  Paper Comments                                            Upon Written Request, Copies Available                 notice.
                                                                                                             From: Securities and Exchange
                                                    • Send paper comments in triplicate                      Commission, Office of FOIA Services,                    Dated: April 28, 2015.
                                                  to Brent J. Fields, Secretary, Securities                  100 F Street NE., Washington, DC                      Brent J. Fields,
                                                  and Exchange Commission, 100 F Street                      20549–2736.                                           Secretary.
                                                  NE., Washington, DC 20549–1090.                                                                                  [FR Doc. 2015–10284 Filed 5–1–15; 8:45 am]
                                                                                                            Extension:
                                                  All submissions should refer to File                        Rule 15g–6, SEC File No. 270–349, OMB                BILLING CODE 8011–01–P
                                                  Number SR–NASDAQ–2015–039. This                               Control No. 3235–0395.
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                                                    15 15  U.S.C. 78s(b)(3)(A).
                                                                                                               Notice is hereby given that pursuant
                                                    16 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–      to the Paperwork Reduction Act of 1995
                                                  4(f)(6) requires a self-regulatory organization to give   (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
                                                  the Commission written notice of its intent to file       Securities and Exchange Commission
                                                  the proposed rule change at least five business days      (‘‘Commission’’) has submitted to the
                                                  prior to the date of filing of the proposed rule
                                                  change, or such shorter time as designated by the         Office of Management and Budget
                                                  Commission. The Exchange has satisfied this
                                                  requirement.                                                17 17   CFR 200.30–3(a)(12).



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Document Created: 2018-02-21 10:22:24
Document Modified: 2018-02-21 10:22:24
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 25350 

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