80 FR 68377 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Nasdaq Rule 7018
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 213 (November 4, 2015)
Federal Register Volume 80, Issue 213 (November 4, 2015)
| Page Range | 68377-68379 | |
| FR Document | 2015-28022 |
[Federal Register Volume 80, Number 213 (Wednesday, November 4, 2015)] [Notices] [Pages 68377-68379] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28022] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76298; File No. SR-NASDAQ-2015-126] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Nasdaq Rule 7018 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 22, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or the ``Exchange'') filed with the Securities and Exchange [[Page 68378]] Commission (``Commission'') a 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 the Substance of the Proposed Rule Change Nasdaq is proposing changes to amend Nasdaq Rule 7018(a), governing fees and credits assessed for execution and routing of securities. The text of the proposed rule change is available at nasdaq.cchwallstreet.com at Nasdaq 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, Nasdaq 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 those 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 parts 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 7018, governing fees and credits assessed for execution and routing of securities on Nasdaq,\3\ listed on the New York Stock Exchange (``NYSE'') \4\ and listed on exchanges other than Nasdaq and NYSE \5\ (collectively, the ``Tapes''). --------------------------------------------------------------------------- \3\ Nasdaq Rule 7018(a)(1). \4\ Nasdaq Rule 7018(a)(2). \5\ Nasdaq Rule 7018(a)(3). --------------------------------------------------------------------------- Specifically, the Exchange proposes to amend the criteria for a member to be eligible for the $0.0030 per share executed credit. Nasdaq proposes to amend romanette (i) across all Tapes in order to reduce the Consolidated Volume requirement during the month for a member from 0.60% to 0.20%. The Exchange also proposes to amend romanette (ii) across all Tapes in order to include NOM Market Maker volume as part of the qualifying volume and to reduce the volume threshold in Penny Pilot and Non-Penny Pilot Options from 1.25% to 0.90%. Nasdaq also proposes to add new subsection (4) to Nasdaq Rule 7018(a) and entitle it ``Fees and Credits for Execution of Orders in Select Symbols''.\6\ This new subsection will state that for members receiving less than a $0.0029 per share executed credit in paragraphs (1) through (3) of Nasdaq Rule 7018(a) for displayed quotes/orders (other than Supplemental Orders or Designated Retail Orders) that provide liquidity for certain enumerated securities, Nasdaq will provide a credit of $0.0029 per share executed for the enumerated securities: EEM, EWJ, GDX, IWM, NUGT, SPY, UWTI, VXX, XIV and XLF. --------------------------------------------------------------------------- \6\ This is not related to the previous Select Symbols program. See Securities Exchange Act Release No. 73967 (December 30, 2014), 80 FR 594 (January 6, 2015) (SR-NASDAQ-2014-128) (creating the unrelated Select Symbol program); see also Securities Exchange Act Release No. 75261 (June 22, 2015), 80 FR 36877 (June 26, 2015) (SR- NASDAQ-2015-062) (eliminating the unrelated Select Symbol program). --------------------------------------------------------------------------- 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\7\ in general, and with Sections 6(b)(4) and 6(b)(5) of the Act,\8\ 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 designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest; and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f. \8\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- Nasdaq believes that the proposed changes to Nasdaq Rule 7018(a)(1), (2) and (3) are reasonable because broadening the above criteria so that this credit is applicable to more members falls within the Exchange's efforts to draw additional order flow to the Exchange to improve market quality for all market participants. The Exchange also believes that the proposed rule change is equitable and not unfairly discriminatory because the amended credit criteria applies uniformly to securities across all Tapes and makes it easier for members to satisfy the requirements for this credit tier. Nasdaq believes that the proposed credits of no less than $0.0029 per share executed for displayed orders to members for trading in the Select Symbols are reasonable and equitably allocated as all members are eligible for the credits and the Exchange believes it will improve market quality, specifically in the trading of these symbols. These credits for adding displayed liquidity only replace the credits provided in paragraphs (1) through (3) of Nasdaq Rule 7018(a) when a member would otherwise receive a credit of less than $0.0029 per share executed. The Select Symbols include EEM, EWJ, GDX, IWM, NUGT, SPY, UWTI, VXX, XIV and XLF. If members qualify for credits under Nasdaq Rule 7014, such credits will continue to apply to these symbols. Nasdaq also believes that the proposed changes are not unfairly discriminatory because they will apply uniformly to all member firms that trade in the Select Symbols. Moreover, the proposed minimum credit for all member firms that trade in the Select Symbols is not unfairly discriminatory because the Exchange seeks to provide incentives to member firms to direct order flow away from off-exchange venues and on to Nasdaq and to improve the markets for these symbols. Additionally, members that trade in the Select Symbols may still qualify for higher credits in trading in these symbols and all members are entitled to determine whether or not to trade in these Select Symbols. Also, members will still be able to receive the credits they are otherwise entitled to in other symbols and can only benefit from this additional credit. B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in a burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended.\9\ Nasdaq notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee and credit levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, Nasdaq must continually adjust its fees and credits to remain competitive with [[Page 68379]] other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, Nasdaq believes that the degree to which changes to credits in this market may impose a burden on competition is extremely limited or even non-existent. In this instance, the changes to Nasdaq Rule 7018 to amend criteria to qualify for credits do not impose a burden on competition because Nasdaq's execution services are voluntary and subject to extensive competition both from other exchanges and from off-exchange venues. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- Additionally, the Exchange does not believe the addition of credits available to members that execute shares in Select Symbols will impose a burden on competition, but rather may promote competition among exchanges in trading in the Select Symbols. Moreover, the proposed changes are reflective of the competition that exists between exchanges and off-exchange venues that are subject to lesser regulatory burdens than the exchanges, including transparency. Lastly, the proposed changes are designed to enhance market quality. While the Exchange does not believe that the proposed changes will result in burden on competition, if the changes proposed herein are unattractive to market participants it is likely that Nasdaq will lose market share as a result. 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 foregoing change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\10\ 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. --------------------------------------------------------------------------- \10\ 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 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-2015-126 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-2015-126. 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- 126, and should be submitted on or before November 25, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28022 Filed 11-3-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 213 / Wednesday, November 4, 2015 / Notices 68377
subject to the Exchange’s jurisdiction, interest. The Exchange has asked the Commission process and review your
regulators, and the investing public can Commission to waive the 30-day comments more efficiently, please use
more easily navigate and understand the operative delay so that the proposal may only one method. The Commission will
Exchange’s rulebook. The Exchange become operative immediately upon post all comments on the Commission’s
believes that eliminating obsolete filing. The Commission believes that Internet Web site (http://www.sec.gov/
references would not be inconsistent waiver of the 30-day operative delay is rules/sro.shtml). Copies of the
with the public interest and the appropriate because the proposed rule submission, all subsequent
protection of investors because investors change would replace references to amendments, all written statements
will not be harmed and in fact would NYSE Regulation Board of Directors or with respect to the proposed rule
benefit from increased transparency, NYSER Board of Directors with change that are filed with the
thereby reducing potential confusion. references to the Exchange’s Regulatory Commission, and all written
Removing such obsolete references will Oversight Committee and thus reflect communications relating to the
also further the goal of transparency and recently approved changes to the proposed rule change between the
add clarity to the Exchange’s rules. Exchange’s Operating Agreement that Commission and any person, other than
established the Exchange’s Regulatory those that may be withheld from the
B. Self-Regulatory Organization’s
Oversight Committee.11 Based on the public in accordance with the
Statement on Burden on Competition
foregoing, the Commission believes that provisions of 5 U.S.C. 552, will be
The Exchange does not believe that the waiver of the operative delay is available for Web site viewing and
the proposed rule change will impose consistent with the protection of printing in the Commission’s Public
any burden on competition that is not investors and the public interest.12 The Reference Room, 100 F Street NE.,
necessary or appropriate in furtherance Commission hereby grants the waiver Washington, DC 20549–1090, on official
of the purposes of the Exchange Act. and designates the proposal operative business days between the hours of
The proposed rule change is not upon filing. 10:00 a.m. and 3:00 p.m. Copies of the
intended to address competitive issues At any time within 60 days of the filing will also be available for
but rather to delete obsolete references, filing of the proposed rule change, the inspection and copying at the NYSE’s
thereby increasing transparency, Commission summarily may principal office and on its Internet Web
reducing confusion, and making the temporarily suspend such rule change if site at www.nyse.com. All comments
Exchange’s rules easier to understand it appears to the Commission that such received will be posted without change;
and navigate. action is necessary or appropriate in the the Commission does not edit personal
C. Self-Regulatory Organization’s public interest, for the protection of identifying information from
Statement on Comments on the investors, or otherwise in furtherance of submissions. You should submit only
Proposed Rule Change Received From the purposes of the Act. If the information that you wish to make
Members, Participants, or Others Commission takes such action, the available publicly. All submissions
Commission shall institute proceedings should refer to File Number SR–
No written comments were solicited to determine whether the proposed rule NYSEMKT–2015–83 and should be
or received with respect to the proposed should be disapproved. submitted on or before November 25,
rule change. 2015.
IV. Solicitation of Comments
III. Date of Effectiveness of the For the Commission, by the Division of
Proposed Rule Change and Timing for Interested persons are invited to Trading and Markets, pursuant to delegated
Commission Action submit written data, views, and authority.13
arguments concerning the foregoing, Robert W. Errett,
Because the proposed rule change including whether the proposed rule
does not (i) significantly affect the Deputy Secretary.
change is consistent with the Act.
protection of investors or the public Comments may be submitted by any of
[FR Doc. 2015–28019 Filed 11–3–15; 8:45 am]
interest; (ii) impose any significant BILLING CODE 8011–01–P
the following methods:
burden on competition; and (iii) become
operative for 30 days from the date on Electronic Comments
which it was filed, or such shorter time SECURITIES AND EXCHANGE
• Use the Commission’s Internet
as the Commission may designate, the COMMISSION
comment form (http://www.sec.gov/
proposed rule change has become rules/sro.shtml); or [Release No. 34–76298; File No. SR–
effective pursuant to Section 19(b)(3)(A) • Send an email to rule-comments@ NASDAQ–2015–126]
of the Act and Rule 19b–4(f)(6) sec.gov. Please include File Number SR–
thereunder.10 NYSEMKT–2015–83 on the subject line. Self-Regulatory Organizations; The
A proposed rule change filed NASDAQ Stock Market LLC; Notice of
pursuant to Rule 19b–4(f)(6) under the Paper Comments Filing and Immediate Effectiveness of
Act normally does not become operative • Send paper comments in triplicate Proposed Rule Change To Amend
for 30 days after the date of its filing. to Brent J. Fields, Secretary, Securities Nasdaq Rule 7018
However, Rule 19b–4(f)(6)(iii) permits and Exchange Commission, 100 F Street
the Commission to designate a shorter October 29, 2015.
NE., Washington, DC 20549–1090.
time if such action is consistent with the Pursuant to Section 19(b)(1) of the
All submissions should refer to File Securities Exchange Act of 1934
protection of investors and the public Number SR–NYSEMKT–2015–83. This
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
file number should be included on the notice is hereby given that on October
10 In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange to give the Commission written notice of
subject line if email is used. To help the 22, 2015, The NASDAQ Stock Market
the Exchange’s intent to file the proposed rule LLC (‘‘Nasdaq’’ or the ‘‘Exchange’’) filed
11 See supra note 6.
change, along with a brief description and text of with the Securities and Exchange
the proposed rule change, at least five business days 12 For purposes only of waiving the 30-day
prior to the date of filing of the proposed rule operative delay, the Commission has also
13 17 CFR 200.30–3(a)(12).
change, or such shorter time as designated by the considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
Commission. The Exchange has satisfied this efficiency, competition, and capital formation. See
requirement. 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 213 / Wednesday, November 4, 2015 / Notices 68379
other exchanges and with alternative IV. Solicitation of Comments For the Commission, by the Division of
trading systems that have been Trading and Markets, pursuant to delegated
exempted from compliance with the Interested persons are invited to authority.11
statutory standards applicable to submit written data, views, and Robert W. Errett,
exchanges. Because competitors are free arguments concerning the foregoing, Deputy Secretary.
to modify their own fees in response, including whether the proposed rule [FR Doc. 2015–28022 Filed 11–3–15; 8:45 am]
and because market participants may change is consistent with the Act. BILLING CODE 8011–01–P
readily adjust their order routing Comments may be submitted by any of
practices, Nasdaq believes that the the following methods:
degree to which changes to credits in SMALL BUSINESS ADMINISTRATION
Electronic Comments
this market may impose a burden on
[Disaster Declaration #14495 and #14496]
competition is extremely limited or • Use the Commission’s Internet
even non-existent. In this instance, the comment form (http://www.sec.gov/ South Carolina Disaster Number SC–
changes to Nasdaq Rule 7018 to amend rules/sro.shtml); or 00031
criteria to qualify for credits do not
impose a burden on competition • Send an email to rule-comments@ AGENCY: U.S. Small Business
because Nasdaq’s execution services are sec.gov. Please include File Number SR– Administration.
voluntary and subject to extensive NASDAQ–2015–126 on the subject line. ACTION: Amendment 7.
competition both from other exchanges Paper Comments SUMMARY: This is an amendment of the
and from off-exchange venues.
Presidential declaration of a major
Additionally, the Exchange does not • Send paper comments in triplicate
disaster for the State of SOUTH
believe the addition of credits available to Secretary, Securities and Exchange CAROLINA (FEMA–4241–DR), dated
to members that execute shares in Select Commission, 100 F Street NE., 10/05/2015.
Symbols will impose a burden on Washington, DC 20549–1090. Incident: Severe Storms and Flooding.
competition, but rather may promote All submissions should refer to File Incident Period: 10/01/2015 through
competition among exchanges in trading Number SR–NASDAQ–2015–126. This 10/23/2015.
in the Select Symbols. Moreover, the Effective Date: 10/27/2015.
file number should be included on the Physical Loan Application Deadline
proposed changes are reflective of the
subject line if email is used. To help the Date: 12/04/2015.
competition that exists between
Commission process and review your EIDL Loan Application Deadline Date:
exchanges and off-exchange venues that
are subject to lesser regulatory burdens comments more efficiently, please use 07/05/2016.
than the exchanges, including only one method. The Commission will ADDRESSES: Submit completed loan
transparency. Lastly, the proposed post all comments on the Commission’s applications to: U.S. Small Business
changes are designed to enhance market Internet Web site (http://www.sec.gov/ Administration, Processing and
quality. rules/sro.shtml). Copies of the Disbursement Center, 14925 Kingsport
submission, all subsequent Road, Fort Worth, TX 76155.
While the Exchange does not believe
amendments, all written statements FOR FURTHER INFORMATION CONTACT: A.
that the proposed changes will result in
with respect to the proposed rule Escobar, Office of Disaster Assistance,
burden on competition, if the changes
proposed herein are unattractive to change that are filed with the U.S. Small Business Administration,
market participants it is likely that Commission, and all written 409 3rd Street SW., Suite 6050,
Nasdaq will lose market share as a communications relating to the Washington, DC 20416.
result. proposed rule change between the SUPPLEMENTARY INFORMATION: The notice
Commission and any person, other than of the Presidential disaster declaration
C. Self-Regulatory Organization’s those that may be withheld from the for the State of South Carolina, dated
Statement on Comments on the public in accordance with the 10/05/2015 is hereby amended to
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be include the following areas as adversely
Members, Participants, or Others available for Web site viewing and affected by the disaster:
Written comments were neither printing in the Commission’s Public Primary Counties: (Physical Damage
solicited nor received. Reference Room, 100 F Street NE., and Economic Injury Loans):
Washington, DC 20549 on official Greenville, Spartanburg.
III. Date of Effectiveness of the business days between the hours of Contiguous Counties: (Economic Injury
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such Loans Only):
Commission Action filing also will be available for South Carolina: Anderson, Cherokee,
inspection and copying at the principal Pickens.
The foregoing change has become North Carolina: Henderson, Polk,
effective pursuant to Section offices of the Exchange. All comments
Rutherford, Transylvania.
19(b)(3)(A)(ii) of the Act.10 At any time received will be posted without change;
All other information in the original
within 60 days of the filing of the the Commission does not edit personal
declaration remains unchanged.
proposed rule change, the Commission identifying information from
summarily may temporarily suspend submissions. You should submit only (Catalog of Federal Domestic Assistance
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Numbers 59002 and 59008)
such rule change if it appears to the information that you wish to make
Commission that such action is available publicly. All submissions James E. Rivera,
necessary or appropriate in the public should refer to File Number SR– Associate Administrator for Disaster
interest, for the protection of investors, NASDAQ–2015–126, and should be Assistance.
or otherwise in furtherance of the submitted on or before November 25, [FR Doc. 2015–28046 Filed 11–3–15; 8:45 am]
purposes of the Act. 2015. BILLING CODE 8025–01–P
10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 200.30–3(a)(12).
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Document Created: 2018-03-01 11:28:10
Document Modified: 2018-03-01 11:28:10
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 68377 |
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