81 FR 39739 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees Assessed Under Rule 7015(h)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 117 (June 17, 2016)
Federal Register Volume 81, Issue 117 (June 17, 2016)
| Page Range | 39739-39740 | |
| FR Document | 2016-14313 |
[Federal Register Volume 81, Number 117 (Friday, June 17, 2016)] [Notices] [Pages 39739-39740] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14313] [[Page 39739]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78051; File No. SR-NASDAQ-2016-078] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees Assessed Under Rule 7015(h) 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 May 31, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') a proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq is proposing changes to amend the fees assessed under Nasdaq Rule 7015(h). The changes are being filed for immediate effectiveness and will become operative June 1, 2016. The text of the proposed rule change is available at nasdaq.cchwallstreet.com, at Nasdaq's principal office, and at the Commission's Public Reference Room. The text of the proposed rule change is below. Proposed new language is in italics; proposed deletions are in brackets. * * * * * 7015. Access Services The charges under this rule are assessed by Nasdaq for connectivity to the following systems operated by NASDAQ or FINRA: The Nasdaq Market Center, FINRA Trade Reporting and Compliance Engine (TRACE), the FINRA/NASDAQ Trade Reporting Facility, FINRA's OTCBB Service, and the FINRA OTC Reporting Facility (ORF). The following fees are not applicable to the NASDAQ Options Market LLC. For related options fees for Access Services refer to Chapter XV, Section 3 of the Options Rules. (a)-(g) No change. (h) VTE Terminal FeesEach ID is subject to a minimum commission fee of $500 [250] per month unless it executes a minimum of 100,000 shares. Each ID receiving market data is subject to pass- through fees for use of these services. Pricing for these services is determined by the exchanges and/or market center. Each ID that is given web access is subject to a $500 [250] monthly fee. * * * * * II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Nasdaq is proposing to increase the fees assessed members under Rule 7015(h) for use of VTE terminals. A VTE terminal is a basic front- end user interface used by Nasdaq members to connect to, and enter orders in, The Nasdaq Market Center. Members using VTE terminals pay the exchanges and market centers separately for data feeds and services provided by Nasdaq, other exchanges or market centers through VTE. Such fees are filed with the SEC and separately assessed by the exchanges and market centers at the same rate irrespective of the method of accessing the data feeds. These data feeds provide information that is necessary for users to enter orders through VTE. The two fees assessed under Rule 7015(h) relate to optional web access and commissions. Rule 7015(h) currently assesses monthly a minimum commission fee of $250 per ID for users executing orders totaling less than 100,000 shares per month, and a web access fee of $250 per ID. Nasdaq last increased fees assessed under Rule 7015(h) in 2013 when it raised the fee for access to the terminal via the web from $125 monthly to $250 monthly, and raised the minimum commission fee for users executing orders totaling less than 100,000 shares per month from $125 monthly to $250 monthly.\3\ In light of increasing costs, Nasdaq is proposing to increase the fee for access to the terminal via the web from $250 monthly to $500 monthly, and increase the minimum commission fee for users executing orders totaling less than 100,000 shares per month from $250 monthly to $500 monthly. --------------------------------------------------------------------------- \3\ Securities Exchange Act Release No. 65014 (August 2, 2011), 76 FR 48189 (August 8, 2011) (SR-NASDAQ-2011-101). --------------------------------------------------------------------------- Nasdaq notes that web connectivity is one option available to Nasdaq users for accessing the VTE terminal. Another option is access through extranet connectivity, where a user contracts directly with a third-party extranet provider and pays fees to that provider. With respect to minimum commission fees, members that execute total orders above the 100,000 share threshold will continue to not be assessed a commission fee. Based on Nasdaq operation of the VTE since it was acquired from INET, Nasdaq believes that the pricing changes are warranted in order to appropriately balance the decreasing demand for the product with increasing platform, overhead, and technology infrastructure costs. Given that VTE is based on outdated technology and that members have other options for connecting to, and entering orders in, The Nasdaq Market Center, Nasdaq plans to phase out the service in its entirety on or before January 31, 2017. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\4\ in general, and furthers the objectives of Sections 6(b)(4) of the Act,\5\ in particular. The Exchange believes it is consistent with Section 6(b)(4) of the Act because 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. All similarly situated members are subject to the same fee structure, and access to this Nasdaq service is offered on fair and non-discriminatory terms. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Nasdaq has not increased the fees assessed under Rule 7015(h) since 2013 despite incurring a substantial decrease in subscribership, resulting in higher per-subscription costs as fixed costs are spread among fewer users. Moreover, during this time Nasdaq has also experienced increased costs associated with ongoing support of the VTE platform, which include platform, overhead and technology infrastructure costs. In order to continue to offer this service, Nasdaq must increase the subscriber fees as proposed to cover the overall general increase in cost to support the service, and to cover the [[Page 39740]] increased cost resulting from a smaller subscriber base. The proposed fees realign the balance of the costs discussed above to the fees received for the service so that it is similar to the ratio at the time of the last fee increase. Nasdaq 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. Use of VTE terminals is entirely optional and members can avail themselves of numerous other means of accessing The Nasdaq Market Center. Members are not obligated to subscribe to VTE terminals and may cancel an existing subscription at any time, with the obligation to pay only for full the monthly fee for the month canceled. As noted above, Nasdaq plans to ultimately phase out the service in 2017 in light of declining subscribership, the age of the technology, and because members have other options for connecting to, and entering orders in, The Nasdaq Market Center. As such, the Exchange believes that the proposed fees are reasonable. B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. The proposed fees merely allow Nasdaq to recapture the increasing platform, overhead and technology infrastructure costs it incurs in support of the service, which are magnified on a per subscription basis given a declining subscriber base. The fees are applied uniformly among subscribing member firms, which are not compelled to subscribe to the service and may access the information provided through other means. For these reasons, any burden arising from the fees is necessary in the interest of promoting the equitable allocation of a reasonable fee. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\6\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-2016-078 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-2016-078. 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-2016-078, and should be submitted on or before July 8, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-14313 Filed 6-16-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 117 / Friday, June 17, 2016 / Notices 39739
SECURITIES AND EXCHANGE Pricing for these services is determined by from $250 monthly to $500 monthly,
COMMISSION the exchanges and/or market center. and increase the minimum commission
• Each ID that is given web access is fee for users executing orders totaling
[Release No. 34–78051; File No. SR– subject to a $500 [250] monthly fee.
NASDAQ–2016–078]
less than 100,000 shares per month from
* * * * * $250 monthly to $500 monthly.
Self-Regulatory Organizations; The II. Self-Regulatory Organization’s Nasdaq notes that web connectivity is
NASDAQ Stock Market LLC; Notice of Statement of the Purpose of, and one option available to Nasdaq users for
Filing and Immediate Effectiveness of Statutory Basis for, the Proposed Rule accessing the VTE terminal. Another
Proposed Rule Change To Amend Change option is access through extranet
Fees Assessed Under Rule 7015(h) In its filing with the Commission, connectivity, where a user contracts
Nasdaq included statements concerning directly with a third-party extranet
June 13, 2016. provider and pays fees to that provider.
Pursuant to Section 19(b)(1) of the the purpose of, and basis for, the
proposed rule change and discussed any With respect to minimum commission
Securities Exchange Act of 1934 fees, members that execute total orders
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 comments it received on the proposed
rule change. The text of those above the 100,000 share threshold will
notice is hereby given that on May 31, continue to not be assessed a
2016, The NASDAQ Stock Market LLC statements may be examined at the
places specified in Item IV below. The commission fee.
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Exchange has prepared summaries, set Based on Nasdaq operation of the VTE
Securities and Exchange Commission
forth in sections A, B, and C below, of since it was acquired from INET,
(‘‘SEC’’ or ‘‘Commission’’) a proposed
the most significant parts of such Nasdaq believes that the pricing changes
rule change as described in Items I, II
statements. are warranted in order to appropriately
and III below, which Items have been
balance the decreasing demand for the
prepared by the Exchange. The A. Self-Regulatory Organization’s product with increasing platform,
Commission is publishing this notice to Statement of the Purpose of, and overhead, and technology infrastructure
solicit comments on the proposed rule Statutory Basis for, the Proposed Rule costs. Given that VTE is based on
change from interested persons. Change outdated technology and that members
I. Self-Regulatory Organization’s 1. Purpose have other options for connecting to,
Statement of the Terms of the Substance and entering orders in, The Nasdaq
of the Proposed Rule Change Nasdaq is proposing to increase the Market Center, Nasdaq plans to phase
fees assessed members under Rule out the service in its entirety on or
Nasdaq is proposing changes to 7015(h) for use of VTE terminals. A VTE
amend the fees assessed under Nasdaq before January 31, 2017.
terminal is a basic front-end user
Rule 7015(h). interface used by Nasdaq members to 2. Statutory Basis
The changes are being filed for
connect to, and enter orders in, The The Exchange believes that its
immediate effectiveness and will
Nasdaq Market Center. Members using proposal is consistent with Section 6(b)
become operative June 1, 2016.
The text of the proposed rule change VTE terminals pay the exchanges and of the Act,4 in general, and furthers the
is available at market centers separately for data feeds objectives of Sections 6(b)(4) of the Act,5
nasdaq.cchwallstreet.com, at Nasdaq’s and services provided by Nasdaq, other in particular. The Exchange believes it
principal office, and at the exchanges or market centers through is consistent with Section 6(b)(4) of the
Commission’s Public Reference Room. VTE. Such fees are filed with the SEC Act because it provides for the equitable
The text of the proposed rule change and separately assessed by the allocation of reasonable dues, fees, and
is below. Proposed new language is in exchanges and market centers at the other charges among members and
italics; proposed deletions are in same rate irrespective of the method of issuers and other persons using any
brackets. accessing the data feeds. facility or system which the Exchange
These data feeds provide information operates or controls. All similarly
* * * * * that is necessary for users to enter situated members are subject to the
7015. Access Services orders through VTE. The two fees same fee structure, and access to this
The charges under this rule are assessed by assessed under Rule 7015(h) relate to Nasdaq service is offered on fair and
Nasdaq for connectivity to the following optional web access and commissions. non-discriminatory terms.
systems operated by NASDAQ or FINRA: The Rule 7015(h) currently assesses
monthly a minimum commission fee of Nasdaq has not increased the fees
Nasdaq Market Center, FINRA Trade
Reporting and Compliance Engine (TRACE), $250 per ID for users executing orders assessed under Rule 7015(h) since 2013
the FINRA/NASDAQ Trade Reporting totaling less than 100,000 shares per despite incurring a substantial decrease
Facility, FINRA’s OTCBB Service, and the month, and a web access fee of $250 per in subscribership, resulting in higher
FINRA OTC Reporting Facility (ORF). The
ID. Nasdaq last increased fees assessed per-subscription costs as fixed costs are
following fees are not applicable to the spread among fewer users. Moreover,
NASDAQ Options Market LLC. For related under Rule 7015(h) in 2013 when it
raised the fee for access to the terminal during this time Nasdaq has also
options fees for Access Services refer to experienced increased costs associated
Chapter XV, Section 3 of the Options Rules. via the web from $125 monthly to $250
(a)–(g) No change. monthly, and raised the minimum with ongoing support of the VTE
commission fee for users executing platform, which include platform,
(h) VTE Terminal Fees
orders totaling less than 100,000 shares overhead and technology infrastructure
• Each ID is subject to a minimum costs. In order to continue to offer this
sradovich on DSK3TPTVN1PROD with NOTICES
commission fee of $500 [250] per month per month from $125 monthly to $250
monthly.3 In light of increasing costs, service, Nasdaq must increase the
unless it executes a minimum of 100,000
subscriber fees as proposed to cover the
shares. Nasdaq is proposing to increase the fee
• Each ID receiving market data is subject overall general increase in cost to
for access to the terminal via the web
to pass-through fees for use of these services. support the service, and to cover the
3 Securities Exchange Act Release No. 65014
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
(August 2, 2011), 76 FR 48189 (August 8, 2011)
2 17 CFR 240.19b–4. (SR–NASDAQ–2011–101). 5 15 U.S.C. 78f(b)(4).
VerDate Sep<11>2014 16:48 Jun 16, 2016 Jkt 238001 PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 E:\FR\FM\17JNN1.SGM 17JNN1](https://thefederalregister.org/doc/81_FR_39856/page/1.svg)
![39740 Federal Register / Vol. 81, No. 117 / Friday, June 17, 2016 / Notices
increased cost resulting from a smaller summarily may temporarily suspend For the Commission, by the Division of
subscriber base. such rule change if it appears to the Trading and Markets, pursuant to delegated
The proposed fees realign the balance Commission that such action is authority.7
of the costs discussed above to the fees necessary or appropriate in the public Robert W. Errett,
received for the service so that it is interest, for the protection of investors, Deputy Secretary.
similar to the ratio at the time of the last or otherwise in furtherance of the [FR Doc. 2016–14313 Filed 6–16–16; 8:45 am]
fee increase. Nasdaq notes that it purposes of the Act. BILLING CODE 8011–01–P
operates in a highly competitive market
in which market participants can IV. Solicitation of Comments
readily favor competing venues if they Interested persons are invited to SECURITIES AND EXCHANGE
deem fee levels at a particular venue to submit written data, views, and COMMISSION
be excessive. Use of VTE terminals is arguments concerning the foregoing,
[File No. 500–1]
entirely optional and members can avail including whether the proposed rule
themselves of numerous other means of change is consistent with the Act. In the Matter of Advanced Life
accessing The Nasdaq Market Center. Comments may be submitted by any of Sciences Holdings, Inc., Anoteros, Inc.,
Members are not obligated to subscribe the following methods: Emperial Americas, Inc., Nord
to VTE terminals and may cancel an Electronic Comments Resources Corporation, and UNR
existing subscription at any time, with Holdings, Inc.; Order of Suspension of
the obligation to pay only for full the • Use the Commission’s Internet
comment form (http://www.sec.gov/ Trading
monthly fee for the month canceled. As
noted above, Nasdaq plans to ultimately rules/sro.shtml); or June 15, 2016.
• Send an email to rule-comments@ It appears to the Securities and
phase out the service in 2017 in light of
sec.gov. Please include File Number SR– Exchange Commission (‘‘Commission’’)
declining subscribership, the age of the
NASDAQ–2016–078 on the subject line. that there is a lack of current and
technology, and because members have
other options for connecting to, and Paper Comments accurate information concerning the
entering orders in, The Nasdaq Market securities of Advanced Life Sciences
• Send paper comments in triplicate
Center. As such, the Exchange believes Holdings, Inc. (‘‘ADLS 1’’) (CIK No.
to Secretary, Securities and Exchange
that the proposed fees are reasonable. 1322734), a void Delaware corporation
Commission, 100 F Street NE.,
located in Woodridge, Illinois with a
B. Self-Regulatory Organization’s Washington, DC 20549–1090.
class of securities registered with the
Statement on Burden on Competition All submissions should refer to File Commission pursuant to Securities
Nasdaq does not believe that the Number SR–NASDAQ–2016–078. This Exchange Act of 1934 (‘‘Exchange Act’’)
proposed rule change will result in any file number should be included on the Section 12(g) because it is delinquent in
burden on competition that is not subject line if email is used. To help the its periodic filings with the
necessary or appropriate in furtherance Commission process and review your Commission, having not filed any
of the purposes of the Act, as amended. comments more efficiently, please use periodic reports since it filed a Form
The proposed fees merely allow Nasdaq only one method. The Commission will 10–K for the period ended December 31,
to recapture the increasing platform, post all comments on the Commission’s 2010. On March 3, 2014, the
overhead and technology infrastructure Internet Web site (http://www.sec.gov/ Commission’s Division of Corporation
costs it incurs in support of the service, rules/sro.shtml). Copies of the Finance (‘‘Corporation Finance’’) sent a
which are magnified on a per submission, all subsequent delinquency letter to ADLS requesting
subscription basis given a declining amendments, all written statements compliance with its periodic filing
subscriber base. The fees are applied with respect to the proposed rule requirements but ADLS did not receive
uniformly among subscribing member change that are filed with the the delinquency letter due to its failure
firms, which are not compelled to Commission, and all written to maintain a valid address on file with
subscribe to the service and may access communications relating to the the Commission as required by
the information provided through other proposed rule change between the Commission rules (Rule 301 of
means. For these reasons, any burden Commission and any person, other than Regulation S–T, 17 CFR 232.301 and
arising from the fees is necessary in the those that may be withheld from the Section 5.4 of EDGAR Filer Manual)
interest of promoting the equitable public in accordance with the (‘‘Commission Issuer Address Rules’’).
allocation of a reasonable fee. provisions of 5 U.S.C. 552, will be As of June 8, 2016, the common stock
available for Web site viewing and of ADLS was quoted on OTC Link
C. Self-Regulatory Organization’s printing in the Commission’s Public operated by OTC Markets Group Inc.
Statement on Comments on the Reference Room, 100 F Street NE., (formerly ‘‘Pink Sheets’’) (‘‘OTC Link’’),
Proposed Rule Change Received From Washington, DC 20549 on official had six market makers, and was eligible
Members, Participants, or Others business days between the hours of for the ‘‘piggyback’’ exception of
Written comments were neither 10:00 a.m. and 3:00 p.m. Copies of such Exchange Act Rule 15c2–11(f)(3).
solicited nor received. filing also will be available for It appears to the Commission that
inspection and copying at the principal there is a lack of current and accurate
III. Date of Effectiveness of the office of the Exchange. All comments
Proposed Rule Change and Timing for information concerning the securities of
received will be posted without change; Anoteros, Inc. (‘‘ANOS’’) (CIK No.
Commission Action the Commission does not edit personal
sradovich on DSK3TPTVN1PROD with NOTICES
1390292), a revoked Nevada corporation
The foregoing change has become identifying information from located in Rolling Hills, California with
effective pursuant to Section submissions. You should submit only a class of securities registered with the
19(b)(3)(A)(ii) of the Act.6 At any time information that you wish to make Commission pursuant to Exchange Act
within 60 days of the filing of the available publicly. All submissions
proposed rule change, the Commission should refer to File Number SR– 7 17 CFR 200.30–3(a)(12).
NASDAQ–2016–078, and should be 1 The short form of each issuer’s name is also its
6 15 U.S.C. 78s(b)(3)(A)(ii). submitted on or before July 8, 2016. stock symbol.
VerDate Sep<11>2014 16:48 Jun 16, 2016 Jkt 238001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 E:\FR\FM\17JNN1.SGM 17JNN1](https://thefederalregister.org/doc/81_FR_39856/page/2.svg)
Document Created: 2016-06-17 01:05:17
Document Modified: 2016-06-17 01:05:17
| 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 39739 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR