80 FR 48586 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Public Disclosure of Exchange Usage of Market Data
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 156 (August 13, 2015)
Federal Register Volume 80, Issue 156 (August 13, 2015)
| Page Range | 48586-48588 | |
| FR Document | 2015-19868 |
[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)] [Notices] [Pages 48586-48588] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-19868] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75637; File No. SR-NASDAQ-2015-093] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Public Disclosure of Exchange Usage of Market Data August 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 August 5, 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 Substance of the Proposed Rule Change The Exchange proposes to update Exchange Rule 4759 and to amend the public disclosure of the sources of data that the Exchange utilizes when performing (1) order handling and execution; (2) order routing; and (3) related compliance processes. The text of the proposed rule change is below. Proposed new language is italicized; proposed deletions are bracketed. * * * * * 4759. Data Feeds Utilized The NASDAQ System utilizes the below proprietary and network processor feeds [utilized by the System] for the handling, routing, and execution of orders, as well as for the regulatory compliance processes related to those functions. The Secondary Source of data is, where applicable, utilized only in emergency market conditions and only until those emergency conditions are resolved. ---------------------------------------------------------------------------------------------------------------- Market center Primary source Secondary source ---------------------------------------------------------------------------------------------------------------- A--NYSE MKT (AMEX)....................... [CQS/UQDF] NYSE MKT OpenBook [n/a] CQS/UQDF Ultra. B--NASDAQ OMX BX......................... BX ITCH [4.1] 5.0............... CQS/UQDF C--NSX................................... CQS/UQDF........................ n/a D--FINRA ADF............................. CQS/UQDF........................ n/a J--DirectEdge A.......................... [EdgeBook] BATS PITCH........... CQS/UQDF K--DirectEdge X.......................... [EdgeBook] BATS PITCH........... CQS/UQDF M--CSX................................... CQS/UQDF........................ n/a N--NYSE.................................. NYSE OpenBook Ultra............. CQS/UQDF P--NYSE Arca............................. [ArcaBook Binary uncompacted] CQS/UQDF NYSE ARCA XDP. T/Q--NASDAQ.............................. ITCH [4.1] 5.0.................. CQS/UQDF X--NASDAQ OMX PSX........................ PSX ITCH [4.1] 5.0.............. CQS/UQDF Y--BATS Y-Exchange....................... BATS PITCH...................... CQS/UQDF Z--BATS Exchange......................... BATS PITCH...................... CQS/UQDF ---------------------------------------------------------------------------------------------------------------- * * * * * (b) Not applicable. (c) Not applicable. 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. [[Page 48587]] A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to update and amend the table in Exchange Rule 4759 that sets forth on a market-by-market basis the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions. Specifically, the table will be amended to include National Stock Exchange (``NSX''), which has informed the UTP Securities Information Processor (``UTP SIP'') that, subject to regulatory approval, it is projecting to reactivate its status as an operating participant for quotation and trading of NASDAQ-listed securities under the Unlisted Trading Privileges (``UTP'') Plan on or about August 31, 2015. The other changes to the table merely reflect updates to mirror the current network processor and proprietary data feeds utilized by the Exchange for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\3\ in general and with Sections 6(b)(5) of the Act,\4\ in particular in that it 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. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f. \4\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that its proposal to update the table in Exchange Rule 4759 to make certain it is current, as well as to amend the table to include NSX, would ensure that Exchange Rule 4759 correctly identifies and publicly states on a market-by-market basis all of the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions, and that the proposed rule change removes impediments to and perfects the mechanism of a free and open market and protects investors and the public interest because it provides additional specificity, clarity and transparency. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange 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, the Exchange believes the proposal would enhance competition because including all of the exchanges enhances transparency and enables investors to better assess the quality of the Exchange's execution and routing services. 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) \5\ of the Act and Rule 19b- 4(f)(6) thereunder.\6\ The Exchange believes that this proposed rule change is properly designated as non-controversial because it enhances clarity and operational transparency without modifying members' rights or obligations. The Exchange provided notice of the proposed rule change on July 27, 2015. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(A). \6\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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 [email protected]. Please include File Number SR-NASDAQ-2015-093 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-2015-093. 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 also will 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-2015-093 and should be submitted on or before September 3, 2015. [[Page 48588]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ Jill M. Peterson, Assistant Secretary. --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2015-19868 Filed 8-12-15; 8:45 am] BILLING CODE 8011-01-P
![48586 Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
Comments may be submitted by any of Washington, DC 20549, on official notice is hereby given that on August 5,
the following methods: business days between the hours of 2015, The NASDAQ Stock Market LLC
10:00 a.m. and 3:00 p.m. Copies of such (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Electronic Comments
filing also will be available for Securities and Exchange Commission
• Use the Commission’s Internet inspection and copying at the principal (‘‘SEC’’ or ‘‘Commission’’) the proposed
comment form (http://www.sec.gov/ office of the Exchange. All comments rule change as described in Items I, II,
rules/sro.shtml); or received will be posted without change; and III, below, which Items have been
• Send an email to rule-comments@ the Commission does not edit personal prepared by the Exchange. The
sec.gov. Please include File Number SR– identifying information from Commission is publishing this notice to
NYSE–2015–34 on the subject line. submissions. You should submit only solicit comments on the proposed rule
Paper Comments information that you wish to make change from interested persons.
available publicly. All submissions
• Send paper comments in triplicate I. Self-Regulatory Organization’s
should refer to File Number SR–NYSE–
to Secretary, Securities and Exchange Statement of the Terms of Substance of
2015–34 and should be submitted on or
Commission, 100 F Street NE., the Proposed Rule Change
before September 3, 2015.
Washington, DC 20549–1090. For the Commission, by the Division of The Exchange proposes to update
All submissions should refer to File Trading and Markets, pursuant to delegated Exchange Rule 4759 and to amend the
Number SR–NYSE–2015–34. This file authority.21 public disclosure of the sources of data
number should be included on the Jill M. Peterson, that the Exchange utilizes when
subject line if email is used. To help the Assistant Secretary. performing (1) order handling and
Commission process and review your execution; (2) order routing; and (3)
[FR Doc. 2015–19876 Filed 8–12–15; 8:45 am]
comments more efficiently, please use related compliance processes.
BILLING CODE 8011–01–P
only one method. The Commission will The text of the proposed rule change
post all comments on the Commission’s is below. Proposed new language is
Internet Web site (http://www.sec.gov/ SECURITIES AND EXCHANGE italicized; proposed deletions are
rules/sro.shtml). Copies of the COMMISSION bracketed.
submission, all subsequent * * * * *
amendments, all written statements [Release No. 34–75637; File No. SR–
with respect to the proposed rule NASDAQ–2015–093] 4759. Data Feeds Utilized
change that are filed with the Self-Regulatory Organizations; The The NASDAQ System utilizes the
Commission, and all written NASDAQ Stock Market LLC; Notice of below proprietary and network
communications relating to the Filing and Immediate Effectiveness of processor feeds [utilized by the System]
proposed rule change between the Proposed Rule Change To Update for the handling, routing, and execution
Commission and any person, other than Public Disclosure of Exchange Usage of orders, as well as for the regulatory
those that may be withheld from the of Market Data compliance processes related to those
public in accordance with the functions. The Secondary Source of data
provisions of 5 U.S.C. 552, will be August 7, 2015. is, where applicable, utilized only in
available for Web site viewing and Pursuant to Section 19(b)(1) of the emergency market conditions and only
printing in the Commission’s Public Securities Exchange Act of 1934 until those emergency conditions are
Reference Room, 100 F Street NE., (‘‘Act’’),1 and Rule 19b–4 thereunder,2 resolved.
Market center Primary source Secondary source
A—NYSE MKT (AMEX) .......................................................... [CQS/UQDF] NYSE MKT OpenBook Ultra ............................ [n/a] CQS/UQDF
B—NASDAQ OMX BX ............................................................ BX ITCH [4.1] 5.0 ................................................................... CQS/UQDF
C—NSX ................................................................................... CQS/UQDF ............................................................................. n/a
D—FINRA ADF ....................................................................... CQS/UQDF ............................................................................. n/a
J—DirectEdge A ...................................................................... [EdgeBook] BATS PITCH ...................................................... CQS/UQDF
K—DirectEdge X ..................................................................... [EdgeBook] BATS PITCH ...................................................... CQS/UQDF
M—CSX .................................................................................. CQS/UQDF ............................................................................. n/a
N—NYSE ................................................................................ NYSE OpenBook Ultra ........................................................... CQS/UQDF
P—NYSE Arca ........................................................................ [ArcaBook Binary uncompacted] NYSE ARCA XDP ............. CQS/UQDF
T/Q—NASDAQ ........................................................................ ITCH [4.1] 5.0 ......................................................................... CQS/UQDF
X—NASDAQ OMX PSX ......................................................... PSX ITCH [4.1] 5.0 ................................................................ CQS/UQDF
Y—BATS Y-Exchange ............................................................ BATS PITCH .......................................................................... CQS/UQDF
Z—BATS Exchange ................................................................ BATS PITCH .......................................................................... CQS/UQDF
* * * * * II. Self-Regulatory Organization’s proposed rule change. The text of these
(b) Not applicable. Statement of the Purpose of, and statements may be examined at the
Statutory Basis for, the Proposed Rule places specified in Item IV below. The
(c) Not applicable. Change Exchange has prepared summaries, set
forth in sections A, B, and C below, of
tkelley on DSK3SPTVN1PROD with NOTICES
In its filing with the Commission, the
Exchange included statements the most significant aspects of such
concerning the purpose of and basis for statements.
the proposed rule change and discussed
any comments it received on the
21 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4.
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![48588 Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
For the Commission, by the Division of on the proposed rule change. The text DMMs, SLPs and RLPs. The calculations
Trading and Markets, pursuant to delegated of those statements may be examined at of such quoting levels include the
authority.7 the places specified in Item IV below. amount of time that the relevant DMM,
Jill M. Peterson, The Exchange has prepared summaries, SLP or RLP quoted at the National Best
Assistant Secretary. set forth in sections A, B, and C below, Bid or Offer (‘‘NBBO’’).6 If the Exchange
[FR Doc. 2015–19868 Filed 8–12–15; 8:45 am] of the most significant parts of such did not exclude July 8, 2015 when
BILLING CODE 8011–01–P statements. calculating these quoting levels for July,
A. Self-Regulatory Organization’s the numerator for the calculation (e.g.,
Statement of the Purpose of, and the time during which the DMM, SLP or
SECURITIES AND EXCHANGE RLP quoted at the NBBO) would be
Statutory Basis for, the Proposed Rule
COMMISSION lower as a result of the decreased
Change
[Release No. 34–75649; File No. SR– trading volume on July 8, 2015, but the
NYSEMKT–2015–60]
1. Purpose denominator (e.g., total time that the
The Exchange is proposing to modify U.S. equity markets quote during regular
Self-Regulatory Organizations; NYSE the manner in which it calculates trading hours) would not be decreased.
MKT, LLC; Notice of Filing and certain volume and quoting thresholds Excluding July 8, 2015 from the
Immediate Effectiveness of Proposed applicable to billing on the Exchange in calculation of these quoting levels for
Rule Change Modifying the Manner in relation to a suspension of trading on the month of July would reasonably
Which It Calculates Certain Volume the Exchange on July 8, 2015 (‘‘trading ensure that a member organization that
and Quoting Thresholds Applicable to suspension’’).4 would otherwise qualify for a particular
Billing on the Exchange in Relation to The trading suspension resulted in a threshold during July 2015, and the
a Suspension of Trading on the more than 40% decrease in trading corresponding transaction rate, would
Exchange on July 8, 2015 volume on the Exchange on July 8, 2015 not be negatively impacted by the
for that day as compared to average trading suspension on July 8, 2015.
August 7, 2015. daily volume (‘‘ADV’’) on the Exchange Second, the Exchange proposes to
Pursuant to Section 19(b)(1) 1 of the for the prior trading days in July 2015. exclude July 8, 2015 for purposes of
Securities Exchange Act of 1934 (the The Exchange believes that the trading determining transaction credits
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 suspension prevented member applicable to executions in the Retail
notice is hereby given that on July 30, organizations on the Exchange, Liquidity Program that are based on
2015, NYSE MKT LLC (Exchange’’ or including Designated Market Makers ADV executed by a non-RLP member
‘‘NYSE MKT’’) filed with the Securities (‘‘DMMs’’), Supplemental Liquidity organization during the billing month. If
and Exchange Commission Providers (‘‘SLPs’’) and Retail Liquidity the Exchange did not exclude July 8,
(‘‘Commission’’) the proposed rule Providers (‘‘RLPs’’), from engaging in 2015 when calculating ADV for July, the
change as described in Items I and II normal trading and quoting in their numerator for the calculation (e.g.,
below, which Items have been prepared assigned securities, leading to decreased trading volume) would be lower as a
by the self-regulatory organization. The quoting and trading volume compared result of the decreased trading volume
Commission is publishing this notice to to ADV. on July 8, 2015, but the denominator for
solicit comments on the proposed rule As provided in the Exchange’s Price the threshold calculations (e.g., the
change from interested persons. List, certain of the Exchange’s number of trading days) would not be
I. Self-Regulatory Organization’s transaction fees and credits are based on smaller. Excluding July 8, 2015 from the
Statement of the Terms of Substance of trading and quoting thresholds that calculation of ADV for the month of July
the Proposed Rule Change member organizations must satisfy in would reasonably ensure that a non-RLP
order to qualify for the particular rates. member organization that would
The Exchange proposes to modify the The Exchange believes that the trading otherwise qualify for that would
manner in which it calculates certain suspension may affect the ability of otherwise qualify for the applicable
volume and quoting thresholds member organizations to meet certain of credit for July 2015, would not be
applicable to billing on the Exchange in these thresholds during July 2015.5 negatively impacted by the trading
relation to a suspension of trading on Accordingly, the Exchange proposes to suspension on July 8, 2015. The
the Exchange on July 8, 2015. The text exclude July 8, 2015 from such Exchange notes that the proposed
of the proposed rule change is available calculations, in order to reasonably exclusions would be similar to the
on the Exchange’s Web site at ensure that a member organization that current provision in the Price List
www.nyse.com, at the principal office of would otherwise qualify for a particular whereby, for purposes of these non-RLP
the Exchange, and at the Commission’s threshold during July 2015, and the member organization credits, the
Public Reference Room. corresponding transaction rate, would calculation of the average daily volume
II. Self-Regulatory Organization’s not be negatively impacted by the during the month excludes early closing
Statement of the Purpose of, and trading suspension. days. Generally, this applies to certain
Statutory Basis for, the Proposed Rule First, the Exchange proposes to days before or after a holiday observed
Change exclude July 8, 2015 for purposes of by the Exchange.7
determining transaction fees and credits Finally, the Exchange does not
In its filing with the Commission, the that are based on quoting levels of propose to exclude July 8, 2015 from the
self-regulatory organization included
calculation of consolidated average
statements concerning the purpose of, 4 See NYSE MKT Informational Message, ‘‘NYSE/
daily volume (‘‘CADV’’) for purposes of
tkelley on DSK3SPTVN1PROD with NOTICES
and basis for, the proposed rule change NYSE MKT—Outage Description’’ July 9, 2015,
available at https://www.nyse.com/market-status/ determining the qualification for certain
and discussed any comments it received
history. Trading at the Exchange’s affiliate, New
York Stock Exchange LLC, was also suspended. 6 See Rules 107B(g) and 107C(f).
7 17 CFR 200.30–3(a)(12). 5 The Exchange notes that it does not perform the 7 For example, the Exchange is closed on
1 15 U.S.C. 78s(b)(1). calculations necessary to determine whether these Thanksgiving Day and closes early on the Friday
2 15 U.S.C. 78a.
thresholds have been met until after the particular immediately following Thanksgiving Day (e.g.,
3 17 CFR 240.19b–4. billing month has ended. Friday, November 28, 2014).
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Document Created: 2018-02-23 10:56:57
Document Modified: 2018-02-23 10:56:57
| 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 48586 |
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