80_FR_51779 80 FR 51615 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter XV, Section 3 Entitled “NASDAQ Options Market-Access Services”

80 FR 51615 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter XV, Section 3 Entitled “NASDAQ Options Market-Access Services”

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 164 (August 25, 2015)

Page Range51615-51617
FR Document2015-20933

Federal Register, Volume 80 Issue 164 (Tuesday, August 25, 2015)
[Federal Register Volume 80, Number 164 (Tuesday, August 25, 2015)]
[Notices]
[Pages 51615-51617]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20933]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75739; File No. SR-NASDAQ-2015-101]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Chapter XV, Section 3 Entitled ``NASDAQ Options Market--Access 
Services''

August 19, 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 13, 2015, The NASDAQ Stock Market LLC (``NASDAQ'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to waive SQF Port \3\ Fees under certain 
circumstances for NASDAQ members using the NASDAQ Options Market 
(``NOM''), NASDAQ's facility for executing and routing standardized 
equity and index options.
---------------------------------------------------------------------------

    \3\ SQF ports are ports that receive inbound quotes at any time 
within that month. The SQF Port allows a NOM Participant to access 
information such as execution reports and other relevant data 
through a single feed. For example, this data would show which 
symbols are trading on NOM and the current state of an options 
symbol (i.e., open for trading, trading, halted or closed). Auction 
notifications and execution reports are also available. NOM Market 
Makers rely on data available through the SQF Port to provide them 
the necessary information to perform market making activities.
---------------------------------------------------------------------------

    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.

[[Page 51616]]

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to offer NOM Participants that transition 
from OTTO Ports to SQF Ports \4\ an SQF Port Fee waiver for that given 
month. Today, the Exchange assesses a $750.00 per port, per month, per 
mnemonic fee for OTTO Ports and SQF Ports. The Exchange is proposing to 
amend chapter XV, section 3(b) to provide, ``NOM Participants will not 
be assessed an SQF Port Fee in the month in which the NOM Participant 
has canceled an OTTO Port and transitioned to an SQF Port. In order to 
receive the waiver, the Participant is required to provide the Exchange 
with written notification of the transition.''
---------------------------------------------------------------------------

    \4\ OTTO provides a method for subscribers to send orders and 
receive status updates on those orders. OTTO accepts limit orders 
from system subscribers, and if there is a matching order, the 
orders will execute. Non-matching orders are added to the limit 
order book, a database of available limit orders, where they are 
matched in price-time priority.
---------------------------------------------------------------------------

    The Exchange seeks to incentivize NOM Market Makers to transition 
from OTTO to SQF Ports by providing a waiver of the SQF Port Fee in the 
month in which such transition occurs.\5\ The NOM Participant must 
provide the Exchange with written notification to receive the waiver. 
By way of example, if a NOM Market Maker has 5 OTTO Ports as of August 
1, 2015 and decides to cancel the 5 OTTO Ports on August 20, 2015 and 
acquire 5 SQF Ports, provided written notice of such transition was 
received by the Exchange, the NOM Participant will be invoiced $3,750 
for the 5 OTTO Ports (5 x $750) and $0 for the 5 new SQF Ports for the 
month of August 2015.
---------------------------------------------------------------------------

    \5\ OTTO Ports fees will still apply for the month in which the 
NOM Participant transitions to SQF Ports.
---------------------------------------------------------------------------

    NOM Market Makers utilize OTTO and SQF ports for their market 
making business, which require a greater throughput as compared to the 
other ports. The Exchange believes that by offering this SQF Port Fee 
waiver a greater number of NOM Market Makers will transition to SQF 
Ports, which offers a more robust protocol.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of section 6 of the Act,\6\ in general, and with section 
6(b)(4) and 6(b)(5) of the Act,\7\ 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange's proposal to incentivize NOM Participants to 
transition from OTTO Ports to SQF Ports by offering a waiver of the SQF 
Port Fee is reasonable because the Exchange believes that SQF Ports 
provides NOM Market Makers greater benefits in performing their market 
making functions by offering more robust protocols. Also, NOM 
Participants will benefit from the ability to make this transition 
without incurring SQF and OTTO Port fees in a single month; they will 
only incur OTTO Port Fees, provided the proper notice is provided to 
the Exchange.
    The Exchange's proposal to incentivize NOM Participants to 
transition from OTTO Ports to SQF Ports by offering a waiver of the SQF 
Port Fee is equitable and not unfairly discriminatory because the 
Exchange is offering all NOM Market Makers the opportunity to 
transition from OTTO Ports to SQF Ports without incurring an SQF Port 
Fee, provided the proper written notification is provided to the 
Exchange. NOM Market Makers are valuable market participants that 
provide liquidity in the marketplace and incur costs unlike other 
market participants because NOM Market Makers add value through 
continuous quoting \8\ and the commitment of capital. NOM Market Makers 
provide a critical liquidity function across thousands of individual 
option puts and option calls, a function no other market participants 
are obligated to perform. The Exchange believes that offering the SQF 
Port Fee waiver to NOM Market Makers is equitable and not unfairly 
discriminatory because of the obligations \9\ borne by NOM Market 
Makers as compared to other market participants. Encouraging NOM Market 
Makers to transition to the more robust SQF Port benefits all market 
participants because NOM Market Makers provide a critical liquidity 
function which adds greater liquidity benefits for all NOM Participants 
in the quality of order interaction and enhanced execution quality.
---------------------------------------------------------------------------

    \8\ Pursuant to Chapter VII (Market Participants), Section 5 
(Obligations of Market Makers), in registering as a market maker, an 
Options Participant commits himself to various obligations. 
Transactions of a Market Maker in its market making capacity must 
constitute a course of dealings reasonably calculated to contribute 
to the maintenance of a fair and orderly market, and Market Makers 
should not make bids or offers or enter into transactions that are 
inconsistent with such course of dealings. Further, all Market 
Makers are designated as specialists on NOM for all purposes under 
the Act or rules thereunder. See Chapter VII, Section 5.
    \9\ See note 8.
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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. 
Offering NOM Market Makers the opportunity to transition from OTTO 
Ports to SQF Ports, at no additional cost, does not impose any undue 
burden on intra-market competition because NOM Market Makers have 
obligations \10\ to the market which are not borne by other market 
participants. NOM Market Makers provide a critical liquidity function 
across thousands of individual option puts and option calls, a function 
no other market participants are obligated to perform. The Exchange 
does not believe that offering NOM Market Makers the opportunity to 
transition from OTTO Ports to SQF Ports at no additional cost imposes 
an undue burden on inter-market competition because other options 
exchanges similarly offer NOM Market Makers the ability to obtain the 
necessary information to perform market making activities.\11\
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    \10\ See note 8.
    \11\ NASDAQ OMX PHLX LLC (``Phlx'') and NASDAQ OMX BX, Inc. 
(``BX'') offer SQF Ports to its market makers. See Phlx's Pricing 
Schedule and BX Rules at Chapter XV, Section 3.
---------------------------------------------------------------------------

    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.

[[Page 51617]]

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.\12\ 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NASDAQ-2015-101 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2015-101. 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-2015-101 and should 
be submitted on or before September 15, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assitant Secretary.
[FR Doc. 2015-20933 Filed 8-24-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                    Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices                                                         51615

                                                    Code of Federal Regulations (10 CFR).                         revision, and address the applicability                 III. Availability of Documents
                                                    The revisions to these SRP sections                           of regulatory treatment of non-safety
                                                    reflect no changes in staff position;                         systems where appropriate.                                The ADAMS accession numbers for
                                                    rather they clarify the original intent of                       Following NRC staff’s evaluation of                  the current revisions, proposed draft
                                                    these SRP sections using plain language                       submitted comments, the NRC intends                     revisions, and redline strikeouts
                                                    throughout in accordance with the                             to finalize the proposed revisions of SRP               comparing current revisions and the
                                                    NRC’s Plain Writing Action Plan.                              Sections 3.2.1, 3.2.2, 3.6.2, 3.9.1, 3.10,              proposed revisions of individual
                                                    Additionally, these revisions reflect                         5.2.1.1, 5.2.1.2, and BTP 3–4 in ADAMS                  sections are available in ADAMS under
                                                                                                                  and post them on the NRC’s public Web                   the following accession numbers:
                                                    operating experience, lessons learned,
                                                                                                                  site at http://www.nrc.gov/reading-rm/
                                                    and updated guidance since the last
                                                                                                                  doc-collections/nuregs/staff/sr0800/.

                                                                                                                                        Current revision ADAMS           Proposed revision ADAMS            Redline ADAMS
                                                                                  SRP Section                                                accession No.                    accession No.                  accession No.

                                                    Section 3.2.1, ‘‘Seismic Classification’’ ...................................   Revision 2 (ML063190002) ...        Revision 3 (ML14227A643) ...        ML14198A162
                                                    Section 3.2.2, ‘‘System Quality Group Classification’’ ............             Revision 2 (ML063190003) ...        Revision 3 (ML14227A641) ...        ML14198A145
                                                    Section 3.6.2, ‘‘Determination of Rupture Locations and Dy-                     Revision 2 (ML070660494) ...        Revision 3 (ML14230A035) ...        ML14198A166
                                                      namic Effects Associated with the Postulated Rupture of
                                                      Piping’’.
                                                    Section 3.9.1, ‘‘Special Topics for Mechanical Components’’                     Revision 3 (ML070430402) ...        Revision 4 (ML14227A637) ...        ML14198A150
                                                    Section 3.10, ‘‘Seismic and Dynamic Qualification of Me-                        Revision 3 (ML070720037) ...        Revision 4 (ML14227A631) ...        ML14198A171
                                                      chanical and Electrical Equipment’’.
                                                    Section 5.2.1.1, ‘‘Compliance with the Codes and Standards                      Revision 3 (ML070040003) ...        Revision 4 (ML14227A623) ...        ML14198A155
                                                      Rule, 10 CFR 50.55a’’.
                                                    Section 5.2.1.2 , ‘‘Applicable Code Cases’’ ............................        Revision 3 (ML070040004) ...        Revision 4 (ML14227A659) ...        ML14198A172
                                                    Branch Technical Position 3–4, ‘‘Applicable Code Cases’’ .....                  Revision 2 (ML070800008) ...        Revision 3 (ML14227A646) ...        ML14198A126



                                                    IV. Backfitting and Issue Finality                            issue finality provisions. If, in the                   notice is hereby given that, on August
                                                                                                                  future, the staff seeks to impose a                     13, 2015, The NASDAQ Stock Market
                                                       Issuance of these draft SRP sections
                                                                                                                  position in the draft SRP in a manner                   LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
                                                    does not constitute backfitting as                            that does not provide issue finality as                 with the Securities and Exchange
                                                    defined in 10 CFR 50.109, nor is it                           described in the applicable issue finality              Commission (‘‘Commission’’) the
                                                    inconsistent with any of the issue                            provision, then the staff must address                  proposed rule change as described in
                                                    finality provisions in 10 CFR part 52.                        the criteria for avoiding issue finality as             Items I, II, and III, below, which Items
                                                    These draft SRP sections do not contain                       described in the applicable issue finality              have been prepared by the Exchange.
                                                    any new requirements for COL                                  provision.
                                                    applicants or holders under 10 CFR part                                                                               The Commission is publishing this
                                                    52, or for licensees of existing operating                      Dated at Rockville, Maryland, this 14th day           notice to solicit comments on the
                                                    units licensed under 10 CFR part 50.                          of August, 2015.                                        proposed rule change from interested
                                                    Rather, it contains additional draft                            For the Nuclear Regulatory Commission.                persons.
                                                    guidance and clarification on staff                           Joseph Colaccino,
                                                                                                                                                                          I. Self-Regulatory Organization’s
                                                    review of Preliminary Amendment                               Chief, New Reactor Rulemaking and                       Statement of the Terms of Substance of
                                                    Requests.                                                     Guidance Branch, Division of Advanced
                                                                                                                  Reactors and Rulemaking, Office of New                  the Proposed Rule Change
                                                       The NRC staff does not intend to                           Reactors.
                                                    impose or apply the positions described                                                                                  The Exchange proposes to waive SQF
                                                                                                                  [FR Doc. 2015–21074 Filed 8–24–15; 8:45 am]             Port 3 Fees under certain circumstances
                                                    in the draft SRP to existing licenses and
                                                                                                                  BILLING CODE 7590–01–P                                  for NASDAQ members using the
                                                    regulatory approvals. Hence, the
                                                    issuance of a final SRP—even if                                                                                       NASDAQ Options Market (‘‘NOM’’),
                                                    considered guidance within the purview                                                                                NASDAQ’s facility for executing and
                                                    of the issue finality provisions in 10                        SECURITIES AND EXCHANGE                                 routing standardized equity and index
                                                    CFR part 52—would not need to be                              COMMISSION                                              options.
                                                    evaluated as if it were a backfit or as                       [Release No. 34–75739; File No. SR–                        The text of the proposed rule change
                                                    being inconsistent with issue finality                        NASDAQ–2015–101]                                        is available on the Exchange’s Web site
                                                    provisions. If, in the future, the NRC                                                                                at http://nasdaq.cchwallstreet.com, at
                                                    staff seeks to impose a position in the                       Self-Regulatory Organizations; The
                                                                                                                                                                          the principal office of the Exchange, and
                                                    SRP on holders of already issued                              NASDAQ Stock Market LLC; Notice of
                                                                                                                                                                          at the Commission’s Public Reference
                                                    licenses in a manner that does not                            Filing and Immediate Effectiveness of
                                                                                                                                                                          Room.
                                                    provide issue finality as described in the                    Proposed Rule Change To Amend
                                                    applicable issue finality provision, then                     Chapter XV, Section 3 Entitled
                                                                                                                                                                             3 SQF ports are ports that receive inbound quotes
                                                    the staff must make the showing as set                        ‘‘NASDAQ Options Market—Access
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                                                                                          at any time within that month. The SQF Port allows
                                                    forth in the Backfit Rule or address the                      Services’’                                              a NOM Participant to access information such as
                                                    criteria for avoiding issue finality as                                                                               execution reports and other relevant data through
                                                                                                                  August 19, 2015.                                        a single feed. For example, this data would show
                                                    described in the applicable issue finality                       Pursuant to section 19(b)(1) of the                  which symbols are trading on NOM and the current
                                                    provision.                                                    Securities Exchange Act of 1934                         state of an options symbol (i.e., open for trading,
                                                       The NRC staff does not, at this time,                                                                              trading, halted or closed). Auction notifications and
                                                                                                                  (‘‘Act’’) 1 and Rule 19b–4 thereunder,2                 execution reports are also available. NOM Market
                                                    intend to impose the positions                                                                                        Makers rely on data available through the SQF Port
                                                    represented in the draft SRP sections in                        1 15   U.S.C. 78s(b)(1).                              to provide them the necessary information to
                                                    a manner that is inconsistent with any                          2 17   CFR 240.19b–4.                                 perform market making activities.



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                                                    51616                        Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices

                                                    II. Self-Regulatory Organization’s                      throughput as compared to the other                   capital. NOM Market Makers provide a
                                                    Statement of the Purpose of, and                        ports. The Exchange believes that by                  critical liquidity function across
                                                    Statutory Basis for, the Proposed Rule                  offering this SQF Port Fee waiver a                   thousands of individual option puts and
                                                    Change                                                  greater number of NOM Market Makers                   option calls, a function no other market
                                                       In its filing with the Commission, the               will transition to SQF Ports, which                   participants are obligated to perform.
                                                    Exchange included statements                            offers a more robust protocol.                        The Exchange believes that offering the
                                                    concerning the purpose of and basis for                 2. Statutory Basis                                    SQF Port Fee waiver to NOM Market
                                                    the proposed rule change and discussed                                                                        Makers is equitable and not unfairly
                                                                                                               NASDAQ believes that the proposed                  discriminatory because of the
                                                    any comments it received on the
                                                                                                            rule change is consistent with the                    obligations 9 borne by NOM Market
                                                    proposed rule change. The text of these
                                                                                                            provisions of section 6 of the Act,6 in               Makers as compared to other market
                                                    statements may be examined at the
                                                                                                            general, and with section 6(b)(4) and                 participants. Encouraging NOM Market
                                                    places specified in Item IV below. The
                                                                                                            6(b)(5) of the Act,7 in particular, in that           Makers to transition to the more robust
                                                    Exchange has prepared summaries, set
                                                                                                            it provides for the equitable allocation              SQF Port benefits all market
                                                    forth in sections A, B, and C below, of
                                                                                                            of reasonable dues, fees and other                    participants because NOM Market
                                                    the most significant aspects of such
                                                                                                            charges among members and issuers and
                                                    statements.                                                                                                   Makers provide a critical liquidity
                                                                                                            other persons using any facility or
                                                                                                                                                                  function which adds greater liquidity
                                                    A. Self-Regulatory Organization’s                       system which NASDAQ operates or
                                                                                                                                                                  benefits for all NOM Participants in the
                                                    Statement of the Purpose of, and                        controls, and is not designed to permit
                                                                                                                                                                  quality of order interaction and
                                                    Statutory Basis for, the Proposed Rule                  unfair discrimination between
                                                    Change                                                  customers, issuers, brokers, or dealers.              enhanced execution quality.
                                                                                                               The Exchange’s proposal to                         B. Self-Regulatory Organization’s
                                                    1. Purpose                                              incentivize NOM Participants to                       Statement on Burden on Competition
                                                       The Exchange proposes to offer NOM                   transition from OTTO Ports to SQF
                                                    Participants that transition from OTTO                  Ports by offering a waiver of the SQF                    The proposed rule change will not
                                                    Ports to SQF Ports 4 an SQF Port Fee                    Port Fee is reasonable because the                    impose any burden on competition not
                                                    waiver for that given month. Today, the                 Exchange believes that SQF Ports                      necessary or appropriate in furtherance
                                                    Exchange assesses a $750.00 per port,                   provides NOM Market Makers greater                    of the purposes of the Act. Offering
                                                    per month, per mnemonic fee for OTTO                    benefits in performing their market                   NOM Market Makers the opportunity to
                                                    Ports and SQF Ports. The Exchange is                    making functions by offering more                     transition from OTTO Ports to SQF
                                                    proposing to amend chapter XV, section                  robust protocols. Also, NOM                           Ports, at no additional cost, does not
                                                    3(b) to provide, ‘‘NOM Participants will                Participants will benefit from the ability            impose any undue burden on intra-
                                                    not be assessed an SQF Port Fee in the                  to make this transition without                       market competition because NOM
                                                    month in which the NOM Participant                      incurring SQF and OTTO Port fees in a                 Market Makers have obligations 10 to the
                                                    has canceled an OTTO Port and                           single month; they will only incur                    market which are not borne by other
                                                    transitioned to an SQF Port. In order to                OTTO Port Fees, provided the proper                   market participants. NOM Market
                                                    receive the waiver, the Participant is                  notice is provided to the Exchange.                   Makers provide a critical liquidity
                                                    required to provide the Exchange with                      The Exchange’s proposal to                         function across thousands of individual
                                                    written notification of the transition.’’               incentivize NOM Participants to                       option puts and option calls, a function
                                                       The Exchange seeks to incentivize                    transition from OTTO Ports to SQF                     no other market participants are
                                                    NOM Market Makers to transition from                    Ports by offering a waiver of the SQF                 obligated to perform. The Exchange
                                                    OTTO to SQF Ports by providing a                        Port Fee is equitable and not unfairly                does not believe that offering NOM
                                                    waiver of the SQF Port Fee in the month                 discriminatory because the Exchange is                Market Makers the opportunity to
                                                    in which such transition occurs.5 The                   offering all NOM Market Makers the                    transition from OTTO Ports to SQF
                                                    NOM Participant must provide the                        opportunity to transition from OTTO                   Ports at no additional cost imposes an
                                                    Exchange with written notification to                   Ports to SQF Ports without incurring an               undue burden on inter-market
                                                    receive the waiver. By way of example,                  SQF Port Fee, provided the proper                     competition because other options
                                                    if a NOM Market Maker has 5 OTTO                        written notification is provided to the               exchanges similarly offer NOM Market
                                                    Ports as of August 1, 2015 and decides                  Exchange. NOM Market Makers are                       Makers the ability to obtain the
                                                    to cancel the 5 OTTO Ports on August                    valuable market participants that                     necessary information to perform
                                                    20, 2015 and acquire 5 SQF Ports,                       provide liquidity in the marketplace and              market making activities.11
                                                    provided written notice of such                         incur costs unlike other market
                                                    transition was received by the                          participants because NOM Market                          The Exchange operates in a highly
                                                    Exchange, the NOM Participant will be                   Makers add value through continuous                   competitive market in which many
                                                    invoiced $3,750 for the 5 OTTO Ports (5                 quoting 8 and the commitment of                       sophisticated and knowledgeable
                                                    x $750) and $0 for the 5 new SQF Ports                                                                        market participants can readily and do
                                                    for the month of August 2015.                             6 15 U.S.C. 78f.                                    send order flow to competing exchanges
                                                       NOM Market Makers utilize OTTO                         7 15 U.S.C. 78f(b)(4) and (5).                      if they deem fee levels or rebate
                                                    and SQF ports for their market making                     8 Pursuant to Chapter VII (Market Participants),    incentives at a particular exchange to be
                                                    business, which require a greater                       Section 5 (Obligations of Market Makers), in          excessive or inadequate. These market
                                                                                                            registering as a market maker, an Options
                                                                                                                                                                  forces ensure that the Exchange’s fees
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                            Participant commits himself to various obligations.
                                                      4 OTTO provides a method for subscribers to send
                                                                                                            Transactions of a Market Maker in its market          and rebates remain competitive with the
                                                    orders and receive status updates on those orders.      making capacity must constitute a course of           fee structures at other trading platforms.
                                                    OTTO accepts limit orders from system subscribers,      dealings reasonably calculated to contribute to the
                                                    and if there is a matching order, the orders will       maintenance of a fair and orderly market, and
                                                                                                                                                                    9 See note 8.
                                                    execute. Non-matching orders are added to the limit     Market Makers should not make bids or offers or
                                                    order book, a database of available limit orders,       enter into transactions that are inconsistent with      10 See note 8.
                                                    where they are matched in price-time priority.          such course of dealings. Further, all Market Makers      11 NASDAQ OMX PHLX LLC (‘‘Phlx’’) and
                                                      5 OTTO Ports fees will still apply for the month      are designated as specialists on NOM for all          NASDAQ OMX BX, Inc. (‘‘BX’’) offer SQF Ports to
                                                    in which the NOM Participant transitions to SQF         purposes under the Act or rules thereunder. See       its market makers. See Phlx’s Pricing Schedule and
                                                    Ports.                                                  Chapter VII, Section 5.                               BX Rules at Chapter XV, Section 3.



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                                                                                     Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Notices                                                51617

                                                    C. Self-Regulatory Organization’s                          those that may be withheld from the                      Adjudicatory matters; and
                                                    Statement on Comments on the                               public in accordance with the                            Other matters relating to enforcement
                                                    Proposed Rule Change Received From                         provisions of 5 U.S.C. 552, will be                    proceedings.
                                                    Members, Participants, or Others                           available for Web site viewing and                       At times, changes in Commission
                                                      No written comments were either                          printing in the Commission’s Public                    priorities require alterations in the
                                                    solicited or received.                                     Reference Room, 100 F Street NE.,                      scheduling of meeting items.
                                                                                                               Washington, DC 20549, on official                        For further information and to
                                                    III. Date of Effectiveness of the                          business days between the hours of                     ascertain what, if any, matters have been
                                                    Proposed Rule Change and Timing for                        10:00 a.m. and 3:00 p.m. Copies of the                 added, deleted or postponed, please
                                                    Commission Action                                          filing also will be available for                      contact the Office of the Secretary at
                                                       The foregoing rule change has become                    inspection and copying at the principal                (202) 551–5400.
                                                    effective pursuant to section                              office of the Exchange. All comments                     Dated: August 20, 2015.
                                                    19(b)(3)(A)(ii) of the Act.12 At any time                  received will be posted without change;                Robert W. Errett,
                                                    within 60 days of the filing of the                        the Commission does not edit personal                  Deputy Secretary.
                                                    proposed rule change, the Commission                       identifying information from
                                                                                                                                                                      [FR Doc. 2015–21079 Filed 8–21–15; 11:15 am]
                                                    summarily may temporarily suspend                          submissions. You should submit only
                                                                                                                                                                      BILLING CODE 8011–01–P
                                                    such rule change if it appears to the                      information that you wish to make
                                                    Commission that such action is: (i)                        available publicly. All submissions
                                                    necessary or appropriate in the public                     should refer to File Number SR–                        SECURITIES AND EXCHANGE
                                                    interest; (ii) for the protection of                       NASDAQ–2015–101 and should be                          COMMISSION
                                                    investors; or (iii) otherwise in                           submitted on or before September 15,
                                                    furtherance of the purposes of the Act.                    2015.                                                  [Release No. 34–75740; File No. SR–NYSE–
                                                    If the Commission takes such action, the                                                                          2015–36]
                                                                                                                  For the Commission, by the Division of
                                                    Commission shall institute proceedings                     Trading and Markets, pursuant to delegated
                                                    to determine whether the proposed rule                                                                            Self-Regulatory Organizations; New
                                                                                                               authority.13
                                                    should be approved or disapproved.                                                                                York Stock Exchange LLC; Notice of
                                                                                                               Jill M. Peterson,                                      Filing of Proposed Rule Change
                                                    IV. Solicitation of Comments                               Assitant Secretary.                                    Amending Section 907.00 of the Listed
                                                      Interested persons are invited to                        [FR Doc. 2015–20933 Filed 8–24–15; 8:45 am]            Company Manual (the ‘‘Manual’’) To (i)
                                                    submit written data, views and                             BILLING CODE 8011–01–P                                 Amend the Suite of Complimentary
                                                    arguments concerning the foregoing,                                                                               Products and Services That Are
                                                    including whether the proposed rule                                                                               Offered to Certain Current and Newly
                                                    change is consistent with the Act.                         SECURITIES AND EXCHANGE                                Listed Companies, (ii) Update the
                                                    Comments may be submitted by any of                        COMMISSION                                             Value of Complimentary Products and
                                                    the following methods:                                                                                            Services Offered to Listed Companies,
                                                                                                               Sunshine Act Meeting                                   and (iii) Provide That Complimentary
                                                    Electronic Comments                                                                                               Products and Services Would Also Be
                                                                                                                  Notice is hereby given, pursuant to
                                                      • Use the Commission’s Internet                          the provisions of the Government in the                Offered to Companies that Transfer
                                                    comment form (http://www.sec.gov/                          Sunshine Act, Public Law 94–409, that                  Their Listing to the Exchange From
                                                    rules/sro.shtml); or                                       the Securities and Exchange                            Another National Securities Exchange
                                                      • Send an email to rule-comments@
                                                                                                               Commission will hold a Closed Meeting                  August 19, 2015.
                                                    sec.gov. Please include File Number SR–
                                                                                                               on Thursday, August 27, 2015 at 2 p.m.                    Pursuant to Section 19(b)(1) 1 of the
                                                    NASDAQ–2015–101 on the subject line.                          Commissioners, Counsel to the
                                                                                                                                                                      Securities Exchange Act of 1934 (the
                                                    Paper Comments                                             Commissioners, the Secretary to the
                                                                                                                                                                      ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                       • Send paper comments in triplicate                     Commission, and recording secretaries
                                                                                                                                                                      notice is hereby given that, on August
                                                    to Secretary, Securities and Exchange                      will attend the Closed Meeting. Certain
                                                                                                                                                                      11, 2015, New York Stock Exchange
                                                    Commission, 100 F Street, NE.,                             staff members who have an interest in
                                                                                                                                                                      LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
                                                    Washington, DC 20549–1090.                                 the matters also may be present.
                                                                                                                                                                      with the Securities and Exchange
                                                                                                                  The General Counsel of the
                                                    All submissions should refer to File                                                                              Commission (the ‘‘Commission’’) the
                                                                                                               Commission, or her designee, has
                                                    Number SR–NASDAQ–2015–101. This                                                                                   proposed rule change as described in
                                                                                                               certified that, in her opinion, one or
                                                    file number should be included on the                                                                             Items I and II below, which Items have
                                                                                                               more of the exemptions set forth in 5
                                                    subject line if email is used. To help the                                                                        been prepared by the self-regulatory
                                                                                                               U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
                                                    Commission process and review your                                                                                organization. The Commission is
                                                                                                               and 17 CFR 200.402(a)(3), (5), (7), (9)(ii)
                                                    comments more efficiently, please use                                                                             publishing this notice to solicit
                                                                                                               and (10), permit consideration of the
                                                    only one method. The Commission will                                                                              comments on the proposed rule change
                                                                                                               scheduled matter at the Closed Meeting.
                                                    post all comments on the Commission’s                         Commissioner Aguilar, as duty                       from interested persons.
                                                    Internet Web site (http://www.sec.gov/                     officer, voted to consider the items
                                                    rules/sro.shtml). Copies of the                            listed for the Closed Meeting in closed
                                                    submission, all subsequent                                                                                        I. Self-Regulatory Organization’s
                                                                                                               session.
                                                    amendments, all written statements                                                                                Statement of the Terms of Substance of
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                                  The subject matter of the Closed
                                                    with respect to the proposed rule                          Meeting will be:                                       the Proposed Rule Change
                                                    change that are filed with the                                Institution and settlement of                         The Exchange proposes to amend
                                                    Commission, and all written                                injunctive actions;                                    section 907.00 of the listed company
                                                    communications relating to the                                Institution and settlement of                       manual (the ‘‘manual’’) [sic] to (i)
                                                    proposed rule change between the                           administrative proceedings;
                                                    Commission and any person, other than                         Resolution of litigation claims;                      1 15 U.S.C. 78s(b)(1).
                                                                                                                                                                        2 15 U.S.C. 78a.
                                                      12 15   U.S.C. 78s(b)(3)(A)(ii).                           13 17   CFR 200.30–3(a)(12).                           3 17 CFR 240.19b–4.




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Document Created: 2018-02-23 11:03:16
Document Modified: 2018-02-23 11:03:16
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 51615 

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