81 FR 39724 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate the Limited WebLink ACT or Nasdaq Workstation Post Trade Fee Tier Under Rule 7015(e)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 117 (June 17, 2016)
Federal Register Volume 81, Issue 117 (June 17, 2016)
| Page Range | 39724-39726 | |
| FR Document | 2016-14312 |
[Federal Register Volume 81, Number 117 (Friday, June 17, 2016)] [Notices] [Pages 39724-39726] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14312] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78050; File No. SR-NASDAQ-2016-081] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate the Limited WebLink ACT or Nasdaq Workstation Post Trade Fee Tier Under Rule 7015(e) June 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 June 3, 2016, 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 the Substance of the Proposed Rule Change The Exchange proposes to amend Rule 7015(e) to eliminate the limited WebLink ACT or Nasdaq Workstation Post Trade (``Post Trade'') fee tier. While these amendments are effective upon filing, the Exchange has designated the proposed amendments to be operative on June 1, 2016. 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 [[Page 39725]] 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 purpose of the proposed rule change is to amend the Exchange's access services fees at Rule 7015(e) to eliminate the limited Post Trade fee tier. WebLink ACT \3\ and Nasdaq Workstation \4\ provide connectivity to the FINRA/NASDAQ TRF (``TRF''). Under Rule 7015(e), the Exchange provides members with the Post Trade service, which is a front-end interface with the TRF for trade reporting and historical trade reporting research. --------------------------------------------------------------------------- \3\ WebLink ACT is a browser-based application that electronically facilitates trade reporting and clearing functions for trades reported to the FINRA/Nasdaq Trade Reporting Facility. \4\ The Nasdaq Workstation provides, among other things, a web- based interface with Nasdaq's trade reporting system, ACT. --------------------------------------------------------------------------- Currently, the Exchange provides two subscription tiers: (1) A full functionality subscription for a monthly fee of $525; and (2) a subscription limited to an average of 20 transactions \5\ per day each month for a monthly fee of $275. In light of decreased subscribership and increased fixed costs associated with offering Post Trade, the Exchange is proposing to eliminate the limited subscription fee tier. The Exchange will continue to offer the full functionality subscription fee tier.\6\ --------------------------------------------------------------------------- \5\ For purposes of the service, a transaction is defined as an original trade entry, either on trade date or as-of transactions per month. \6\ Current subscribers to the limited subscription will be automatically subscribed to the full subscription effective June 1, 2016, unless their subscription is cancelled prior to that date. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\8\ in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility or system which the Exchange operates or controls, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that applying the full Post Trade fee tier to all subscribers, including current limited tier subscribers, is reasonable because, as described below, the per-subscriber costs associated with providing the limited subscription tier have increased significantly. Nasdaq incurs the same fixed costs in offering Post Trade, regardless of the number of transactions reported. These fixed costs have increased while the overall number of subscribers to Post Trade has declined due to consolidation among members and stagnant growth in the industry overall. Furthermore, the Exchange incurs additional expense in monitoring the number of individual subscriber transaction reports and calculating a daily average per month for subscribers to the limited Post Trade offering to ensure that their usage is consistent with the 20 transaction per day limitation. Coupled with decreased subscribership to the limited tier in comparison to the full functionality tier,\9\ the relative cost of offering the limited Post Trade subscription has increased significantly in relation to the full functionality subscription tier. --------------------------------------------------------------------------- \9\ The Exchange notes that less than ten percent of subscribers to Post Trade choose the limited fee tier. --------------------------------------------------------------------------- Instead of increasing all Post Trade fees, the Exchange has determined to offer only the unlimited subscription, but with no increase to that fee. Therefore, current subscribers to the limited Post Trade fee tier will have to either subscribe to the full functionality tier at the higher fee or choose an alternative means to report their transactions to the TRF, of which there are several. For example, a subscriber may develop its own in-house system to replicate the Post Trade functionality, or alternatively use a third party order management system to provide similar functionality. The Exchange believes that applying the full Post Trade fee tier to all subscribers, including current limited tier subscribers, is an equitable allocation and is not unfairly discriminatory because current subscribers to the limited offering will have reasonable alternatives, which include subscribing to the full functionality Post Trade offering at a higher fee but with an unlimited number of transaction reports during a month, developing their own internal system, or using a third party order management system. As noted above, the Exchange has observed a reduction in the number of subscribers to Post Trade, which has led to a smaller pool of subscribers among which it can spread the fixed costs associated with offering the service. With respect to the limited subscription tier, the costs have increased significantly due to the small number of subscribers in contrast to the full functionality subscription tier. Thus, the Exchange must either increase the limited functionality fee significantly to a point that it is near the fee of the full functionality offering, or eliminate the limited service altogether. As explained, offering the limited Post Trade offering is costlier to the Exchange because it must track the average number of transactions used by a subscriber during the month to ensure that it is within the limits required by the rule. Consequently, the Exchange is proposing to eliminate the option that is costlier to the Exchange, while keeping the fee of the remaining full functionality Post Trade subscription tier the same. The Exchange also notes that, although current subscribers to a limited Post Trade subscription will pay more under the full functionality subscription, they will receive an unlimited number of transaction reports per month in return. Thus, all subscribers to the service will receive the same functionality for the same price, and the Exchange will have the same cost per subscriber in offering the service. Last, the Exchange notes that the service is voluntary and members will continue to have the option to subscribe to the full functionality fee tier or choose an alternative. For these reasons, the Exchange believes that the proposed elimination of the limited offering fee is an equitable allocation and is not unfairly discriminatory. 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. In such an environment, the Exchange must carefully assess the potential impact that increasing a fee for a service may have on the overall number of subscribers, balanced against the need to cover the costs associated with [[Page 39726]] offering the service and also deriving a profit therefrom. As noted above, this service is completely voluntary and market participants have connectivity options for reporting to the TRF other than the Exchange. Thus, market participants are able to readily choose a third party offering if the Exchange's does not satisfy their needs or perform the functionality in-house, rendering the degree to which fee changes to this service may impose any burden on competition to be extremely limited. 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.\10\ --------------------------------------------------------------------------- \10\ 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-2016-081 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-2016-081. 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-2016-081, and should be submitted on or before July 8, 2016. --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-14312 Filed 6-16-16; 8:45 am] BILLING CODE 8011-01-P
![39724 Federal Register / Vol. 81, No. 117 / Friday, June 17, 2016 / Notices
that it would remove impediments to and publishes its reasons for so finding 2016–31, and should be submitted on or
and perfect the mechanism of a free and or (ii) as to which the self-regulatory before July 8, 2016.
open market and a national market organization consents, the Commission For the Commission, by the Division of
system to treat the areas within the will: Trading and Markets, pursuant to delegated
telephone booths similarly to areas (A) By order approve or disapprove authority.10
located outside of the Trading Floor. the proposed rule change, or Robert W. Errett,
The Exchange further believes that the (B) institute proceedings to determine Deputy Secretary.
proposed rule change would remove whether the proposed rule change
[FR Doc. 2016–14320 Filed 6–16–16; 8:45 am]
impediments to and perfect the should be disapproved.
BILLING CODE 8011–01–P
mechanism of a free and open market IV. Solicitation of Comments
and a national market system because it
will reduce the burdens on the ability of Interested persons are invited to
submit written data, views, and SECURITIES AND EXCHANGE
a DMM to communicate with an issuer. COMMISSION
Currently, a DMM may use a personal arguments concerning the foregoing,
cell phone to communicate with an including whether the proposed rule [Release No. 34–78050; File No. SR–
issuer outside of the Trading Floor, but change is consistent with the Act. NASDAQ–2016–081]
short of going to an office at a separate Comments may be submitted by any of
the following methods: Self-Regulatory Organizations; The
physical location, there are limited areas
NASDAQ Stock Market LLC; Notice of
where a DMM may have a private Electronic Comments Filing and Immediate Effectiveness of
conversation. The telephone booths
would provide a physical space in • Use the Commission’s Internet Proposed Rule Change To Eliminate
comment form (http://www.sec.gov/ the Limited WebLink ACT or Nasdaq
which a DMM could have a private
rules/sro.shtml); or Workstation Post Trade Fee Tier Under
conversation with an issuer while at the
• Send an email to rule-comments@ Rule 7015(e)
same time remaining subject to existing
sec.gov. Please include File Number SR–
Rule 98 requirements to protect against June 13, 2016.
NYSE–2016–31 on the subject line.
the misuse of material, non-public Pursuant to Section 19(b)(1) of the
information. The Exchange further Paper Comments Securities Exchange Act of 1934
believes that updating the references in • Send paper comments in triplicate (‘‘Act’’), 1 and Rule 19b–4 thereunder,2
the Exchange rules to reflect the correct to Brent J. Fields, Secretary, Securities notice is hereby given that on June 3,
use of the Exchange Trading Floor and Exchange Commission, 100 F Street 2016, The NASDAQ Stock Market LLC
would eliminate any potential NE., Washington, DC 20549–1090. (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
confusion among investors and other All submissions should refer to File Securities and Exchange Commission
market participants on the Exchange as Number SR–NYSE–2016–31. This file (‘‘SEC’’ or ‘‘Commission’’) the proposed
to areas of the Trading Floor where number should be included on the rule change as described in Items I, II,
certain conduct is, or is not, permitted. subject line if email is used. To help the and III, below, which Items have been
B. Self-Regulatory Organization’s Commission process and review your prepared by the Exchange. The
Statement on Burden on Competition comments more efficiently, please use Commission is publishing this notice to
only one method. The Commission will solicit comments on the proposed rule
The Exchange does not believe that change from interested persons.
the proposed rule changes will impose post all comments on the Commission’s
any burden on competition that is not Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
necessary or appropriate in furtherance rules/sro.shtml). Copies of the Statement of the Terms of the Substance
of the purposes of the Act. The submission, all subsequent of the Proposed Rule Change
proposed rule change is not designed to amendments, all written statements
The Exchange proposes to amend
address any issues relating to with respect to the proposed rule
Rule 7015(e) to eliminate the limited
competition. Rather, the proposed rule change that are filed with the
WebLink ACT or Nasdaq Workstation
change would ease burdens on the Commission, and all written
Post Trade (‘‘Post Trade’’) fee tier. While
ability of a DMM to have a private communications relating to the
these amendments are effective upon
conversation with an issuer by proposed rule change between the
filing, the Exchange has designated the
providing a physical location that Commission and any person, other than
proposed amendments to be operative
would be excluded from the definition those that may be withheld from the
on June 1, 2016.
of Trading Floor that is private. public in accordance with the The text of the proposed rule change
provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web site
C. Self-Regulatory Organization’s available for Web site viewing and
Statement on Comments on the at http://nasdaq.cchwallstreet.com, at
printing in the Commission’s Public the principal office of the Exchange, and
Proposed Rule Change Received From Reference Room, 100 F Street NE.,
Members, Participants, or Others at the Commission’s Public Reference
Washington, DC 20549 on official Room.
No written comments were solicited business days between the hours of
or received with respect to the proposed 10:00 a.m. and 3:00 p.m. Copies of such II. Self-Regulatory Organization’s
rule change. filing also will be available for Statement of the Purpose of, and
inspection and copying at the principal Statutory Basis for, the Proposed Rule
III. Date of Effectiveness of the office of the Exchange. All comments Change
sradovich on DSK3TPTVN1PROD with NOTICES
Proposed Rule Change and Timing for received will be posted without change;
Commission Action In its filing with the Commission, the
the Commission does not edit personal Exchange included statements
Within 45 days of the date of identifying information from concerning the purpose of and basis for
publication of this notice in the Federal submissions. You should submit only
Register or up to 90 days (i) as the information that you wish to make 10 17 CFR 200.30–3(a)(12).
Commission may designate if it finds available publicly. All submissions 1 15 U.S.C. 78s(b)(1).
such longer period to be appropriate should refer to File Number SR–NYSE– 2 17 CFR 240.19b–4.
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![39726 Federal Register / Vol. 81, No. 117 / Friday, June 17, 2016 / Notices
offering the service and also deriving a Commission process and review your its periodic filings with the
profit therefrom. As noted above, this comments more efficiently, please use Commission, having not filed any
service is completely voluntary and only one method. The Commission will periodic reports since it filed a Form
market participants have connectivity post all comments on the Commission’s 10–Q for the period ended September
options for reporting to the TRF other Internet Web site (http://www.sec.gov/ 30, 2012. On April 15, 2014, the
than the Exchange. Thus, market rules/sro.shtml). Copies of the Commission’s Division of Corporation
participants are able to readily choose a submission, all subsequent Finance (‘‘Corporation Finance’’) sent a
third party offering if the Exchange’s amendments, all written statements delinquency letter to CSDT requesting
does not satisfy their needs or perform with respect to the proposed rule compliance with its periodic filing
the functionality in-house, rendering the change that are filed with the requirements which was delivered. As
degree to which fee changes to this Commission, and all written of June 8, 2016, the common shares of
service may impose any burden on communications relating to the CSDT were quoted on OTC Link
competition to be extremely limited. proposed rule change between the operated by OTC Markets Group Inc.
Commission and any person, other than (formerly ‘‘Pink Sheets’’) (‘‘OTC Link’’),
C. Self-Regulatory Organization’s those that may be withheld from the had seven market makers, and were
Statement on Comments on the public in accordance with the eligible for the ‘‘piggyback’’ exception of
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be Exchange Act Rule 15c2–11(f)(3).
Members, Participants, or Others available for Web site viewing and It appears to the Commission that
No written comments were either printing in the Commission’s Public there is a lack of current and accurate
solicited or received. Reference Room, 100 F Street NE., information concerning the securities of
Washington, DC 20549 on official Echo Automotive, Inc. (‘‘ECAU’’) (CIK
III. Date of Effectiveness of the business days between the hours of No. 1453420), a revoked Nevada
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such corporation located in Scottsdale,
Commission Action filing also will be available for Arizona with a class of securities
The foregoing rule change has become inspection and copying at the principal registered with the Commission
effective pursuant to Section office of the Exchange. All comments pursuant to Exchange Act Section 12(g)
19(b)(3)(A)(ii) of the Act.10 received will be posted without change; because it is delinquent in its periodic
At any time within 60 days of the the Commission does not edit personal filings with the Commission, having not
filing of the proposed rule change, the identifying information from filed any periodic reports since it filed
Commission summarily may submissions. You should submit only a Form 10–Q for the period ended
temporarily suspend such rule change if information that you wish to make March 31, 2014. On November 30, 2015,
it appears to the Commission that such available publicly. All submissions Corporation Finance sent a delinquency
action is: (i) Necessary or appropriate in should refer to File Number SR– letter to ECAU requesting compliance
the public interest; (ii) for the protection NASDAQ–2016–081, and should be with its periodic filing requirements but
of investors; or (iii) otherwise in submitted on or before July 8, 2016. ECAU did not receive the delinquency
furtherance of the purposes of the Act. For the Commission, by the Division of letter due to its failure to maintain a
If the Commission takes such action, the Trading and Markets, pursuant to delegated valid address on file with the
Commission shall institute proceedings authority.11 Commission as required by Commission
to determine whether the proposed rule Robert W. Errett, rules (Rule 301 of Regulation S–T, 17
should be approved or disapproved. Deputy Secretary. CFR 232.301 and Section 5.4 of EDGAR
[FR Doc. 2016–14312 Filed 6–16–16; 8:45 am]
Filer Manual) (‘‘Commission Issuer
IV. Solicitation of Comments Address Rules’’). As of June 8, 2016, the
BILLING CODE 8011–01–P
Interested persons are invited to common stock of ECAU was quoted on
submit written data, views, and OTC Link, had five market makers, and
arguments concerning the foregoing, SECURITIES AND EXCHANGE was eligible for the ‘‘piggyback’’
including whether the proposed rule COMMISSION exception of Exchange Act Rule 15c2–
change is consistent with the Act. 11(f)(3).
Comments may be submitted by any of [File No. 500–1] It appears to the Commission that
the following methods: there is a lack of current and accurate
In the Matter of Cascade Technologies information concerning the securities of
Electronic Comments Corp., Echo Automotive, Inc., and Vision Industries Corp. (‘‘VIICQ’’) (CIK
• Use the Commission’s Internet Vision Industries Corp.; Order of No. 1405424), a dissolved Florida
comment form (http://www.sec.gov/ Suspension of Trading corporation located in Long Beach,
rules/sro.shtml); or It appears to the Securities and California with a class of securities
• Send an email to rule-comments@ Exchange Commission (‘‘Commission’’) registered with the Commission
sec.gov. Please include File Number SR– that there is a lack of current and pursuant to Exchange Act Section 12(g)
NASDAQ–2016–081 on the subject line. accurate information concerning the because it is delinquent in its periodic
securities of Cascade Technologies filings with the Commission, having not
Paper Comments
Corp. (‘‘CSDT 1’’) (CIK No. 1324344), a filed any periodic reports since it filed
• Send paper comments in triplicate a Form 10–Q for the period ended June
Wyoming corporation located in Beverly
to Secretary, Securities and Exchange 30, 2014. On September 15, 2015,
Hills, California with a class of
Commission, 100 F Street NE., Corporation Finance sent a delinquency
sradovich on DSK3TPTVN1PROD with NOTICES
securities registered with the
Washington, DC 20549–1090. letter to VIICQ requesting compliance
Commission pursuant to Securities
All submissions should refer to File Exchange Act of 1934 (‘‘Exchange Act’’) with its periodic filing requirements but
Number SR–NASDAQ–2016–081. This Section 12(g) because it is delinquent in VIICQ did not receive the delinquency
file number should be included on the letter due to its failure to maintain a
subject line if email is used. To help the 11 17 CFR 200.30–3(a)(12). valid address on file with the
1 The short form of each issuer’s name is also its Commission as required by Commission
10 15 U.S.C. 78s(b)(3)(A)(ii). stock symbol. Issuer Address Rules. As of June 8,
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Document Created: 2016-06-17 01:05:20
Document Modified: 2016-06-17 01:05:20
| 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 39724 |
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