80 FR 48612 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter XV, Section 2 Entitled “NASDAQ Options Market-Fees and Rebates”
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 156 (August 13, 2015)
Federal Register Volume 80, Issue 156 (August 13, 2015)
| Page Range | 48612-48615 | |
| FR Document | 2015-19875 |
[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)] [Notices] [Pages 48612-48615] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-19875] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75647; File No. SR-NASDAQ-2015-090] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter XV, Section 2 Entitled ``NASDAQ Options Market--Fees and Rebates'' 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 July 31, 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 amend the Exchange's transaction fees at Chapter XV, Section 2 entitled ``NASDAQ Options Market--Fees and Rebates,'' which governs pricing for NASDAQ members using the NASDAQ Options Market (``NOM''), NASDAQ's facility for executing and routing standardized equity and index options. While the changes proposed herein are effective upon filing, the Exchange has designated such changes to become operative on August 3, 3015. 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 [[Page 48613]] 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 Exchange proposes to expand eligibility for one of the incentives under the Penny Pilot Options Rebates to Add Liquidity. The Penny Pilot was established in March 2008 and has since been expanded and extended through June 30, 2016.\3\ Today, the Exchange pays Customers \4\ and Professionals \5\ a Penny Pilot Options Rebate to Add Liquidity based on the following tiered rebate structure: --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR 18587 (April 4, 2008) (SR-NASDAQ-2008-026) (notice of filing and immediate effectiveness establishing Penny Pilot); 60874 (October 23, 2009), 74 FR 56682 (November 2, 2009) (SR-NASDAQ-2009- 091) (notice of filing and immediate effectiveness expanding and extending Penny Pilot); 60965 (November 9, 2009), 74 FR 59292 (November 17, 2009) (SR-NASDAQ-2009-097) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); 61455 (February 1, 2010), 75 FR 6239 (February 8, 2010) (SR-NASDAQ- 2010-013) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); 62029 (May 4, 2010), 75 FR 25895 (May 10, 2010) (SR-NASDAQ-2010-053) (notice of filing and immediate effectiveness adding seventy-five classes to Penny Pilot); 65969 (December 15, 2011), 76 FR 79268 (December 21, 2011) (SR- NASDAQ-2011-169) (notice of filing and immediate effectiveness extension and replacement of Penny Pilot); 67325 (June 29, 2012), 77 FR 40127 (July 6, 2012) (SR-NASDAQ-2012-075) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through December 31, 2012); 68519 (December 21, 2012), 78 FR 136 (January 2, 2013) (SR-NASDAQ-2012-143) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through June 30, 2013); 69787 (June 18, 2013), 78 FR 37858 (June 24, 2013) (SR-NASDAQ-2013-082) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through December 31, 2013); 71105 (December 17, 2013), 78 FR 77530 (December 23, 2013) (SR-NASDAQ-2013-154) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through June 30, 2014); 79 FR 31151 (May 23, 2014), 79 FR 31151 (May 30, 2014) (SR-NASDAQ-2014-056) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through December 31, 2014); 73686 (December 2, 2014), 79 FR 71477 (November 25, 2014) (SR-NASDAQ-2014-115) (notice of filing and immediate effectiveness and extension and replacement of Penny Pilot through June 30, 2015) and 75283 (June 24, 2015), 80 FR 37347 (June 30, 2015) (SR-NASDAQ-2015-063) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Extension of the Exchange's Penny Pilot Program and Replacement of Penny Pilot Issues That Have Been Delisted.) See also NOM Rules, Chapter VI, Section 5. \4\ The term ``Customer'' refers to a customer in a transaction that is marked by a Participant in the Customer range for clearing purposes at The Options Clearing Corporation (``OCC''). Such a transaction is not for the account of a broker, dealer or ``Professional'' (see next footnote). \5\ The term ``Professional'' means any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s), See Chapter I, Section 1(a)(48). All Professional orders must be appropriately marked by Participants. ------------------------------------------------------------------------ Rebate to add Monthly volume liquidity ------------------------------------------------------------------------ Tier 1--Participant adds Customer, Professional, Firm, $0.20 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of up to 0.10% of total industry customer equity and ETF option average daily volume (``ADV'') contracts per day in a month............................................. Tier 2--Participant adds Customer, Professional, Firm, 0.25 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.10% to 0.20% of total industry customer equity and ETF option ADV contracts per day in a month........ Tier 3--Participant adds Customer, Professional, Firm, 0.42 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.20% to 0.30% of total industry customer equity and ETF option ADV contracts per day in a month........ Tier 4--Participant adds Customer, Professional, Firm, 0.43 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.30% to 0.40% of total industry customer equity and ETF option ADV contracts per day in a month........ Tier 5--Participant adds Customer, Professional, Firm, 0.45 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.40% to 0.75% of total industry customer equity and ETF option ADV contracts per day in a month, or Participant adds (1) Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 25,000 or more contracts per day in a month, (2) the Participant has certified for the Investor Support Program set forth in Rule 7014, and (3) the Participant executed at least one order on NASDAQ's equity market.......................................... Tier 6--Participant has Total Volume of 100,000 or more 0.45 contracts per day in a month, of which 25,000 or more contracts per day in a month must be Customer and/or Professional liquidity in Penny Pilot Options.......... Tier 7--Participant has Total Volume of 150,000 or more 0.47 contracts per day in a month, of which 50,000 or more contracts per day in a month must be Customer and/or Professional liquidity in Penny Pilot Options.......... Tier 8--Participant adds Customer, Professional, Firm, 0.48 Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.75% or more of total industry customer equity and ETF option ADV contracts per day in a month or Participant adds (1) Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 30,000 or more contracts per day in a month, (2) the Participant has certified for the Investor Support Program set forth in Rule 7014, and (3) the Participant qualifies for rebates under the Qualified Market Maker (``QMM'') Program set forth in Rule 7014.. ------------------------------------------------------------------------ The Exchange is proposing to expand eligibility for one of the incentives applicable to Tier 8 Customer Penny Pilot Options Rebate to Add Liquidity. The Tier 8 Customer and Professional Penny Pilot Options Rebate to Add Liquidity is currently $0.48 per contract if Participants add Customer, Professional, Firm,\6\ Non-NOM Market Maker \7\ and/or Broker-Dealer \8\ liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.75% of total industry customer equity and ETF option ADV of contracts traded in a month. This rebate also applies if (1) the Participant adds Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 30,000 or more contracts per day in a month, (2) the Participant has certified for the Investor Support [[Page 48614]] Program \9\ set forth in Rule 7014, and (3) the Participant qualifies for rebates under the Qualified Market Maker (``QMM'') Program \10\ set forth in Rule 7014. --------------------------------------------------------------------------- \6\ The term ``Firm'' refers to a firm participating in a transaction marked by a Participant in the Firm range for clearing purposes at OCC. \7\ The term ``NOM Market Maker'' is a Participant that has registered as a Market Maker on NOM pursuant to Chapter VII, Section 2, and must also remain in good standing pursuant to Chapter VII, Section 4. In order to receive NOM Market Maker pricing in all securities, the Participant must be registered as a NOM Market Maker in at least one security. \8\ The term ``Broker-Dealer'' refers to a broker or dealer participating in a transaction when such transaction is not subject to transaction fees applicable to specific categories of transaction participants (other than brokers and dealers). \9\ For a detailed description of the ISP, see Securities Exchange Act Release No. 63270 (November 8, 2010), 75 FR 69489 (November 12, 2010) (NASDAQ-2010-141) (notice of filing and immediate effectiveness) (the ``ISP Filing''). See also Securities Exchange Act Release Nos. 63414 (December 2, 2010), 75 FR 76505 (December 8, 2010) (NASDAQ-2010-153) (notice of filing and immediate effectiveness); and 63628 (January 3, 2011), 76 FR 1201 (January 7, 2011) (NASDAQ-2010-154) (notice of filing and immediate effectiveness). \10\ A QMM is a NASDAQ member that makes a significant contribution to market quality by providing liquidity at the national best bid and offer (``NBBO'') in a large number of stocks for a significant portion of the day. In addition, the NASDAQ equity member must avoid imposing the burdens on NASDAQ and its market participants that may be associated with excessive rates of entry of orders away from the inside and/or order cancellation. The designation ``QMM'' reflects the QMM's commitment to provide meaningful and consistent support to market quality and price discovery by extensive quoting at the NBBO in a large number of securities. In return for its contributions, certain financial benefits are provided to a QMM with respect to a particular MPID (a ``QMM MPID''), as described under Rule 7014(e). --------------------------------------------------------------------------- Participants that qualify for the Tier 8 rebate and add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of 1.25% or more of total industry customer equity and ETF option ADV of contracts traded in a month today also receive an additional $0.02 per contract Penny Pilot Options Customer \11\ Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month.\12\ --------------------------------------------------------------------------- \11\ This $0.02 per contract incentive applies only to the Tier 8 Customer rebate, and not the Professional rebate. \12\ See note ``e'' in Chapter XV, Section 2(1). --------------------------------------------------------------------------- The Exchange is proposing to expand eligibility for this additional incentive under the Tier 8 Customer rebate by amending the qualification as follows: ``Participants that add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of 1.15% or more of total industry customer equity and ETF option ADV contracts per day in a month will receive an additional $0.02 per contract Penny Pilot Options Customer Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month.'' By lowering the percentage of total industry customer equity and ETF options ADV of contracts in a month required to be reached in order to qualify for the additional $0.02 per contract rebate, the Exchange expects that a greater number of Participants qualifying for the Tier 8 rebate will also receive the added incentive. The Exchange expects that expanded eligibility for this incentive will encourage Participants to add greater liquidity to NOM. While the changes proposed herein are effective upon filing, the Exchange has designated such changes to become operative on August 3, 3015. 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\13\ in general, and with Section 6(b)(4) and 6(b)(5) of the Act,\14\ in particular, 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 NASDAQ operates or controls, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f. \14\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange's proposal to expand incentive eligibility is reasonable because it will incentivize Participants to add liquidity in Penny Pilot Options and/or Non-Penny Pilot Options. Participants that qualify for the Tier 8 rebate may choose to add greater liquidity to NOM because of the lower percentage qualifier (1.25% to 1.15%) to obtain the additional $0.02 per contract Customer rebate. The Exchange's proposal to expand incentive eligibility is equitable and not unfairly discriminatory because all eligible Participants may qualify for the Tier 8 Customer Penny Pilot Options Rebate to Add Liquidity, provided they have the requisite volume. The added $0.0.2 per contract incentive will be uniformly paid in addition to the Tier 8 rebate. Customer liquidity is critically important to the market and all market participants. Greater customer liquidity benefits all market participants by providing more trading opportunities, which attracts market makers. An increase in the activity by market makers in turn facilitates tighter spreads and further order flow. B. Self-Regulatory Organization's Statement on Burden on Competition The proposed rule change will not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed expanded incentive will incentivize market participants to add greater liquidity on NOM to obtain the added $0.02 per contract Customer rebate. Customer liquidity is critically important to the market and benefits all market participants. Greater customer liquidity benefits all market participants by providing more trading opportunities and attracting greater participation by specialists and market makers. An increase in the activity of these market participants in turn facilitates tighter spreads. All Participants are eligible for the rebates if they transact the requisite volume. The Exchange operates in a highly competitive market in which many sophisticated and knowledgeable market participants can readily and do send order flow to competing exchanges if they deem fee levels or rebate incentives at a particular exchange to be excessive or inadequate. These market forces ensure that the Exchange's fees and rebates remain competitive with the fee structures at other trading platforms. 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.\15\ --------------------------------------------------------------------------- \15\ 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 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-2015-090 on the subject line. [[Page 48615]] 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-2015-090. 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-2015-090 and should be submitted on or before September 3, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2015-19875 Filed 8-12-15; 8:45 am] BILLING CODE 8011-01-P
![48612 Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
mechanism of a free and open market arguments concerning the foregoing, SECURITIES AND EXCHANGE
and protects investors and the public including whether the proposed rule COMMISSION
interest because it provides additional change is consistent with the Act.
[Release No. 34–75647; File No. SR–
specificity, clarity and transparency. Comments may be submitted by any of
NASDAQ–2015–090]
the following methods:
B. Self-Regulatory Organization’s
Statement on Burden on Competition Electronic Comments Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
The Exchange does not believe that • Use the Commission’s Internet
Filing and Immediate Effectiveness of
the proposed rule change will result in comment form (http://www.sec.gov/
Proposed Rule Change To Amend
any burden on competition that is not rules/sro.shtml); or
• Send an email to rule-comments@ Chapter XV, Section 2 Entitled
necessary or appropriate in furtherance ‘‘NASDAQ Options Market—Fees and
of the purposes of the Act, as amended. sec.gov. Please include File Number SR–
BX–2015–048 on the subject line. Rebates’’
To the contrary, the Exchange believes
the proposal would enhance Paper Comments August 7, 2015.
competition because including all of the Pursuant to Section 19(b)(1) of the
exchanges enhances transparency and • Send paper comments in triplicate Securities Exchange Act of 1934
enables investors to better assess the to Brent J. Fields, Secretary, Securities (‘‘Act’’),1 and Rule 19b–4 thereunder,2
quality of the Exchange’s execution and and Exchange Commission, 100 F Street notice is hereby given that on July 31,
routing services. NE., Washington, DC 20549–1090.
2015, The NASDAQ Stock Market LLC
All submissions should refer to File (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
C. Self-Regulatory Organization’s Number SR–BX–2015–048. This file Securities and Exchange Commission
Statement on Comments on the number should be included on the (‘‘SEC’’ or ‘‘Commission’’) the proposed
Proposed Rule Change Received From subject line if email is used. To help the rule change as described in Items I, II,
Members, Participants, or Others Commission process and review your and III, below, which Items have been
No written comments were either comments more efficiently, please use prepared by the Exchange. The
solicited or received. only one method. The Commission will Commission is publishing this notice to
post all comments on the Commission’s solicit comments on the proposed rule
III. Date of Effectiveness of the Internet Web site (http://www.sec.gov/
Proposed Rule Change and Timing for change from interested persons.
rules/sro.shtml).
Commission Action Copies of the submission, all I. Self-Regulatory Organization’s
Because the foregoing proposed rule subsequent amendments, all written Statement of the Terms of Substance of
change does not: (i) Significantly affect statements with respect to the proposed the Proposed Rule Change
the protection of investors or the public rule change that are filed with the The Exchange proposes to amend the
interest; (ii) impose any significant Commission, and all written Exchange’s transaction fees at Chapter
burden on competition; and (iii) become communications relating to the XV, Section 2 entitled ‘‘NASDAQ
operative for 30 days from the date on proposed rule change between the Options Market—Fees and Rebates,’’
which it was filed, or such shorter time Commission and any person, other than which governs pricing for NASDAQ
as the Commission may designate, it has those that may be withheld from the members using the NASDAQ Options
become effective pursuant to Section public in accordance with the Market (‘‘NOM’’), NASDAQ’s facility for
19(b)(3)(A) 5 of the Act and Rule 19b- provisions of 5 U.S.C. 552, will be executing and routing standardized
4(f)(6) thereunder.6 The Exchange available for Web site viewing and equity and index options.
believes that this proposed rule change printing in the Commission’s Public While the changes proposed herein
is properly designated as non- Reference Room, 100 F Street, NE., are effective upon filing, the Exchange
controversial because it enhances clarity Washington, DC 20549, on official has designated such changes to become
and operational transparency without business days between the hours of operative on August 3, 3015.
modifying members’ rights or 10:00 a.m. and 3:00 p.m. Copies of the The text of the proposed rule change
obligations. The Exchange provided filing also will be available for is available on the Exchange’s Web site
notice of the proposed rule change on inspection and copying at the principal at http://nasdaq.cchwallstreet.com, at
July 27, 2015. office of the Exchange. All comments the principal office of the Exchange, and
At any time within 60 days of the received will be posted without change; at the Commission’s Public Reference
filing of the proposed rule change, the the Commission does not edit personal Room.
Commission summarily may identifying information from
submissions. You should submit only II. Self-Regulatory Organization’s
temporarily suspend such rule change if
information that you wish to make Statement of the Purpose of, and
it appears to the Commission that such
available publicly. Statutory Basis for, the Proposed Rule
action is: (i) Necessary or appropriate in
All submissions should refer to File Change
the public interest; (ii) for the protection
Number SR–BX–2015–048 and should In its filing with the Commission, the
of investors; or (iii) otherwise in
be submitted on or before September 3, Exchange included statements
furtherance of the purposes of the Act.
2015. concerning the purpose of and basis for
If the Commission takes such action, the
Commission shall institute proceedings the proposed rule change and discussed
to determine whether the proposed rule For the Commission, by the Division of any comments it received on the
Trading and Markets, pursuant to delegated proposed rule change. The text of these
should be approved or disapproved. authority.7
tkelley on DSK3SPTVN1PROD with NOTICES
statements may be examined at the
IV. Solicitation of Comments Jill M. Peterson, places specified in Item IV below. The
Interested persons are invited to Assistant Secretary. Exchange has prepared summaries, set
submit written data, views, and [FR Doc. 2015–19879 Filed 8–12–15; 8:45 am] forth in sections A, B, and C below, of
BILLING CODE 8011–01–P
5 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
6 17 CFR 240.19b–4(f)(6). 7 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b-4.
VerDate Sep<11>2014 16:56 Aug 12, 2015 Jkt 235001 PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 E:\FR\FM\13AUN1.SGM 13AUN1](https://thefederalregister.org/doc/80_FR_48768/page/1.svg)
![Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices 48615
Paper comments SECURITIES AND EXCHANGE and C below, of the most significant
COMMISSION aspects of such statements.
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities [Release No. 34–75639; File No. SR–FINRA– A. Self-Regulatory Organization’s
and Exchange Commission, 100 F Street 2015–028] Statement of the Purpose of, and
NE., Washington, DC 20549–1090. Statutory Basis for, the Proposed Rule
Self-Regulatory Organizations; Change
All submissions should refer to File Financial Industry Regulatory
Authority, Inc.; Notice of Filing and 1. Purpose
Number SR–NASDAQ–2015–090. This
file number should be included on the Immediate Effectiveness of a Proposed FINRA proposes to amend FINRA
subject line if email is used. To help the Rule Change To Extend the Tier Size Rule 6433 (Minimum Quotation Size
Commission process and review your Pilot of FINRA Rule 6433 (Minimum Requirements for OTC Equity
comments more efficiently, please use Quotation Size Requirements for OTC Securities) (the ‘‘Rule’’) to extend, until
only one method. The Commission will Equity Securities) December 11, 2015, the amendments set
forth in File No. SR–FINRA–2011–058
post all comments on the Commission’s August 7, 2015. (‘‘Tier Size Pilot’’ or ‘‘Pilot’’), which
Internet Web site (http://www.sec.gov/ Pursuant to Section 19(b)(1) of the currently are scheduled to expire on
rules/sro.shtml). Copies of the Securities Exchange Act of 1934 August 14, 2015.4
submission, all subsequent (‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Tier Size Pilot was filed with the
amendments, all written statements notice is hereby given that on July 28, SEC on October 6, 2011,5 to amend the
with respect to the proposed rule 2015, Financial Industry Regulatory minimum quotation sizes (or ‘‘tier
change that are filed with the Authority, Inc. (‘‘FINRA’’) filed with the sizes’’) for OTC Equity Securities.6 The
Commission, and all written Securities and Exchange Commission goals of the Pilot were to simplify the
communications relating to the (‘‘SEC’’ or ‘‘Commission’’) the proposed tier structure, facilitate the display of
proposed rule change between the rule change as described in Items I and customer limit orders, and expand the
Commission and any person, other than II below, which Items have been scope of the Rule to apply to additional
those that may be withheld from the prepared by FINRA. FINRA has quoting participants. During the course
public in accordance with the designated the proposed rule change as of the pilot, FINRA collected and
provisions of 5 U.S.C. 552, will be constituting a ‘‘non-controversial’’ rule provided to the SEC specified data with
available for Web site viewing and change under paragraph (f)(6) of Rule which to assess the impact of the Pilot
printing in the Commission’s Public 19b–4 under the Act,3 which renders tiers on market quality and limit order
Reference Room, 100 F Street NE., the proposal effective upon receipt of display.7 On September 13, 2013,
this filing by the Commission. The FINRA provided to the Commission an
Washington, DC 20549, on official
Commission is publishing this notice to assessment on the operation of the Tier
business days between the hours of
solicit comments on the proposed rule Size Pilot utilizing data covering the
10:00 a.m. and 3:00 p.m. Copies of the
change from interested persons. period from November 12, 2012 through
filing also will be available for
June 30, 2013.8 As noted in the 2013
inspection and copying at the principal I. Self-Regulatory Organization’s
Assessment, FINRA believed that the
office of the Exchange. All comments Statement of the Terms of the Substance
analysis of the data generally showed
received will be posted without change; of the Proposed Rule Change
that the Tier Size Pilot had a neutral to
the Commission does not edit personal FINRA is proposing to amend FINRA positive impact on OTC market quality
identifying information from Rule 6433 (Minimum Quotation Size for the majority of OTC Equity
submissions. You should submit only Requirements for OTC Equity Securities and tiers; and that there was
information that you wish to make Securities) to extend the Tier Size Pilot, an overall increase of 13% in the
available publicly. All submissions which currently is scheduled to expire number of customer limit orders that
should refer to File Number SR– on August 14, 2015, until December 11, met the minimum quotation sizes to be
NASDAQ–2015–090 and should be 2015. eligible for display under the Pilot tiers.
submitted on or before September 3, The text of the proposed rule change In the 2013 Assessment, FINRA
2015. is available on FINRA’s Web site at recommended adopting the tiers as
http://www.finra.org, at the principal
For the Commission, by the Division of office of FINRA and at the 4 See Securities Exchange Act Release No. 74927
Trading and Markets, pursuant to delegated Commission’s Public Reference Room. (May 12, 2015), 80 FR 28327 (May 18, 2015) (Notice
authority.16 of Filing and Immediate Effectiveness of File No.
Jill M. Peterson, II. Self-Regulatory Organization’s SR–FINRA–2015–010); see also Securities Exchange
Statement of the Purpose of, and Act Release No. 67208 (June 15, 2012), 77 FR 37458
Assistant Secretary. (June 21, 2012) (Order Approving File No. SR–
Statutory Basis for, the Proposed Rule FINRA–2011–058, as amended).
[FR Doc. 2015–19875 Filed 8–12–15; 8:45 am]
Change 5 See Securities Exchange Act Release No. 65568
BILLING CODE 8011–01–P (October 14, 2011), 76 FR 65307 (October 20, 2011)
In its filing with the Commission, (Notice of Filing of File No. SR–FINRA–2011–058).
FINRA included statements concerning 6 ‘‘OTC Equity Security’’ means any equity
the purpose of and basis for the security that is not an ‘‘NMS stock’’ as that term is
proposed rule change and discussed any defined in Rule 600(b)(47) of SEC Regulation NMS;
provided, however, that the term OTC Equity
comments it received on the proposed Security shall not include any Restricted Equity
rule change. The text of these statements Security. See FINRA Rule 6420.
tkelley on DSK3SPTVN1PROD with NOTICES
may be examined at the places specified 7 FINRA ceased collecting Pilot data for
in Item IV below. FINRA has prepared submission to the Commission on February 13,
summaries, set forth in sections A, B, 2015.
8 The assessment is part of the SEC’s comment file
for SR–FINRA–2011–058 and also is available on
1 15 U.S.C. 78s(b)(1). FINRA’s Web site at: http://www.finra.org/Industry/
2 17 CFR 240.19b–4. Regulation/RuleFilings/2011/P124615 (‘‘Pilot
16 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4(f)(6). Assessment’’).
VerDate Sep<11>2014 16:56 Aug 12, 2015 Jkt 235001 PO 00000 Frm 00140 Fmt 4703 Sfmt 4703 E:\FR\FM\13AUN1.SGM 13AUN1](https://thefederalregister.org/doc/80_FR_48768/page/4.svg)
Document Created: 2018-02-23 10:57:18
Document Modified: 2018-02-23 10:57:18
| 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 48612 |
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