80 FR 57262 - 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 183 (September 22, 2015)

Page Range		57262-57263
FR Document		2015-23974
Federal Register, Volume 80 Issue 183 (Tuesday, September 22, 2015)
[Federal Register Volume 80, Number 183 (Tuesday, September 22, 2015)]
[Notices]
[Pages 57262-57263]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23974]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75931; File No. SR-NASDAQ-2015-109]


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''

September 16, 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 September 3, 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.
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    \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 amend Chapter XV, entitled ``Options 
Pricing,'' at Section 2, which governs pricing for NASDAQ members using 
the NASDAQ Options Market (``NOM''), NASDAQ's facility for executing 
and routing standardized equity and index options, to remove references 
to options on the Nasdaq-100 Index traded under the symbol NDX 
(``NDX'').
    While the changes proposed herein are effective upon filing, the 
Exchange has designated the amendments become operative on October 1, 
2015.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaq.cchwallstreet.com, at the principal office of 
the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Chapter XV, Section 2, ``NASDAQ 
Options Market--Fees and Rebates'' to remove references to NDX, as this 
index will be delisted on or before September 30, 2015.
    Today, the Exchange assesses fees and pays rebates related to the 
NASDAQ OMX PHLX LLC NDX proprietary index listed on NOM. The Exchange 
assesses the following Non-Penny Pilot fees for NDX:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Non-NOM market    NOM market
                                                             Customer      Professional        Firm            maker           maker       Broker-dealer
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-Penny Pilot Options (including NDX \1\):
    Fee for Adding Liquidity............................             N/A           $0.45           $0.45           $0.45           $0.35           $0.45
    Fee for Removing Liquidity..........................            0.85            0.94            0.94            0.94            0.94            0.94
    Rebate to Add Liquidity.............................            0.84             N/A             N/A             N/A             N/A  ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------


Additionally, for transactions in NDX, a surcharge of $0.15 per 
contract is added to the Fee for Adding Liquidity and the Fee for 
Removing Liquidity in Non-Penny Pilot Options, except for a Customer 
who will not be assessed a surcharge.
    The Exchange will delist this proprietary index and will no longer 
assess the above-referenced fees or pay rebates for NDX. The Exchange 
proposes to remove references to NDX from the fee schedule, including 
current note 1 in the fee schedule at Chapter XV, Section 2(1), which 
relates to NDX transactions. The NDX surcharge of $0.15 per contract 
would also no longer be assessed.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the

[[Page 57263]]

provisions of Section 6 of the Act,\3\ in general, and with Section 
6(b)(4) and 6(b)(5) of the Act,\4\ 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.
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    \3\ 15 U.S.C. 78f.
    \4\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange's proposal to remove the references to NDX, not assess 
fees or surcharges for NDX or pay rebates for NDX is reasonable because 
the Exchange is seeking to delist this index from NOM on or before 
September 30, 2015.
    The Exchange's proposal to remove the references to NDX, not assess 
fees or surcharges for NDX or pay rebates for NDX is equitable and not 
unfairly discriminatory because no market participant will be able to 
transact options in NDX as of the delisting.

B. Self-Regulatory Organization's Statement on Burden on Competition

    NASDAQ does not believe that the proposed rule change will impose 
any burden on competition not necessary or appropriate in furtherance 
of the purposes of the Act. The Exchange will delist NDX on or before 
September 30, 2015 and no longer offer market participants the 
opportunity to transact options in that index on NOM. The removal of 
references to NDX from the fee schedule does not impose an undue burden 
on competition because NOM Participants will not be able to transact 
options in NDX on NOM as of the delisting.

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.\5\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    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 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-2015-109 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2015-109. 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-2015-109 and should 
be submitted on or before October 13, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-23974 Filed 9-21-15; 8:45 am]
BILLING CODE 8011-01-P
57262 Federal Register / Vol. 80, No. 183 / Tuesday, September 22, 2015 / Notices

Paper Comments SECURITIES AND EXCHANGE The text of the proposed rule change
• Send paper comments in triplicate COMMISSION is available on the Exchange’s Web site
to Brent J. Fields, Secretary, Securities at http://nasdaq.cchwallstreet.com, at
and Exchange Commission, 100 F Street [Release No. 34–75931; File No. SR– the principal office of the Exchange, and
NE., Washington, DC 20549–1090. NASDAQ–2015–109] at the Commission’s Public Reference
All submissions should refer to File Room.
Self-Regulatory Organizations; The
Number 10–222. This file number II. Self-Regulatory Organization’s
NASDAQ Stock Market LLC; Notice of
should be included on the subject line Statement of the Purpose of, and
if email is used. To help the Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Statutory Basis for, the Proposed Rule
Commission process and review your
Chapter XV, Section 2 Entitled Change
comments more efficiently, please use
only one method. The Commission will ‘‘NASDAQ Options Market—Fees and
Rebates’’ In its filing with the Commission, the
post all comments on the Commission’s Exchange included statements
Internet Web site (http://www.sec.gov/ September 16, 2015. concerning the purpose of and basis for
rules/other.shtml). Copies of the Pursuant to Section 19(b)(1) of the the proposed rule change and discussed
submission, all subsequent Securities Exchange Act of 1934 any comments it received on the
amendments, all written statements (‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposed rule change. The text of these
with respect to IEX’s Form 1 filed with notice is hereby given that on
the Commission, and all written statements may be examined at the
September 3, 2015, The NASDAQ Stock places specified in Item IV below. The
communications relating to the Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’)
application between the Commission Exchange has prepared summaries, set
filed with the Securities and Exchange forth in sections A, B, and C below, of
and any person, other than those that Commission (‘‘SEC’’ or ‘‘Commission’’)
may be withheld from the public in the most significant aspects of such
the proposed rule change as described statements.
accordance with the provisions of 5 in Items I, II, and III, below, which Items
U.S.C. 552, will be available for Web have been prepared by the Exchange. A. Self-Regulatory Organization’s
site viewing and printing in the The Commission is publishing this Statement of the Purpose of, and
Commission’s Public Reference Room, notice to solicit comments on the Statutory Basis for, the Proposed Rule
100 F Street NE., Washington, DC proposed rule change from interested
20549, on official business days Change
persons.
between the hours of 10:00 a.m. and 1. Purpose
3:00 p.m. All comments received will be I. Self-Regulatory Organization’s
posted without change; the Commission Statement of the Terms of Substance of The Exchange proposes to amend
does not edit personal identifying the Proposed Rule Change Chapter XV, Section 2, ‘‘NASDAQ
information from submissions. You The Exchange proposes to amend Options Market—Fees and Rebates’’ to
should submit only information that Chapter XV, entitled ‘‘Options Pricing,’’ remove references to NDX, as this index
you wish to make publicly available. All at Section 2, which governs pricing for will be delisted on or before September
submissions should refer to File NASDAQ members using the NASDAQ 30, 2015.
Number 10–222 and should be Options Market (‘‘NOM’’), NASDAQ’s Today, the Exchange assesses fees and
submitted on or before November 6, facility for executing and routing pays rebates related to the NASDAQ
2015. standardized equity and index options, OMX PHLX LLC NDX proprietary index
For the Commission, by the Division of to remove references to options on the listed on NOM. The Exchange assesses
Trading and Markets, pursuant to delegated Nasdaq-100 Index traded under the the following Non-Penny Pilot fees for
authority.7 symbol NDX (‘‘NDX’’). NDX:
Brent J. Fields, While the changes proposed herein
Secretary. are effective upon filing, the Exchange
[FR Doc. 2015–23972 Filed 9–21–15; 8:45 am] has designated the amendments become
BILLING CODE 8011–01–P operative on October 1, 2015.

Non-NOM NOM market
Customer Professional Firm Broker-dealer
market maker maker

Non-Penny Pilot Options (including
NDX 1):
Fee for Adding Liquidity .................... N/A $0.45 $0.45 $0.45 $0.35 $0.45
Fee for Removing Liquidity ............... 0.85 0.94 0.94 0.94 0.94 0.94
Rebate to Add Liquidity .................... 0.84 N/A N/A N/A N/A

Additionally, for transactions in NDX, a The Exchange will delist this The NDX surcharge of $0.15 per
surcharge of $0.15 per contract is added proprietary index and will no longer contract would also no longer be
to the Fee for Adding Liquidity and the assess the above-referenced fees or pay assessed.
Fee for Removing Liquidity in Non- rebates for NDX. The Exchange proposes
tkelley on DSK3SPTVN1PROD with NOTICES

2. Statutory Basis
Penny Pilot Options, except for a to remove references to NDX from the
Customer who will not be assessed a fee schedule, including current note 1 in NASDAQ believes that the proposed
surcharge. the fee schedule at Chapter XV, Section rule change is consistent with the
2(1), which relates to NDX transactions.
7 17 CFR 200.30–3(a)(71)(i). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4.

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Federal Register / Vol. 80, No. 183 / Tuesday, September 22, 2015 / Notices 57263

provisions of Section 6 of the Act,3 in furtherance of the purposes of the Act. For the Commission, by the Division of
general, and with Section 6(b)(4) and If the Commission takes such action, the Trading and Markets, pursuant to delegated
6(b)(5) of the Act,4 in particular, in that Commission shall institute proceedings authority.6
it provides for the equitable allocation to determine whether the proposed rule Brent J. Fields,
of reasonable dues, fees and other should be approved or disapproved. Secretary.
charges among members and issuers and [FR Doc. 2015–23974 Filed 9–21–15; 8:45 am]
IV. Solicitation of Comments
other persons using any facility or BILLING CODE 8011–01–P
system which NASDAQ operates or Interested persons are invited to
controls, and is not designed to permit submit written data, views, and
unfair discrimination between arguments concerning the foregoing, SECURITIES AND EXCHANGE
customers, issuers, brokers, or dealers. including whether the proposed rule COMMISSION
The Exchange’s proposal to remove change is consistent with the Act.
the references to NDX, not assess fees or Comments may be submitted by any of [Release No. 34–75935; File No. PCAOB–
surcharges for NDX or pay rebates for the following methods: 2015–01]
NDX is reasonable because the
Electronic Comments Public Company Accounting Oversight
Exchange is seeking to delist this index
from NOM on or before September 30, • Use the Commission’s Internet Board; Order Granting Approval of
2015. comment form (http://www.sec.gov/ Proposed Rules To Implement the
The Exchange’s proposal to remove rules/sro.shtml); or Reorganization of PCAOB Auditing
the references to NDX, not assess fees or • Send an email to rule-comments@ Standards and Related Changes to
surcharges for NDX or pay rebates for sec.gov. Please include File Number SR– PCAOB Rules and Attestation, Quality
NDX is equitable and not unfairly NASDAQ–2015–109 on the subject line. Control, and Ethics and Independence
discriminatory because no market Standards
Paper Comments
participant will be able to transact September 17, 2015.
options in NDX as of the delisting. • Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities I. Introduction
B. Self-Regulatory Organization’s and Exchange Commission, 100 F Street
Statement on Burden on Competition On June 17, 2015, the Public
NE., Washington, DC 20549–1090. Company Accounting Oversight Board
NASDAQ does not believe that the All submissions should refer to File (the ‘‘Board’’ or the ‘‘PCAOB’’) filed
proposed rule change will impose any Number SR–NASDAQ–2015–109. This with the Securities and Exchange
burden on competition not necessary or file number should be included on the Commission (the ‘‘Commission’’),
appropriate in furtherance of the subject line if email is used. To help the pursuant to section 107(b) 1 of the
purposes of the Act. The Exchange will Commission process and review your Sarbanes-Oxley Act of 2002 (the
delist NDX on or before September 30, comments more efficiently, please use ‘‘Sarbanes-Oxley Act’’) and section
2015 and no longer offer market only one method. The Commission will 19(b) 2 of the Securities Exchange Act of
participants the opportunity to transact post all comments on the Commission’s 1934 (the ‘‘Exchange Act’’), proposed
options in that index on NOM. The Internet Web site (http://www.sec.gov/ rules to adopt amendments to
removal of references to NDX from the rules/sro.shtml). Copies of the implement the reorganization of PCAOB
fee schedule does not impose an undue submission, all subsequent auditing standards and related changes
burden on competition because NOM amendments, all written statements to PCAOB rules and attestation, quality
Participants will not be able to transact with respect to the proposed rule control, and ethics and independence
options in NDX on NOM as of the change that are filed with the standards (collectively, the ‘‘Proposed
delisting. Commission, and all written Rules’’ or ‘‘Proposed Reorganization’’).3
C. Self-Regulatory Organization’s communications relating to the The Proposed Rules were published for
Statement on Comments on the proposed rule change between the comment in the Federal Register on
Proposed Rule Change Received From Commission and any person, other than June 25, 2015.4 At the time the notice
Members, Participants, or Others those that may be withheld from the was issued, the Commission designated
public in accordance with the a longer period to act on the Proposed
No written comments were either provisions of 5 U.S.C. 552, will be Rules, until September 23, 2015.5 The
solicited or received. available for Web site viewing and Commission received four comment
III. Date of Effectiveness of the printing in the Commission’s Public letters in response to the notice.6 This
Proposed Rule Change and Timing for Reference Room, 100 F Street NE., order approves the Proposed Rules.
Commission Action Washington, DC 20549, on official
business days between the hours of 6 17 CFR 200.30–3(a)(12).
The foregoing rule change has become
10:00 a.m. and 3:00 p.m. Copies of the 1 15 U.S.C. 7217(b).
effective pursuant to Section 2 15 U.S.C. 78s(b).
filing also will be available for
19(b)(3)(A)(ii) of the Act.5 3 The Board originally proposed in March 2013
inspection and copying at the principal
At any time within 60 days of the (‘‘Original Proposal’’) what became the Proposed
office of the Exchange. All comments Rules. See PCAOB Release No. 2013–002 (March,
filing of the proposed rule change, the
received will be posted without change; 26, 2013). The Board also issued a supplemental
Commission summarily may
the Commission does not edit personal request for comment in May 2014 (‘‘Supplemental
temporarily suspend such rule change if Request’’). See PCAOB Release No. 2014–001 (May
identifying information from
it appears to the Commission that such 7, 2014).
submissions. You should submit only
tkelley on DSK3SPTVN1PROD with NOTICES

action is: (i) Necessary or appropriate in 4 See Release No. 34–75251 (June 19, 2015), 80 FR
information that you wish to make 36602 (June 25, 2015).
the public interest; (ii) for the protection
available publicly. All submissions 5 Ibid.
of investors; or (iii) otherwise in
should refer to File Number SR– 6 See Comment letters from Suzanne H. Shatto,

NASDAQ–2015–109 and should be June 27, 2015, Deloitte & Touche LLP, July 8, 2015,
3 15 U.S.C. 78f. Michael McMurtry, July 28, 2015, and Stephen G.
4 15 U.S.C. 78f(b)(4) and (5). submitted on or before October 13, Wills, August 17, 2015, available at http://
5 15 U.S.C. 78s(b)(3)(A)(ii). 2015. Continued

VerDate Sep<11>2014 17:39 Sep 21, 2015 Jkt 235001 PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 E:\FR\FM\22SEN1.SGM 22SEN1
Document Created: 2015-12-15 09:35:17
Document Modified: 2015-12-15 09:35:17
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 57262