80 FR 70027 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide That the Co-Location Services Offered by the Exchange Include 40 Gigabit Internet Protocol Network Connections in the Exchange's Data Center and To Amend the Exchange's Price List To Implement Fees for the New Service
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 218 (November 12, 2015)
Federal Register Volume 80, Issue 218 (November 12, 2015)
| Page Range | 70027-70030 | |
| FR Document | 2015-28693 |
[Federal Register Volume 80, Number 218 (Thursday, November 12, 2015)] [Notices] [Pages 70027-70030] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28693] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76369; File No. SR-NYSE-2015-54] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide That the Co-Location Services Offered by the Exchange Include 40 Gigabit Internet Protocol Network Connections in the Exchange's Data Center and To Amend the Exchange's Price List To Implement Fees for the New Service November 5, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on October 28, 2015, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self- regulatory organization. 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\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to provide that the co-location services offered by the Exchange include 40 gigabit (``Gb'') internet protocol (``IP'') network connections in the Exchange's data center. The Exchange proposes to amend the Exchange's Price List (``Price List'') to implement fees for the new service. The text of the proposed rule change is available on the Exchange's Web site at www.nyse.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 self-regulatory organization 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 change its rules to provide that the co- location \4\ services offered by the Exchange include 40 Gb IP network connections in the Exchange's data center. The Exchange proposes to amend the Price List to implement fees for the new service. --------------------------------------------------------------------------- \4\ The Exchange initially filed rule changes relating to its co-location services with the Securities and Exchange Commission (``Commission'') in 2010. See Securities Exchange Act Release No. 62960 (September 21, 2010), 75 FR 59310 (September 27, 2010) (SR- NYSE-2010-56) (the ``Original Co-location Filing''). The Exchange operates a data center in Mahwah, New Jersey (the ``data center'') from which it provides co-location services to Users. --------------------------------------------------------------------------- Currently, the Exchange's co-location services offer Users \5\ access to two local area networks available in the data center: the IP network and the Liquidity Center Network (``LCN'').\6\ IP network access is currently available in 1 and 10 Gb capacities. The Exchange also offers 1, 10, and 40 Gb LCN network access and LCN 10 Gb LX network access.\7\ --------------------------------------------------------------------------- \5\ For purposes of the Exchange's co-location services, a ``User'' means any market participant that requests to receive co- location services directly from the Exchange. See Securities Exchange Act Release No. 76008 (September 29, 2015), 80 FR 60190 (October 5, 2015) (SR-NYSE-2015-40). As specified in the Price List, a User that incurs co-location fees for a particular co-location service pursuant thereto would not be subject to co-location fees for the same co-location service charged by the Exchange's affiliates NYSE MKT LLC and NYSE Arca, Inc. See Securities Exchange Act Release No. 70206 (August 15, 2013), 78 FR 51765 (August 21, 2013) (SR-NYSE-2013-59). \6\ See Original Co-location Filing, at 59311 and Securities Exchange Act Release No. 74222 (February 6, 2015), 80 FR 7888 (February 12, 2015) (SR-NYSE-2015-05) (notice of filing and immediate effectiveness of proposed rule change to include IP network connections). \7\ See Original Co-location Filing, at 59311 and Securities Exchange Act Release No. 70888 (November 15, 2013), 78 FR 69907 (November 21, 2013) (SR-NYSE-2013-73) (notice of filing and immediate effectiveness of proposed rule change to include LCN 10 Gb LX connection). --------------------------------------------------------------------------- [[Page 70028]] The IP network and LCN provide Users with access to the Exchange's trading and execution systems and to the Exchange's proprietary market data products. The IP network also provides Users with access to away market data products. There is greater latency in the transmission of data between Users and the Exchange for the IP Network than for the LCN. The IP network provides Users that do not need the lower latency of the LCN with a less costly data center network option. Having another data center network also provides Users with the option to create redundancy in their infrastructure. The proposed rule change would allow Users to purchase 40 Gb IP network connections in the data center. The offering of a 40 Gb IP network connection in addition to the existing 1 and 10 Gb IP network connections would provide a User more choices regarding the bandwidth of its IP network connections, allowing it to select the option that best corresponds to its needs and is most cost-effective for that User. The 40 Gb IP network connection is expected to be available no later than April 15, 2016. The Exchange will announce the date that the 40 Gb IP network connection will be available through a customer notice. The Exchange proposes to establish the following fees for 40 Gb IP network connections: ---------------------------------------------------------------------------------------------------------------- Type of service Description Amount of charge ---------------------------------------------------------------------------------------------------------------- IP Network Access....................... 40 Gb circuit.............. $10,000 per connection initial charge plus $17,000 monthly per connection. ---------------------------------------------------------------------------------------------------------------- By comparison, the 1 Gb IP network connection costs $2,500 per connection initial charge plus $2,500 monthly per connection and the 10 Gb IP network connection costs $10,000 per connection initial charge plus $10,000 monthly per connection. The 40 Gb LCN circuit costs $15,000 per connection initial charge plus $20,000 monthly per connection. As is the case with all Exchange co-location arrangements, (i) neither a User nor any of the User's customers would be permitted to submit orders directly to the Exchange unless such User or customer is a member organization, a Sponsored Participant or an agent thereof (e.g., a service bureau providing order entry services); (ii) use of the co-location services proposed herein would be completely voluntary and available to all Users on a non-discriminatory basis; \8\ and (iii) a User would only incur one charge for the particular co-location service described herein, regardless of whether the User connects only to the Exchange or to the Exchange and one or both of its affiliates.\9\ --------------------------------------------------------------------------- \8\ As is currently the case, Users that receive co-location services from the Exchange will not receive any means of access to the Exchange's trading and execution systems that is separate from, or superior to, that of other Users. In this regard, all orders sent to the Exchange enter the Exchange's trading and execution systems through the same order gateway, regardless of whether the sender is co-located in the data center or not. In addition, co-located Users do not receive any market data or data service product that is not available to all Users, although Users that receive co-location services normally would expect reduced latencies in sending orders to, and receiving market data from, the Exchange. \9\ See SR-NYSE-2013-59, supra note 5 at 51766. The Exchange's affiliates have also submitted the same proposed rule change to propose the changes described herein. See SR-NYSEMKT-2015-90 and SR- NYSEArca-2015-105. --------------------------------------------------------------------------- The proposed change is not otherwise intended to address any other issues relating to co-location services and/or related fees, and the Exchange is not aware of any problems that Users would have in complying with the proposed change. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Sections 6(b)(5) of the Act,\11\ in particular, because it 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 mechanisms of, a free and open market and a national market system and, in general, to protect investors and the public interest and because it is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed 40 Gb IP network connection is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers because it would make a service available to Users that require the increased IP network bandwidth, but Users that do not require the increased bandwidth could continue to request an existing lower-bandwidth IP network connection. Users that require lower latency levels may utilize LCN connections. The Exchange believes that the proposed service would remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because the offering of a 40 Gb IP network connection in addition to the existing 1 and 10 Gb IP network connections would provide a User more choices regarding the bandwidth of its IP network connections, allowing it to select the option that best corresponds to its needs and is most cost-effective for that User. The Exchange also believes that the proposed rule change is consistent with Section 6(b)(4) of the Act,\12\ in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Overall, the Exchange believes that the proposed fees for the proposed 40 Gb IP network connection are reasonable because the Exchange proposes to offer the service as a convenience to Users, but in doing so will incur certain costs, including costs related to the data center facility, hardware and equipment and costs related to personnel required for initial installation and ongoing monitoring, support and maintenance of such service. The Exchange further believes that the proposed change is reasonable because the proposed fees directly relate to the level of services provided by the Exchange and, in turn, received by the User. In this regard, the fees proposed for 40 Gb IP network connections are higher than, for example, the fees for 10 Gb IP network connections because costs for the initial purchase and ongoing maintenance of the 40 IP network connections are generally higher than those of the lower- bandwidth connections. However, these [[Page 70029]] costs are not anticipated to be four times higher than the existing 10 Gb IP network connection. The Exchange therefore notes that while the proposed bandwidth of the 40 Gb IP network connection is four times greater than the existing 10 Gb IP connection, the proposed fees for the 40 Gb IP network connection are significantly less than four times the fees for the 10 Gb IP connection. Specifically, the proposed initial charge of $10,000 is the same as the initial charge for the existing 10 Gb IP network connection and the proposed monthly recurring charge of $17,000 is less than double the $10,000 monthly charge for the existing 10 Gb IP network connection. The Exchange believes that this supports a finding that the proposed pricing is reasonable because the Exchange anticipates realizing efficiencies as customers adopt higher-bandwidth connections, and, in turn, reflecting such efficiencies in the pricing for such connections. As with fees for existing co-location services, the fees proposed herein would be charged only to those Users that voluntarily select the 40 Gb IP network connection, which would be available to all Users. Accordingly, the Exchange believes that the proposed change is equitable and not unfairly discriminatory because it will result in fees being charged only to Users that voluntarily select to receive the corresponding services and because those services will be available to all Users. Furthermore, the Exchange believes that the services and fees proposed herein are not unfairly discriminatory and are equitably allocated because, in addition to the services being completely voluntary, they are available to all Users on an equal basis (i.e., the same products and services are available to all Users). All Users that voluntarily select the proposed 40 Gb IP network service will be charged the same amount for the service. For the reasons above, the proposed change would not unfairly discriminate between or among market participants that are otherwise capable of satisfying any applicable co-location fees, requirements, terms and conditions established from time to time by the Exchange. Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the Exchange's statement regarding the burden on competition. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\13\ the Exchange believes that the proposed rule change will not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because, in addition to the proposed service being completely voluntary, it will be available to all Users on an equal basis (i.e. the same products and services are available to all Users). --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- The Exchange believes that allowing Users to purchase 40 Gb IP network connections will not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because such service will be available to Users that require the increased IP network bandwidth, but Users that do not require the increased bandwidth could continue to request an existing lower- bandwidth IP network connection. The offering of a 40 Gb IP network connection in addition to the existing 1 and 10 Gb IP network connections would provide a User more choices regarding the bandwidth of its IP network connections, allowing it to select the option that best corresponds to its needs and is most cost-effective for that User. In addition, the Exchange believes that the proposed change will enhance competition, in that The NASDAQ Stock Market LLC (``NASDAQ'') similarly makes a 40 Gb fiber connection available to users of its co- location facilities.\14\ --------------------------------------------------------------------------- \14\ See NASDAQ Rule 7034 for a description of NASDAQ's co- location services. --------------------------------------------------------------------------- Finally, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually review, and consider adjusting, its services and related fees and credits to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\ Because 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(iii). \16\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \17\ 17 CFR 240.19b-4(f)(6). \18\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 shall institute proceedings under Section 19(b)(2)(B) \19\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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 rule-comments@sec.gov. Please include File No. SR-NYSE-2015-54 on the subject line. [[Page 70030]] 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 No. SR-NYSE-2015-54. 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 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 No. SR-NYSE-2015-54, and should be submitted on or before December 3, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28693 Filed 11-10-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices 70027
IV. Solicitation of Comments For the Commission, by the Division of II. Self-Regulatory Organization’s
Trading and Markets, pursuant to delegated Statement of the Purpose of, and
Interested persons are invited to authority.20 Statutory Basis for, the Proposed Rule
submit written data, views, and Robert W. Errett, Change
arguments concerning the foregoing, Deputy Secretary. In its filing with the Commission, the
including whether the proposed rule
[FR Doc. 2015–28690 Filed 11–10–15; 8:45 am] self-regulatory organization included
change is consistent with the Act.
BILLING CODE 8011–01–P statements concerning the purpose of,
Comments may be submitted by any of and basis for, the proposed rule change
the following methods: and discussed any comments it received
Electronic Comments SECURITIES AND EXCHANGE on the proposed rule change. The text
COMMISSION of those statements may be examined at
• Use the Commission’s Internet the places specified in Item IV below.
comment form (http://www.sec.gov/ [Release No. 34–76369; File No. SR–NYSE– The Exchange has prepared summaries,
rules/sro.shtml); or 2015–54] set forth in sections A, B, and C below,
• Send an email to rule- of the most significant parts of such
comments@sec.gov. Please include File Self-Regulatory Organizations; New statements.
No. SR–NYSEMKT–2015–90 on the York Stock Exchange LLC; Notice of A. Self-Regulatory Organization's
subject line. Filing and Immediate Effectiveness of Statement of the Purpose of, and
Proposed Rule Change To Provide Statutory Basis for, the Proposed Rule
Paper Comments That the Co-Location Services Offered Change
• Send paper comments in triplicate by the Exchange Include 40 Gigabit
1. Purpose
to Secretary, Securities and Exchange Internet Protocol Network Connections
in the Exchange’s Data Center and To The Exchange proposes to change its
Commission, 100 F Street NE.,
Amend the Exchange’s Price List To rules to provide that the co-location 4
Washington, DC 20549–1090.
Implement Fees for the New Service services offered by the Exchange
All submissions should refer to File No. include 40 Gb IP network connections
SR–NYSEMKT–2015–90. This file November 5, 2015. in the Exchange’s data center. The
number should be included on the Pursuant to Section 19(b)(1) 1 of the Exchange proposes to amend the Price
subject line if email is used. To help the Securities Exchange Act of 1934 (the List to implement fees for the new
Commission process and review your ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 service.
comments more efficiently, please use Currently, the Exchange’s co-location
notice is hereby given that on October
only one method. The Commission will services offer Users 5 access to two local
28, 2015, New York Stock Exchange area networks available in the data
post all comments on the Commission’s LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
Internet Web site (http://www.sec.gov/ center: the IP network and the Liquidity
with the Securities and Exchange Center Network (‘‘LCN’’).6 IP network
rules/sro.shtml). Copies of the Commission (the ‘‘Commission’’) the access is currently available in 1 and 10
submission, all subsequent proposed rule change as described in Gb capacities. The Exchange also offers
amendments, all written statements Items I, II, and III below, which Items 1, 10, and 40 Gb LCN network access
with respect to the proposed rule have been prepared by the self- and LCN 10 Gb LX network access.7
change that are filed with the regulatory organization. The
Commission, and all written Commission is publishing this notice to 4 The Exchange initially filed rule changes
communications relating to the solicit comments on the proposed rule relating to its co-location services with the
proposed rule change between the Securities and Exchange Commission
change from interested persons. (‘‘Commission’’) in 2010. See Securities Exchange
Commission and any person, other than Act Release No. 62960 (September 21, 2010), 75 FR
those that may be withheld from the I. Self-Regulatory Organization’s 59310 (September 27, 2010) (SR–NYSE–2010–56)
public in accordance with the Statement of the Terms of the Substance (the ‘‘Original Co-location Filing’’). The Exchange
provisions of 5 U.S.C. 552, will be of the Proposed Rule Change operates a data center in Mahwah, New Jersey (the
‘‘data center’’) from which it provides co-location
available for Web site viewing and The Exchange proposes to provide services to Users.
printing in the Commission’s Public that the co-location services offered by
5 For purposes of the Exchange’s co-location
Reference Room, 100 F Street NE., services, a ‘‘User’’ means any market participant
the Exchange include 40 gigabit (‘‘Gb’’) that requests to receive co-location services directly
Washington, DC 20549 on official internet protocol (‘‘IP’’) network from the Exchange. See Securities Exchange Act
business days between the hours of connections in the Exchange’s data Release No. 76008 (September 29, 2015), 80 FR
10:00 a.m. and 3:00 p.m. Copies of such 60190 (October 5, 2015) (SR–NYSE–2015–40). As
center. The Exchange proposes to specified in the Price List, a User that incurs co-
filing also will be available for amend the Exchange’s Price List (‘‘Price location fees for a particular co-location service
inspection and copying at the principal List’’) to implement fees for the new pursuant thereto would not be subject to co-location
office of the Exchange. All comments service. The text of the proposed rule
fees for the same co-location service charged by the
received will be posted without change; Exchange’s affiliates NYSE MKT LLC and NYSE
change is available on the Exchange’s Arca, Inc. See Securities Exchange Act Release No.
the Commission does not edit personal Web site at www.nyse.com, at the 70206 (August 15, 2013), 78 FR 51765 (August 21,
identifying information from principal office of the Exchange, and at 2013) (SR–NYSE–2013–59).
6 See Original Co-location Filing, at 59311 and
submissions. You should submit only
mstockstill on DSK4VPTVN1PROD with NOTICES
the Commission’s Public Reference Securities Exchange Act Release No. 74222
information that you wish to make Room. (February 6, 2015), 80 FR 7888 (February 12, 2015)
available publicly. All submissions (SR–NYSE–2015–05) (notice of filing and
should refer to File No. SR–NYSEMKT– immediate effectiveness of proposed rule change to
2015–90, and should be submitted on or 20 17 include IP network connections).
CFR 200.30–3(a)(12).
7 See Original Co-location Filing, at 59311 and
before December 3, 2015. 1 15 U.S.C.78s(b)(1).
Securities Exchange Act Release No. 70888
2 15 U.S.C. 78a.
(November 15, 2013), 78 FR 69907 (November 21,
3 17 CFR 240.19b–4. Continued
VerDate Sep<11>2014 18:15 Nov 10, 2015 Jkt 238001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\12NON1.SGM 12NON1](https://thefederalregister.org/doc/80_FR_70245/page/1.svg)
![70030 Federal Register / Vol. 80, No. 218 / Thursday, November 12, 2015 / Notices
Paper Comments SECURITIES AND EXCHANGE forth in sections A, B, and C below, of
COMMISSION the most significant aspects of such
• Send paper comments in triplicate statements.
to Secretary, Securities and Exchange [Release No. 34–76365; File No. SR–
Commission, 100 F Street NE., NASDAQ–2015–130] A. Self-Regulatory Organization's
Washington, DC 20549–1090. Statement of the Purpose of, and
Self-Regulatory Organizations; The Statutory Basis for, the Proposed Rule
All submissions should refer to File No. NASDAQ Stock Market LLC; Notice of Change
SR–NYSE–2015–54. This file number Filing and Immediate Effectiveness of
Proposed Rule Change To Modify 1. Purpose
should be included on the subject line
if email is used. To help the Chapter XV, Entitled ‘‘Options The Exchange proposes the following
Commission process and review your Pricing,’’ at Section 2 Governing change to the NOM transaction fees set
comments more efficiently, please use Pricing for NASDAQ Members forth at Chapter XV, Section 2 for
only one method. The Commission will executing and routing standardized
November 5, 2015. equity and index options under the
post all comments on the Commission’s Pursuant to Section 19(b)(1) of the Penny Pilot 3 Options program.
Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934 The proposed change is as follows:
rules/sro.shtml). Copies of the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Fees for Removing Liquidity in Penny
submission, all subsequent notice is hereby given that on October Pilot Options: the Exchange proposes to:
amendments, all written statements 29, 2015, The NASDAQ Stock Market 1. Increase the Non-NOM Market
with respect to the proposed rule LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed Maker4 fee from $0.50 to $0.55 per
change that are filed with the with the Securities and Exchange
Commission, and all written Commission (‘‘SEC’’ or ‘‘Commission’’) 3 The Penny Pilot was established in March 2008
communications relating to the the proposed rule change as described and has since been expanded and extended through
June 30, 2016. See Securities Exchange Act Release
proposed rule change between the in Items I, II, and III, below, which Items Nos. 57579 (March 28, 2008), 73 FR 18587 (April
Commission and any person, other than have been prepared by the Exchange. 4, 2008) (SR–NASDAQ–2008–026) (notice of filing
those that may be withheld from the The Commission is publishing this and immediate effectiveness establishing Penny
notice to solicit comments on the Pilot); 60874 (October 23, 2009), 74 FR 56682
public in accordance with the (November 2, 2009) (SR–NASDAQ–2009–091)
provisions of 5 U.S.C. 552, will be proposed rule change from interested (notice of filing and immediate effectiveness
available for Web site viewing and persons. expanding and extending Penny Pilot); 60965
(November 9, 2009), 74 FR 59292 (November 17,
printing in the Commission’s Public I. Self-Regulatory Organization’s 2009) (SR–NASDAQ–2009–097) (notice of filing
Reference Room, 100 F Street NE., Statement of the Terms of Substance of and immediate effectiveness adding seventy-five
Washington, DC 20549 on official the Proposed Rule Change classes to Penny Pilot); 61455 (February 1, 2010),
75 FR 6239 (February 8, 2010) (SR–NASDAQ–
business days between the hours of The Exchange proposes to amend the 2010–013) (notice of filing and immediate
10:00 a.m. and 3:00 p.m. Copies of such Exchange’s transaction fees at Chapter effectiveness adding seventy-five classes to Penny
filing also will be available for Pilot); 62029 (May 4, 2010), 75 FR 25895 (May 10,
XV, Section 2 entitled ‘‘NASDAQ 2010) (SR–NASDAQ–2010–053) (notice of filing
inspection and copying at the principal Options Market—Fees and Rebates,’’ and immediate effectiveness adding seventy-five
office of the Exchange. All comments which governs pricing for NASDAQ classes to Penny Pilot); 65969 (December 15, 2011),
received will be posted without change; members using the NASDAQ Options 76 FR 79268 (December 21, 2011) (SR–NASDAQ–
the Commission does not edit personal 2011–169) (notice of filing and immediate
Market (‘‘NOM’’), NASDAQ’s facility for effectiveness extension and replacement of Penny
identifying information from executing and routing standardized Pilot); 67325 (June 29, 2012), 77 FR 40127 (July 6,
submissions. You should submit only equity and index options. 2012) (SR–NASDAQ–2012–075) (notice of filing
information that you wish to make While these amendments are effective and immediate effectiveness and extension and
upon filing, the Exchange has replacement of Penny Pilot through December 31,
available publicly. All submissions 2012); 68519 (December 21, 2012), 78 FR 136
should refer to File No. SR–NYSE– designated the proposed amendments to (January 2, 2013) (SR–NASDAQ–2012–143) (notice
2015–54, and should be submitted on or be operative on November 2, 2015. of filing and immediate effectiveness and extension
before December 3, 2015. The text of the proposed rule change and replacement of Penny Pilot through June 30,
is available on the Exchange’s Web site 2013); 69787 (June 18, 2013), 78 FR 37858 (June 24,
For the Commission, by the Division of 2013) (SR–NASDAQ–2013–082) (notice of filing
at http://nasdaq.cchwallstreet.com, at and immediate effectiveness and extension and
Trading and Markets, pursuant to delegated the principal office of the Exchange, and replacement of Penny Pilot through December 31,
authority.20 at the Commission’s Public Reference 2013); 71105 (December 17, 2013), 78 FR 77530
Robert W. Errett, Room. (December 23, 2013) (SR–NASDAQ–2013–154)
(notice of filing and immediate effectiveness and
Deputy Secretary.
II. Self-Regulatory Organization’s extension and replacement of Penny Pilot through
[FR Doc. 2015–28693 Filed 11–10–15; 8:45 am] Statement of the Purpose of, and June 30, 2014); 79 FR 31151 (May 23, 2014), 79 FR
31151 (May 30, 2014) (SR–NASDAQ–2014–056)
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule (notice of filing and immediate effectiveness and
Change extension and replacement of Penny Pilot through
December 31, 2014); 73686 (December 2, 2014), 79
In its filing with the Commission, the FR 71477 (November 25, 2014) (SR–NASDAQ–
Exchange included statements 2014–115) (notice of filing and immediate
concerning the purpose of and basis for effectiveness and extension and replacement of
the proposed rule change and discussed Penny Pilot through June 30, 2015) and 75283 (June
24, 2015), 80 FR 37347 (June 30, 2015) (SR–
mstockstill on DSK4VPTVN1PROD with NOTICES
any comments it received on the NASDAQ–2015–063) (Notice of Filing and
proposed rule change. The text of these Immediate Effectiveness of a Proposed Rule Change
statements may be examined at the Relating to Extension of the Exchange’s Penny Pilot
places specified in Item IV below. The Program and Replacement of Penny Pilot Issues
That Have Been Delisted.) See also NOM Rules,
Exchange has prepared summaries, set Chapter VI, Section 5.
4 The term ‘‘NOM Market Maker’’ or (‘‘M’’) is a
1 15 U.S.C. 78s(b)(1). Participant that has registered as a Market Maker on
20 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. NOM pursuant to Chapter VII, Section 2, and must
VerDate Sep<11>2014 18:15 Nov 10, 2015 Jkt 238001 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 E:\FR\FM\12NON1.SGM 12NON1](https://thefederalregister.org/doc/80_FR_70245/page/4.svg)
Document Created: 2015-12-14 14:53:09
Document Modified: 2015-12-14 14:53:09
| 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 70027 |
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