81_FR_55405 81 FR 55245 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Nasdaq Rule 7018

81 FR 55245 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Nasdaq Rule 7018

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 160 (August 18, 2016)

Page Range55245-55247
FR Document2016-19689

Federal Register, Volume 81 Issue 160 (Thursday, August 18, 2016)
[Federal Register Volume 81, Number 160 (Thursday, August 18, 2016)]
[Notices]
[Pages 55245-55247]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19689]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78567; File No. SR-NASDAQ-2016-115]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Nasdaq Rule 7018

August 12, 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 August 10, 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.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    Nasdaq is proposing to amend Nasdaq Rule 7018(a) to add a new 
credit tier for a combination of accessing and providing liquidity in 
securities of all three Tapes.\3\
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    \3\ There are three Tapes, which are based on the listing venue 
of the security: Tape C securities are Nasdaq-listed; Tape A 
securities are New York Stock Exchange (``NYSE'')-listed; and Tape B 
securities are listed on exchanges other than Nasdaq and NYSE.
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    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.

[[Page 55246]]

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
    The purpose of the proposed rule change is to add a new credit tier 
for the use of the order execution and routing services of the Nasdaq 
Market Center by members for all securities priced at $1 or more that 
it trades. The Exchange proposes to amend Nasdaq Rule 7018(a)(1), (2), 
and (3) to add a new credit tier for a combination of accessing and 
providing liquidity in securities of all three Tapes. Specifically, 
this new credit tier will be added to the Nasdaq rule book under each 
of Nasdaq Rule 7018(a)(1), (2), and (3) in the part entitled ``Credit 
to member for displayed quotes/orders (other than Supplemental Orders 
or Designated Retail Orders) that provide liquidity''.
    The new credit tier will be for $0.0027 per share executed and will 
be available for a member (i) with shares of liquidity accessed in all 
securities through one or more of its Nasdaq Market Center market 
participant identifiers (``MPIDs'') that represent more than 0.65% of 
consolidated volume (``Consolidated Volume'') during the month, and 
(ii) with shares of liquidity provided in all securities through one or 
more of its Nasdaq Market Center MPIDs that represent more than 0.10% 
of Consolidated Volume during the month.
    As a general principle, the Exchange chooses to offer credits to 
members in return for market improving behavior. Under Rule 7018(a), 
the various credits the Exchange provides for members require them to 
significantly contribute to market quality by accessing and providing 
liquidity at certain levels of Consolidated Volume through one or more 
of its [sic] Nasdaq Market Center MPIDs.
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) and 6(b)(5) of the Act,\5\ 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The credits Nasdaq provides are designed to improve market quality 
for all market participants, and Nasdaq allocates its credits in a 
manner that it believes are the most likely to achieve that result. 
Specifically, the Exchange believes that the proposed rule change to 
add a new credit tier of $0.0027 per share executed is reasonable 
because it is consistent with other credits that the Exchange provides 
to members that access and/or provide liquidity. As discussed 
previously, as a general principle the Exchange chooses to offer 
credits to members in return for market improving behavior. Under Rule 
7018(a), the various credits the Exchange provides for members require 
them to significantly contribute to market quality by accessing and/or 
providing certain levels of Consolidated Volume through one or more of 
its [sic] Nasdaq Market Center MPIDs, and volume.
    The proposed credit will be provided to members that not only 
access liquidity in all securities through one or more of its [sic] 
Nasdaq Market Center MPIDs of more than 0.65% of Consolidated Volume 
during the month, but also that contribute to the Exchange by providing 
liquidity in all securities through one or more of its [sic] Nasdaq 
Market Center MPIDs of more than 0.10% of Consolidated Volume during 
the month.
    The Exchange believes that the proposed $0.0027 per share executed 
credit is an equitable allocation and is not unfairly discriminatory 
because a member achieving this credit tier will be both accessing and 
providing liquidity, which should be beneficial to other members as 
this both encourages more liquidity on the Exchange, as well as 
increasing the likelihood that members [sic] resting limit orders may 
be accessed by members seeking to attain this credit tier. The Exchange 
seeks to encourage such behavior.
    Additionally, the Exchange believes that the proposed new credit 
tier is an equitable allocation and is not unfairly discriminatory 
because the new credit tier is uniformly available to all members and 
affects all members equally and in the same way. Additionally, the 
proposed new credit tier will further encourage market participant 
activity and will also support price discovery and liquidity provision.

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 changes to the credits provided for the use 
of the order execution and routing services of the Nasdaq Market Center 
by members for all securities priced at $1 or more that it trades are 
reflective of the intense competition among trading venues in capturing 
order flow. Moreover, the proposed rule change does not impose a burden 
on competition because Exchange membership is optional and is also the 
subject of competition from other trading venues. For these reasons, 
the Exchange does not believe that any of the proposed changes will 
impair the ability of members or competing order execution venues to 
maintain their competitive standing in the financial markets. Moreover, 
because there are numerous competitive alternatives to the use of the 
Exchange, it is likely that the Exchange will lose market share as a 
result of the changes if they are unattractive to market participants.

[[Page 55247]]

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-2016-115 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-2016-115. 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-2016-115, and should 
be submitted on or before September 8, 2016.
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19689 Filed 8-17-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                           Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Notices                                                   55245

                                                  2. When this agreement is approved and               FEHB Program. FEHB Program eligibility can            United States Postal Service Data Integrity
                                               signed by the Chairpersons of the respective            only be obtained from USPS, and without               Board
                                               DIBs, the USPS, as the recipient agency, will           this information, a determination of
                                                                                                                                                               The respective DIBs having reviewed this
                                               submit the agreement and the proposed                   continued eligibility cannot be made.
                                               public notice of the match as attachments in            Matching must occur regardless of the                 agreement and finding that it complies with
                                               duplicate via a transmittal letter to OMB and           associated cost or anticipated benefits.              applicable statutory and regulatory
                                               Congress for review. The time period for                Accordingly, the cost benefit is waived.              guidelines signify their respective approval
                                               review begins as of the date of the transmittal                                                               thereof by the signature of the officials
                                               letter.                                                 R. Comptroller General                                appearing below.
                                                  3. USPS will forward the public notice of              The Comptroller General may have access               Thomas J. Marshall, General Counsel and
                                               the proposed matching program for                       to all records of the USPS that the                   Executive Vice President, Chairperson, Data
                                               publication in the Federal Register, in                 Comptroller General deems necessary in                Integrity Board, United States Postal Service.
                                               accordance with section 552(a)(e)(12) of Title          order to monitor or verify compliance with
                                                                                                       the agreement.                                        [FR Doc. 2016–19710 Filed 8–17–16; 8:45 am]
                                               5 U.S.C., the transmittal letter to OMB and
                                               Congress. The matching notice will clearly              S. Persons To Contact
                                                                                                                                                             BILLING CODE 7710–12–P
                                               identify the record systems and category of
                                               records being used and state that the program             The contacts on behalf of DoD are: Ms.
                                               is subject to review by the OMB and                     Cindy Allard, Chief, Privacy, Civil Liberties,
                                               Congress. A copy of the published notice                and Transparency Division, ODCMO,
                                                                                                       Directorate For Oversight And Compliance
                                                                                                                                                             SECURITIES AND EXCHANGE
                                               shall be provided to the DoD.                                                                                 COMMISSION
                                                  4. The effective date of the matching                4800 Mark Center Drive, Attn: DPCLTD,
                                               agreement and date when matching may                    Mailbox# 24, Alexandria, VA 22350–1700,
                                               actually begin shall be at the expiration of the        (703) 571–0070; Mr. Matthew Dubois, Deputy            [Release No. 34–78567; File No. SR–
                                               40 day review period for OMB and Congress,              Assistant Secretary of Defense (Reserve               NASDAQ–2016–115]
                                               or 30 days after publication of the matching            Integration), 1500 Defense Pentagon,
                                               notice in the Federal Register, whichever is            Washington DC 20301–1150, (703) 693–2232;             Self-Regulatory Organizations; The
                                               later. The parties to this agreement may                Ms. Dena Colburn, DEERS Division, Defense
                                                                                                       Manpower Data Center, DoD Center                      NASDAQ Stock Market LLC; Notice of
                                               assume OMB and Congressional concurrence                                                                      Filing and Immediate Effectiveness of
                                               if no comments are received within 40 days              Monterey Bay, 400 Gigling Rd., Seaside, CA.
                                               of the date of the transmittal letter. Both the         93955–6771, (831) 583–2400 x4332; DMDC                Proposed Rule Change To Amend
                                               40 day OMB and Congressional review                     Security and Incident Response: Donna                 Nasdaq Rule 7018
                                                                                                       Naulivou, IA Branch Chief, Defense
                                               period, and the mandatory 30 day public
                                                                                                       Manpower Data Center, 400 Gigling Road,               August 12, 2016.
                                               comment period for the Federal Register
                                                                                                       Seaside, CA 93955–6771, 831–583–4159,
                                               publication of the notice will run                                                                               Pursuant to Section 19(b)(1) of the
                                                                                                       donna.m.maulivou.civ@mail.mil.The contact
                                               concurrently.                                                                                                 Securities Exchange Act of 1934
                                                                                                       on behalf of USPS is: Ms. Ms. Erica Hayton,
                                                  5. This agreement may be renewed for 12                                                                    (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                       Manager Benefits and Wellness Program, 475
                                               months after the initial agreement period as
                                                                                                       L’Enfant Plaza SW., Washington DC 20260–              notice is hereby given that on August
                                               long as the statutory requirement for the data
                                                                                                       4101, (202) 268–3735, (202) 268–3337 fax,             10, 2016, The NASDAQ Stock Market
                                               match exists, subject to the Privacy Act,
                                                                                                       Erica.m.hayton@usps.gov;Ms. Christine                 LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
                                               including certification by the participating
                                                                                                       Harris, Headquarters Payroll Accountant,
                                               agencies to the responsible DIBs that:                  2825 Lone Oak Parkway, Eagan, MN 55121–               with the Securities and Exchange
                                                  a. The matching program will be                      9500, (651) 406–2128, (651) 406–1212 fax,             Commission (‘‘SEC’’ or ‘‘Commission’’)
                                               conducted without change, and                           christine.a.harris@usps.gov;USPS Security             a proposed rule change as described in
                                                  b. The matching program has been                     and Incident Response: USPS Computer
                                               conducted in compliance with the original
                                                                                                                                                             Items I, II and III below, which Items
                                                                                                       Incident Response Team, 1–866–877–7247,               have been prepared by the Exchange.
                                               agreement.                                              USPSCIRT@usps.gov.
                                                  6. This agreement may be modified at any                                                                   The Commission is publishing this
                                               time by a written modification to this                  T. Approvals                                          notice to solicit comments on the
                                               agreement. Any modification shall satisfy               Department of Defense Program Officials               proposed rule change from interested
                                               both parties and shall be approved by the DIB                                                                 persons.
                                               of each agency. In addition, any modification             The authorized program officials, whose
                                                                                                       signatures appear below, accept and
                                               shall comply with the Privacy Act of 1974,
                                                                                                       expressly agree to the terms and conditions
                                                                                                                                                             I. Self-Regulatory Organization’s
                                               as amended, as well as guidance issued by                                                                     Statement of the Terms of the Substance
                                                                                                       expressed herein, confirm that no verbal
                                               the Office of Management and Budget.                                                                          of the Proposed Rule Change
                                                                                                       agreements of any kind shall be binding or
                                                  7. This agreement may be terminated at
                                                                                                       recognized, and hereby commit their
                                               any time with the consent of both parties. If                                                                    Nasdaq is proposing to amend Nasdaq
                                                                                                       respective organizations to the terms of this
                                               either party does not want to continue this
                                                                                                       agreement.                                            Rule 7018(a) to add a new credit tier for
                                               program, it should notify the other party of
                                               its intention not to continue at least 90 days
                                                                                                         Matthew Dubois, Deputy Assistant                    a combination of accessing and
                                                                                                       Secretary of Defense, (Reserve Affairs); Mary         providing liquidity in securities of all
                                               before the end of the then current period of
                                                                                                       Snavely-Dixon, Director, Defense Manpower             three Tapes.3
                                               the agreement. Either party may unilaterally
                                                                                                       Data Center
                                               terminate this agreement upon written notice                                                                     The text of the proposed rule change
                                               to the other party requesting termination, in           Department of Defense Data Integrity Board
                                               which case the termination shall be effective
                                                                                                                                                             is available at
                                                                                                         The respective DIBs having reviewed this
                                               90 days after the date of the notice or at a                                                                  nasdaq.cchwallstreet.com, at Nasdaq’s
                                                                                                       agreement and finding that it complies with
                                               later date specified in the notice provided the         applicable statutory and regulatory                   principal office, and at the
                                               expiration date does not exceed the original            guidelines signify their respective approval          Commission’s Public Reference Room.
                                               or the extended completion date of the                  thereof by the signature of the officials
rmajette on DSK2TPTVN1PROD with NOTICES




                                               match.                                                  appearing below.                                        1 15 U.S.C. 78s(b)(1).
                                               Q. Waiver of Cost Benefit Analysis                        Mr. Joo Y. Chung, Chair, Defense Data                 2 17 CFR 240.19b–4.
                                                                                                       Integrity Board, Department of Defense                   3 There are three Tapes, which are based on the
                                                 The purpose of this matching agreement is                                                                   listing venue of the security: Tape C securities are
                                               to verify eligibility of Service members                United States Postal Service Program Official
                                                                                                                                                             Nasdaq-listed; Tape A securities are New York
                                               enrolling or enrolled in the TRS or the TRR               Janine Castornina, (A) Chief Privacy                Stock Exchange (‘‘NYSE’’)-listed; and Tape B
                                               Programs. By statute, such coverage may be              Officer, Secretary, Data Integrity Board,             securities are listed on exchanges other than Nasdaq
                                               provided if the person is not eligible for the          United States Postal Service.                         and NYSE.



                                          VerDate Sep<11>2014   15:05 Aug 17, 2016   Jkt 238001   PO 00000   Frm 00076   Fmt 4703   Sfmt 4703   E:\FR\FM\18AUN1.SGM   18AUN1


                                               55246                       Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Notices

                                               II. Self-Regulatory Organization’s                      2. Statutory Basis                                      equitable allocation and is not unfairly
                                               Statement of the Purpose of, and                           The Exchange believes that its                       discriminatory because the new credit
                                               Statutory Basis for, the Proposed Rule                  proposal is consistent with Section 6(b)                tier is uniformly available to all
                                               Change                                                  of the Act,4 in general, and furthers the               members and affects all members
                                                                                                       objectives of Sections 6(b)(4) and 6(b)(5)              equally and in the same way.
                                                 In its filing with the Commission,                                                                            Additionally, the proposed new credit
                                                                                                       of the Act,5 in particular, in that it
                                               Nasdaq included statements concerning                                                                           tier will further encourage market
                                                                                                       provides for the equitable allocation of
                                               the purpose of, and basis for, the                      reasonable dues, fees, and other charges                participant activity and will also
                                               proposed rule change and discussed any                  among members and issuers and other                     support price discovery and liquidity
                                               comments it received on the proposed                    persons using any facility or system                    provision.
                                               rule change. The text of those                          which the Exchange operates or
                                               statements may be examined at the                       controls, and is not designed to permit                 B. Self-Regulatory Organization’s
                                               places specified in Item IV below. The                  unfair discrimination between                           Statement on Burden on Competition
                                               Exchange has prepared summaries, set                    customers, issuers, brokers, or dealers.
                                               forth in sections A, B, and C below, of                    The credits Nasdaq provides are                         The Exchange does not believe that
                                               the most significant parts of such                      designed to improve market quality for                  the proposed rule change will impose
                                               statements.                                             all market participants, and Nasdaq                     any burden on competition not
                                                                                                       allocates its credits in a manner that it               necessary or appropriate in furtherance
                                               A. Self-Regulatory Organization’s                                                                               of the purposes of the Act. In terms of
                                                                                                       believes are the most likely to achieve
                                               Statement of the Purpose of, and                                                                                inter-market competition, the Exchange
                                                                                                       that result. Specifically, the Exchange
                                               Statutory Basis for, the Proposed Rule                  believes that the proposed rule change                  notes that it operates in a highly
                                               Change                                                  to add a new credit tier of $0.0027 per                 competitive market in which market
                                               1. Purpose                                              share executed is reasonable because it                 participants can readily favor competing
                                                                                                       is consistent with other credits that the               venues if they deem fee levels at a
                                                  The purpose of the proposed rule                     Exchange provides to members that                       particular venue to be excessive, or
                                               change is to add a new credit tier for the              access and/or provide liquidity. As                     rebate opportunities available at other
                                               use of the order execution and routing                  discussed previously, as a general                      venues to be more favorable. In such an
                                               services of the Nasdaq Market Center by                 principle the Exchange chooses to offer                 environment, the Exchange must
                                               members for all securities priced at $1                 credits to members in return for market                 continually adjust its fees to remain
                                               or more that it trades. The Exchange                    improving behavior. Under Rule                          competitive with other exchanges and
                                               proposes to amend Nasdaq Rule                           7018(a), the various credits the                        with alternative trading systems that
                                               7018(a)(1), (2), and (3) to add a new                   Exchange provides for members require                   have been exempted from compliance
                                               credit tier for a combination of accessing              them to significantly contribute to
                                                                                                                                                               with the statutory standards applicable
                                               and providing liquidity in securities of                market quality by accessing and/or
                                                                                                       providing certain levels of Consolidated                to exchanges. Because competitors are
                                               all three Tapes. Specifically, this new                                                                         free to modify their own fees in
                                               credit tier will be added to the Nasdaq                 Volume through one or more of its [sic]
                                                                                                       Nasdaq Market Center MPIDs, and                         response, and because market
                                               rule book under each of Nasdaq Rule                                                                             participants may readily adjust their
                                               7018(a)(1), (2), and (3) in the part                    volume.
                                                                                                          The proposed credit will be provided                 order routing practices, the Exchange
                                               entitled ‘‘Credit to member for
                                                                                                       to members that not only access                         believes that the degree to which fee
                                               displayed quotes/orders (other than
                                                                                                       liquidity in all securities through one or              changes in this market may impose any
                                               Supplemental Orders or Designated
                                                                                                       more of its [sic] Nasdaq Market Center                  burden on competition is extremely
                                               Retail Orders) that provide liquidity’’.
                                                                                                       MPIDs of more than 0.65% of                             limited.
                                                  The new credit tier will be for $0.0027              Consolidated Volume during the month,                      In this instance, the changes to the
                                               per share executed and will be available                but also that contribute to the Exchange                credits provided for the use of the order
                                               for a member (i) with shares of liquidity               by providing liquidity in all securities
                                                                                                                                                               execution and routing services of the
                                               accessed in all securities through one or               through one or more of its [sic] Nasdaq
                                               more of its Nasdaq Market Center                                                                                Nasdaq Market Center by members for
                                                                                                       Market Center MPIDs of more than
                                               market participant identifiers (‘‘MPIDs’’)              0.10% of Consolidated Volume during                     all securities priced at $1 or more that
                                               that represent more than 0.65% of                       the month.                                              it trades are reflective of the intense
                                               consolidated volume (‘‘Consolidated                        The Exchange believes that the                       competition among trading venues in
                                               Volume’’) during the month, and (ii)                    proposed $0.0027 per share executed                     capturing order flow. Moreover, the
                                               with shares of liquidity provided in all                credit is an equitable allocation and is                proposed rule change does not impose
                                               securities through one or more of its                   not unfairly discriminatory because a                   a burden on competition because
                                               Nasdaq Market Center MPIDs that                         member achieving this credit tier will be               Exchange membership is optional and is
                                               represent more than 0.10% of                            both accessing and providing liquidity,                 also the subject of competition from
                                               Consolidated Volume during the month.                   which should be beneficial to other                     other trading venues. For these reasons,
                                                                                                       members as this both encourages more                    the Exchange does not believe that any
                                                  As a general principle, the Exchange
                                                                                                       liquidity on the Exchange, as well as                   of the proposed changes will impair the
                                               chooses to offer credits to members in                  increasing the likelihood that members
                                               return for market improving behavior.                                                                           ability of members or competing order
                                                                                                       [sic] resting limit orders may be                       execution venues to maintain their
                                               Under Rule 7018(a), the various credits                 accessed by members seeking to attain
rmajette on DSK2TPTVN1PROD with NOTICES




                                               the Exchange provides for members                                                                               competitive standing in the financial
                                                                                                       this credit tier. The Exchange seeks to                 markets. Moreover, because there are
                                               require them to significantly contribute                encourage such behavior.
                                               to market quality by accessing and                                                                              numerous competitive alternatives to
                                                                                                          Additionally, the Exchange believes
                                               providing liquidity at certain levels of                                                                        the use of the Exchange, it is likely that
                                                                                                       that the proposed new credit tier is an
                                               Consolidated Volume through one or                                                                              the Exchange will lose market share as
                                               more of its [sic] Nasdaq Market Center                    4 15   U.S.C. 78f(b).                                 a result of the changes if they are
                                               MPIDs.                                                    5 15   U.S.C. 78f(b)(4) and (5).                      unattractive to market participants.


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                                                                               Federal Register / Vol. 81, No. 160 / Thursday, August 18, 2016 / Notices                                                  55247

                                               C. Self-Regulatory Organization’s                          printing in the Commission’s Public                   19(b)(2) of the Act,4 the Commission
                                               Statement on Comments on the                               Reference Room, 100 F Street NE.,                     designated a longer period within which
                                               Proposed Rule Change Received From                         Washington, DC 20549 on official                      to approve the proposed rule change,
                                               Members, Participants, or Others                           business days between the hours of                    disapprove the proposed rule change, or
                                                 Written comments were neither                            10:00 a.m. and 3:00 p.m. Copies of such               institute proceedings to determine
                                               solicited nor received.                                    filing also will be available for                     whether to disapprove the proposed
                                                                                                          inspection and copying at the principal               rule change.5 The Commission received
                                               III. Date of Effectiveness of the Proposed                 office of the Exchange. All comments                  no comments on the proposed rule
                                               Rule Change and Timing for                                 received will be posted without change;               change. This order institutes
                                               Commission Action                                          the Commission does not edit personal                 proceedings under Section 19(b)(2)(B) of
                                                  The foregoing change has become                         identifying information from                          the Act 6 to determine whether to
                                               effective pursuant to Section                              submissions. You should submit only                   approve or disapprove the proposed
                                               19(b)(3)(A)(ii) of the Act.6 At any time                   information that you wish to make                     rule change.
                                               within 60 days of the filing of the                        available publicly. All submissions
                                                                                                                                                                II. Exchange’s Description of the
                                               proposed rule change, the Commission                       should refer to File Number SR–
                                                                                                                                                                Proposal
                                               summarily may temporarily suspend                          NASDAQ–2016–115, and should be
                                               such rule change if it appears to the                      submitted on or before September 8,                      The Exchange currently lists and
                                               Commission that such action is                             2016.                                                 trades Shares of the Fund 7 under NYSE
                                               necessary or appropriate in the public                       For the Commission, by the Division of
                                                                                                                                                                Arca Equities Rule 5.2(j)(3),
                                               interest, for the protection of investors,                 Trading and Markets, pursuant to delegated            Commentary .02, which governs the
                                               or otherwise in furtherance of the                         authority.7                                           listing and trading of Investment
                                               purposes of the Act.                                       Robert W. Errett,                                     Company Units (‘‘Units’’) based on fixed
                                                                                                          Deputy Secretary.
                                                                                                                                                                income securities indexes.8 The Fund is
                                               IV. Solicitation of Comments
                                                                                                                                                                a series of the Trust. Invesco
                                                 Interested persons are invited to                        [FR Doc. 2016–19689 Filed 8–17–16; 8:45 am]
                                                                                                                                                                PowerShares Capital Management LLC
                                               submit written data, views, and                            BILLING CODE 8011–01–P
                                                                                                                                                                is the investment adviser (‘‘Adviser’’)
                                               arguments concerning the foregoing,                                                                              for the Fund. Invesco Distributors, Inc.
                                               including whether the proposed rule                                                                              is the Fund’s distributor. The Bank of
                                               change is consistent with the Act.                         SECURITIES AND EXCHANGE
                                                                                                          COMMISSION                                            New York Mellon is the administrator,
                                               Comments may be submitted by any of                                                                              custodian, and fund accounting and
                                               the following methods:                                                                                           transfer agent for the Fund.
                                                                                                          [Release No. 34–78564; File No. SR–
                                               Electronic Comments                                        NYSEArca–2016–62]
                                                                                                                                                                   The Exchange submitted its proposed
                                                                                                                                                                rule change to: (1) Permit the continued
                                                 • Use the Commission’s Internet                                                                                listing and trading of Shares of the Fund
                                               comment form (http://www.sec.gov/                          Self-Regulatory Organizations; NYSE
                                                                                                          Arca, Inc.; Order Instituting                         following a change to the index
                                               rules/sro.shtml); or                                                                                             underlying the Fund; and (2) propose
                                                 • Send an email to rule-comments@                        Proceedings To Determine Whether To
                                                                                                          Approve or Disapprove a Proposed                      changes to the index underlying the
                                               sec.gov. Please include File Number SR–
                                                                                                          Rule Change Relating to a Change to                   Fund and the name of the Fund.
                                               NASDAQ–2016–115 on the subject line.
                                                                                                          the Underlying Index for the                             The Fund seeks investment results
                                               Paper Comments                                             PowerShares Build America Bond                        that generally correspond to the price
                                                  • Send paper comments in triplicate                     Portfolio                                             and yield (before fees and expenses) of
                                               to Secretary, Securities and Exchange                                                                            The Bank of America (‘‘BofA’’) Merrill
                                                                                                          August 12, 2016.                                      Lynch Build America Bond Index
                                               Commission, 100 F Street NE.,
                                               Washington, DC 20549–1090.                                 I. Introduction                                       (‘‘Build America Bond Index’’). The
                                               All submissions should refer to File                                                                             Fund generally invests at least 80% of
                                                                                                             On May 3, 2016, NYSE Arca, Inc.                    its total assets in taxable municipal
                                               Number SR–NASDAQ–2016–115. This                            (‘‘Exchange’’) filed with the Securities
                                               file number should be included on the                      and Exchange Commission                                 4 15  U.S.C. 78s(b)(2).
                                               subject line if email is used. To help the                 (‘‘Commission’’), pursuant to Section                   5 See  Securities Exchange Act Release No. 78157,
                                               Commission process and review your                         19(b)(1) of the Securities Exchange Act               81 FR 43327 (July 1, 2016). The Commission
                                               comments more efficiently, please use                      of 1934 (‘‘Act’’) 1 and Rule 19b–4                    designated August 21, 2016 as the date by which
                                               only one method. The Commission will                                                                             the Commission shall either approve or disapprove,
                                                                                                          thereunder,2 a proposed rule change to:               or institute proceedings to determine whether to
                                               post all comments on the Commission’s                      (1) Permit the continued listing and                  disapprove, the proposed rule change.
                                               Internet Web site (http://www.sec.gov/                     trading of shares (‘‘Shares’’) of the                    6 15 U.S.C. 78s(b)(2)(B).
                                               rules/sro.shtml). Copies of the                            PowerShares Build America Bond                           7 According to the Exchange, on February 26,

                                               submission, all subsequent                                 Portfolio (‘‘Fund’’) following a change to            2016, PowerShares Exchange-Traded Fund Trust II
                                               amendments, all written statements                                                                               (‘‘Trust’’) filed a post-effective amendment on Form
                                                                                                          the index underlying the Fund, and (2)                485 under the Securities Act of 1933 (‘‘Securities
                                               with respect to the proposed rule                          propose changes to the index                          Act’’) to its registration statement on Form N–1A
                                               change that are filed with the                             underlying the Fund and the name of                   under the Securities Act and the Investment
                                               Commission, and all written                                the Fund. The proposed rule change                    Company Act of 1940 (‘‘1940 Act’’) (File Nos. 333–
                                               communications relating to the                                                                                   138490 and 811–21977) (‘‘Registration Statement’’).
                                                                                                          was published for comment in the                      The Exchange states that the Trust has obtained
                                               proposed rule change between the                           Federal Register on May 23, 2016.3 On
rmajette on DSK2TPTVN1PROD with NOTICES




                                                                                                                                                                certain exemptive relief under the 1940 Act. See
                                               Commission and any person, other than                      June 27, 2016, pursuant to Section                    Investment Company Act Release No. 27841 (May
                                               those that may be withheld from the                                                                              25, 2007) (File No. 812–13335) (‘‘Exemptive
                                               public in accordance with the                                                                                    Order’’).
                                                                                                            7 17 CFR 200.30–3(a)(12).                              8 The PowerShares Build America Bond Portfolio
                                               provisions of 5 U.S.C. 552, will be                          1 15 U.S.C. 78s(b)(1).                              was initially listed on the Exchange on November
                                               available for Web site viewing and                           2 17 CFR 240.19b–4.
                                                                                                                                                                17, 2009 pursuant to the generic listing criteria of
                                                                                                            3 See Securities Exchange Act Release No. 77849     Commentary .02 to NYSE Arca Equities Rule
                                                 6 15   U.S.C. 78s(b)(3)(A)(ii).                          (May 17, 2016), 81 FR 32371 (‘‘Notice’’).             5.2(j)(3).



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Document Created: 2016-08-17 23:46:08
Document Modified: 2016-08-17 23:46:08
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 55245 

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