80 FR 36862 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving a Proposed Rule Change Regarding NASDAQ Last Sale Plus
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 123 (June 26, 2015)
Federal Register Volume 80, Issue 123 (June 26, 2015)
| Page Range | 36862-36865 | |
| FR Document | 2015-15690 |
[Federal Register Volume 80, Number 123 (Friday, June 26, 2015)] [Notices] [Pages 36862-36865] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-15690] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75257; File No. SR-NASDAQ-2015-055] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Approving a Proposed Rule Change Regarding NASDAQ Last Sale Plus June 22, 2015. I. Introduction On May 11, 2015, The NASDAQ Stock Market LLC (``NASDAQ'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission''), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to establish a market data product called NASDAQ Last Sale Plus (``NLS Plus''). The proposed rule change was published for comment in the Federal Register on May 21, 2015.\3\ No comments on the proposed rule change have been received. The Commission is publishing this Order to approve the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 74972 (May 15, 2015), 80 FR 29370 (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposal The Exchange proposes to amend Rule 7039 (NASDAQ Last Sale Data Feed) to include the NLS Plus data feed, [[Page 36863]] which is offered by NASDAQ OMX Information LLC.\4\ Currently, Rule 7039 contains the NASDAQ Last Sale data feed (``NLS''). NLS consists of ``NLS for NASDAQ,'' which is a real-time data channel that provides real-time last sale information including execution price, volume, and time for executions occurring within the NASDAQ system as well as those reported to the FINRA/NASDAQ Trade Reporting Facility (``FINRA/NASDAQ TRF''). NLS also consists of ``NLS for NYSE/NYSE MKT,'' which provides real-time last sale information over a second data channel including execution price, volume, and time for NYSE- and NYSE MKT-securities executions occurring within the NASDAQ system as well as those reported to the FINRA/NASDAQ TRF.\5\ --------------------------------------------------------------------------- \4\ NASDAQ OMX Information LLC is a subsidiary of The NASDAQ OMX Group, Inc. (``NASDAQ OMX''). \5\ These products are available via two separate data channels. --------------------------------------------------------------------------- Content of NLS Plus NLS Plus contains the three last sale products offered by each of NASDAQ OMX's three U.S. equity markets.\6\ Thus, NLS Plus includes all transactions from all of NASDAQ OMX's equity markets, as well as the FINRA/NASDAQ TRF data that is included in the current NLS product. --------------------------------------------------------------------------- \6\ The NASDAQ OMX U.S. equity markets include The NASDAQ Stock Market (``NASDAQ''),\,\ NASDAQ OMX BX (``BX''), and NASDAQ OMX PSX (``PSX'') (together known as the ``NASDAQ OMX equity markets''). The Exchange represents that PSX and BX will shortly file companion proposals regarding NLS Plus. NLS includes last sale information from the FINRA/NASDAQ TRF, which is jointly operated by NASDAQ and FINRA. Accordingly, NASDAQ expects that FINRA will submit a proposed change to FINRA Rule 7640A with respect to NLS Plus. --------------------------------------------------------------------------- NLS Plus also contains cumulative consolidated volume (``consolidated volume'') of real-time trading activity across all U.S. exchanges for Tape C securities \7\ and 15-minute delayed information for Tape A and Tape B securities.\8\ NLS Plus features total cross- market volume information at the issue level, thereby providing redistribution of consolidated volume information from the securities information processors (``SIPs'') for Tape A, B, and C securities. --------------------------------------------------------------------------- \7\ Tape C securities are disseminated pursuant to the NASDAQ Unlisted Trading Privileges (``UTP'') Plan. \8\ Tape A and Tape B securities are disseminated pursuant to the Security Industry Automation Corporation's (``SIAC'') Consolidated Tape Association Plan/Consolidated Quotation System, or CTA/CQS (``CTA''). --------------------------------------------------------------------------- Similar to NLS, NLS Plus offers data for all U.S. equities via two separate data channels: The first data channel reflects NASDAQ, BX, and PSX trades with real-time consolidated volume for NASDAQ-listed securities; and the second data channel reflects NASDAQ, BX, and PSX trades with delayed consolidated volume for NYSE, NYSE MKT, NYSE Arca and BATS-listed securities.\9\ --------------------------------------------------------------------------- \9\ These NLS Plus channels are each made up of a series of sequenced messages so that each message is variable in length based on the message type and is typically delivered using a higher level protocol. NLS Plus Channel 1 contains NASDAQ trades with real time consolidated volume for NASDAQ listed (Tape C) securities. NLS Plus Channel 2 contains NASDAQ trades with delayed (15 minutes) consolidated volume for NYSE, NYSE Market, NYSE Arca, and BATS listed (Tape A and Tape B) securities. --------------------------------------------------------------------------- In addition to last sale information, NLS Plus also disseminates the following data elements: Trade Price, Trade Size, Sale Condition Modifiers, Cumulative Consolidated Market Volume, End of Day Trade Summary, Adjusted Closing Price, IPO Information, and Bloomberg ID (together the ``data elements''). NLS Plus also features and disseminates the following messages: Market Wide Circuit Breaker, Reg SHO Short Sale Price Test Restricted Indicator, Trading Action, Symbol Directory, Adjusted Closing Price, and End of Day Trade Summary (together the ``messages'').\10\ NASDAQ states that these data elements and messages are the same as in and are sourced from NLS, BX Last Sale, and PSX Last Sale, except consolidated volume and Bloomberg ID, which are sourced from other publicly accessible or obtainable resources. --------------------------------------------------------------------------- \10\ The Reg SHO Short Sale Price Test Restricted Indicator message is disseminated intra-day when a security has a price drop of 10% or more from the adjusted prior day's NASDAQ Official Closing Price. Trading Action indicates the current trading status of a security to the trading community, and indicates when a security is halted, paused, released for quotation, and released for trading. Symbol Directory is disseminated at the start of each trading day for all active NASDAQ and non-NASDAQ-listed security symbols. Adjusted Closing Price is disseminated at the start of each trading day for all active symbols in the NASDAQ system, and reflects the previous trading day's official closing price adjusted for any applicable corporate actions; if there were no corporate actions, however, the previous day's official closing price is used. End of Day Trade Summary is disseminated at the close of each trading day, as a summary for all active NASDAQ- and non-NASDAQ-listed securities. IPO Information reflects IPO general administrative messages from the UTP and CTA Level 1 feeds for Initial Public Offerings for all NASDAQ- and non-NASDAQ-listed securities. --------------------------------------------------------------------------- Consolidated volume reflects the consolidated volume at the time that the NLS Plus trade message is generated, and includes the volume for the issue symbol as reported on the consolidated market data feed. The consolidated volume is based on the real-time trades reported via the UTP Trade Data Feed (``UTDF'') and delayed trades reported via CTA. NASDAQ OMX calculates the real-time trading volume for its trading venues, and then adds the real-time trading volume for the other (non- NASDAQ OMX) trading venues as reported via the UTDF data feed. For non- NASDAQ-listed issues, the consolidated volume is based on trades reported via SIAC's Consolidated Tape System (``CTS'') for the issue symbol. The Exchange calculates the real-time trading volume for its trading venues, and then adds the 15-minute delayed trading volume for the other (non-NASDAQ OMX) trading venues as reported via the CTS data feed. The second data point that is not sourced from NLS, BX Last Sale, and PSX Last Sale is Bloomberg ID. NASDAQ states that this composite ID is a component of Bloomberg's Open Symbology and acts as a global security identifier that Bloomberg assigns to securities, and is available free of charge.\11\ --------------------------------------------------------------------------- \11\ See http://bsym.bloomberg.com/sym/pages/bbgid-fact-sheet.pdf. http://bsym.bloomberg.com/sym/pages/NASDAQ_Adopts_BSYM.pdf. --------------------------------------------------------------------------- NASDAQ states that NLS Plus may be received by itself or in combination with NASDAQ Basic.\12\ If a subscriber choses to receive NLS Plus in combination with NASDAQ Basic, the subscriber receives all of the elements contained in NLS Plus as well as the best bid and best offer information provided by NASDAQ Basic. --------------------------------------------------------------------------- \12\ NASDAQ Basic provides the information contained in NLS, together with NASDAQ's best bid and best offer. See NASDAQ Rule 7047. --------------------------------------------------------------------------- The Exchange believes that market data distributors may use the NLS Plus data feed to feed stock tickers, portfolio trackers, trade alert programs, time and sale graphs, and other display systems. NASDAQ notes that NLS Plus provides investors with options for receiving market data that parallel products currently offered by BATS and BATS Y, EDGA, and EDGX and NYSE equity exchanges.\13\ --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 73918 (December 23, 2014), 79 FR 78920 (December 31, 2014) (SR-BATS-2014-055; SR-BYX- 2014-030; SR-EDGA-2014-25; SR-EDGX-2014-25) (approving BATS One Data Feed). See also Securities Exchange Act Release No. 73553 (November 6, 2014), 79 FR 67491 (November 13, 2014) (SR-NYSE-2014-40) (approving NYSE Best Quote & Trades Data Feed). --------------------------------------------------------------------------- Distribution of NLS Plus The Exchange states that NASDAQ OMX Information LLC distributes no data that is not equally available to all market data vendors. NASDAQ further states that NASDAQ OMX Information LLC has no competitive advantage over other market data vendors as it receives [[Page 36864]] data from the exchange that is equally available to other market data vendors, with the same information distributed to NASDAQ OMX Information LLC at the same time it is distributed to other vendors. The Exchange represents that the path for distribution by the Exchange of NLS Plus is not faster than the path for distribution that would be used by a market data vendor to distribute an independently created NLS Plus-like product. As such, NASDAQ states that the proposed NLS Plus data feed is a data product that a competing market data vendor could create and sell without being in a disadvantaged position relative to the Exchange. In recognition that the Exchange is the source of its own market data and with BX and PSX being equity markets owned by NASDAQ OMX, the Exchange represents that the source of the market data it would use to create proposed NLS Plus is available to other vendors. The Exchange further represents that NASDAQ, BX, and PSX will continue to make available these individual underlying data elements, and thus, that the source of the market data that the Exchange would use to create the proposed NLS Plus is the same as what is available to other market data vendors. The Exchange states that the system creating and supporting NLS Plus receives the individual data feeds from each of the NASDAQ OMX equity markets and, in turn, aggregates and summarizes that data to create NLS Plus and then distribute it to end users. The Exchange notes that this is the same process that a competing market data vendor would undergo should it want to create a market data product similar to NLS Plus to distribute to its end users. The Exchange believes that a competing market data vendor could receive the individual data feeds from each of the NASDAQ OMX equity markets at the same time the system creating and supporting NLS Plus would for it to create NLS Plus. Therefore, NASDAQ believes that a competing market data vendor could obtain the underlying data elements from the NASDAQ OMX equity markets on the same latency basis as the system that would be performing the aggregation and consolidation of proposed NLS Plus, and provide a similar product to its customers with the same latency they could achieve by purchasing NLS Plus from the Exchange. As such, the Exchange believes it would not have any unfair advantage over competing market data vendors with respect to NLS Plus. The Exchange notes that it would access the underlying NLS feed from the same point as would a market data vendor and the Exchange would not have a speed advantage. The Exchange also represents that NLS Plus would not have any speed advantage vis-[agrave]-vis competing market data vendors with respect to access to end user customers. Fees for NLS Plus The Exchange represents that it will file a separate proposal regarding the NLS Plus fee structure. The Exchange also represents that these fees will be designed to ensure that vendors could compete with the Exchange by creating a similar product as NLS Plus. The Exchange expects that the pricing will reflect the incremental cost of the aggregation and consolidation function for NLS Plus, and would not be lower than the cost to a vendor creating a competing product, including the cost of receiving the underlying data feeds. The Exchange represents that the pricing the Exchange would charge clients for NLS Plus would enable a vendor to receive the underlying data feeds and offer a similar product on a competitive basis and with no greater cost than the Exchange. For these reasons, the Exchange believes that vendors could readily offer a product similar to NLS Plus on a competitive basis at a similar cost. Miscellaneous Changes The Exchange also proposes two housekeeping changes. In the Rule 7039 title, the Exchange adds the phrase ``and NASDAQ Last Sale Plus'' to make it clear that the rule contains both NLS and NLS Plus. In section (a), the Exchange adds the phrase ``NASDAQ Last Sale'' to make it clear that section (a), (b), and (c) refers only to NLS. III. Discussion and Commission Findings After carefully considering the proposal the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to national securities exchanges.\14\ In particular, the Commission finds that the proposed rule change is consistent with the requirements of section 11A(c)(1)(C) of the Act \15\ and with Rule 603(a)(2) of Regulation NMS thereunder,\16\ which requires that any national securities exchange, national securities association, broker, or dealer that distributes information with respect to quotations for or transactions in an NMS stock to a securities information processor, broker, dealer, or other persons shall do so on terms that are not unreasonably discriminatory. The Commission also finds that the proposed rule change is consistent with section 6(b)(5) of the Act, which requires that the rules of an exchange be designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest, and section 6(b)(8) of the Act, which requires that the rules of an exchange not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.\17\ --------------------------------------------------------------------------- \14\ In approving this proposed rule change, the Commission notes that it has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). \15\ Section 11A(c)(1)(C) of the Act requires, among other things, that no self-regulatory organization, member thereof, securities information processor, broker or dealer make use of the mails or any means or instrumentality of interstate commerce to collect, process, distribute, publish or prepare for distribution or publication any information with respect to quotations for or transactions in any security other than an exempted security in contravention of such rules and regulations as the Commission shall prescribe as necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act to assure that all securities information processors may, for purposes of distribution and publication, obtain on fair and reasonable terms such information with respect to quotations for and transactions in such securities as is collected, processed, or prepared for distribution or publication by an exclusive processor of such information acting in such capacity. 15 U.S.C. 78k-1(c)(1)(C). \16\ 17 CFR 242.603(a)(2). \17\ 15 U.S.C. 78f(b)(5) and (b)(8). --------------------------------------------------------------------------- The Commission notes that, to create NLS Plus, the Exchange would use underlying data feeds that belong to the NASDAQ OMX Equity Markets: NLS, BX Last Sale and PSX Last Sale. Accordingly, the Commission's review of the Exchanges' proposals has focused, in particular, on whether the proposals would result in affiliated exchanges--which are separate self-regulatory organizations under the Act--making their data products or services available to one another at terms (e.g., content, pricing, or latency) that are more favorable than those available to unaffiliated market participants. The Exchange represents that NLS Plus would be created using underlying data feeds that are available for subscription by vendors. In recognition that the Exchange is the source of its own market data and that it is affiliated with the other NASDAQ OMX equity markets, the Exchange also represents that it will continue to make available all of the individual underlying feeds and that the source of the market data [[Page 36865]] they would use to create the proposed NLS Plus feed is the same as the source available to competing vendors. With respect to latency, the Exchange represents that a competing vendor could obtain the underlying data feeds on the same latency basis as the system that would be performing the aggregation and consolidation of the proposed NLS Plus feed and could provide the same kind of product to its customers with the same latency they could achieve by purchasing the NLS Plus feed from NASDAQ.\18\ The Exchange also represents that it has designed the NLS Plus feed so that it will have no advantages over a competing vendor with respect to the speed of access to the underlying feeds. --------------------------------------------------------------------------- \18\ The Exchange represents that, in order to create NLS Plus, the system creating and supporting NLS Plus receives the individual data feeds from each of the NASDAQ OMX equity markets and, in turn, aggregates and summarizes that data to create NLS Plus and then distribute it to end users. The Exchange further represents that this is the same process that a competing market data vendor would undergo should it want to create a market data product similar to NLS Plus to distribute to its end users. The Exchange also represents that a competing market data vendor could receive the individual data feeds from each of the NASDAQ OMX equity markets at the same time the system creating and supporting NLS Plus would for it to create NLS Plus. Therefore, a competing market data vendor could obtain the underlying data elements from the NASDAQ OMX equity markets on the same latency basis as the system that would be performing the aggregation and consolidation of proposed NLS Plus, and provide a similar product to its customers with the same latency they could achieve by purchasing NLS Plus from the Exchange. The Exchange further represents that it would access the underlying NLS feed from the same point as would a market data vendor. --------------------------------------------------------------------------- With respect to pricing, although specific fees to be charged for NLS Plus are not part of the proposed rule change, the Exchange represents that the pricing will reflect the incremental cost of the aggregation and consolidation function for NLS Plus, and would not be lower than the cost to a vendor creating a competing product, including the cost of receiving the underlying data feeds. The Exchange further represents that the pricing it would charge clients for NLS Plus would enable a vendor to receive the underlying data feeds and offer a similar product on a competitive basis and with no greater cost than the Exchange. Based on the Exchange's representations with respect to the content, latency, and pricing of NLS Plus--which are central to the Commission's analysis of the proposal--the Commission finds that the proposal is consistent with the Act and the rules and regulations thereunder applicable to national securities exchanges. The Commission believes that these representations are designed to ensure that the NASDAQ OMX equity markets, which are separate self-regulatory organizations, do not, because of their relationship as affiliates, offer one another products or services on a more favorable basis than that available to other competing market participants. For the foregoing reasons, the Commission finds that the proposed rule change is consistent with section 11A(c)(1)(C) of the Act and Rule 603(a)(2) of Regulation NMS thereunder,\19\ and sections 6(b)(5) and (b)(8) of the Act.\20\ --------------------------------------------------------------------------- \19\ 15 U.S.C. 78k-1(c)(1)(C) and 17 CFR 242.603(a)(2). \20\ 15 U.S.C. 78f(b)(5) and (b)(8). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,\21\ that the proposed rule change (SR-NASDAQ-2015-055) be, and hereby is, approved. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ Robert W. Errett, Deputy Secretary. --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2015-15690 Filed 6-25-15; 8:45 am] BILLING CODE 8011-01-P
![36862 Federal Register / Vol. 80, No. 123 / Friday, June 26, 2015 / Notices
1. Title and purpose of information the same or different rates are applied To secure the required information,
collection: Nonresident Questionnaire; to each payment, depends on a the RRB utilizes Form RRB–1001,
OMB 3220–0145. Under Public Law 98– beneficiary’s citizenship and legal Nonresident Questionnaire, as a
21 and 98–76, benefits under the residence status, and whether supplement to an application as part of
Railroad Retirement Act payable to exemption under a tax treaty between the initial application process, and as an
annuitants living outside the United the United States and the country in independent vehicle for obtaining the
States may be subject to taxation under which the beneficiary is a legal resident needed information when an
United States income tax laws. Whether has been claimed. To effect the required annuitant’s residence or tax treaty status
the social security equivalent and non- tax withholding, the Railroad changes. Completion is voluntary. One
social security equivalent portions of
Retirement Board (RRB) needs to know response is requested of each
Tier I, Tier II, vested dual benefit, or
a nonresident’s citizenship and legal respondent. The RRB proposes no
supplemental annuity payments are
residence status. changes to Form RRB–1001.
subject to tax withholding, and whether
ESTIMATE OF ANNUAL RESPONDENT BURDEN
Annual
Form No. Time (minutes) Burden (hours)
responses
RRB–1001 (Initial Filing) .............................................................................................................. 300 30 250
RRB–1001 (Tax Renewal) ........................................................................................................... 1,000 30 400
Total ...................................................................................................................................... 1,300 ........................ 650
2. Title and purpose of information or benefits to provide written statements sickness benefits. Procedures related to
collection: Statement of Claimant or supplementing or changing statements providing information needed for RRA
Other Person; OMB 3220–0183. previously provided by the applicant. annuity or RUIA benefit eligibility
To support an application for an Under the railroad retirement program determinations are prescribed in 20 CFR
annuity under section 2 of the Railroad these statements may relate to a change parts 217 and 320 respectively.
Retirement Act (RRA) or for in an annuity beginning date(s), date of The RRB utilizes Form G–93,
unemployment benefits under section 2 marriage(s), birth(s), prior railroad or Statement of Claimant or Other Person,
of the Railroad Unemployment non-railroad employment, an to obtain from applicants or other
Insurance Act (RUIA), pertinent applicant’s request for reconsideration persons, the supplemental or corrective
information and proofs must be of an unfavorable RRB eligibility information needed to determine
furnished for the RRB to determine determination for an annuity or various applicant eligibility for an RRA annuity
benefit entitlement. Circumstances may other matters. The statements may also or RUIA benefits. Completion is
require an applicant or other person(s) be used by the RRB to secure a variety voluntary. One response is requested of
having knowledge of facts relevant to of information needed to determine each respondent. The RRB proposes no
the applicant’s eligibility for an annuity eligibility to unemployment and changes to Form G–93.
ESTIMATE OF ANNUAL RESPONDENT BURDEN
Annual
Form No. Time (minutes) Burden (hours)
responses
G–93 ............................................................................................................................................ 200 15 50
Additional Information or Comments: SECURITIES AND EXCHANGE of 1934 (‘‘Act’’) 1 and Rule 19b–4
To request more information or to COMMISSION thereunder,2 a proposed rule change to
obtain a copy of the information establish a market data product called
collection justification, forms, and/or [Release No. 34–75257; File No. SR– NASDAQ Last Sale Plus (‘‘NLS Plus’’).
supporting material, contact Dana NASDAQ–2015–055] The proposed rule change was
Hickman at (312) 751–4981 or published for comment in the Federal
Dana.Hickman@RRB.GOV. Comments Self-Regulatory Organizations; The Register on May 21, 2015.3 No
regarding the information collection NASDAQ Stock Market LLC; Order comments on the proposed rule change
should be addressed to Charles Approving a Proposed Rule Change have been received. The Commission is
Mierzwa, Railroad Retirement Board, Regarding NASDAQ Last Sale Plus publishing this Order to approve the
844 North Rush Street, Chicago, Illinois proposed rule change.
June 22, 2015.
60611–2092 or emailed to II. Description of the Proposal
Charles.Mierzwa@RRB.GOV. Written I. Introduction The Exchange proposes to amend
tkelley on DSK3SPTVN1PROD with NOTICES
comments should be received within 60 Rule 7039 (NASDAQ Last Sale Data
days of this notice. On May 11, 2015, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’ or Feed) to include the NLS Plus data feed,
Charles Mierzwa, ‘‘Exchange’’) filed with the Securities
1 15 U.S.C. 78s(b)(1).
Chief of Information Resources Management. and Exchange Commission (‘‘SEC’’ or 2 17 CFR 240.19b–4.
[FR Doc. 2015–15725 Filed 6–25–15; 8:45 am] ‘‘Commission’’), pursuant to section 3 See Securities Exchange Act Release No. 74972
BILLING CODE 7905–01–P 19(b)(1) of the Securities Exchange Act (May 15, 2015), 80 FR 29370 (‘‘Notice’’).
VerDate Sep<11>2014 18:15 Jun 25, 2015 Jkt 235001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\26JNN1.SGM 26JNN1](https://thefederalregister.org/doc/80_FR_36985/page/1.svg)
![Federal Register / Vol. 80, No. 123 / Friday, June 26, 2015 / Notices 36865
they would use to create the proposed that the NASDAQ OMX equity markets, 2015.3 The Commission received no
NLS Plus feed is the same as the source which are separate self-regulatory comment letters regarding the proposed
available to competing vendors. organizations, do not, because of their rule change. On May 6, 2015, the
With respect to latency, the Exchange relationship as affiliates, offer one Commission extended to June 24, 2015,
represents that a competing vendor another products or services on a more the time period in which to approve the
could obtain the underlying data feeds favorable basis than that available to proposed rule change, disapprove the
on the same latency basis as the system other competing market participants. proposed rule change, or institute
that would be performing the For the foregoing reasons, the proceedings to determine whether the
aggregation and consolidation of the Commission finds that the proposed proposed rule change should be
proposed NLS Plus feed and could rule change is consistent with section disapproved.4 On June 15, 2015, the
provide the same kind of product to its 11A(c)(1)(C) of the Act and Rule Exchange filed Amendment No. 1 to the
customers with the same latency they 603(a)(2) of Regulation NMS proposed rule change.5 This order
could achieve by purchasing the NLS thereunder,19 and sections 6(b)(5) and approves the proposed rule change.
Plus feed from NASDAQ.18 The (b)(8) of the Act.20
Exchange also represents that it has II. Description of the Amended
designed the NLS Plus feed so that it IV. Conclusion Proposal
will have no advantages over a It is therefore ordered, pursuant to
competing vendor with respect to the The Exchange proposes to amend and
section 19(b)(2) of the Act,21 that the
speed of access to the underlying feeds. restate certain rules governing the
proposed rule change (SR–NASDAQ–
With respect to pricing, although Nasdaq Market Center in order to
2015–055) be, and hereby is, approved.
specific fees to be charged for NLS Plus provide additional detail and clarity
For the Commission, by the Division of regarding its order type functionality.6
are not part of the proposed rule change,
Trading and Markets, pursuant to delegated This proposed rule change is a response
the Exchange represents that the pricing authority.22
will reflect the incremental cost of the to Chair White’s request that each self-
Robert W. Errett, regulatory organization (‘‘SRO’’)
aggregation and consolidation function
Deputy Secretary. conduct a comprehensive review of the
for NLS Plus, and would not be lower
than the cost to a vendor creating a [FR Doc. 2015–15690 Filed 6–25–15; 8:45 am] operation of each of the order types that
competing product, including the cost BILLING CODE 8011–01–P it offers to members.7
of receiving the underlying data feeds. While the Exchange believes that its
The Exchange further represents that the current rules and other public
pricing it would charge clients for NLS SECURITIES AND EXCHANGE
COMMISSION disclosures provide a comprehensive
Plus would enable a vendor to receive description of the operation of the
the underlying data feeds and offer a [Release No. 34–75252; File No. SR– Nasdaq Market Center and are sufficient
similar product on a competitive basis NASDAQ–2015–024] for members and the investing public to
and with no greater cost than the have an accurate understanding of its
Exchange. Self-Regulatory Organizations; The market structure,8 it also acknowledges
Based on the Exchange’s NASDAQ Stock Market LLC; Notice of
that a restatement of certain rules will
representations with respect to the Filing of Amendment No. 1 and Order
further clarify the operation of its
content, latency, and pricing of NLS Granting Accelerated Approval of
system.9 For instance, Nasdaq believes
Plus—which are central to the Proposed Rule Change, as Modified by
that adding examples of order type
Commission’s analysis of the proposal— Amendment No. 1, To Amend and
operation to its rules will promote
the Commission finds that the proposal Restate Certain Nasdaq Rules That
greater understanding of Nasdaq’s
is consistent with the Act and the rules Govern the Nasdaq Market Center
market structure.10 In addition, Nasdaq
and regulations thereunder applicable to
national securities exchanges. The June 22, 2015. asserts that certain functionality
Commission believes that these previously described as an ‘‘order type’’
I. Introduction is more precisely characterized as an
representations are designed to ensure
On March 16, 2015, The NASDAQ attribute that may be added to a
18 The Exchange represents that, in order to create Stock Market LLC (‘‘Nasdaq’’ or the particular order.11 Accordingly, this
NLS Plus, the system creating and supporting NLS ‘‘Exchange’’) filed with the Securities proposed rule change distinguishes
Plus receives the individual data feeds from each and Exchange Commission between ‘‘Order Types’’ and ‘‘Order
of the NASDAQ OMX equity markets and, in turn, (‘‘Commission’’), pursuant to section Attributes,’’ and provides descriptions
aggregates and summarizes that data to create NLS
Plus and then distribute it to end users. The 19(b)(1) of the Securities Exchange Act
Exchange further represents that this is the same of 1934 (‘‘Act’’) 1 and Rule 19b–4 3 See Securities Exchange Act Release No. 74558
process that a competing market data vendor would thereunder,2 a proposed rule change to (March 20, 2015), 80 FR 16050 (‘‘Notice’’).
undergo should it want to create a market data 4 See Securities Exchange Act Release No. 74881,
product similar to NLS Plus to distribute to its end
amend and restate certain Nasdaq rules
80 FR 27216 (May 12, 2015).
users. The Exchange also represents that a that govern the Nasdaq Market Center in 5 In Amendment No. 1, the Exchange proposed to
competing market data vendor could receive the order to provide a clearer and more correct typographical errors in the original filing,
individual data feeds from each of the NASDAQ detailed description of certain aspects of further improve the clarity of certain rule language,
OMX equity markets at the same time the system and include additional explanation with regard to
creating and supporting NLS Plus would for it to
its functionality. The proposed rule
the purpose of the proposed rule change.
create NLS Plus. Therefore, a competing market change was published for comment in 6 See Notice, 80 FR at 16050.
data vendor could obtain the underlying data the Federal Register on March 26, 7 Id.; see also Mary Jo White, Chair, Commission,
elements from the NASDAQ OMX equity markets
tkelley on DSK3SPTVN1PROD with NOTICES
Speech at the Sandler O’Neill & Partners, L.P.
on the same latency basis as the system that would 19 15 U.S.C. 78k–1(c)(1)(C) and 17 CFR
Global Exchange and Brokerage Conference (June 5,
be performing the aggregation and consolidation of 242.603(a)(2). 2014), available at http://www.sec.gov/News/
proposed NLS Plus, and provide a similar product 20 15 U.S.C. 78f(b)(5) and (b)(8). Speech/Detail/Speech/1370542004312.
to its customers with the same latency they could 21 15 U.S.C. 78s(b)(2). 8 See Notice, 80 FR at 16050.
achieve by purchasing NLS Plus from the Exchange.
22 17 CFR 200.30–3(a)(12). 9 Id.
The Exchange further represents that it would
1 15 U.S.C. 78s(b)(1). 10 Id.
access the underlying NLS feed from the same point
as would a market data vendor. 2 17 CFR 240.19b–4. 11 Id.
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Document Created: 2015-12-15 14:15:42
Document Modified: 2015-12-15 14:15:42
| 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 36862 |
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