80 FR 68342 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Terminology in Nasdaq Rules 4120, 5615 and 5745 and IM-5615-4

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 213 (November 4, 2015)

[Federal Register Volume 80, Number 213 (Wednesday, November 4, 2015)]
[Notices]
[Pages 68342-68343]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28021]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76297; File No. SR-NASDAQ-2015-121]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Terminology in Nasdaq Rules 4120, 5615 and 5745 and IM-5615-4

October 29, 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 October 21, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in in Items I, 
II, and III below, which Items have been prepared by Nasdaq. 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Nasdaq Rule 5745 to replace the term 
``ETMF Shares'' with ``NextShares'' and to make appropriate conforming 
changes in terminology. Consistent with the proposed change in 
terminology in Nasdaq Rule 5745, the Exchange also proposes to make 
conforming changes in terminology to Nasdaq Rule 4120, Nasdaq Rule 
5615, and IM-5615-4.
    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at Nasdaq's principal office, 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 Nasdaq Rule 5745 to replace 
references to ``ETMF Shares'' with ``NextShares,'' and to make 
conforming changes in terminology.\3\ As the marketplace for exchange-
traded managed funds has developed since the adoption of Nasdaq Rule 
5745, market participants have been utilizing the term NextShares 
instead of ETMF Shares. The Exchange seeks to align the terminology of 
its rules with marketplace practices to help avoid potential confusion 
in terminology for investors and market participants with respect to 
this new product.
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    \3\ The Commission approved Nasdaq Rule 5745 in Securities 
Exchange Act Release No. 34-73562 (Nov. 7, 2014), 79 FR 68309 (Nov. 
14, 2014) (SR-NASDAQ-2014-020).
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    Specifically, the Exchange would replace references in Nasdaq Rule 
5745 to ``ETMF Shares'' with ``NextShares'' and to ``ETMF'' with 
``NextShares Fund.'' The Exchange would make corresponding changes in 
terminology to other affected Nasdaq rules. The Exchange believes that 
these proposed changes are non-controversial and technical in nature, 
and are consistent with the Act.
2. Statutory Basis
    Nasdaq Exchange believes the proposed rule change is consistent 
with the Act and the rules and regulations thereunder, including the 
requirements

[[Page 68343]]

of Section 6(b) of the Act.\4\ In particular, the Exchange believes the 
proposed rule change is consistent with the Section 6(b)(5) \5\ 
requirements that the rules of an exchange be designed to promote just 
and equitable principles of trade, to prevent fraudulent and 
manipulative acts and practices, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, to 
remove impediments to and to perfect the mechanism for a free and open 
market and a national market system, and, in general, to protect 
investors and the public interest. The Exchange believes that the 
change in terminology will protect investors and the public interest by 
eliminating potential confusion that may exist because of unnecessary 
differences in terminology between Nasdaq rules and the marketplace.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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    As noted, the Exchange believes that the changes proposed are non-
controversial and technical in nature.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange believes that 
the proposed rule change will help align rule terminology with the 
terminology utilized in the marketplace for these new products and be 
used uniformly.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change is filed for immediate effectiveness 
pursuant to Section 19(b)(3)(A) \6\ of the Act and Rule 19b-4(f)(6) 
thereunder.\7\ The Exchange asserts that the proposed rule change does 
not (i) significantly affect the protection of investors or the public 
interest, (ii) impose any significant burden on competition, and (iii) 
become operative for 30 days after its filing date, or such shorter 
time as the Commission may designate if consistent with the protection 
of investors and the public interest.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of filing. Rule 
19b-4(f)(6)(iii), however, permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest.
    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-2015-121 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-2015-121. 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 such filing also will be available 
for inspection and copying at the principal offices 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-
121, and should be submitted on or before November 25, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-28021 Filed 11-3-15; 8:45 am]
 BILLING CODE 8011-01-P