81 FR 3220 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Chapter XV, Entitled “Options Pricing”

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 12 (January 20, 2016)

Page Range		3220-3224
FR Document		2016-00897
Federal Register, Volume 81 Issue 12 (Wednesday, January 20, 2016)
[Federal Register Volume 81, Number 12 (Wednesday, January 20, 2016)]
[Notices]
[Pages 3220-3224]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00897]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76886; File No. SR-NASDAQ-2015-166]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Chapter XV, Entitled ``Options Pricing''

January 13, 2016.
    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 December 30, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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[[Page 3221]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Chapter XV, entitled ``Options 
Pricing,'' at Section 2, which governs pricing for Exchange members 
using the NASDAQ Options Market (``NOM''), the Exchange's facility for 
executing and routing standardized equity and index options.
    The Exchange purposes [sic] to amend it [sic] Customer,\3\ 
Professional \4\ and NOM Market Maker \5\ Penny Pilot Options \6\ 
Rebate to Add Liquidity tiers. While the changes proposed herein are 
effective upon filing, the Exchange has designated the amendments [sic] 
become operative on January 4, 2016.
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    \3\ The term ``Customer'' applies to any transaction that is 
identified by a Participant for clearing in the Customer range at 
The Options Clearing Corporation that is not for the account of 
broker or dealer or for the account of a ``Professional'' (as that 
term is defined in Chapter I, Section 1(a)(48)).
    \4\ 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). See NOM Rules at 
Chapter I, Section 1(a)(48). All Professional orders shall be 
appropriately marked by Participants.
    \5\ A ``Non-NOM Market Maker'' 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.
    \6\ 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) [sic], 79 FR 71477 
(November 25, 2014) [sic] (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 and extension and replacement of Penny Pilot) See also 
NOM Rules, Chapter VI, Section 5.
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    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 certain amendments 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 Options 
program. The proposed changes are as follows:
Note ``c'' of Chapter XV, Section 2(1)
     Proposal to amend note ``c'' criteria, at part (2), to 
decrease the percentage of total industry customer equity and ETF 
option ADV contract per day in a month from 1.40% to 1.30%.
     The Exchange is bolding the numbers and letters in this 
paragraph for ease of reference.
NOM Market Maker Penny Pilot Options Rebate To Add Liquidity Tiers
     Proposal to amend Tier 6 of the NOM Market Maker Penny 
Pilot Options Rebate to Add Liquidity to remove an existing 
qualification from Tier 6.
    These rule changes are described in greater detail below.
Note ``c'' of Chapter XV, Section 2(1)
    The Exchange currently pays Customer and Professional Rebates to 
Add Liquidity based on an eight tier rebate structure. For purposes of 
qualifying for a Customer and Professional Rebate to Add Liquidity 
tier, the Exchange determines the applicable percentage of total 
industry customer equity and ETF option average daily volume by 
including the Participant's Penny Pilot and Non-Penny Pilot volume that 
adds liquidity.\7\
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    \7\ Tiers 6 and 7 are exceptions because these tiers are 
calculated based on Total Volume. Total Volume is defined as 
Customer, Professional, Firm, Broker-Dealer, Non-NOM Market Maker, 
and NOM Market Maker volume in Penny Pilot Options and/or Non-Penny 
Pilot Options which either adds or removes liquidity on NOM. See 
note ``b'' in Section 2(1) of Chapter XV. The Exchange utilizes data 
from The Options Clearing Corporation (``OCC'') to determine the 
total industry customer equity and ETF options ADV figure. OCC 
classifies equity and ETF options volume under the equity options 
category. Also, both customer and professional orders that are 
transacted on options exchanges clear in the customer range at OCC 
and therefore both customer and professional volume would be 
included in the total industry figure to calculate rebate tiers.
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    The Exchange proposes, beginning January 4, 2016, to amend note 
``c,'' which permits Participants that qualify for the Tier 8 Customer 
and Professional Penny Pilot Options Rebate to Add Liquidity \8\ to 
achieve a higher rebate. Currently, note ``c'' states: ``[P]articipants 
that (1) add Customer, Professional, Firm, Non-NOM Market Maker and/or 
Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot 
Options of 1.15% or more of total industry customer equity and ETF 
option ADV contracts per day in a month will receive an additional 
$0.02 per contract Penny Pilot Options Customer Rebate to Add Liquidity 
for each transaction which adds liquidity in Penny Pilot Options in 
that month; or (2) add Customer, Professional, Firm, Non-NOM Market 
Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-
Penny Pilot Options of 1.40% or more of total industry customer equity 
and ETF option ADV contracts per day in a month will receive an 
additional $0.05 per contract Penny Pilot Options Customer Rebate to 
Add Liquidity for each transaction

[[Page 3222]]

which adds liquidity in Penny Pilot Options in that month; or (3)(a) 
add Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-
Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options 
above 0.75% of total industry customer equity and ETF option ADV 
contracts per day in a month and (b) has added liquidity in all 
securities through one or more of its Nasdaq Market Center MPIDs that 
represent 1.10% or more of Consolidated Volume in a month will receive 
an additional $0.03 per contract Penny Pilot Options Customer Rebate to 
Add Liquidity for each transaction which adds liquidity in Penny Pilot 
Options in a month.'' \9\
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    \8\ Tier 8 of the Customer and Professional Rebate to Add 
Liquidity Tiers currently pays a $0.48 per contract rebate to 
Participants that add Customer, Professional, Firm, Non-NOM Market 
Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or 
Non-Penny Pilot Options above 0.75% or more of total industry 
customer equity and ETF option ADV contracts per day in a month or 
Participant adds (1) Customer and/or Professional liquidity in Penny 
Pilot Options and/or Non-Penny Pilot Options of 30,000 or more 
contracts per day in a month and (2) the Participant has certified 
for the Investor Support Program set forth in Rule 7014.
    \9\ Consolidated Volume means the total consolidated volume 
reported to all consolidated transaction reporting plans by all 
exchanges and trade reporting facilities during a month in equity 
securities, excluding executed orders with a size of less than one 
round lot. For purposes of calculating Consolidated Volume and the 
extent of an equity member's trading activity, expressed as a 
percentage of or ratio to Consolidated Volume, the date of the 
annual reconstitution of the Russell Investments Indexes shall be 
excluded from both total Consolidated Volume and the member's 
trading activity.
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    The Exchange proposes to amend the criteria in note ``c'' at part 
(2) to decrease the percentage of total industry customer equity and 
ETF option ADV contract per day in a month from 1.40% to 1.30%. The 
Exchange believes that this decrease will offer Participants an 
opportunity to qualify for the part (2) incentive and receive a $0.05 
per contract \10\ additional rebate, in addition to the Tier 8 rebate, 
by amending the qualification to require less volume.\11\ The Exchange 
believes that this incentive will continue to encourage Participants to 
add even more liquidity on NOM to earn a higher Tier 8 rebate. The 
Exchange is not amending the other criteria, (1) and (3), in note ``c'' 
to qualify for an additional rebate.
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    \10\ Note ``c'' offers three distinct incentives for 
Participants that qualify for the Tier 8 Customer and Professional 
Penny Pilot Options Rebate to Add Liquidity. The part (2) rebate, as 
amended, would be paid to Participants that added Customer, 
Professional, Firm, NOM Market Maker [sic], Non-NOM Market Maker 
and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-
Penny Pilot Options of 1.30% or more of total industry customer 
equity and ETF option ADV contracts per day in a month.
    \11\ Only Participants that qualify for the Tier 8 Customer and 
Professional Penny Pilot Options Rebate to Add Liquidity are 
eligible for the note ``c'' incentives. The incentives are in 
addition to the Tier 8 rebate.
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    The Exchange also proposes to bold the numbers and letters that 
define the various parts of note `c'' for ease of reference.
NOM Market Maker Penny Pilot Options Rebate To Add Liquidity Tiers
    The Exchange proposes, beginning January 4, 2016, to amend Tier 6 
of the NOM Market Maker Penny Pilot Option Rebate to Add Liquidity to 
eliminate one of the criteria for qualifying for the $0.42 per contract 
Tier 6 rebate. Currently, Participants that add NOM Market Maker 
liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above 
0.80% of total industry customer equity and ETF option ADV contracts 
per day in a month and qualify for the Tier 7 or Tier 8 Customer and/or 
Professional Rebate to Add Liquidity in Penny Pilot Options or 
Participants that add NOM Market Maker liquidity in Penny Pilot Options 
and/or Non-Penny Pilot Options above 0.90% of total industry customer 
equity and ETF option ADV contracts per day in a month or Participants 
that add Customer, Professional, Firm, Non-NOM Market Maker, and/or 
Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot 
Options of 1.40% or more of total industry customer equity and ETF 
option ADV contracts per day in a month receive a $0.42 per contract 
NOM Market Maker Penny Pilot Options Rebate to Add Liquidity.
    The Exchange proposes to remove the option to qualify for the Tier 
6 NOM Market Maker Penny Pilot Options rebate by adding Customer, 
Professional, Firm, Non-NOM Market Maker, and/or Broker-Dealer 
liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 
1.40% or more of total industry customer equity and ETF option ADV 
contracts per day in a month. With this proposal, Participants will be 
able to qualify for the Tier 6 NOM Market Maker Rebate by either (1) 
adding NOM Market Maker liquidity in Penny Pilot Options and/or Non-
Penny Pilot Options above 0.80% of total industry customer equity and 
ETF option ADV contracts per day in a month and qualifies [sic] for the 
Tier 7 or Tier 8 Customer and/or Professional Rebate to Add Liquidity 
in Penny Pilot Options or (2) adding NOM Market Maker liquidity in 
Penny Pilot Options and/or Non-Penny Pilot Options above 0.90% of total 
industry customer equity and ETF option ADV contracts per day in a 
month. While the Exchange is eliminating one of the methods to qualify 
for the Tier 6 NOM Market Maker Penny Pilot Options rebate, the 
Exchange believes that the rebate tier will continue to incentivize NOM 
Participants to continue to add liquidity to NOM.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act,\12\ in general, and with Section 6(b)(4) and 
6(b)(5) of the Act,\13\ 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 the Exchange operates or controls, and is not designed to permit 
unfair discrimination between customers, issuers, brokers, or dealers. 
Customer volume is important because it continues to attract liquidity 
to the Exchange, which benefits all market participants. Further, with 
respect to Professional liquidity, the Exchange initially established 
Professional pricing in order to ``. . . bring additional revenue to 
the Exchange.'' \14\ The Exchange noted in the Professional Filing that 
it believes ``. . . that the increased revenue from the proposal would 
assist the Exchange to recoup fixed costs.'' \15\ The Exchange noted in 
that filing that it believes that establishing separate pricing for a 
Professional, which ranges between that of a Customer and market maker, 
accomplishes this objective.\16\ NOM Market Makers have obligations to 
the market and regulatory requirements,\17\ which normally do not apply 
to other market participants. A NOM Market Maker has the obligation to 
make continuous markets, engage in a course of dealings reasonably 
calculated to

[[Page 3223]]

contribute to the maintenance of a fair and orderly market, and not 
make bids or offers or enter into transactions that are inconsistent 
with a [sic] course of dealings.\18\
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(4) and (5).
    \14\ See Securities Exchange Act Release No. 64494 (May 13, 
2011), 76 FR 29014 (May 19, 2011) (SR-NASDAQ-2011-066) 
(``Professional Filing''). In this filing, the Exchange addressed 
the perceived favorable pricing of Professionals who were assessed 
fees and paid rebates like a Customer prior to the filing. The 
Exchange noted in that filing that a Professional, unlike a retail 
Customer, has access to sophisticated trading systems that contain 
functionality not available to retail Customers.1
    \15\ See Professional Filing.
    \16\ See Professional Filing. The Exchange also [sic] in the 
Professional Filing that it believes the role of the retail Customer 
in the marketplace is distinct from that of the Professional and the 
Exchange's fee proposal at that time accounted for this distinction 
by pricing each market participant according to their roles and 
obligations.
    \17\ Pursuant to Chapter VII (Market Participants), Section 5 
(Obligations of Market Makers), in registering as a market maker, an 
Options Participant commits himself to various obligations. 
Transactions of a Market Maker in its market making capacity must 
constitute a course of dealings reasonably calculated to contribute 
to the maintenance of a fair and orderly market, and Market Makers 
should not make bids or offers or enter into transactions that are 
inconsistent with such course of dealings. Further, all Market 
Makers are designated as specialists on NOM for all purposes under 
the Act or rules thereunder. See Chapter VII, Section 5.
    \18\ Id.
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    The Commission and the courts have repeatedly expressed their 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. In Regulation 
NMS, for example, the Commission indicated that market forces should 
generally determine the price of non-core market data because national 
market system regulation ``has been remarkably successful in promoting 
market competition in its broader forms that are most important to 
investors and listed companies.'' \19\ Likewise, in NetCoalition v. 
NYSE Arca, Inc. \20\ (``NetCoalition'') the D.C. Circuit upheld the 
Commission's use of a market-based approach in evaluating the fairness 
of market data fees against a challenge claiming that Congress mandated 
a cost-based approach.\21\ As the court emphasized, the Commission 
``intended in Regulation NMS that `market forces, rather than 
regulatory requirements' play a role in determining the market data . . 
. to be made available to investors and at what cost.'' \22\
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    \19\ Securities Exchange Act Release No. 51808 at 37499 (June 9, 
2005) (``Regulation NMS Adopting Release'').
    \20\ NetCoalition v. NYSE Arca, Inc., 615 F.3d 525 (D.C. Cir. 
2010).
    \21\ See NetCoalition, at 534.
    \22\ Id. at 537.
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    Further, ``[n]o one disputes that competition for order flow is 
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market 
system, buyers and sellers of securities, and the broker-dealers that 
act as their order-routing agents, have a wide range of choices of 
where to route orders for execution'; [and] `no exchange can afford to 
take its market share percentages for granted' because `no exchange 
possesses a monopoly, regulatory or otherwise, in the execution of 
order flow from broker dealers' . . . .'' \23\ Although the court and 
the SEC were discussing the cash equities markets, the Exchange 
believes that these views apply with equal force to the options 
markets.
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    \23\ Id. at 539 (quoting ArcaBook Order, 73 FR at 74782-74783).
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Note ``c'' of Chapter XV, Section 2(1)
    The Exchange's proposal to amend note ``c,'' at part (2) to 
decrease the percentage of total industry customer equity and ETF 
option ADV contract per day in a month from 1.40% to 1.30% in part (2) 
to qualify for the additional Tier 8 NOM Market Maker [sic] Penny Pilot 
Option rebate is reasonable because additional Participants may qualify 
for this incentive because of the lower volume requirement. The 
Exchange believes that this incentive will continue to encourage 
Participants to add even more liquidity on NOM to earn a higher rebate. 
Participants that qualify for this incentive would be paid the Tier 8 
Customer and Professional Penny Pilot Options Rebate to Add Liquidity 
of $0.48 per contract plus the additional part (2) note ``c'' rebate of 
$0.05 per contract for a total rebate of $0.53 per contract.
    The Exchange's proposal to amend note ``c,'' at part (2) to 
decrease the percentage of total industry customer equity and ETF 
option ADV contract per day in a month from 1.40% to 1.30% in part (2) 
to qualify for the additional Tier 8 NOM Market Maker [sic] Penny Pilot 
Option rebate is equitable and not unfairly discriminatory because, 
today, all Participants may qualify for the Tier 8 Customer and 
Professional Rebate to Add Liquidity in Penny Pilot Options and 
therefore are qualified to earn the additional note ``c'' rebates.\24\ 
The Exchange will uniformly pay the Tier 8 and additional note ``c'' 
rebates to all Participants that transact the qualifying volume, 
respectively.
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    \24\ Note ``c'' offers three distinct incentives for 
Participants that qualify for the Tier 8 Customer and Professional 
Penny Pilot Options Rebate to Add Liquidity.
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    The Exchange's proposal to bold the numbers and letters in note 
``c'' is reasonable, equitable and not unfairly discriminatory because 
it will provide an easier point of reference for each criteria and 
rebate. Also, this proposed amendment is non-substantive.
NOM Market Maker Penny Pilot Options Rebate To Add Liquidity Tiers
    The Exchange's proposal to amend Tier 6 of the NOM Market Maker 
Penny Pilot Options Rebate to Add Liquidity to eliminate one of the 
criteria to qualify for the $0.42 per contract Tier 6 rebate is 
reasonable because, despite the elimination of one of the methods to 
qualify for the Tier 6 NOM Market Maker Penny Pilot Options rebate, the 
Exchange believes that the Tier 6 rebate will continue to incentivize 
Participants to add liquidity to NOM in order to receive the rebate.
    The Exchange's proposal to amend Tier 6 of the NOM Market Maker 
Penny Pilot Options Rebate to Add Liquidity to eliminate one of the 
criteria to qualify for the $0.42 per contract Tier 6 rebate is 
equitable and not unfairly discriminatory because the elimination of 
the qualifying language in Tier 6 of the NOM Market Maker Penny Pilot 
Options Rebate to Add Liquidity will uniformly apply to all 
Participants. No Participant will be entitled to the Tier 6 NOM Market 
Maker Penny Pilot Options Rebate to Add Liquidity by adding Customer, 
Professional, Firm, Non-NOM Market Maker, and/or Broker-Dealer 
liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of 
1.40% or more of total industry customer equity and ETF option ADV 
contracts per day in a month. Also, it is important to note that NOM 
Market Makers have obligations to the market and regulatory 
requirements,\25\ which normally do not apply to other market 
participants. The Exchange believes that offering rebates to these 
market participants is equitable and not unfairly discriminatory in 
light of their obligations.
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    \25\ See note 17 above.
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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. In terms of inter-market 
competition, 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, or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees to remain competitive with 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, 
the Exchange believes that the degree to which fee changes in this 
market may impose any burden on competition is extremely limited.
    In this instance, the proposed amendments to the Customer, 
Professional and NOM Market Maker Penny Pilot Options Rebate to Add 
Liquidity tiers do not impose an undue burden on inter-market 
competition because the Exchange's execution services are completely 
voluntary and subject to extensive competition.
Note ``c'' of Chapter XV, Section 2(1)
    The Exchange's proposal to amend note ``c,'' at part (2) to 
decrease the

[[Page 3224]]

percentage of total industry customer equity and ETF option ADV 
contract per day in a month from 1.40% to 1.30% to qualify for the 
additional Tier 8 rebate does not impose an undue burden on intra-
market competition because, today, all Participants may qualify for the 
Tier 8 Customer and Professional Penny Pilot Options Rebates to Add 
Liquidity and qualify to earn the note ``c'' additional rebates. The 
Exchange will uniformly pay the Tier 8 and additional note ``c'' 
rebates to all Participants that transact the qualifying volume, 
respectively.
    Customer liquidity is critically important to the market and 
benefits all market participants. Greater customer liquidity benefits 
all market participants by providing more trading opportunities and 
attracting greater participation by specialists and market makers. An 
increase in the activity of these market participants in turn 
facilitates tighter spreads. All Participants are eligible for these 
rebates if they transact the requisite volume. All Participants are 
eligible for the note ``c'' incentives if they transact the requisite 
volume. Also, the Exchange believes that encouraging Participants to 
add Professional liquidity creates competition among options exchanges, 
because the Exchange believes that the rebates may cause market 
participants to select NOM as a venue to send Professional order flow.
    The Exchange's proposal to bold the numbers and letters in note 
``c'' do not impose an undue burden on intra-market competition because 
the amendment is non-substantive.
NOM Market Maker Penny Pilot Options Rebate To Add Liquidity Tiers
    The Exchange's proposal to amend Tier 6 of the NOM Market Maker 
Penny Pilot Options Rebate to Add Liquidity to eliminate one of the 
criteria to qualify for the $0.42 per contract Tier 6 rebate does not 
impose an undue burden on intra-market competition because the 
elimination of the qualifying language in Tier 6 of the NOM Market 
Maker Penny Pilot Options Rebate to Add Liquidity will uniformly apply 
to all Participants. No Participant will be entitled to the Tier 6 NOM 
Market Maker Penny Pilot Options Rebate to Add Liquidity by adding 
Customer, Professional, Firm, Non-NOM Market Maker, and/or Broker-
Dealer liquidity in Penny Pilot Options and/or Non-Penny Pilot Options 
of 1.40% or more of total industry customer equity and ETF option ADV 
contracts per day in a month. The Exchange believes that offering 
rebates to these market participants is equitable and not unfairly 
discriminatory in light of their obligations.\26\
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    \26\ See note 17 above.
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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.\27\
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    \27\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NASDAQ-2015-166 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-2015-166. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NASDAQ-2015-166, and should 
be submitted on or before February 10, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00897 Filed 1-19-16; 8:45 am]
BILLING CODE 8011-01-P
3220 Federal Register / Vol. 81, No. 12 / Wednesday, January 20, 2016 / Notices

designated as the Settling Bank to settle (xvi) insert the title of the Guide on by allowing DTC to collect net debits
with DTC on the Participant’s behalf; the Guide’s front page. and release net credits within scheduled
(iv) clarify that certain online reports Implementation. The effective date of timeframes, which will limit the
DTC provides Participants and Settling the proposed rule change will be settlement risk to DTC. As such, the
Banks through the processing day reflect announced via a DTC Important Notice. Commission believes that the proposal
‘‘intraday’’ gross debits and credits, and is consistent with Rule 17Ad–22(d)(5).21
II. Discussion and Commission
net debit and credit balances;
(v) clarify that a Settling Bank’s end- Findings III. Conclusion
of-day net-net settlement balance Section 19(b)(2)(C) of the Act 16
includes the Settling Bank’s own directs the Commission to approve a On the basis of the foregoing, the
settlement obligations as a Participant if proposed rule change of a self- Commission finds that the proposal is
it settles for itself; regulatory organization if it finds that consistent with the requirements of the
(vi) add text for the purpose of such proposed rule change is consistent Act and in particular with the
context, consistent with the Rules, that with the requirements of the Act and requirements of Section 17A of the
each Participant is obligated to settle rules and regulations thereunder Act 22 and the rules and regulations
timely with DTC and if its Settling Bank applicable to such organization. The thereunder.
refuses to settle for it then it must make Commission believes the proposal is It is therefore ordered, pursuant to
alternative arrangements to make consistent with Section 17A(b)(3)(F) of Section 19(b)(2) of the Act, that
payment to DTC via Fedwire; the Act 17 and Rule 17Ad–22(d)(5),18 as proposed rule change SR–DTC–2015–
(vii) add text for the purpose of described in detail below. 011 be, and hereby is, approved.23
context, consistent with the Rules, that Consistency with Section 17A(b)(3)(F)
a Participant that acts as its own Settling of the Act. Section 17A(b)(3)(F) of the For the Commission, by the Division of
Bank may not refuse to settle for itself Act requires, among other things, that Trading and Markets, pursuant to delegated
and that it will be in default if it does the rules of a clearing agency be authority.24
not fund its settlement obligation; designed to promote the prompt and Robert W. Errett,
(viii) for clarity, change the heading to accurate clearance and settlement of Deputy Secretary.
an existing example of how a Settling securities transactions.19 As described [FR Doc. 2016–00898 Filed 1–19–16; 8:45 am]
Bank’s settlement balance is calculated above, the change will reduce delays in
BILLING CODE 8011–01–P
from ‘‘Settlement Example’’ to the settlement process by allowing DTC
‘‘Example of the Calculation of a DTC to collect net debits and release net
Settling Bank’s Net-Net Settlement credits within scheduled timeframes SECURITIES AND EXCHANGE
Balance’’; despite the failure of a Settling Bank to COMMISSION
(ix) remove the provision from the affirmatively acknowledge its end-of-
Guide indicating that that a Settling day net-net settlement balance or notify
Bank that settles only for itself will need DTC of its refusal to settle for a [Release No. 34–76886; File No. SR–
to affirmatively opt out in order to not Participant for which it is the NASDAQ–2015–166]
be required to affirmatively designated Settling Bank on a timely
acknowledge its settlement balance, and Self-Regulatory Organizations; The
basis. This requirement will reduce
add text simply stating that a Settling NASDAQ Stock Market LLC; Notice of
uncertainty and associated risks that
Bank that settles only for itself will not may currently arise from Failure to Filing and Immediate Effectiveness of
be required to acknowledge its Acknowledge, thus facilitating the Proposed Rule Change to Chapter XV,
settlement balance; prompt and accurate clearance and Entitled ‘‘Options Pricing’’
(x) clarify the interest charged to settlement of securities transactions. January 13, 2016.
Participants for a failure to settle; Consistency with Rule 17Ad–22(d)(5).
(xi) delete references to a Settling Rule 17Ad–22(d)(5) under the Act Pursuant to Section 19(b)(1) of the
Bank’s failure to timely settle its requires a clearing agency, such as DTC, Securities Exchange Act of 1934
settlement balance from being referred to establish, implement, maintain and (‘‘Act’’),1 and Rule 19b–4 thereunder,2
to as a ‘‘failure to settle’’ and remove enforce written policies and procedures notice is hereby given that on December
references to related procedures as being reasonably designed to employ money 30, 2015, The NASDAQ Stock Market
‘‘failure-to-settle’’ procedures, as the settlement arrangements that eliminate LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
terminology could be confused with an or strictly limit the clearing agency’s with the Securities and Exchange
individual Participant’s failure to meet settlement bank risks and require funds Commission (‘‘SEC’’ or ‘‘Commission’’)
its settlement obligation; transfers to the clearing agency to be the proposed rule change as described
(xii) rewrite text in the Guide in light final when effected.20 As described in Items I, II, and III below, which Items
of the proposed changes, as applicable, above, the change should reduce DTC’s have been prepared by the Exchange.
including Addendum A of the Guide, to credit and liquidity risk by mitigating The Commission is publishing this
incorporate proposed changes, the risk that end-of-day net-net debit
consolidate text, clarify text for notice to solicit comments on the
settlement balances would not be paid proposed rule change from interested
readability and eliminate duplication; due to the failure of a Settling Bank to
(xiii) clarify certain Settling Bank and persons.
respond to DTC after posting of final
settlement processing timeframes; settlement figures. The change also
(xiv) apply initial capitalization as should create an arrangement that
21 Id.
tkelley on DSK4VPTVN1PROD with NOTICES

22 15 U.S.C. 78q–1.
appropriate for the terms ‘‘Participant’’ reduces delays in the settlement process 23 In approving the proposed rule change, the
and ‘‘Settling Bank’’ where they are
Commission considered the proposal’s impact on
used as defined terms; 16 15 U.S.C. 78s(b)(2)(C). efficiency, competition, and capital formation. 15
(xv) remove references to Participant 17 15 U.S.C. 78q–1(b)(3)(F). U.S.C. 78c(f).
Terminal System (PTS) functions, 18 17 CFR 240.17Ad–22(d)(5). 24 17 CFR 200.30–3(a)(12).

which are no longer used for DTC 19 15 U.S.C. 78q–1(b)(3)(F). 1 15 U.S.C. 78s(b)(1).

settlement processing; and 20 17 CFR 240.17Ad–22(d)(5). 2 17 CFR 240.19b–4.

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3222 Federal Register / Vol. 81, No. 12 / Wednesday, January 20, 2016 / Notices

which adds liquidity in Penny Pilot NOM Market Maker Penny Pilot 2. Statutory Basis
Options in that month; or (3)(a) add Options Rebate To Add Liquidity Tiers The Exchange believes that the
Customer, Professional, Firm, Non-NOM proposed rule change is consistent with
Market Maker and/or Broker-Dealer The Exchange proposes, beginning
January 4, 2016, to amend Tier 6 of the Section 6 of the Act,12 in general, and
liquidity in Penny Pilot Options and/or with Section 6(b)(4) and 6(b)(5) of the
Non-Penny Pilot Options above 0.75% NOM Market Maker Penny Pilot Option
Rebate to Add Liquidity to eliminate Act,13 in particular, in that it provides
of total industry customer equity and for the equitable allocation of reasonable
one of the criteria for qualifying for the
ETF option ADV contracts per day in a dues, fees, and other charges among
$0.42 per contract Tier 6 rebate.
month and (b) has added liquidity in all members and issuers and other persons
Currently, Participants that add NOM
securities through one or more of its using any facility or system which the
Market Maker liquidity in Penny Pilot
Nasdaq Market Center MPIDs that Exchange operates or controls, and is
Options and/or Non-Penny Pilot
represent 1.10% or more of not designed to permit unfair
Options above 0.80% of total industry
Consolidated Volume in a month will discrimination between customers,
customer equity and ETF option ADV
receive an additional $0.03 per contract issuers, brokers, or dealers. Customer
contracts per day in a month and qualify volume is important because it
Penny Pilot Options Customer Rebate to for the Tier 7 or Tier 8 Customer and/
Add Liquidity for each transaction continues to attract liquidity to the
or Professional Rebate to Add Liquidity Exchange, which benefits all market
which adds liquidity in Penny Pilot in Penny Pilot Options or Participants
Options in a month.’’ 9 participants. Further, with respect to
that add NOM Market Maker liquidity Professional liquidity, the Exchange
The Exchange proposes to amend the in Penny Pilot Options and/or Non- initially established Professional pricing
criteria in note ‘‘c’’ at part (2) to Penny Pilot Options above 0.90% of in order to ‘‘. . . bring additional
decrease the percentage of total industry total industry customer equity and ETF revenue to the Exchange.’’ 14 The
customer equity and ETF option ADV option ADV contracts per day in a Exchange noted in the Professional
contract per day in a month from 1.40% month or Participants that add Filing that it believes ‘‘. . . that the
to 1.30%. The Exchange believes that Customer, Professional, Firm, Non-NOM increased revenue from the proposal
this decrease will offer Participants an Market Maker, and/or Broker-Dealer would assist the Exchange to recoup
opportunity to qualify for the part (2) liquidity in Penny Pilot Options and/or fixed costs.’’ 15 The Exchange noted in
incentive and receive a $0.05 per Non-Penny Pilot Options of 1.40% or that filing that it believes that
contract 10 additional rebate, in addition more of total industry customer equity establishing separate pricing for a
to the Tier 8 rebate, by amending the and ETF option ADV contracts per day Professional, which ranges between that
qualification to require less volume.11 in a month receive a $0.42 per contract of a Customer and market maker,
The Exchange believes that this NOM Market Maker Penny Pilot accomplishes this objective.16 NOM
incentive will continue to encourage Options Rebate to Add Liquidity. Market Makers have obligations to the
Participants to add even more liquidity The Exchange proposes to remove the market and regulatory requirements,17
on NOM to earn a higher Tier 8 rebate. option to qualify for the Tier 6 NOM which normally do not apply to other
The Exchange is not amending the other Market Maker Penny Pilot Options market participants. A NOM Market
criteria, (1) and (3), in note ‘‘c’’ to rebate by adding Customer, Maker has the obligation to make
qualify for an additional rebate. Professional, Firm, Non-NOM Market continuous markets, engage in a course
Maker, and/or Broker-Dealer liquidity in of dealings reasonably calculated to
The Exchange also proposes to bold
the numbers and letters that define the Penny Pilot Options and/or Non-Penny 12 15 U.S.C. 78f.
various parts of note ‘c’’ for ease of Pilot Options of 1.40% or more of total 13 15 U.S.C. 78f(b)(4) and (5).
reference. industry customer equity and ETF 14 See Securities Exchange Act Release No. 64494
option ADV contracts per day in a (May 13, 2011), 76 FR 29014 (May 19, 2011) (SR–
9 Consolidated Volume means the total
month. With this proposal, Participants NASDAQ–2011–066) (‘‘Professional Filing’’). In this
filing, the Exchange addressed the perceived
consolidated volume reported to all consolidated will be able to qualify for the Tier 6 favorable pricing of Professionals who were
transaction reporting plans by all exchanges and NOM Market Maker Rebate by either (1) assessed fees and paid rebates like a Customer prior
trade reporting facilities during a month in equity adding NOM Market Maker liquidity in to the filing. The Exchange noted in that filing that
securities, excluding executed orders with a size of a Professional, unlike a retail Customer, has access
less than one round lot. For purposes of calculating
Penny Pilot Options and/or Non-Penny
to sophisticated trading systems that contain
Consolidated Volume and the extent of an equity Pilot Options above 0.80% of total functionality not available to retail Customers.1
member’s trading activity, expressed as a industry customer equity and ETF 15 See Professional Filing.
percentage of or ratio to Consolidated Volume, the option ADV contracts per day in a 16 See Professional Filing. The Exchange also [sic]
date of the annual reconstitution of the Russell
Investments Indexes shall be excluded from both
month and qualifies [sic] for the Tier 7 in the Professional Filing that it believes the role
or Tier 8 Customer and/or Professional of the retail Customer in the marketplace is distinct
total Consolidated Volume and the member’s from that of the Professional and the Exchange’s fee
trading activity. Rebate to Add Liquidity in Penny Pilot proposal at that time accounted for this distinction
10 Note ‘‘c’’ offers three distinct incentives for
Options or (2) adding NOM Market by pricing each market participant according to
Participants that qualify for the Tier 8 Customer and Maker liquidity in Penny Pilot Options their roles and obligations.
Professional Penny Pilot Options Rebate to Add 17 Pursuant to Chapter VII (Market Participants),
Liquidity. The part (2) rebate, as amended, would and/or Non-Penny Pilot Options above
Section 5 (Obligations of Market Makers), in
be paid to Participants that added Customer, 0.90% of total industry customer equity registering as a market maker, an Options
Professional, Firm, NOM Market Maker [sic], Non- and ETF option ADV contracts per day Participant commits himself to various obligations.
NOM Market Maker and/or Broker-Dealer liquidity in a month. While the Exchange is Transactions of a Market Maker in its market
in Penny Pilot Options and/or Non-Penny Pilot making capacity must constitute a course of
tkelley on DSK4VPTVN1PROD with NOTICES

Options of 1.30% or more of total industry eliminating one of the methods to
dealings reasonably calculated to contribute to the
customer equity and ETF option ADV contracts per qualify for the Tier 6 NOM Market maintenance of a fair and orderly market, and
day in a month. Maker Penny Pilot Options rebate, the Market Makers should not make bids or offers or
11 Only Participants that qualify for the Tier 8 enter into transactions that are inconsistent with
Exchange believes that the rebate tier
Customer and Professional Penny Pilot Options such course of dealings. Further, all Market Makers
Rebate to Add Liquidity are eligible for the note ‘‘c’’
will continue to incentivize NOM are designated as specialists on NOM for all
incentives. The incentives are in addition to the Participants to continue to add liquidity purposes under the Act or rules thereunder. See
Tier 8 rebate. to NOM. Chapter VII, Section 5.

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3224 Federal Register / Vol. 81, No. 12 / Wednesday, January 20, 2016 / Notices

percentage of total industry customer unfairly discriminatory in light of their Commission, and all written
equity and ETF option ADV contract per obligations.26 communications relating to the
day in a month from 1.40% to 1.30% to proposed rule change between the
C. Self-Regulatory Organization’s
qualify for the additional Tier 8 rebate Commission and any person, other than
Statement on Comments on the
does not impose an undue burden on those that may be withheld from the
intra-market competition because, Proposed Rule Change Received From public in accordance with the
today, all Participants may qualify for Members, Participants, or Others provisions of 5 U.S.C. 552, will be
the Tier 8 Customer and Professional No written comments were either available for Web site viewing and
Penny Pilot Options Rebates to Add solicited or received. printing in the Commission’s Public
Liquidity and qualify to earn the note III. Date of Effectiveness of the Reference Room, 100 F Street NE.,
‘‘c’’ additional rebates. The Exchange Washington, DC 20549 on official
Proposed Rule Change and Timing for
will uniformly pay the Tier 8 and business days between the hours of
Commission Action
additional note ‘‘c’’ rebates to all 10:00 a.m. and 3:00 p.m. Copies of the
Participants that transact the qualifying The foregoing rule change has become filing also will be available for
volume, respectively. effective pursuant to Section inspection and copying at the principal
Customer liquidity is critically 19(b)(3)(A)(ii) of the Act.27 office of the Exchange. All comments
important to the market and benefits all At any time within 60 days of the received will be posted without change;
market participants. Greater customer filing of the proposed rule change, the the Commission does not edit personal
liquidity benefits all market participants Commission summarily may identifying information from
by providing more trading opportunities temporarily suspend such rule change if submissions. You should submit only
and attracting greater participation by it appears to the Commission that such information that you wish to make
specialists and market makers. An action is: (i) Necessary or appropriate in available publicly. All submissions
increase in the activity of these market the public interest; (ii) for the protection should refer to File Number SR–
participants in turn facilitates tighter of investors; or (iii) otherwise in NASDAQ–2015–166, and should be
spreads. All Participants are eligible for furtherance of the purposes of the Act. submitted on or before February 10,
these rebates if they transact the If the Commission takes such action, the 2016.
requisite volume. All Participants are Commission shall institute proceedings
For the Commission, by the Division of
eligible for the note ‘‘c’’ incentives if to determine whether the proposed rule Trading and Markets, pursuant to delegated
they transact the requisite volume. Also, should be approved or disapproved. authority.28
the Exchange believes that encouraging Robert W. Errett,
IV. Solicitation of Comments
Participants to add Professional Deputy Secretary.
liquidity creates competition among Interested persons are invited to
[FR Doc. 2016–00897 Filed 1–19–16; 8:45 am]
options exchanges, because the submit written data, views, and
arguments concerning the foregoing, BILLING CODE 8011–01–P
Exchange believes that the rebates may
cause market participants to select NOM including whether the proposed rule
as a venue to send Professional order change is consistent with the Act.
SECURITIES AND EXCHANGE
flow. Comments may be submitted by any of
COMMISSION
The Exchange’s proposal to bold the the following methods:
numbers and letters in note ‘‘c’’ do not Sunshine Act Meeting
Electronic Comments
impose an undue burden on intra-
market competition because the • Use the Commission’s Internet Notice is hereby given, pursuant to
amendment is non-substantive. comment form (http://www.sec.gov/ the provisions of the Government in the
rules/sro.shtml); or Sunshine Act, Public Law 94–409, that
NOM Market Maker Penny Pilot • Send an email to rule-comments@ the Securities and Exchange
Options Rebate To Add Liquidity Tiers sec.gov. Please include File Number SR– Commission Investor Advisory
The Exchange’s proposal to amend NASDAQ–2015–166 on the subject line. Committee will hold a meeting on
Tier 6 of the NOM Market Maker Penny Thursday, January 21, 2016, in Multi-
Pilot Options Rebate to Add Liquidity to Paper Comments
Purpose Room LL–006 at the
eliminate one of the criteria to qualify • Send paper comments in triplicate Commission’s headquarters, 100 F
for the $0.42 per contract Tier 6 rebate to Secretary, Securities and Exchange Street NE., Washington, DC. The
does not impose an undue burden on Commission, 100 F Street NE., meeting will begin at 10:00 a.m. (ET)
intra-market competition because the Washington, DC 20549–1090. and will be open to the public. Seating
elimination of the qualifying language All submissions should refer to File will be on a first-come, first-served
in Tier 6 of the NOM Market Maker Number SR–NASDAQ–2015–166. This basis. Doors will open at 9:00 a.m.
Penny Pilot Options Rebate to Add file number should be included on the Visitors will be subject to security
Liquidity will uniformly apply to all subject line if email is used. To help the checks. The meeting will be webcast on
Participants. No Participant will be Commission process and review your the Commission’s Web site at
entitled to the Tier 6 NOM Market comments more efficiently, please use www.sec.gov.
Maker Penny Pilot Options Rebate to only one method. The Commission will On December 23, 2015, the
Add Liquidity by adding Customer, post all comments on the Commission’s Commission issued notice of the
Professional, Firm, Non-NOM Market Internet Web site (http://www.sec.gov/ Committee meeting (Release No. 33–
Maker, and/or Broker-Dealer liquidity in rules/sro.shtml). Copies of the 10000), indicating that the meeting is
tkelley on DSK4VPTVN1PROD with NOTICES

Penny Pilot Options and/or Non-Penny submission, all subsequent open to the public (except during that
Pilot Options of 1.40% or more of total amendments, all written statements portion of the meeting reserved for an
industry customer equity and ETF with respect to the proposed rule administrative work session during
option ADV contracts per day in a change that are filed with the lunch), and inviting the public to
month. The Exchange believes that submit written comments to the
offering rebates to these market 26 See note 17 above.
participants is equitable and not 27 15 U.S.C. 78s(b)(3)(A)(ii). 28 17 CFR 200.30–3(a)(12).

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Document Created: 2016-01-19 23:44:02
Document Modified: 2016-01-19 23:44:02
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		81 FR 3220