80 FR 70282 - 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 219 (November 13, 2015)
Federal Register Volume 80, Issue 219 (November 13, 2015)
| Page Range | 70282-70284 | |
| FR Document | 2015-28810 |
[Federal Register Volume 80, Number 219 (Friday, November 13, 2015)] [Notices] [Pages 70282-70284] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28810] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76386; File No. SR-NASDAQ-2015-128] 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 November 6, 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 27, 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 amend the Exchange's transaction fees at Chapter XV, Section 2 entitled ``NASDAQ Options Market--Fees and Rebates,'' which governs pricing for NASDAQ members using the NASDAQ Options Market (``NOM''), NASDAQ's facility for executing and routing standardized equity and index options. While these amendments are effective upon filing, the Exchange has [[Page 70283]] designated the proposed amendments to be operative on November 2, 2015. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes the following change to the NOM transaction fees set forth at Chapter XV, Section 2 for executing and routing standardized equity and index options under the Penny Pilot \3\ options program. --------------------------------------------------------------------------- \3\ The Penny Pilot was established in March 2008 and has since been expanded and extended through June 30, 2016. 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 [sic] 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 [sic] (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. --------------------------------------------------------------------------- The proposed change is as follows: Fees for Removing Liquidity in Penny Pilot Options: the Exchange proposes to: 1. Increase the Customer \4\ Fee for Removing Liquidity in Penny Pilot Options from $0.48 to $0.50 per contract. --------------------------------------------------------------------------- \4\ The term ``Customer'' applies to any transaction that is identified by a Participant for clearing in the Customer range at The Options Clearing Corporation (``OCC'') which is not for the account of [sic] broker or dealer or for the account of a ``Professional'' (as that term is defined in Chapter I, Section 1(a)(48)). --------------------------------------------------------------------------- This rule change is described in greater detail below. Customer Fee for Removing Liquidity in Penny Pilot Options The Exchange proposes, beginning November 2, 2015, to increase the Customer Fee for Removing Liquidity in Penny Pilot Options from $0.48 per contract to $0.50 per contract. The Exchange notes that the Fees for Removing Liquidity for other Participants in Penny Pilot Options will remain the same.\5\ --------------------------------------------------------------------------- \5\ Non-Customers will continue to be assessed a $0.50 per contract Fee for Removing Liquidity in Penny Pilot Options. --------------------------------------------------------------------------- The purpose of the proposed fee change is to increase the transaction fee for Customers to the same fee level that is assessed today to Professionals,\6\ Firms,\7\ NOM Market Makers,\8\ Non-NOM Market Makers \9\ and Broker-Dealers.\10\ With this proposal all market participants will be assessed the same Fee for Removing Liquidity in Penny Pilot Options of $0.50 per contract. Despite the increase, the Exchange believes that Customers will continue to send order flow to NOM. --------------------------------------------------------------------------- \6\ The term ``Professional'' means any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s) pursuant to Chapter I, Section 1(a)(48). All Professional orders shall be appropriately marked by Participants. \7\ The term ``Firm'' or (``F'') applies to any transaction that is identified by a Participant for clearing in the Firm range at OCC. \8\ The term ``NOM Market Maker'' or (``M'') is 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. \9\ The term ``Non-NOM Market Maker'' or (``O'') is a registered market maker on another options exchange that is not a NOM Market Maker. A Non-NOM Market Maker must append the proper Non-NOM Market Maker designation to orders routed to NOM. \10\ The term ``Broker-Dealer'' or (``B'') applies to any transaction which is not subject to any of the other transaction fees applicable within a particular category. --------------------------------------------------------------------------- 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\11\ in general, and with Section 6(b)(4) and 6(b)(5) of the Act,\12\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which Nasdaq operates or controls, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f. \12\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- Customer Fee for Removing Liquidity in Penny Pilot Options The Exchange's proposal to increase the Customer Fee for Removing Liquidity in Penny Pilot Options from $0.48 per contract to $0.50 is reasonable because all other market participants are currently assessed a fee of $0.50 per contract today. The Exchange's increase would result in all market participants being assessed the same Fee for Removing Liquidity in Penny Pilot Options. The Exchange's proposal to increase the Customer Fee for Removing Liquidity in Penny Pilot Options from $0.48 per contract to $0.50 is equitable and not unfairly discriminatory because all market participants would be uniformly assessed the same rate of $0.50 per contract. 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 not necessary or appropriate in furtherance of the purposes of the Act. The Exchange's proposal to increase the Customer Fee for Removing Liquidity in Penny Pilot Options from $0.48 per contract to $0.50 will result in all market participants being uniformly assessed the same fee for transactions in Penny Pilot Options. The Exchange notes that it operates in a highly competitive market in which [[Page 70284]] 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 adjust its fees to remain competitive with other exchanges and to attract order flow. The Exchange believes that the proposal 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 either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\13\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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 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-2015-128 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASDAQ-2015-128. 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 Number SR-NASDAQ-2015-128 and should be submitted on or before December 4, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28810 Filed 11-12-15; 8:45 am] BILLING CODE 8011-01-P
![70282 Federal Register / Vol. 80, No. 219 / Friday, November 13, 2015 / Notices
trading platform earns reflects the is a member of the self-regulatory office of the Exchange. All comments
revenues it receives from both products organization, which renders the received will be posted without change;
and the joint costs it incurs. Moreover, proposed rule change effective upon the Commission does not edit personal
the operation of the exchange is filing. identifying information from
characterized by high fixed costs and At any time within 60 days of the submissions. You should submit only
low marginal costs. This cost structure filing of the proposed rule change, the information that you wish to make
is common in content and content Commission summarily may available publicly.
distribution industries such as software, temporarily suspend such rule change if All submissions should refer to File
where developing new software it appears to the Commission that such Number SR–BX–2015–063 and should
typically requires a large initial action is necessary or appropriate in the be submitted on or before December 4,
investment (and continuing large public interest, for the protection of 2015.
investments to upgrade the software), investors, or otherwise in furtherance of
For the Commission, by the Division of
but once the software is developed, the the purposes of the Act. If the Trading and Markets, pursuant to delegated
incremental cost of providing that Commission takes such action, the authority.22
software to an additional user is Commission shall institute proceedings Robert W. Errett,
typically small, or even zero (e.g., if the to determine whether the proposed rule
Deputy Secretary.
software can be downloaded over the should be approved or disapproved.
[FR Doc. 2015–28807 Filed 11–12–15; 8:45 am]
internet after being purchased).19 In IV. Solicitation of Comments BILLING CODE 8011–01–P
NASDAQ’s case, it is costly to build and
maintain a trading platform, but the Interested persons are invited to
incremental cost of trading each submit written data, views, and
arguments concerning the foregoing, SECURITIES AND EXCHANGE
additional share on an existing platform,
including whether the proposed rule COMMISSION
or distributing an additional instance of
data, is very low. Market information change is consistent with the Act.
[Release No. 34–76386; File No. SR–
and executions are each produced Comments may be submitted by any of NASDAQ–2015–128]
jointly (in the sense that the activities of the following methods:
trading and placing orders are the Electronic comments Self-Regulatory Organizations; The
source of the information that is NASDAQ Stock Market LLC; Notice of
distributed) and are each subject to • Use the Commission’s Internet Filing and Immediate Effectiveness of
significant scale economies. In such comment form (http://www.sec.gov/ Proposed Rule Change To Modify
cases, marginal cost pricing is not rules/sro.shtml); or Chapter XV, Entitled ‘‘Options
• Send an email to rule-comments@
feasible because if all sales were priced Pricing,’’ at Section 2 Governing
sec.gov. Please include File Number SR–
at the margin, NASDAQ would be Pricing for NASDAQ Members
BX–2015–063 on the subject line.
unable to defray its platform costs of
providing the joint products. Similarly, Paper comments November 6, 2015.
data products cannot make use of TRF Pursuant to Section 19(b)(1) of the
• Send paper comments in triplicate Securities Exchange Act of 1934
trade reports without the raw material of to Brent J. Fields, Secretary, Securities
the trade reports themselves, and (‘‘Act’’),1 and Rule 19b–4 thereunder,2
and Exchange Commission, 100 F Street notice is hereby given that on October
therefore necessitate the costs of NE., Washington, DC
operating, regulating,20 and maintaining 27, 2015, The NASDAQ Stock Market
a trade reporting system, costs that must All submissions should refer to File LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
be covered through the fees charged for Number SR–BX–2015–063. This file with the Securities and Exchange
use of the facility and sales of associated number should be included on the Commission (‘‘SEC’’ or ‘‘Commission’’)
data. subject line if email is used. To help the the proposed rule change as described
Commission process and review your in Items I, II, and III below, which Items
C. Self-Regulatory Organization’s comments more efficiently, please use have been prepared by the Exchange.
Statement on Comments on the only one method. The Commission will The Commission is publishing this
Proposed Rule Change Received From post all comments on the Commission’s notice to solicit comments on the
Members, Participants, or Others Internet Web site (http://www.sec.gov/ proposed rule change from interested
No written comments were either rules/sro.shtml). persons.
solicited or received. Copies of the submission, all
subsequent amendments, all written I. Self-Regulatory Organization’s
III. Date of Effectiveness of the statements with respect to the proposed Statement of the Terms of Substance of
Proposed Rule Change and Timing for rule change that are filed with the the Proposed Rule Change
Commission Action Commission, and all written The Exchange proposes to amend the
Pursuant to Section 19(b)(3)(A)(ii) of communications relating to the Exchange’s transaction fees at Chapter
the Act,21 the Exchange has designated proposed rule change between the XV, Section 2 entitled ‘‘NASDAQ
this proposal as establishing or changing Commission and any person, other than Options Market—Fees and Rebates,’’
a due, fee, or other charge imposed on those that may be withheld from the which governs pricing for NASDAQ
any person, whether or not the person public in accordance with the members using the NASDAQ Options
provisions of 5 U.S.C. 552, will be Market (‘‘NOM’’), NASDAQ’s facility for
19 See William J. Baumol and Daniel G. Swanson,
available for Web site viewing and
jstallworth on DSK7TPTVN1PROD with NOTICES
executing and routing standardized
‘‘The New Economy and Ubiquitous Competitive
Price Discrimination: Identifying Defensible Criteria printing in the Commission’s Public equity and index options.
of Market Power,’’ Antitrust Law Journal, Vol. 70, Reference Room, 100 F Street NE., While these amendments are effective
No. 3 (2003). Washington, DC 20549, on official upon filing, the Exchange has
20 It should be noted that the costs of operating
business days between the hours of
the FINRA/NASDAQ TRF borne by NASDAQ
include regulatory charges paid by NASDAQ to 10:00 a.m. and 3:00 p.m. Copies of the 22 17 CFR 200.30–3(a)(12).
FINRA. filing also will be available for 1 15 U.S.C. 78s(b)(1).
21 15 U.S.C. 78s(b)(3)(A)(ii). inspection and copying at the principal 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 219 / Friday, November 13, 2015 / Notices 70283
designated the proposed amendments to The proposed change is as follows: Dealers.10 With this proposal all market
be operative on November 2, 2015. Fees for Removing Liquidity in Penny participants will be assessed the same
The text of the proposed rule change Pilot Options: the Exchange proposes to: Fee for Removing Liquidity in Penny
is available on the Exchange’s Web site 1. Increase the Customer 4 Fee for Pilot Options of $0.50 per contract.
at http://nasdaq.cchwallstreet.com, at Removing Liquidity in Penny Pilot Despite the increase, the Exchange
the principal office of the Exchange, and Options from $0.48 to $0.50 per believes that Customers will continue to
at the Commission’s Public Reference contract. send order flow to NOM.
Room. This rule change is described in
greater detail below. 2. Statutory Basis
II. Self-Regulatory Organization’s
Customer Fee for Removing Liquidity in NASDAQ believes that the proposed
Statement of the Purpose of, and
Penny Pilot Options rule change is consistent with the
Statutory Basis for, the Proposed Rule
provisions of Section 6 of the Act,11 in
Change The Exchange proposes, beginning general, and with Section 6(b)(4) and
In its filing with the Commission, the November 2, 2015, to increase the 6(b)(5) of the Act,12 in particular, in that
Exchange included statements Customer Fee for Removing Liquidity in it provides for the equitable allocation
concerning the purpose of and basis for Penny Pilot Options from $0.48 per of reasonable dues, fees and other
the proposed rule change and discussed contract to $0.50 per contract. The charges among members and issuers and
any comments it received on the Exchange notes that the Fees for other persons using any facility or
proposed rule change. The text of these Removing Liquidity for other system which Nasdaq operates or
statements may be examined at the Participants in Penny Pilot Options will controls, and is not designed to permit
places specified in Item IV below. The remain the same.5 unfair discrimination between
Exchange has prepared summaries, set The purpose of the proposed fee customers, issuers, brokers, or dealers.
forth in sections A, B, and C below, of change is to increase the transaction fee
the most significant aspects of such for Customers to the same fee level that Customer Fee for Removing Liquidity in
statements. is assessed today to Professionals,6 Penny Pilot Options
Firms,7 NOM Market Makers,8 Non- The Exchange’s proposal to increase
A. Self-Regulatory Organization’s
NOM Market Makers 9 and Broker- the Customer Fee for Removing
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Liquidity in Penny Pilot Options from
(notice of filing and immediate effectiveness and $0.48 per contract to $0.50 is reasonable
Change extension and replacement of Penny Pilot through
June 30, 2014); 79 FR 31151 [sic] (May 23, 2014), because all other market participants are
1. Purpose 79 FR 31151 (May 30, 2014) (SR–NASDAQ–2014– currently assessed a fee of $0.50 per
The Exchange proposes the following 056) (notice of filing and immediate effectiveness contract today. The Exchange’s increase
and extension and replacement of Penny Pilot would result in all market participants
change to the NOM transaction fees set through December 31, 2014); 73686 (December 2,
forth at Chapter XV, Section 2 for 2014), 79 FR 71477 (November 25, 2014) (SR– being assessed the same Fee for
executing and routing standardized NASDAQ–2014–115) (notice of filing and Removing Liquidity in Penny Pilot
equity and index options under the immediate effectiveness and extension and Options.
Penny Pilot 3 options program. replacement of Penny Pilot through June 30, 2015) The Exchange’s proposal to increase
and 75283 (June 24, 2015), 80 FR 37347 (June 30,
2015) (SR–NASDAQ–2015–063) (Notice of Filing
the Customer Fee for Removing
3 The Penny Pilot was established in March 2008
and Immediate Effectiveness of a Proposed Rule Liquidity in Penny Pilot Options from
and has since been expanded and extended through Change Relating to Extension of the Exchange’s $0.48 per contract to $0.50 is equitable
June 30, 2016. See Securities Exchange Act Release Penny Pilot Program and Replacement of Penny and not unfairly discriminatory because
Nos. 57579 (March 28, 2008), 73 FR 18587 (April Pilot Issues That Have Been Delisted.) See also
4, 2008) (SR–NASDAQ–2008–026) (notice of filing NOM Rules, Chapter VI, Section 5.
all market participants would be
and immediate effectiveness establishing Penny 4 The term ‘‘Customer’’ applies to any transaction uniformly assessed the same rate of
Pilot); 60874 (October 23, 2009), 74 FR 56682 that is identified by a Participant for clearing in the $0.50 per contract.
(November 2, 2009)(SR–NASDAQ–2009–091) Customer range at The Options Clearing
(notice of filing and immediate effectiveness Corporation (‘‘OCC’’) which is not for the account B. Self-Regulatory Organization’s
expanding and extending Penny Pilot); 60965 of [sic] broker or dealer or for the account of a Statement on Burden on Competition
(November 9, 2009), 74 FR 59292 (November 17, ‘‘Professional’’ (as that term is defined in Chapter
2009)(SR–NASDAQ–2009–097) (notice of filing and I, Section 1(a)(48)). The Exchange does not believe that
immediate effectiveness adding seventy-five classes 5 Non-Customers will continue to be assessed a the proposed rule change will impose
to Penny Pilot); 61455 (February 1, 2010), 75 FR
6239 (February 8, 2010) (SR–NASDAQ–2010–013)
$0.50 per contract Fee for Removing Liquidity in any burden on competition not
Penny Pilot Options. necessary or appropriate in furtherance
(notice of filing and immediate effectiveness adding 6 The term ‘‘Professional’’ means any person or
seventy-five classes to Penny Pilot); 62029 (May 4, of the purposes of the Act. The
2010), 75 FR 25895 (May 10, 2010) (SR–NASDAQ– entity that (i) is not a broker or dealer in securities,
and (ii) places more than 390 orders in listed Exchange’s proposal to increase the
2010–053) (notice of filing and immediate
effectiveness adding seventy-five classes to Penny options per day on average during a calendar month Customer Fee for Removing Liquidity in
Pilot); 65969 (December 15, 2011), 76 FR 79268 for its own beneficial account(s) pursuant to Penny Pilot Options from $0.48 per
(December 21, 2011) (SR–NASDAQ–2011–169) Chapter I, Section 1(a)(48). All Professional orders contract to $0.50 will result in all
(notice of filing and immediate effectiveness [sic] shall be appropriately marked by Participants.
7 The term ‘‘Firm’’ or (‘‘F’’) applies to any market participants being uniformly
extension and replacement of Penny Pilot); 67325
(June 29, 2012), 77 FR 40127 (July 6, 2012) (SR– transaction that is identified by a Participant for assessed the same fee for transactions in
NASDAQ–2012–075) (notice of filing and clearing in the Firm range at OCC. Penny Pilot Options.
immediate effectiveness and extension and 8 The term ‘‘NOM Market Maker’’ or (‘‘M’’) is a
The Exchange notes that it operates in
replacement of Penny Pilot through December 31, Participant that has registered as a Market Maker on a highly competitive market in which
2012); 68519 (December 21, 2012), 78 FR 136 NOM pursuant to Chapter VII, Section 2, and must
jstallworth on DSK7TPTVN1PROD with NOTICES
(January 2, 2013) (SR–NASDAQ–2012–143) (notice also remain in good standing pursuant to Chapter
of filing and immediate effectiveness and extension VII, Section 4. In order to receive NOM Market NOM Market Maker designation to orders routed to
and replacement of Penny Pilot through June 30, Maker pricing in all securities, the Participant must NOM.
10 The term ‘‘Broker-Dealer’’ or (‘‘B’’) applies to
2013); 69787 (June 18, 2013), 78 FR 37858 (June 24, be registered as a NOM Market Maker in at least one
2013) (SR–NASDAQ–2013–082) (notice of filing security. any transaction which is not subject to any of the
and immediate effectiveness and extension and 9 The term ‘‘Non-NOM Market Maker’’ or (‘‘O’’) is other transaction fees applicable within a particular
replacement of Penny Pilot through December 31, a registered market maker on another options category.
11 15 U.S.C. 78f.
2013); 71105 (December 17, 2013), 78 FR 77530 exchange that is not a NOM Market Maker. A Non-
(December 23, 2013) (SR–NASDAQ–2013–154) NOM Market Maker must append the proper Non- 12 15 U.S.C. 78f(b)(4) and (5).
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![70284 Federal Register / Vol. 80, No. 219 / Friday, November 13, 2015 / Notices
market participants can readily favor Internet Web site (http://www.sec.gov/ of fair and orderly markets and the
competing venues if they deem fee rules/sro.shtml). removal of impediments to, and
levels at a particular venue to be Copies of the submission, all perfection of the mechanisms of, a
excessive. In such an environment, the subsequent amendments, all written national market system. As discussed
Exchange must continually adjust its statements with respect to the proposed below, the Commission is exercising its
fees to remain competitive with other rule change that are filed with the authority under Rule 608(e) to exempt
exchanges and to attract order flow. The Commission, and all written BATS Exchange, Inc., BATS Y-
Exchange believes that the proposal communications relating to the Exchange, Inc., Chicago Stock Exchange,
reflects this competitive environment. proposed rule change between the Inc., EDGA Exchange, Inc., EDGX
Commission and any person, other than Exchange, Inc., Financial Industry
C. Self-Regulatory Organization’s those that may be withheld from the Regulatory Authority, Inc. (‘‘FINRA’’),
Statement on Comments on the public in accordance with the NASDAQ OMX BX, Inc., NASDAQ
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be OMX PHLX LLC, the Nasdaq Stock
Members, Participants, or Others available for Web site viewing and Market LLC, New York Stock Exchange
No written comments were either printing in the Commission’s Public LLC (‘‘NYSE’’), NYSE MKT LLC, and
solicited or received. Reference Room, 100 F Street NE., NYSE Arca, Inc., (collectively ‘‘SROs’’
Washington, DC 20549 on official or ‘‘Participants’’), from implementing
III. Date of Effectiveness of the business days between the hours of the Plan to Implement a Tick Size Pilot
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such Program (‘‘Tick Size Pilot’’) until
Commission Action filing also will be available for October 3, 2016.
The foregoing rule change has become inspection and copying at the principal
effective pursuant to Section office of the Exchange. All comments II. Background
19(b)(3)(A)(ii) of the Act.13 received will be posted without change; On May 6, 2015, the Commission
At any time within 60 days of the the Commission does not edit personal approved the Tick Size Pilot and
filing of the proposed rule change, the identifying information from provided that the Tick Size Pilot be
Commission summarily may submissions. You should submit only implemented within one year after the
temporarily suspend such rule change if information that you wish to make publication of the order.2 The Tick Size
it appears to the Commission that such available publicly. All submissions Pilot will have a two-year duration
action is: (i) Necessary or appropriate in should refer to File Number SR– (‘‘Pilot Period’’),3 and will include
the public interest; (ii) for the protection NASDAQ–2015–128 and should be exchange-listed common stocks that
of investors; or (iii) otherwise in submitted on or before December 4, have the following characteristics: (1) A
furtherance of the purposes of the Act. 2015. market capitalization of less than $3
If the Commission takes such action, the For the Commission, by the Division of billion; (2) a closing price of at least $2
Commission shall institute proceedings Trading and Markets, pursuant to delegated per share on the last day of the
to determine whether the proposed rule authority.14 measurement period (and a closing
should be approved or disapproved. Robert W. Errett, price of not less than $1.50 per share
Deputy Secretary. during the measurement period); (3) a
IV. Solicitation of Comments consolidated average daily volume of
[FR Doc. 2015–28810 Filed 11–12–15; 8:45 am]
Interested persons are invited to one million shares or less; and (4) a
BILLING CODE 8011–01–P
submit written data, views, and volume-weighted average price of at
arguments concerning the foregoing, least $2 per share (‘‘Pilot Securities’’).
including whether the proposed rule The Pilot Securities will be divided
SECURITIES AND EXCHANGE
change is consistent with the Act. into one control group and three test
COMMISSION
Comments may be submitted by any of groups. There will be 400 Pilot
the following methods: [Release No. 34–76382; File No. 4–657] Securities per test group and the
remaining Pilot Securities will be
Electronic Comments Order Granting Exemption From assigned to the control group. Test
• Use the Commission’s Internet Compliance With the National Market Group One Pilot Securities will quote in
comment form (http://www.sec.gov/ System Plan To Implement a Tick Size $0.05 per share increments and will
rules/sro.shtml); or Pilot Program trade at any currently permitted
• Send an email to rule-comments@ November 6, 2015. increment. Test Group Two Pilot
sec.gov. Please include File Number SR– Securities will quote in $0.05 per share
NASDAQ–2015–128 on the subject line. I. Introduction increments like those in Test Group
Pursuant to Rule 608(e) 1 under the One, but will only be permitted to trade
Paper Comments
Securities Exchange Act of 1934 in $0.05 per share increments, subject to
• Send paper comments in triplicate (‘‘Exchange Act’’), the Securities and certain exceptions.4 Finally, Test Group
to Brent J. Fields, Secretary, Securities Exchange Commission (‘‘Commission’’)
and Exchange Commission, 100 F Street may exempt from compliance with the
2 Securities Exchange Act Release No. 74892 (May
NE., Washington, DC 20549–1090. 6, 2015), 80 FR 27514 (May 13, 2015).
provisions of Rule 608, either 3 The term Pilot Period means the operative
All submissions should refer to File unconditionally or on specified terms period of the Tick Size Pilot, lasting two years from
Number SR–NASDAQ–2015–128. This and conditions, any self-regulatory the date of implementation. See Section I.U of the
file number should be included on the Tick Size Pilot at 80 FR 27547.
jstallworth on DSK7TPTVN1PROD with NOTICES
organization, member thereof, or 4 First, executions will be able to at the midpoint
subject line if email is used. To help the specified security, if the Commission between the national (or protected) best bid and the
Commission process and review your determines that such exemption is national (or protected) best offer; second, orders
comments more efficiently, please use consistent with the public interest, the involving retail investor orders will be able to trade
only one method. The Commission will protection of investors, the maintenance with price improvement of at least $0.005 per share;
and third, negotiated trades (such as a volume-
post all comments on the Commission’s weighted average price trade or a time-weighted
14 17 CFR 200.30–3(a)(12). average price trade) will be able to trade outside of
13 15 U.S.C. 78s(b)(3)(A)(ii). 1 17 CFR 242.608(e). the $0.05 increment.
VerDate Sep<11>2014 15:03 Nov 12, 2015 Jkt 238001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\13NON1.SGM 13NON1](https://thefederalregister.org/doc/80_FR_70501/page/3.svg)
Document Created: 2018-03-01 11:22:30
Document Modified: 2018-03-01 11:22:30
| 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 70282 |
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