80 FR 63261 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Chapter XV, Entitled “Options Pricing,” at Section 2 Governing Pricing for NASDAQ Members
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 201 (October 19, 2015)
Federal Register Volume 80, Issue 201 (October 19, 2015)
| Page Range | 63261-63263 | |
| FR Document | 2015-26425 |
[Federal Register Volume 80, Number 201 (Monday, October 19, 2015)] [Notices] [Pages 63261-63263] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-26425] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76131; File No. SR-NASDAQ-2015-113] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Chapter XV, Entitled ``Options Pricing,'' at Section 2 Governing Pricing for NASDAQ Members October 13, 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 29, 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 modify Chapter XV, entitled ``Options Pricing,'' at Section 2 governing pricing for NASDAQ members using the NASDAQ Options Market (``NOM''), NASDAQ's facility for executing and routing standardized equity and index options. Specifically, NOM proposes to amend certain Penny Pilot Options \3\ rebates currently applicable to NOM Market Makers.\4\ --------------------------------------------------------------------------- \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 ``NOM Market Maker'' means 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. --------------------------------------------------------------------------- While the changes proposed herein are effective upon filing, the Exchange has designated that the amendments be 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 [[Page 63262]] the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose NASDAQ proposes to modify Chapter XV, entitled ``Options Pricing,'' at Section 2(1) governing the rebates and fees assessed for option orders entered into NOM. The Exchange proposes to amend the NOM Market Maker Penny Pilot Options Rebates to Add Liquidity to add the iShares Russell 2000 ETF ``IWM'' to Tiers 3 and 4 of the NOM Market Maker Penny Pilot Options Rebates to Add Liquidity. The Exchange believes that additional rebate opportunities offered by the addition of IWM to Tiers 3 and 4 of the NOM Market Maker Penny Pilot Options Rebates to Add Liquidity will attract additional order flow to NOM to the benefit of all market participants. NOM Market Maker Rebates To Add Liquidity Today, the Exchange pays NOM Market Maker Penny Pilot Options Rebates to Add Liquidity based on various criteria in six tiers with rebates which range from $0.20 to $0.42 per contract as noted below. ------------------------------------------------------------------------ Rebate to add Monthly volume liquidity ------------------------------------------------------------------------ Tier 1........................ Participant adds NOM $0.20. Market Maker 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 NOM $0.25. Market Maker liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.10% to 0.25% of total industry customer equity and ETF option ADV contracts per day in a month. Tier 3........................ Participant adds NOM $0.30 or $0.40 Market Maker in the liquidity in Penny following Pilot Options and/or symbols AAPL, Non-Penny Pilot QQQ, SPY and Options above 0.25% VXX. to 0.60% of total industry customer equity and ETF option ADV contracts per day in a month. Tier 4........................ Participant adds NOM $0.32 or $0.40 Market Maker in the liquidity in Penny following Pilot Options and/or symbols AAPL, Non-Penny Pilot QQQ,VXX and Options of above SPY. 0.60% to 0.90% of total industry customer equity and ETF option ADV contracts per day in a month. Tier 5........................ Participant adds NOM $0.40. Market Maker liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of above 0.30% of total industry customer equity and ETF option ADV contracts per day in a month and qualifies for the Tier 7 or Tier 8 Customer and/or Professional Rebate to Add Liquidity in Penny Pilot Options. Tier 6........................ Participant adds NOM $0.42. Market Maker liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.80% of total industry customer equity and ETF option ADV contracts per day in a month and qualifies for the Tier 7 or Tier 8 Customer and/ or Professional Rebate to Add Liquidity in Penny Pilot Options or Participant adds NOM Market Maker liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.90% of total industry customer equity and ETF option ADV contracts per day in a month or 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 1.40% or more of total industry customer equity and ETF option ADV contracts per day in a month. ------------------------------------------------------------------------ Today, the Tier 3 NOM Market Maker Penny Pilot Options Rebate to Add Liquidity pays a $0.30 per contract rebate, except in options overlying Apple, Inc. (``AAPL''), PowerShares QQQ (``QQQ''), VIX ST Futures ETN (``VXX'') and SPDR S&P 500 (``SPY''), which pay a $0.40 per contract rebate to Participants that add NOM Market Maker liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 0.25% to 0.60% of total industry customer equity and ETF option ADV contracts per day in a month. The Exchange proposes to add IWM to the list of symbols that are eligible for the Tier 3 rebate of $0.40 per contract. Today, the Exchange pays a Tier 3 NOM Market Maker Penny Pilot Options Rebate to Add Liquidity of $0.30 per contract in IWM. Today, the Tier 4 NOM Market Maker Penny Pilot Options Rebate to Add Liquidity pays a $0.32 per contract rebate, except in AAPL, QQQ, VXX and SPY, which pay a $0.40 per contract rebate to Participants that add NOM Market Maker liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of above 0.60% to 0.90% of total industry customer equity and ETF option ADV contracts per day in a month. The Exchange proposes to add IWM to the list of symbols that are eligible for the Tier 4 rebate of $0.40 per contract. Today, the Exchange pays a Tier 4 NOM Market Maker Penny Pilot Options Rebate to Add Liquidity of $0.32 per contract in IWM. The Exchange believes that paying a higher rebate for IWM transactions will encourage a greater number of transactions in IWM. 2. Statutory Basis NASDAQ believes that the proposed rule changes are consistent with the provisions of Section 6 of the Act,\5\ in general, and with Section 6(b)(4) of the Act,\6\ in particular, in that they provide 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 as described in detail below. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f. \6\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- NOM Market Maker Penny Pilot Options Rebates To Add Liquidity The Exchange's proposal to amend the NOM Market Maker Penny Pilot Options Rebate to Add Liquidity Tiers 3 and 4 to increase the IWM rebate from $0.30 to $0.40 per contract in Tier 3 and from $0.32 to $0.40 per contract in Tier 4 is reasonable because the proposal seeks to encourage Participants to transact a greater amount of IWM liquidity in order to receive the higher rebate of $0.40 per contract, provided Participants qualify for the Tier 3 or 4 [[Page 63263]] rebate. The Exchange believes that offering NOM Market Makers the ability to obtain higher rebates is reasonable because it will encourage additional order interaction. The Exchange's proposal to amend the NOM Market Maker Penny Pilot Options Rebate to Add Liquidity Tiers 3 and 4 to increase the IWM rebate from $0.30 to $0.40 per contract in Tier 3 and from $0.32 to $0.40 per contract in Tier 4 is equitable and not unfairly discriminatory because all NOM Market Makers may qualify for the Tier 3 and Tier 4 NOM Market Maker Penny Pilot Options Rebate to Add Liquidity. The Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to adopt different pricing for IWM, as compared to other options, because pricing by symbol is a common practice on many U.S. options exchanges as a means to incentivize order flow to be sent to an exchange for execution in the most actively traded options classes, in this case actively traded Penny Pilot Options.\7\ The Exchange notes that IWM is one of the most actively traded options in the U.S. The Exchange believes that this pricing will incentivize members to transact options on IWM on NOM in order to obtain the higher $0.40 per contract rebate. --------------------------------------------------------------------------- \7\ See NASDAQ OMX PHLX LLC's Pricing Schedule. See also the International Securities Exchange LLC's Fee Schedule. Both of these markets segment pricing by symbol. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition NASDAQ does not believe that the proposed rule changes will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. The Exchange's proposal to amend the Tier 3 and 4 NOM Market Maker Penny Pilot Options Rebates to Add Liquidity to pay a higher rebate for IWM of $0.40 per contract, similar to AAPL, QQQ, SPY and VXX, does not create an undue burden on intra-market competition because all NOM Market Makers may qualify for the Tier 3 or 4 NOM Market Maker Penny Pilot Options Rebate to Add Liquidity. The Exchange's proposal addressed herein does not impose an inter- market burden on competition because 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 support the Exchange belief that the proposed rebate structure and tiers proposed herein are competitive with rebates and tiers in place on other exchanges. The Exchange believes that this competitive marketplace continues to impact the rebates present on the Exchange today and substantially influences the proposals set forth above. Other options markets offer similar rebates to incentivize market participants to direct order flow to their markets. The Exchange believes that continuing to offer rebates and increasing those rebates and providing opportunities to earn higher rebates will benefit the marketplace by continuing to reward liquidity providers and thereby offering other market participants an opportunity to interact with this order flow. 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) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\ thereunder. 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-2015-113 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-2015-113. 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-2015-113, and should be submitted on or before November 9, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-26425 Filed 10-16-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Notices 63261
action is necessary or appropriate in the information that you wish to make currently applicable to NOM Market
public interest, for the protection of available publicly. All submissions Makers.4
investors, or otherwise in furtherance of should refer to File No. SR–BATS– While the changes proposed herein
the purposes of the Act. If the 2015–85, and should be submitted on or are effective upon filing, the Exchange
Commission takes such action, the before November 9, 2015. has designated that the amendments be
Commission shall institute proceedings For the Commission, by the Division of operative on October 1, 2015.
under Section 19(b)(2)(B) 20 of the Act to Trading and Markets, pursuant to delegated The text of the proposed rule change
determine whether the proposed rule authority.21 is available on the Exchange’s Web site
change should be approved or Robert W. Errett, at http://nasdaq.cchwallstreet.com, at
disapproved. Deputy Secretary. the principal office of the Exchange, and
at the Commission’s Public Reference
IV. Solicitation of Comments [FR Doc. 2015–26426 Filed 10–16–15; 8:45 am]
Room.
BILLING CODE 8011–01–P
Interested persons are invited to
II. Self-Regulatory Organization’s
submit written data, views, and
Statement of the Purpose of, and
arguments concerning the foregoing,
SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
including whether the proposed rule
COMMISSION Change
change is consistent with the Act.
Comments may be submitted by any of [Release No. 34–76131; File No. SR– In its filing with the Commission, the
the following methods: NASDAQ–2015–113] Exchange included statements
concerning the purpose of and basis for
Electronic Comments Self-Regulatory Organizations; The the proposed rule change and discussed
• Use the Commission’s Internet NASDAQ Stock Market LLC; Notice of any comments it received on the
comment form (http://www.sec.gov/ Filing and Immediate Effectiveness of proposed rule change. The text of these
rules/sro.shtml); or Proposed Rule Change To Modify statements may be examined at the
• Send an email to rule-comments@ Chapter XV, Entitled ‘‘Options places specified in Item IV below. The
sec.gov. Please include File No. SR– Pricing,’’ at Section 2 Governing Exchange has prepared summaries, set
BATS–2015–85 on the subject line. Pricing for NASDAQ Members forth in sections A, B, and C below, of
Paper Comments October 13, 2015.
Pilot); 61455 (February 1, 2010), 75 FR 6239
• Send paper comments in triplicate Pursuant to Section 19(b)(1) of the (February 8, 2010) (SR–NASDAQ–2010–013)
to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (notice of filing and immediate effectiveness adding
and Exchange Commission, 100 F Street (‘‘Act’’),1 and Rule 19b–4 thereunder,2 seventy-five classes to Penny Pilot); 62029 (May 4,
notice is hereby given that on 2010), 75 FR 25895 (May 10, 2010) (SR–NASDAQ–
NE., Washington, DC 20549–1090. 2010–053) (notice of filing and immediate
All submissions should refer to File No. September 29, 2015, The NASDAQ effectiveness adding seventy-five classes to Penny
SR–BATS–2015–85. This file number Stock Market LLC (‘‘Nasdaq’’ or Pilot); 65969 (December 15, 2011), 76 FR 79268
should be included on the subject line ‘‘Exchange’’) filed with the Securities (December 21, 2011) (SR–NASDAQ–2011–169)
and Exchange Commission (‘‘SEC’’ or (notice of filing and immediate effectiveness
if email is used. To help the extension and replacement of Penny Pilot); 67325
Commission process and review your ‘‘Commission’’) the proposed rule (June 29, 2012), 77 FR 40127 (July 6, 2012) (SR–
comments more efficiently, please use change as described in Items I, II, and NASDAQ–2012–075) (notice of filing and
III, below, which Items have been immediate effectiveness and extension and
only one method. The Commission will replacement of Penny Pilot through December 31,
post all comments on the Commission’s prepared by the Exchange. The 2012); 68519 (December 21, 2012), 78 FR 136
Internet Web site (http://www.sec.gov/ Commission is publishing this notice to (January 2, 2013) (SR–NASDAQ–2012–143) (notice
rules/sro.shtml). Copies of the solicit comments on the proposed rule of filing and immediate effectiveness and extension
change from interested persons. and replacement of Penny Pilot through June 30,
submission, all subsequent 2013); 69787 (June 18, 2013), 78 FR 37858 (June 24,
amendments, all written statements I. Self-Regulatory Organization’s 2013) (SR–NASDAQ–2013–082) (notice of filing
with respect to the proposed rule Statement of the Terms of Substance of and immediate effectiveness and extension and
replacement of Penny Pilot through December 31,
change that are filed with the the Proposed Rule Change 2013); 71105 (December 17, 2013), 78 FR 77530
Commission, and all written The Exchange proposes to modify (December 23, 2013) (SR–NASDAQ–2013–154)
communications relating to the Chapter XV, entitled ‘‘Options Pricing,’’
(notice of filing and immediate effectiveness and
proposed rule change between the extension and replacement of Penny Pilot through
at Section 2 governing pricing for June 30, 2014); 79 FR 31151 (May 23, 2014), 79 FR
Commission and any person, other than NASDAQ members using the NASDAQ 31151 (May 30, 2014) (SR–NASDAQ–2014–056)
those that may be withheld from the Options Market (‘‘NOM’’), NASDAQ’s (notice of filing and immediate effectiveness and
public in accordance with the facility for executing and routing
extension and replacement of Penny Pilot through
provisions of 5 U.S.C. 552, will be December 31, 2014); 73686 (December 2, 2014), 79
standardized equity and index options. FR 71477 (November 25, 2014) (SR–NASDAQ–
available for Web site viewing and Specifically, NOM proposes to amend 2014–115) (notice of filing and immediate
printing in the Commission’s Public certain Penny Pilot Options 3 rebates effectiveness and extension and replacement of
Reference Room, 100 F Street NE., Penny Pilot through June 30, 2015) and 75283 (June
Washington, DC 20549 on official 24, 2015), 80 FR 37347 (June 30, 2015) (SR–
21 17 CFR 200.30–3(a)(12). NASDAQ–2015–063) (Notice of Filing and
business days between the hours of 1 15 U.S.C. 78s(b)(1). Immediate Effectiveness of a Proposed Rule Change
10:00 a.m. and 3:00 p.m. Copies of such 2 17 CFR 240.19b–4. Relating to Extension of the Exchange’s Penny Pilot
filing also will be available for Program and Replacement of Penny Pilot Issues
asabaliauskas on DSK5VPTVN1PROD with NOTICES
3 See Securities Exchange Act Release Nos. 57579
inspection and copying at the principal (March 28, 2008), 73 FR 18587 (April 4, 2008) (SR– That Have Been Delisted.) See also NOM Rules,
NASDAQ–2008–026) (notice of filing and Chapter VI, Section 5.
office of the Exchange. All comments immediate effectiveness establishing Penny Pilot); 4 The term ‘‘NOM Market Maker’’ means a
received will be posted without change; 60874 (October 23, 2009), 74 FR 56682 (November Participant that has registered as a Market Maker on
the Commission does not edit personal 2, 2009)(SR–NASDAQ–2009–091) (notice of filing NOM pursuant to Chapter VII, Section 2, and must
identifying information from and immediate effectiveness expanding and also remain in good standing pursuant to Chapter
extending Penny Pilot); 60965 (November 9, 2009), VII, Section 4. In order to receive NOM Market
submissions. You should submit only 74 FR 59292 (November 17, 2009)(SR–NASDAQ– Maker pricing in all securities, the Participant must
2009–097) (notice of filing and immediate be registered as a NOM Market Maker in at least one
20 15 U.S.C. 78s(b)(2)(B). effectiveness adding seventy-five classes to Penny security.
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![Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Notices 63263
rebate. The Exchange believes that forces support the Exchange belief that Paper Comments
offering NOM Market Makers the ability the proposed rebate structure and tiers
to obtain higher rebates is reasonable proposed herein are competitive with • Send paper comments in triplicate
because it will encourage additional rebates and tiers in place on other to Secretary, Securities and Exchange
order interaction. exchanges. The Exchange believes that Commission, 100 F Street NE.,
The Exchange’s proposal to amend this competitive marketplace continues Washington, DC 20549–1090.
the NOM Market Maker Penny Pilot to impact the rebates present on the All submissions should refer to File
Options Rebate to Add Liquidity Tiers Exchange today and substantially Number SR–NASDAQ–2015–113. This
3 and 4 to increase the IWM rebate from influences the proposals set forth above. file number should be included on the
$0.30 to $0.40 per contract in Tier 3 and Other options markets offer similar
subject line if email is used. To help the
from $0.32 to $0.40 per contract in Tier rebates to incentivize market
Commission process and review your
4 is equitable and not unfairly participants to direct order flow to their
discriminatory because all NOM Market markets. The Exchange believes that comments more efficiently, please use
Makers may qualify for the Tier 3 and continuing to offer rebates and only one method. The Commission will
Tier 4 NOM Market Maker Penny Pilot increasing those rebates and providing post all comments on the Commission’s
Options Rebate to Add Liquidity. opportunities to earn higher rebates will Internet Web site (http://www.sec.gov/
The Exchange believes that it is benefit the marketplace by continuing to rules/sro.shtml). Copies of the
reasonable, equitable, and not unfairly reward liquidity providers and thereby submission, all subsequent
discriminatory to adopt different pricing offering other market participants an amendments, all written statements
for IWM, as compared to other options, opportunity to interact with this order with respect to the proposed rule
because pricing by symbol is a common flow. change that are filed with the
practice on many U.S. options Commission, and all written
C. Self-Regulatory Organization’s
exchanges as a means to incentivize communications relating to the
Statement on Comments on the
order flow to be sent to an exchange for proposed rule change between the
Proposed Rule Change Received From
execution in the most actively traded Commission and any person, other than
Members, Participants, or Others
options classes, in this case actively those that may be withheld from the
traded Penny Pilot Options.7 The No written comments were either public in accordance with the
Exchange notes that IWM is one of the solicited or received. provisions of 5 U.S.C. 552, will be
most actively traded options in the U.S. III. Date of Effectiveness of the available for Web site viewing and
The Exchange believes that this pricing Proposed Rule Change and Timing for printing in the Commission’s Public
will incentivize members to transact Commission Action Reference Room, 100 F Street NE.,
options on IWM on NOM in order to Washington, DC 20549, on official
obtain the higher $0.40 per contract The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A) business days between the hours of
rebate. 10:00 a.m. and 3:00 p.m. Copies of the
of the Act 8 and paragraph (f) of Rule
B. Self-Regulatory Organization’s 19b–4 9 thereunder. At any time within filing also will be available for
Statement on Burden on Competition 60 days of the filing of the proposed rule inspection and copying at the principal
NASDAQ does not believe that the change, the Commission summarily may office of the Exchange. All comments
proposed rule changes will result in any temporarily suspend such rule change if received will be posted without change;
burden on competition that is not it appears to the Commission that such the Commission does not edit personal
necessary or appropriate in furtherance action is necessary or appropriate in the identifying information from
of the purposes of the Act, as amended. public interest, for the protection of submissions. You should submit only
The Exchange’s proposal to amend investors, or otherwise in furtherance of information that you wish to make
the Tier 3 and 4 NOM Market Maker the purposes of the Act. If the available publicly. All submissions
Penny Pilot Options Rebates to Add Commission takes such action, the should refer to File Number SR–
Liquidity to pay a higher rebate for IWM Commission will institute proceedings NASDAQ–2015–113, and should be
of $0.40 per contract, similar to AAPL, to determine whether the proposed rule submitted on or before November 9,
QQQ, SPY and VXX, does not create an change should be approved or 2015.
undue burden on intra-market disapproved.
For the Commission, by the Division of
competition because all NOM Market IV. Solicitation of Comments Trading and Markets, pursuant to delegated
Makers may qualify for the Tier 3 or 4 authority.10
NOM Market Maker Penny Pilot Interested persons are invited to
submit written data, views, and Robert W. Errett,
Options Rebate to Add Liquidity.
The Exchange’s proposal addressed arguments concerning the foregoing, Deputy Secretary.
herein does not impose an inter-market including whether the proposed rule [FR Doc. 2015–26425 Filed 10–16–15; 8:45 am]
burden on competition because the change is consistent with the Act. BILLING CODE 8011–01–P
Exchange operates in a highly Comments may be submitted by any of
competitive market in which many the following methods:
sophisticated and knowledgeable Electronic Comments
market participants can readily and do
• Use the Commission’s Internet
asabaliauskas on DSK5VPTVN1PROD with NOTICES
send order flow to competing exchanges
comment form (http://www.sec.gov/
if they deem fee levels or rebate
rules/sro.shtml); or
incentives at a particular exchange to be
• Send an email to rule-comments@
excessive or inadequate. These market
sec.gov. Please include File Number SR–
7 See NASDAQ OMX PHLX LLC’s Pricing
NASDAQ–2015–113 on the subject line.
Schedule. See also the International Securities
8 15 U.S.C. 78s(b)(3)(A).
Exchange LLC’s Fee Schedule. Both of these
markets segment pricing by symbol. 9 17 CFR 240.19b–4(f). 10 17 CFR 200.30–3(a)(12).
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Document Created: 2015-12-15 08:36:06
Document Modified: 2015-12-15 08:36:06
| 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 63261 |
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