80 FR 25745 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NASDAQ Rule 7015(b) and (g) to Modify Port Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 86 (May 5, 2015)

Page Range		25745-25747
FR Document		2015-10399
Federal Register, Volume 80 Issue 86 (Tuesday, May 5, 2015)
[Federal Register Volume 80, Number 86 (Tuesday, May 5, 2015)]
[Notices]
[Pages 25745-25747]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-10399]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74829; File No. SR-NASDAQ-2015-042]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend NASDAQ Rule 7015(b) and (g) to Modify Port Fees

April 29, 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 22, 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 the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend NASDAQ Rule 7015(b) and (g) to 
modify the port fees charged to members and non-members for ports used 
to enter orders into Nasdaq systems, in connection with the use of the 
FIX and OUCH trading telecommunication protocols.
    The text of the proposed rule change is below; proposed new 
language is italicized; proposed deletions are in brackets.
* * * * *

7015. Access Services

    (a) No change.
    (b) Financial Information Exchange (FIX).

------------------------------------------------------------------------
                Ports                                Price
------------------------------------------------------------------------
FIX Trading Port....................  $575[50]/port/month.
FIX Port for Services Other than      $500/port/month.
 Trading.
------------------------------------------------------------------------

    (c)-(f) No change.
    (g) Other Port Fees.
    Remote Multi-cast ITCH Wave Ports.

------------------------------------------------------------------------
                                           Installation      Recurring
               Description                      fee         monthly fee
------------------------------------------------------------------------
MITCH Wave Port at Secaucus, NJ.........          $2,500          $7,500

[[Page 25746]]

 
MITCH Wave Port at Weehawken, NJ........           2,500           7,500
MITCH Wave Port at Mahwah, NJ...........           5,000          12,500
------------------------------------------------------------------------

    The following port fees shall apply in connection with the use of 
other trading telecommunication protocols:
     $575[50] per month for each port pair, other than 
Multicast ITCH[supreg] data feed pairs, for which the fee is $1,000 per 
month for software-based TotalView-ITCH or $2,500 per month for 
combined software- and hardware-based TotalView-ITCH, and TCP ITCH data 
feed pairs, for which the fee is $750 per month.
     An additional $200 per month for each port used for 
entering orders or quotes over the Internet.
     An additional $600 per month for each port used for market 
data delivery over the Internet.
Dedicated OUCH Port Infrastructure
    The Dedicated OUCH Port Infrastructure subscription allows a member 
firm to assign up to 30 of its OUCH ports to a dedicated server 
infrastructure for its exclusive use. A Dedicated OUCH Port 
Infrastructure subscription is available to a member firm for a fee of 
$5,000 per month, which is in addition to the standard fees assessed 
for each OUCH port. A one-time installation fee of $5,000 is assessed 
subscribers for each Dedicated OUCH Port Server subscription.
    (h)-(i) No change.
* * * * *

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 is proposing to amend Nasdaq Rule 7015(b) and (g) to modify 
the monthly fee it charges for ports used to enter orders in the Nasdaq 
Market Center for the trading of equities, in connection with the use 
of FIX and OUCH trading telecommunication protocols.
    The enhanced ports will use field-programmable gate array 
(``FPGA'') technology, which is a hardware-based delivery mechanism and 
an upgrade to the existing software and software-and-hardware based 
mechanisms. By taking advantage of hardware parallelism, FPGA 
technology is capable of processing more data packets during peak 
market conditions without the introduction of variable queuing latency. 
In other words, the upgrade to FPGA will improve the predictability of 
the telecommunications ports and thereby add value to the user 
experience.
    The Exchange is offering new technology and pricing in order to 
keep pace with changes in the industry and evolving customer needs as 
new technologies emerge and products continue to develop and change. 
The costs associated with the hardware-based delivery system cover 
creating, shipping, installing and maintaining the new equipment and 
codebase. From a messaging perspective, the data content and sequencing 
on the new hardware version of the OUCH ports will be the same as on 
the legacy software-based versions of NASDAQ ports that are being 
replaced.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\3\ in general, and with Section 
6(b)(5) of the Act \4\ in particular, in that the proposal is designed 
to prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, 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 continuously 
strives to offer members state of the art technology to enhance their 
trading experience and thereby enhance the national market system. 
Incremental enhancements such as the advent of FPGA technology has 
helped make the U.S. markets the deepest, most liquid markets in the 
world.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed rule change is consistent with 
Section 6(b)(4) of the Act \5\ 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 the 
Exchange operates or controls, and it does not unfairly discriminate 
between customers, issuers, brokers or dealers.
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    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed fees are reasonable in that 
they are based on the costs associated with purchasing hardware 
(capital expenditures) and supporting and maintaining the 
infrastructure (operating expenditures) for the FPGA enhancement for 
member firms. In addition, the FPGA enhancements will provide value to 
members far exceeding the incremental costs imposed. The Exchange also 
believes that the proposed fees are equitable and not unfairly 
discriminatory because the fees apply equally to all users of the FPGA-
enhanced ports. Moreover, the fees apply in direct proportion to the 
number of ports used by each member.

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. To the contrary, 
NASDAQ believes that the proposed rule change is pro-competitive in 
that the enhancements improve the competitiveness of the NASDAQ Market 
Center and the overall quality of the national market system. If, as 
NASDAQ believes, the FPGA enhancement provides NASDAQ a competitive 
advantage, other exchanges will quickly respond by enhancing their own 
markets in the same way. Such innovation and imitation is the very 
essence of the competition the Exchange Act is designed to promote.\6\
---------------------------------------------------------------------------

    \6\ The Chicago Mercantile Exchange is already using FPGA 
technology in order entry ports for the trading of futures. See 
https://www.cmegroup.com/globex/files/NewiLinkArchitecture2014.pdf.

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[[Page 25747]]

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\7\
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    \7\ 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 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-2015-042 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-2015-042. 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-
042, and should be submitted on or before May 26, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-10399 Filed 5-4-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices 25745

SECURITIES AND EXCHANGE well as Section 5 of the Securities Act SECURITIES AND EXCHANGE
COMMISSION of 1933. COMMISSION
Rule 15c2–8 implicitly requires that
Proposed Collection; Comment broker-dealers collect information, as [Release No. 34–74829; File No. SR–
Request such collection facilitates compliance NASDAQ–2015–042]
with the rule. There is no requirement
Upon Written Request, Copies Available
to submit collected information to the Self-Regulatory Organizations; The
From: Securities and Exchange
Commission. In order to comply with NASDAQ Stock Market LLC; Notice of
Commission, Office of FOIA Services,
the rule, broker-dealers participating in Filing and Immediate Effectiveness of
100 F Street NE., Washington, DC
a securities offering must keep accurate Proposed Rule Change To Amend
20549–2736.
records of persons who have indicated NASDAQ Rule 7015(b) and (g) to
Extension: Rule 15c2–8; interest in an IPO or requested a Modify Port Fees
SEC File No. 270–421, OMB Control No. prospectus, so that they know to whom
3235–0481. April 29, 2015.
they must send a prospectus.
Notice is hereby given that pursuant The Commission estimates that the Pursuant to Section 19(b)(1) of the
to the Paperwork Reduction Act of 1995 time broker-dealers will spend Securities Exchange Act of 1934
(44 U.S.C. 3501 et seq.), the Securities complying with the collection of (‘‘Act’’), 1 and Rule 19b–4 thereunder,2
and Exchange Commission information required by the rule is notice is hereby given that on April 22,
(‘‘Commission’’) is soliciting comments 11,900 hours for equity IPOs and 86,460 2015, The NASDAQ Stock Market LLC
on the existing collection of information hours for other offerings. The (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
provided for in Rule 15c2–8 (17 CFR Commission estimates that the total Securities and Exchange Commission
240.15c2–8). The Commission plans to annualized cost burden (copying and (‘‘SEC’’ or ‘‘Commission’’) the proposed
submit this existing collection of postage costs) is $23,800,000 for IPOs rule change as described in Items I, II,
information to the Office of and $3,458,400 for other offerings. and III, below, which Items have been
Management and Budget for extension Written comments are invited on: (a) prepared by the Exchange. The
and approval. Whether the proposed collection of Commission is publishing this notice to
Rule 15c2–8 under the Securities information is necessary for the proper solicit comments on the proposed rule
Exchange Act of 1934 (15 U.S.C. 78a et performance of the functions of the change from interested persons.
seq.) requires broker-dealers to deliver Commission, including whether the
preliminary and/or final prospectuses to information shall have practical utility; I. Self-Regulatory Organization’s
certain people under certain (b) the accuracy of the Commission’s Statement of the Terms of the Substance
circumstances. In connection with estimates of the burden of the proposed of the Proposed Rule Change
securities offerings generally, including collection of information; (c) ways to
initial public offerings (IPOs), the rule The Exchange proposes to amend
enhance the quality, utility, and clarity
requires broker-dealers to take NASDAQ Rule 7015(b) and (g) to
of the information to be collected; and
reasonable steps to distribute copies of modify the port fees charged to
(d) ways to minimize the burden of the
the preliminary or final prospectus to members and non-members for ports
collection of information on
anyone who makes a written request, as used to enter orders into Nasdaq
respondents, including through the use
well as any broker-dealer who is systems, in connection with the use of
of automated collection techniques or
expected to solicit purchases of the the FIX and OUCH trading
other forms of information technology.
security and who makes a request. In telecommunication protocols.
Consideration will be given to
connection with IPOs, the rule requires comments and suggestions submitted in The text of the proposed rule change
a broker-dealer to send a copy of the writing within 60 days of this is below; proposed new language is
preliminary prospectus to any person publication. italicized; proposed deletions are in
who is expected to receive a An agency may not conduct or brackets.
confirmation of sale (generally, this sponsor, and a person is not required to * * * * *
means any person who is expected to respond to, a collection of information
actually purchase the security in the 7015. Access Services
under the PRA unless it displays a
offering) at least 48 hours prior to the currently valid OMB control number. (a) No change.
sending of such confirmation. This Please direct your written comments
requirement is sometimes referred to as (b) Financial Information Exchange
to: Pamela Dyson, Director/Chief
the ‘‘48 hour rule.’’ (FIX).
Information Officer, Securities and
Additionally, managing underwriters Exchange Commission, c/o Remi Pavlik-
are required to take reasonable steps to Ports Price
Simon, 100 F Street NE., Washington,
ensure that all broker-dealers DC 20549, or send an email to: FIX Trading Port ....... $575[50]/port/month.
participating in the distribution of or PRA_Mailbox@sec.gov. FIX Port for Services $500/port/month.
trading in the security have sufficient Other than Trading.
copies of the preliminary or final Dated: April 29, 2015.
prospectus, as requested by them, to Brent J. Fields,
Secretary. (c)–(f) No change.
enable such broker-dealer to satisfy their
respective prospectus delivery [FR Doc. 2015–10397 Filed 5–4–15; 8:45 am] (g) Other Port Fees.
asabaliauskas on DSK5VPTVN1PROD with NOTICES

obligations pursuant to Rule 15c2–8, as BILLING CODE 8011–01–P Remote Multi-cast ITCH Wave Ports.

Installation Recurring
Description fee monthly fee

MITCH Wave Port at Secaucus, NJ ........................................................................................................................ $2,500 $7,500

1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 17:18 May 04, 2015 Jkt 235001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 E:\FR\FM\05MYN1.SGM 05MYN1
Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices 25747

C. Self-Regulatory Organization’s those that may be withheld from the Other matters relating to enforcement
Statement on Comments on the public in accordance with the proceedings.
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be At times, changes in Commission
Members, Participants, or Others available for Web site viewing and priorities require alterations in the
No written comments were either printing in the Commission’s Public scheduling of meeting items.
solicited or received. Reference Room, 100 F Street NE., For further information and to
Washington, DC 20549 on official ascertain what, if any, matters have been
III. Date of Effectiveness of the business days between the hours of added, deleted, or postponed, please
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such contact the Office of the Secretary at
Commission Action filing also will be available for (202) 551–5400.
The foregoing rule change has become inspection and copying at the principal Dated: April 30, 2015.
effective pursuant to Section offices of the Exchange. All comments Brent J. Fields,
19(b)(3)(A)(ii) of the Act.7 received will be posted without change;
Secretary.
At any time within 60 days of the the Commission does not edit personal
[FR Doc. 2015–10538 Filed 5–1–15; 11:15 am]
filing of the proposed rule change, the identifying information from
Commission summarily may BILLING CODE 8011–01–P
submissions. You should submit only
temporarily suspend such rule change if information that you wish to make
it appears to the Commission that such available publicly. All submissions
action is: (i) Necessary or appropriate in SECURITIES AND EXCHANGE
should refer to File Number SR–
the public interest; (ii) for the protection COMMISSION
NASDAQ–2015–042, and should be
of investors; or (iii) otherwise in submitted on or before May 26, 2015. Submission for OMB Review;
furtherance of the purposes of the Act. For the Commission, by the Division of Comment Request
If the Commission takes such action, the Trading and Markets, pursuant to delegated
Commission shall institute proceedings authority.8 Upon Written Request Copies Available
to determine whether the proposed rule Brent J. Fields, From: U.S. Securities and Exchange
should be approved or disapproved. Commission, Office of FOIA Services,
Secretary.
IV. Solicitation of Comments 100 F Street NE., Washington, DC
[FR Doc. 2015–10399 Filed 5–4–15; 8:45 am]
20549–2736.
Interested persons are invited to BILLING CODE 8011–01–P
New Information Collection:
submit written data, views, and
Contract Standard for Contractor
arguments concerning the foregoing, Workforce Inclusion; SEC File No. S7–
including whether the proposed rule SECURITIES AND EXCHANGE
02–15, OMB Control No. 3235–XXXX.
change is consistent with the Act. COMMISSION
Comments may be submitted by any of Notice is hereby given that, pursuant
Sunshine Act Meeting to the Paperwork Reduction Act of 1995
the following methods:
(44 U.S.C. 3501 et seq.), the Securities
Electronic Comments Notice is hereby given, pursuant to
and Exchange Commission (the
the provisions of the Government in the
• Use the Commission’s Internet Sunshine Act, Public Law 94–409, that
Commission) has submitted to the
comment form (http://www.sec.gov/ Office of Management and Budget a
the Securities and Exchange
rules/sro.shtml); or request to approve the collection of
Commission will hold a closed meeting
• Send an email to rule-comments@ information discussed below.
on Thursday, May 7, 2015 at 12 p.m.
sec.gov. Please include File Number SR– Section 342 of the Dodd-Frank Wall
Commissioners, Counsel to the Street Reform and Consumer Protection
NASDAQ–2015–042 on the subject line.
Commissioners, the Secretary to the Act of 2010 (the Dodd-Frank Act)
Paper Comments Commission, and recording secretaries provided that certain agencies,
• Send paper comments in triplicate will attend the Closed Meeting. Certain including the Commission, establish an
to Brent J. Fields, Secretary, Securities staff members who have an interest in Office of Minority and Women
and Exchange Commission, 100 F Street the matters also may be present. Inclusion (OMWI).1 Section 342(c)(2) of
NE., Washington, DC 20549–1090. The General Counsel of the the Dodd-Frank Act requires the OMWI
All submissions should refer to File Commission, or her designee, has Director to include in the Commission’s
Number SR–NASDAQ–2015–042. This certified that, in her opinion, one or procedures for evaluating contract
file number should be included on the more of the exemptions set forth in 5 proposals and hiring service providers a
subject line if email is used. To help the U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) written statement that the contractor
Commission process and review your and 17 CFR 200.402(a)(3), (5), (7), 9(ii) shall ensure, to the maximum extent
comments more efficiently, please use and (10), permit consideration of the possible, the fair inclusion of women
only one method. The Commission will scheduled matter at the closed meeting. and minorities in the workforce of the
post all comments on the Commission’s Commissioner Gallagher, as duty contractor and, as applicable,
Internet Web site (http://www.sec.gov/ officer, voted to consider the items subcontractors.
rules/sro.shtml). Copies of the listed for the closed meeting in closed In addition, section 342(c)(3)(A)
submission, all subsequent session. requires the OMWI Director to establish
amendments, all written statements The subject matter of the closed standards and procedures for
asabaliauskas on DSK5VPTVN1PROD with NOTICES

with respect to the proposed rule meeting will be: determining whether an agency
change that are filed with the Institution and settlement of contractor or subcontractor ‘‘has failed
Commission, and all written injunctive actions; to make a good faith effort to include
communications relating to the Institution and settlement of minorities and women’’ in its
proposed rule change between the administrative proceedings; workforce. Section 342(c)(3)(B)(i)
Commission and any person, other than Adjudicatory matters; and provides that if the OMWI Director
7 15 U.S.C. 78s(b)(3)(A)(ii). 8 17 CFR 200.30–3(a)(12). 1 12 U.S.C. 5452.

VerDate Sep<11>2014 17:18 May 04, 2015 Jkt 235001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\05MYN1.SGM 05MYN1
Document Created: 2015-12-16 07:53:30
Document Modified: 2015-12-16 07:53:30
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 25745