80 FR 27352 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Billing Policies
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 92 (May 13, 2015)
Federal Register Volume 80, Issue 92 (May 13, 2015)
| Page Range | 27352-27354 | |
| FR Document | 2015-11481 |
[Federal Register Volume 80, Number 92 (Wednesday, May 13, 2015)] [Notices] [Pages 27352-27354] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-11481] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74895; File No. SR-NASDAQ-2015-050] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Billing Policies May 7, 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 May 1, 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. --------------------------------------------------------------------------- \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 amend Exchange Rule 7007, and re-title it ``Collection of Exchange Fees and Other Claims and Billing Policy,'' and to require NASDAQ members to submit billing disputes within a certain time period. While changes to the Pricing Schedule [sic] pursuant to this proposal are effective upon filing, the Exchange has designated the proposed amendment to be operative on July 1, 2015. The text of the proposed rule change is available on the Exchange's Web site at http://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 Rule 7007, which was recently filed,\3\ to require all pricing disputes to be submitted to the Exchange in writing \4\ and accompanied by supporting documentation within sixty days of receipt of an invoice. The Exchange believes that this practice will [[Page 27353]] conserve Exchange resources, which are expended when untimely billing disputes require staff to research applicable fees and order information beyond two months after the invoice was issued. --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 74823 (April 28, 2015) (SR-NASDAQ-2015-046) (amending Rule 7007). \4\ The Exchange invoice specifies the Exchange contact persons with whom to dispute the invoice. --------------------------------------------------------------------------- The sixty days limitation would apply to invoices for transactional activity occurring in July 2015 and thereafter.\5\ The Exchange proposes to apply the billing policy in Rule 7007 to the following 7000 series Rules: 7001 (Membership Fees), 7014 (Market Quality Incentive Programs: Investor Support Program), 7015 (Access Services), 7016 (Nasdaq Risk Management), 7018 (Nasdaq Market Center Order Execution and Routing), 7021 (NasdaqTrader.com Trading and Compliance Data Package Fee), 7024 (Clearly Erroneous Module), 7027 (Aggregation of Activity of Affiliated Members), 7029 (Installation, Removal or Relocation), 7030 (Other Services), 7034 (Co-Location Services), 7038 (Step-Outs and Sales Fees Transfers), 7041 (Nasdaq Regulation Reconnaissance Service), 7042 (Non-Tape Riskless Submissions), 7043 (Inclusion of Transaction Fees in Clearing Reports Submitted to ACT), 7049 (Nasdaq InterACT), 7051 (Direct Connectivity to Nasdaq), 7055 (Short Sale Monitor), 7058 (QView), 7060 (Equity Trade Journal for Clearing Firms) and 7061 (Limit Locator). --------------------------------------------------------------------------- \5\ This proposal would not apply to invoices related to June 2015 billing. --------------------------------------------------------------------------- Further, this proposal would provide a cost savings to the Exchange in that it would alleviate administrative burdens related to belated billing disputes, which divert staff resources away from the Exchange's regulatory and business purposes. A similar requirement with respect to initiating billing disputes is in place today for Options Participants on NASDAQ Options Market LLC (``NOM'').\6\ --------------------------------------------------------------------------- \6\ See NOM Rules at Chapter XV, Section 7, entitled ``NASDAQ Options Fee Disputes.'' --------------------------------------------------------------------------- In addition, the Exchange proposes to amend the title of Exchange Rule 7007 from ``Collection of Exchange Fees and Other Claims'' to ``Collection of Exchange Fees and Other Claims and Billing Policy.'' The Exchange believes that the proposed title provides a more specific description of Rule 7007. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \7\ in general, and furthers the objectives of Section 6(b)(5) of the Act \8\ 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, by providing a uniform practice for disputing fees. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the requirement that billing disputes for certain specified fees and rebates must be submitted to the Exchange within sixty days from receipt of the invoice will set objective standards and will be fair to members. The proposal equally applies to all NASDAQ equity members. Also, the Exchange's administrative costs would be lowered as a result of this policy. The Exchange believes that sixty days is ample time to review an invoice and dispute any pricing related to the transactions for that time period. An identical policy applies today with respect to NOM billing.\9\ The Exchange is seeking to apply this policy to all NASDAQ members alike in the same manner. --------------------------------------------------------------------------- \9\ See Chapter XV, Section 7 in the NOM Rules. --------------------------------------------------------------------------- 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 billing policy would apply uniformly to all NASDAQ equity members as it does today with all NOM Participants. All NASDAQ members would be subject to this policy. The Exchange believes that this practice will conserve Exchange resources, which are expended when untimely billing disputes require staff to research applicable fees and order information beyond two months after the invoice is issued. 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)(iii) of the Act \10\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\11\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(a)(iii). \11\ 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. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NASDAQ-2015-050 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-2015-050. 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 [[Page 27354]] 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-2015-050, and should be submitted on or before June 3, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ Robert W. Errett, Deputy Secretary. --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2015-11481 Filed 5-12-15; 8:45 am] BILLING CODE 8011-01-P
![27352 Federal Register / Vol. 80, No. 92 / Wednesday, May 13, 2015 / Notices
present oral statements can be obtained a copy of the Governors’ Decision (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
from the Web site cited above or by authorizing the product, a certification Securities and Exchange Commission
contacting the identified DFO. of compliance with 39 U.S.C. 3633(a), (‘‘SEC’’ or ‘‘Commission’’) the proposed
Moreover, in view of the possibility that and an application for non-public rule change as described in Items I, II,
the schedule for ACRS meetings may be treatment of certain materials. It also and III, below, which Items have been
adjusted by the Chairman as necessary filed supporting financial workpapers. prepared by the Exchange. The
to facilitate the conduct of the meeting, Commission is publishing this notice to
persons planning to attend should check II. Notice of Commission Action
solicit comments on the proposed rule
with these references if such The Commission establishes Docket change from interested persons.
rescheduling would result in a major No. CP2015–64 for consideration of
inconvenience. matters raised by the Notice. I. Self-Regulatory Organization’s
The Commission invites comments on Statement of the Terms of the Substance
Dated: May 5, 2015. of the Proposed Rule Change
Mark L. Banks, whether the Postal Service’s filing is
consistent with 39 U.S.C. 3632, 3633, or The Exchange proposes to amend
Chief, Technical Support Branch, Advisory
Committee on Reactor Safeguards. 3642, 39 CFR part 3015, and 39 CFR Exchange Rule 7007, and re-title it
part 3020, subpart B. Comments are due ‘‘Collection of Exchange Fees and Other
[FR Doc. 2015–11580 Filed 5–12–15; 8:45 am]
no later than May 14, 2015. The public Claims and Billing Policy,’’ and to
BILLING CODE 7590–01–P
portions of the filing can be accessed via require NASDAQ members to submit
the Commission’s Web site (http:// billing disputes within a certain time
www.prc.gov). period.
POSTAL REGULATORY COMMISSION The Commission appoints Lyudmila While changes to the Pricing
[Docket No. CP2015–64; Order No. 2474] Y. Bzhilyanskaya to serve as Public Schedule [sic] pursuant to this proposal
Representative in this docket. are effective upon filing, the Exchange
New Postal Product has designated the proposed
III. Ordering Paragraphs amendment to be operative on July 1,
AGENCY: Postal Regulatory Commission.
It is ordered: 2015.
ACTION: Notice.
1. The Commission establishes Docket The text of the proposed rule change
SUMMARY: The Commission is noticing a No. CP2015–64 for consideration of the is available on the Exchange’s Web site
recent Postal Service filing concerning matters raised by the Postal Service’s at http://nasdaq.cchwallstreet.com, at
an addition to Global Expedited Package Notice. the principal office of the Exchange, and
Services 3 negotiated service agreement. 2. Pursuant to 39 U.S.C. 505, at the Commission’s Public Reference
This notice informs the public of the Lyudmila Y. Bzhilyanskaya is appointed Room.
filing, invites public comment, and to serve as an officer of the Commission
II. Self-Regulatory Organization’s
takes other administrative steps. to represent the interests of the general
Statement of the Purpose of, and
DATES: Comments are due: May 14, public in this proceeding (Public
Statutory Basis for, the Proposed Rule
2015. Representative).
Change
3. Comments are due no later than
ADDRESSES: Submit comments In its filing with the Commission, the
May 14, 2015.
electronically via the Commission’s 4. The Secretary shall arrange for Exchange included statements
Filing Online system at http:// publication of this order in the Federal concerning the purpose of and basis for
www.prc.gov. Those who cannot submit Register. the proposed rule change and discussed
comments electronically should contact any comments it received on the
the person identified in the FOR FURTHER By the Commission.
proposed rule change. The text of these
INFORMATION CONTACT section by Shoshana M. Grove,
statements may be examined at the
telephone for advice on filing Secretary. places specified in Item IV below. The
alternatives. [FR Doc. 2015–11478 Filed 5–12–15; 8:45 am] Exchange has prepared summaries, set
FOR FURTHER INFORMATION CONTACT: BILLING CODE 7710–FW–P forth in sections A, B, and C below, of
David A. Trissell, General Counsel, at the most significant aspects of such
202–789–6820. statements.
SUPPLEMENTARY INFORMATION: SECURITIES AND EXCHANGE
COMMISSION A. Self-Regulatory Organization’s
Table of Contents Statement of the Purpose of, and
[Release No. 34–74895; File No. SR– Statutory Basis for, the Proposed Rule
I. Introduction NASDAQ–2015–050]
II. Notice of Commission Action Change
III. Ordering Paragraphs Self-Regulatory Organizations; The 1. Purpose
I. Introduction NASDAQ Stock Market LLC; Notice of The purpose of the proposed rule
Filing and Immediate Effectiveness of change is to amend Rule 7007, which
On May 6, 2015, the Postal Service
Proposed Rule Change Relating to was recently filed,3 to require all pricing
filed notice that it has entered into an
Billing Policies disputes to be submitted to the
additional Global Expedited Package
Services 3 (GEPS 3) negotiated service Exchange in writing 4 and accompanied
asabaliauskas on DSK5VPTVN1PROD with NOTICES
May 7, 2015.
agreement (Agreement).1 Pursuant to Section 19(b)(1) of the by supporting documentation within
To support its Notice, the Postal Securities Exchange Act of 1934 sixty days of receipt of an invoice. The
Service filed a copy of the Agreement, (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange believes that this practice will
notice is hereby given that on May 1, 3 See Securities Exchange Act Release No. 74823
1 Notice of United States Postal Service of Filing
a Functionally Equivalent Global Expedited
2015, The NASDAQ Stock Market LLC (April 28, 2015) (SR–NASDAQ–2015–046)
Package Services 3 Negotiated Service Agreement (amending Rule 7007).
1 15 U.S.C. 78s(b)(1).
and Application for Non-Public Treatment of 4 The Exchange invoice specifies the Exchange
Materials Filed Under Seal, May 6, 2015 (Notice). 2 17 CFR 240.19b–4. contact persons with whom to dispute the invoice.
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![27354 Federal Register / Vol. 80, No. 92 / Wednesday, May 13, 2015 / Notices
available for Web site viewing and I. Self-Regulatory Organization’s universally adopt: (1) certain provisions
printing in the Commission’s Public Statement of the Terms of Substance of already in place on one or more options
Reference Room, 100 F Street NE., the Proposed Rule Change exchanges; and (2) new provisions that
Washington, DC 20549 on official The Exchange seeks to amend the options exchanges collectively
business days between the hours of Exchange rules related to the believe will improve the handling of
10:00 a.m. and 3:00 p.m. Copies of such nullification and adjustment of options erroneous options transactions. Thus,
filing also will be available for transactions including obvious errors. although the Proposed Rule is in many
inspection and copying at the principal The text of the proposed rule change is ways similar to and based on the
offices of the Exchange. All comments available on the Exchange’s Web site Exchange’s Current Rule, the Exchange
received will be posted without change; (http://www.cboe.com/AboutCBOE/ is adopting various provisions to
the Commission does not edit personal CBOELegalRegulatoryHome.aspx), at conform with existing rules of one or
identifying information from the Exchange’s Office of the Secretary, more options exchanges and also to
submissions. You should submit only and at the Commission’s Public adopt rules that are not currently in
information that you wish to make Reference Room. place on any options exchange. As
available publicly. All submissions noted above, in order to adopt a rule
should refer to File Number SR– II. Self-Regulatory Organization’s that is similar in most material respects
NASDAQ–2015–050, and should be Statement of the Purpose of, and to the rules adopted by other options
submitted on or before June 3, 2015. Statutory Basis for, the Proposed Rule exchanges, the Exchange proposes to
Change delete the Current Rule in its entirety
For the Commission, by the Division of
Trading and Markets, pursuant to delegated In its filing with the Commission, the and to replace it with the Proposed
authority.12 Exchange included statements Rule.
concerning the purpose of and basis for The Exchange notes that it has
Robert W. Errett,
the proposed rule change and discussed proposed additional objective standards
Deputy Secretary. in the Proposed Rule as compared to the
any comments it received on the
[FR Doc. 2015–11481 Filed 5–12–15; 8:45 am] Current Rule. The Exchange also notes
proposed rule change. The text of these
BILLING CODE 8011–01–P statements may be examined at the that the Proposed Rule will ensure that
places specified in Item IV below. The the Exchange will have the same
Exchange has prepared summaries, set standards as all other options
SECURITIES AND EXCHANGE forth in sections A, B, and C below, of exchanges. However, there are still areas
COMMISSION the most significant aspects of such under the Proposed Rule where
statements. subjective determinations need to be
[Release No. 34–74898; File No. SR–CBOE– made by Exchange personnel with
2015–039] A. Self-Regulatory Organization’s respect to the calculation of Theoretical
Statement of the Purpose of, and Price. The Exchange notes that the
Self-Regulatory Organizations; Statutory Basis for, the Proposed Rule Exchange and all other options
Chicago Board Options Exchange, Change exchanges have been working to further
Incorporated; Notice of Filing and 1. Purpose improve the review of potentially
Immediate Effectiveness of a Proposed erroneous transactions as well as their
Rule Change Relating to the Background subsequent adjustment by creating an
Nullification and Adjustment of For several months the Exchange has objective and universal way to
Options Transactions Including been working with other options determine Theoretical Price in the event
Obvious Errors exchanges to identify ways to improve a reliable NBBO is not available. For
the process related to the adjustment instance, the Exchange and all other
May 7, 2015. and nullification of erroneous options options exchanges may utilize an
Pursuant to Section 19(b)(1) of the transactions. The goal of the process independent third party to calculate and
Securities Exchange Act of 1934 (the that the options exchanges have disseminate or make available
‘‘Act’’),1 and Rule 19b-4 thereunder,2 undertaken is to adopt harmonized rules Theoretical Price. However, this
notice is hereby given that on May 6, related to the adjustment and initiative requires additional exchange
2015, Chicago Board Options Exchange, nullification of erroneous options and industry discussion as well as
Incorporated (the ‘‘Exchange’’ or transactions as well as a specific additional time for development and
‘‘CBOE’’) filed with the Securities and provision related to coordination in implementation. The Exchange will
Exchange Commission (the connection with large-scale events continue to work with other options
‘‘Commission’’) the proposed rule involving erroneous options exchanges and the options industry
change as described in Items I and II transactions. As described below, the towards the goal of additional
below, which Items have been prepared Exchange believes that the changes the objectivity and uniformity with respect
by the Exchange. The Exchange filed the options exchanges and the Exchange to the calculation of Theoretical Price.
proposal as a ‘‘non-controversial’’ have agreed to propose will provide As additional background, the
proposed rule change pursuant to transparency and finality with respect to Exchange believes that the Proposed
Section 19(b)(3)(A)(iii) of the Act 3 and the adjustment and nullification of Rule supports an approach consistent
Rule 19b–4(f)(6) thereunder.4 The erroneous options transactions. with long-standing principles in the
Particularly, the proposed changes seek options industry under which the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Commission is publishing this notice to
solicit comments on the proposed rule to achieve consistent results for general policy is to adjust rather than
change from interested persons. participants across U.S. options nullify transactions. The Exchange
exchanges while maintaining a fair and acknowledges that adjustment of
12 17 CFR 200.30–3(a)(12). orderly market, protecting investors and transactions is contrary to the operation
1 15 U.S.C. 78s(b)(1). protecting the public interest. of analogous rules applicable to the
2 17 CFR 240.19b–4. The Proposed Rule is the culmination equities markets, where erroneous
3 15 U.S.C. 78s(b)(3)(A)(iii). of this coordinated effort and reflects transactions are typically nullified
4 17 CFR 240.19b-4(f)(6). discussions by the options exchanges to rather than adjusted and where there is
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Document Created: 2015-12-16 07:46:48
Document Modified: 2015-12-16 07:46:48
| 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 27352 |
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