81_FR_7626 81 FR 7597 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Retroactively Apply Recently-Reduced Port Fees

81 FR 7597 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Retroactively Apply Recently-Reduced Port Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 29 (February 12, 2016)

Page Range7597-7599
FR Document2016-02837

Federal Register, Volume 81 Issue 29 (Friday, February 12, 2016)
[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)]
[Notices]
[Pages 7597-7599]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02837]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77077; File No. SR-NASDAQ-2016-014]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Retroactively Apply Recently-Reduced Port Fees

February 8, 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 January 29, 2016, The NASDAQ Stock Market LLC (``Nasdaq'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by Nasdaq. The Commission is publishing this notice 
to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR [sic] Sec.  240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to retroactively apply recently-reduced port fees 
charged to members and non-members for ports used to enter orders into 
Nasdaq systems, in connection with the use of the FIX, RASH, and OUCH 
trading protocols under Nasdaq Rules 7015(b) and (g) beginning January 
4, 2016.

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 these statements may be examined at the places specified in 
Item IV below. Nasdaq 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 apply recently-
reduced port fees charged to members and non-members for ports used to 
enter orders into Nasdaq systems, in connection with the use of the 
FIX, RASH, and OUCH trading protocols under Nasdaq Rules 7015(b) and 
(g) during the period from January 4, 2016 to January 19, 2016.
    Effective January 4, 2016, Nasdaq increased fees for FIX Ports 
under Rule 7015(b) and for RASH and OUCH Ports under Rule 7015(g) from 
$550 per port, per month to $575 per port, per month.\3\ Nasdaq 
increased the fees to offset costs associated with upgrading these 
ports with new field-programmable gate array (``FPGA'') technology, 
which is a hardware-delivery mechanism that provides improved 
performance in terms of predictability.\4\ Nasdaq implemented the new 
FPGA hardware

[[Page 7598]]

in mid-December 2015 and increased the related port fees on January 4, 
2016.\5\
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    \3\ See SR-NASDAQ-2016-001, which was withdrawn by Nasdaq on 
January 19, 2016 (available at http://nasdaq.cchwallstreet.com/NASDAQ/pdf/nasdaq-filings/2016/SR-NASDAQ-2016-001.pdf).
    \4\ FPGA hardware is able to process more data packets during 
peak market conditions without the introduction of variable queuing 
latency, which improves the predictability of telecommunications 
ports over non-FPGA hardware and thereby adds value to the user.
    \5\ See note 3 above.
---------------------------------------------------------------------------

    Nasdaq recently encountered a few unforeseen minor, but not easily 
rectifiable, issues with the new implementation that potentially could 
have a greater impact on the market. As a consequence, Nasdaq 
determined that the risk associated with keeping the FPGA technology in 
terms of potential disruption to trading outweighed the benefit 
provided in terms of increased performance. Effective January 7, 2016, 
Nasdaq removed the FPGA hardware and reverted all FIX, RASH, and OUCH 
ports to the infrastructure that was in place prior to the upgrade to 
those ports. Nasdaq also filed a rule change with the Commission to 
reduce the fees assessed for FIX, RASH, and OUCH ports back to their 
lower levels of $550 per port, per month, which was effective January 
19, 2016.\6\
---------------------------------------------------------------------------

    \6\ See SR-NASDAQ-2016-007, which has not yet been published in 
the Federal Register (available at http://nasdaq.cchwallstreet.com/NASDAQ/pdf/nasdaq-filings/2016/SR-NASDAQ-2016-007.pdf). The 
Commission notes that this filing was subsequently withdrawn, 
because it was deemed unnecessary. Nasdaq's withdrawal of SR-NASDAQ-
2016-001 effectively caused the rule text to revert to the lower 
fees that were in place prior to January 4, 2016. See note 3.
---------------------------------------------------------------------------

    Nasdaq proposes to apply the reduced fees of $550 per port, per 
month during the period from January 4, 2016 to their reduction on 
January 19, 2016, effectively eliminating any fee increase for FIX, 
RASH, and OUCH ports. Subscribers to the affected ports did not enjoy 
the benefit of the improved hardware for any significant time, as the 
issues with the ports began to manifest themselves on December 30, 2015 
up to the point at which Nasdaq determined to remove the hardware and 
revert the ports back to the infrastructure in place before. Thus, 
Nasdaq believes that it is inappropriate to apply the higher fees at 
any point during January 2016.\7\
---------------------------------------------------------------------------

    \7\ Nasdaq bills in arrears for the connectivity provided under 
Rule 7015. Thus, subscribers have not yet been billed at the higher 
rate in place from January 4, 2016 to January 19, 2016.
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2. Statutory Basis
    This proposal is consistent with the provisions of section 6 of the 
Act,\8\ in general, and with sections 6(b)(4) and 6(b)(5) of the 
Act,\9\ in particular, in that it provides for the equitable allocation 
of reasonable dues, fees and other charges among members and issuers 
and other persons using any facility or system which Nasdaq operates or 
controls, and is designed to prevent fraudulent and manipulative acts 
and practices, to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest; 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    Retroactively applying the lower fees that were assessed prior to 
the upgrade to the FIX, RASH and OUCH ports effective January 4, 2016 
is reasonable because the improved hardware did not provide a trouble-
free benefit to subscribers for a significant time during the month of 
January 2016. Nasdaq did not provide an improved service for the ports 
in return for the increased fees paid during the period from January 4, 
2016 to their reduction on January 19, 2016. The basis for the 
increased fees was the costs associated with purchasing hardware 
(capital expenditures) and supporting and maintaining the 
infrastructure (operating expenditures) for the FPGA enhancement. Thus, 
retroactively applying the reduced pre-upgrade fee is reasonable.
    Applying the lower pre-upgrade fees retroactively is both an 
equitable allocation and not unfairly discriminatory because it will 
apply uniformly to all market participants that subscribed to FIX Ports 
under Rule 7015(b), and OUCH and RASH Ports under Rule 7015(g) during 
the timeframe of January 4, 2016 to January 19, 2016 based on the 
number of such ports subscribed. Accordingly, all subscribers to the 
ports under Rule 7015(b) and (g) will be assessed the fees in place 
prior to the increase, since they did not realize a significant and 
trouble-free benefit from the hardware.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change will not impose any burden on competition 
not necessary or appropriate in furtherance of the purposes of the Act. 
In terms of inter-market competition, 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, or rebate opportunities available at other venues to be 
more favorable.
    Nasdaq proposes to retroactively apply a lower fee since it did not 
provide the improved connectivity trouble-free for a significant time. 
Thus, Nasdaq does not believe that proposal places any burden on 
competition, but rather reduces fees assessed subscribers to a service, 
which will help maintain Nasdaq's competitiveness among equities 
markets.

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

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) 
thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    In its filing, Nasdaq requested that the Commission waive the 30-
day operative delay so that Nasdaq may implement the fee reduction 
prior to the end of its monthly billing cycle. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest. Nasdaq bills its 
members at the end of the month, and, as of the time of filing, it had 
not yet assessed the higher port fees put in place by SR-NASDAQ-2016-
001. Waiver of the 30-day operative delay will not only allow Nasdaq to 
manage its billing process more efficiently, but it will also ensure 
that subscribers are not charged erroneous and inflated fees. For this 
reason, the Commission designates the proposed rule change to be 
operative upon filing.\12\
---------------------------------------------------------------------------

    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

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:

[[Page 7599]]

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-2016-014 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-2016-014. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at Nasdaq's principal office. 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-2016-014 and should 
be submitted on or before March 4, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR [sic] Sec.  200.30-3(a)(12) and (59).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-02837 Filed 2-11-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                   Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices                                                   7597

                                                     Form 1. An exchange that seeks an                       $9,445/response × nine responses/                      I. Self-Regulatory Organization’s
                                                     exemption from registration based on                    respondent per year).                                  Statement of the Terms of Substance of
                                                     limited trading volume also must apply                    An agency may not conduct or                         the Proposed Rule Change
                                                     for such exemption on Form 1. Rule 6a–                  sponsor, and a person is not required to
                                                     2 under the Act requires registered and                                                                           Nasdaq proposes to retroactively
                                                                                                             respond to, a collection of information                apply recently-reduced port fees
                                                     exempt exchanges: (1) To amend the
                                                                                                             under the PRA unless it displays a                     charged to members and non-members
                                                     Form 1 if there are any material changes
                                                     to the information provided in the                      currently valid OMB control number.                    for ports used to enter orders into
                                                     initial Form 1; and (2) to submit                         The public may view background                       Nasdaq systems, in connection with the
                                                     periodic updates of certain information                 documentation for this information                     use of the FIX, RASH, and OUCH
                                                     provided in the initial Form 1, whether                 collection at the following Web site,                  trading protocols under Nasdaq Rules
                                                     such information has changed or not.                    www.reginfo.gov. Comments should be                    7015(b) and (g) beginning January 4,
                                                     The information required pursuant to                    directed to: (i) Desk Officer for the                  2016.
                                                     Rules 6a–1 and 6a–2 is necessary to                     Securities and Exchange Commission,                    II. Self-Regulatory Organization’s
                                                     enable the Commission to maintain                       Office of Information and Regulatory                   Statement of the Purpose of, and
                                                     accurate files regarding the exchange                   Affairs, Office of Management and                      Statutory Basis for, the Proposed Rule
                                                     and to exercise its statutory oversight                 Budget, Room 10102, New Executive                      Change
                                                     functions. Without the information                      Office Building, Washington, DC 20503,
                                                     submitted pursuant to Rule 6a–1 on                      or by sending an email to: Shagufta_                     In its filing with the Commission,
                                                     Form 1, the Commission would not be                                                                            Nasdaq included statements concerning
                                                                                                             Ahmed@omb.eop.gov; and (ii) Pamela
                                                     able to determine whether the                                                                                  the purpose of and basis for the
                                                                                                             Dyson, Director/Chief Information
                                                     respondent has met the criteria for                                                                            proposed rule change and discussed any
                                                                                                             Officer, Securities and Exchange
                                                     registration (or an exemption from                                                                             comments it received on the proposed
                                                     registration) set forth in Section 6 of the             Commission, c/o Remi Pavlik-Simon,
                                                                                                             100 F Street NE., Washington, DC                       rule change. The text of these statements
                                                     Exchange Act. The amendments and                                                                               may be examined at the places specified
                                                     periodic updates of information                         20549, or by sending an email to: PRA_
                                                                                                                                                                    in Item IV below. Nasdaq has prepared
                                                     submitted pursuant to Rule 6a–2 are                     Mailbox@sec.gov. Comments must be
                                                                                                                                                                    summaries, set forth in sections A, B,
                                                     necessary to assist the Commission in                   submitted to OMB within 30 days of
                                                                                                                                                                    and C below, of the most significant
                                                     determining whether a national                          this notice.                                           aspects of such statements.
                                                     securities exchange or exempt exchange                    Dated: February 8, 2016.
                                                     is continuing to operate in compliance                                                                         A. Self-Regulatory Organization’s
                                                                                                             Robert W. Errett,                                      Statement of the Purpose of, and
                                                     with the Exchange Act.
                                                        Initial filings on Form 1 by new                     Deputy Secretary.                                      Statutory Basis for, the Proposed Rule
                                                     exchanges are made on a one-time basis.                 [FR Doc. 2016–02833 Filed 2–11–16; 8:45 am]            Change
                                                     The Commission estimates that it will                   BILLING CODE 8011–01–P
                                                                                                                                                                    1. Purpose
                                                     receive approximately one initial Form
                                                     1 filing per year and that each                                                                                   The purpose of the proposed rule
                                                     respondent would incur an average                       SECURITIES AND EXCHANGE                                change is to apply recently-reduced port
                                                     burden of 880 hours to file an initial                  COMMISSION                                             fees charged to members and non-
                                                     Form 1 at an average internal labor cost                                                                       members for ports used to enter orders
                                                     per response of approximately $302,694.                 [Release No. 34–77077; File No. SR–                    into Nasdaq systems, in connection with
                                                     Therefore, the Commission estimates                     NASDAQ–2016–014]                                       the use of the FIX, RASH, and OUCH
                                                     that the annual burden for all                                                                                 trading protocols under Nasdaq Rules
                                                     respondents to file the initial Form 1                  Self-Regulatory Organizations; The                     7015(b) and (g) during the period from
                                                     would be 880 hours (one response/                       NASDAQ Stock Market LLC; Notice of                     January 4, 2016 to January 19, 2016.
                                                     respondent × one respondents × 880                      Filing and Immediate Effectiveness of                     Effective January 4, 2016, Nasdaq
                                                     hours/response) and an internal                         Proposed Rule Change to                                increased fees for FIX Ports under Rule
                                                     compliance cost of $302,694 (one                        Retroactively Apply Recently-Reduced                   7015(b) and for RASH and OUCH Ports
                                                     response/respondent × one respondents                   Port Fees
                                                     × $302,694/response).                                                                                          under Rule 7015(g) from $550 per port,
                                                        There currently are 18 entities                      February 8, 2016                                       per month to $575 per port, per month.3
                                                     registered as national securities                                                                              Nasdaq increased the fees to offset costs
                                                                                                                Pursuant to section 19(b)(1) of the                 associated with upgrading these ports
                                                     exchanges. The Commission estimates
                                                                                                             Securities Exchange Act of 1934                        with new field-programmable gate array
                                                     that each registered or exempt exchange
                                                                                                             (‘‘Act’’) 1, and Rule 19b–4 thereunder,2               (‘‘FPGA’’) technology, which is a
                                                     files nine amendments or periodic
                                                     updates to Form 1 per year, incurring an                notice is hereby given that on January                 hardware-delivery mechanism that
                                                     average burden of 25 hours to comply                    29, 2016, The NASDAQ Stock Market                      provides improved performance in
                                                     with Rule 6a–2. The SEC estimates that                  LLC (‘‘Nasdaq’’) filed with the Securities             terms of predictability.4 Nasdaq
                                                     the average internal labor cost for a                   and Exchange Commission                                implemented the new FPGA hardware
                                                     national securities exchange per                        (‘‘Commission’’) the proposed rule
                                                                                                             change as described in Items I and II
asabaliauskas on DSK9F6TC42PROD with NOTICES2




                                                                                                                                                                      3 See SR–NASDAQ–2016–001, which was
                                                     response would be approximately
                                                                                                             below, which Items have been prepared                  withdrawn by Nasdaq on January 19, 2016
                                                     $9,445. The Commission estimates that                                                                          (available at http://nasdaq.cchwallstreet.com/
                                                     the annual burden for all respondents to                by Nasdaq. The Commission is                           NASDAQ/pdf/nasdaq-filings/2016/SR–NASDAQ–
                                                     file amendments and periodic updates                    publishing this notice to solicit                      2016–001.pdf).
                                                     to the Form 1 pursuant to Rule 6a–2 is                  comments on the proposed rule change                     4 FPGA hardware is able to process more data

                                                     4,050 hours (18 respondents × 25 hours/                 from interested persons.                               packets during peak market conditions without the
                                                                                                                                                                    introduction of variable queuing latency, which
                                                     response × nine responses/respondent                                                                           improves the predictability of telecommunications
                                                     per year) and an internal compliance                      1 15   U.S.C. 78s(b)(1).                             ports over non-FPGA hardware and thereby adds
                                                     cost of $1,530,090 (18 respondents ×                      2 17   CFR [sic] § 240.19b–4.                        value to the user.



                                                VerDate Sep<11>2014   17:38 Feb 11, 2016   Jkt 238001   PO 00000   Frm 00101    Fmt 4703   Sfmt 4703   E:\FR\FM\12FEN1.SGM   12FEN1


                                                     7598                          Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices

                                                     in mid-December 2015 and increased                      principles of trade, to foster cooperation            Nasdaq does not believe that proposal
                                                     the related port fees on January 4, 2016.5              and coordination with persons engaged                 places any burden on competition, but
                                                        Nasdaq recently encountered a few                    in regulating, clearing, settling,                    rather reduces fees assessed subscribers
                                                     unforeseen minor, but not easily                        processing information with respect to,               to a service, which will help maintain
                                                     rectifiable, issues with the new                        and facilitating transactions in                      Nasdaq’s competitiveness among
                                                     implementation that potentially could                   securities, to remove impediments to                  equities markets.
                                                     have a greater impact on the market. As                 and perfect the mechanism of a free and
                                                     a consequence, Nasdaq determined that                   open market and a national market                     C. Self-Regulatory Organization’s
                                                     the risk associated with keeping the                    system, and, in general, to protect                   Statement on Comments on the
                                                     FPGA technology in terms of potential                   investors and the public interest; and is             Proposed Rule Change Received From
                                                     disruption to trading outweighed the                    not designed to permit unfair                         Members, Participants, or Others
                                                     benefit provided in terms of increased                  discrimination between customers,                       No written comments were either
                                                     performance. Effective January 7, 2016,                 issuers, brokers, or dealers.                         solicited or received.
                                                     Nasdaq removed the FPGA hardware                           Retroactively applying the lower fees
                                                     and reverted all FIX, RASH, and OUCH                    that were assessed prior to the upgrade               III. Date of Effectiveness of the
                                                     ports to the infrastructure that was in                 to the FIX, RASH and OUCH ports                       Proposed Rule Change and Timing for
                                                     place prior to the upgrade to those ports.              effective January 4, 2016 is reasonable               Commission Action
                                                     Nasdaq also filed a rule change with the                because the improved hardware did not                    Because the proposed rule change
                                                     Commission to reduce the fees assessed                  provide a trouble-free benefit to                     does not (i) significantly affect the
                                                     for FIX, RASH, and OUCH ports back to                   subscribers for a significant time during             protection of investors or the public
                                                     their lower levels of $550 per port, per                the month of January 2016. Nasdaq did                 interest; (ii) impose any significant
                                                     month, which was effective January 19,                  not provide an improved service for the               burden on competition; and (iii) become
                                                     2016.6                                                  ports in return for the increased fees                operative for 30 days from the date on
                                                        Nasdaq proposes to apply the reduced                 paid during the period from January 4,                which it was filed, or such shorter time
                                                     fees of $550 per port, per month during                 2016 to their reduction on January 19,                as the Commission may designate if
                                                     the period from January 4, 2016 to their                2016. The basis for the increased fees                consistent with the protection of
                                                     reduction on January 19, 2016,                          was the costs associated with                         investors and the public interest, the
                                                     effectively eliminating any fee increase                purchasing hardware (capital                          proposed rule change has become
                                                     for FIX, RASH, and OUCH ports.                          expenditures) and supporting and                      effective pursuant to section 19(b)(3)(A)
                                                     Subscribers to the affected ports did not               maintaining the infrastructure                        of the Act 10 and Rule 19b–4(f)(6)
                                                     enjoy the benefit of the improved                       (operating expenditures) for the FPGA                 thereunder.11
                                                     hardware for any significant time, as the               enhancement. Thus, retroactively
                                                     issues with the ports began to manifest                                                                          In its filing, Nasdaq requested that the
                                                                                                             applying the reduced pre-upgrade fee is
                                                     themselves on December 30, 2015 up to                                                                         Commission waive the 30-day operative
                                                                                                             reasonable.
                                                     the point at which Nasdaq determined                       Applying the lower pre-upgrade fees                delay so that Nasdaq may implement
                                                     to remove the hardware and revert the                   retroactively is both an equitable                    the fee reduction prior to the end of its
                                                     ports back to the infrastructure in place               allocation and not unfairly                           monthly billing cycle. The Commission
                                                     before. Thus, Nasdaq believes that it is                discriminatory because it will apply                  believes that waiving the 30-day
                                                     inappropriate to apply the higher fees at               uniformly to all market participants that             operative delay is consistent with the
                                                     any point during January 2016.7                         subscribed to FIX Ports under Rule                    protection of investors and the public
                                                                                                             7015(b), and OUCH and RASH Ports                      interest. Nasdaq bills its members at the
                                                     2. Statutory Basis                                                                                            end of the month, and, as of the time of
                                                                                                             under Rule 7015(g) during the
                                                        This proposal is consistent with the                 timeframe of January 4, 2016 to January               filing, it had not yet assessed the higher
                                                     provisions of section 6 of the Act,8 in                 19, 2016 based on the number of such                  port fees put in place by SR–NASDAQ–
                                                     general, and with sections 6(b)(4) and                  ports subscribed. Accordingly, all                    2016–001. Waiver of the 30-day
                                                     6(b)(5) of the Act,9 in particular, in that             subscribers to the ports under Rule                   operative delay will not only allow
                                                     it provides for the equitable allocation                7015(b) and (g) will be assessed the fees             Nasdaq to manage its billing process
                                                     of reasonable dues, fees and other                      in place prior to the increase, since they            more efficiently, but it will also ensure
                                                     charges among members and issuers and                   did not realize a significant and trouble-            that subscribers are not charged
                                                     other persons using any facility or                     free benefit from the hardware.                       erroneous and inflated fees. For this
                                                     system which Nasdaq operates or                                                                               reason, the Commission designates the
                                                     controls, and is designed to prevent                    B. Self-Regulatory Organization’s                     proposed rule change to be operative
                                                     fraudulent and manipulative acts and                    Statement on Burden on Competition                    upon filing.12
                                                     practices, to promote just and equitable                   The proposed rule change will not                  IV. Solicitation of Comments
                                                                                                             impose any burden on competition not
                                                       5 See note 3 above.                                   necessary or appropriate in furtherance                 Interested persons are invited to
                                                       6 See SR–NASDAQ–2016–007, which has not yet           of the purposes of the Act. In terms of               submit written data, views and
                                                     been published in the Federal Register (available at                                                          arguments concerning the foregoing,
                                                     http://nasdaq.cchwallstreet.com/NASDAQ/pdf/             inter-market competition, Nasdaq notes
                                                     nasdaq-filings/2016/SR–NASDAQ–2016–007.pdf).            that it operates in a highly competitive              including whether the proposed rule
                                                     The Commission notes that this filing was               market in which market participants can               change is consistent with the Act.
                                                     subsequently withdrawn, because it was deemed                                                                 Comments may be submitted by any of
asabaliauskas on DSK9F6TC42PROD with NOTICES2




                                                                                                             readily favor competing venues if they
                                                     unnecessary. Nasdaq’s withdrawal of SR–
                                                     NASDAQ–2016–001 effectively caused the rule text        deem fee levels at a particular venue to              the following methods:
                                                     to revert to the lower fees that were in place prior    be excessive, or rebate opportunities
                                                     to January 4, 2016. See note 3.                         available at other venues to be more                    10 15  U.S.C. 78s(b)(3)(A).
                                                       7 Nasdaq bills in arrears for the connectivity                                                                11 17
                                                                                                             favorable.                                                     CFR 240.19b–4(f)(6).
                                                     provided under Rule 7015. Thus, subscribers have                                                                 12 For purposes only of waiving the 30-day
                                                     not yet been billed at the higher rate in place from
                                                                                                                Nasdaq proposes to retroactively
                                                                                                                                                                   operative delay, the Commission has also
                                                     January 4, 2016 to January 19, 2016.                    apply a lower fee since it did not                    considered the proposed rule’s impact on
                                                       8 15 U.S.C. 78f.                                      provide the improved connectivity                     efficiency, competition, and capital formation. See
                                                       9 15 U.S.C. 78f(b)(4) and (5).                        trouble-free for a significant time. Thus,            15 U.S.C. 78c(f).



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                                                                                      Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices                                                      7599

                                                     Electronic Comments                                       SECURITIES AND EXCHANGE                                 (A) Self-Regulatory Organization’s
                                                                                                               COMMISSION                                              Statement of the Purpose of, and
                                                       • Use the Commission’s Internet                                                                                 Statutory Basis for, the Proposed Rule
                                                     comment form (http://www.sec.gov/                                                                                 Change
                                                                                                               [Release No. 34–77078; File No. SR–BATS–
                                                     rules/sro.shtml); or                                      2016–04]                                                1. Purpose
                                                       • Send an email to rule-comments@
                                                     sec.gov. Please include File Number SR–                   Self-Regulatory Organizations; BATS                        The Exchange proposes to list and
                                                     NASDAQ–2016–014 on the subject line.                      Exchange, Inc.; Notice of Filing of a                   trade the Shares under BATS Rule
                                                                                                               Proposed Rule Change to Rule 14.11(i),                  14.11(i), which governs the listing and
                                                     Paper Comments                                            Managed Fund Shares, To List and                        trading of Managed Fund Shares on the
                                                                                                               Trade Shares of the SPDR DoubleLine                     Exchange.3 The Fund will be an actively
                                                       • Send paper comments in triplicate                                                                             managed fund. The Shares will be
                                                                                                               Short Term Total Return Tactical ETF
                                                     to Secretary, Securities and Exchange                                                                             offered by the Trust, which was
                                                                                                               of the SSgA Active Trust
                                                     Commission, 100 F Street NE.,                                                                                     established as a Massachusetts business
                                                     Washington, DC 20549–1090.                                February 8, 2016.                                       trust on March 30, 2011. The Trust is
                                                                                                                  Pursuant to Section 19(b)(1) of the                  registered with the Commission as an
                                                     All submissions should refer to File
                                                                                                               Securities Exchange Act of 1934 (the                    open-end investment company and has
                                                     Number SR–NASDAQ–2016–014. This
                                                                                                               ‘‘Act’’),1 and Rule 19b–4 thereunder,2                  filed a registration statement on behalf
                                                     file number should be included on the                                                                             of the Fund on Form N–1A
                                                     subject line if email is used. To help the                notice is hereby given that on February
                                                                                                               4, 2016, BATS Exchange, Inc. (the                       (‘‘Registration Statement’’) with the
                                                     Commission process and review your                                                                                Commission.4
                                                     comments more efficiently, please use                     ‘‘Exchange’’ or ‘‘BATS’’) filed with the
                                                                                                               Securities and Exchange Commission                      Description of the Shares and the Fund
                                                     only one method. The Commission will
                                                                                                               (‘‘Commission’’) the proposed rule
                                                     post all comments on the Commission’s                                                                                SSGA Funds Management, Inc. will
                                                                                                               change as described in Items I and II
                                                     Internet Web site (http://www.sec.gov/                                                                            be the investment adviser (‘‘SSGA FM’’
                                                                                                               below, which Items have been prepared
                                                     rules/sro.shtml). Copies of the                                                                                   or ‘‘Adviser’’) to the Fund. The Adviser
                                                                                                               by the Exchange. The Commission is
                                                     submission, all subsequent                                                                                        will serve as the administrator for the
                                                                                                               publishing this notice to solicit
                                                     amendments, all written statements                                                                                Fund (the ‘‘Administrator’’). DoubleLine
                                                                                                               comments on the proposed rule change
                                                     with respect to the proposed rule                                                                                 Capital LP will be the Fund’s sub-
                                                                                                               from interested persons.
                                                     change that are filed with the                                                                                    adviser (‘‘Sub-Adviser’’). State Street
                                                     Commission, and all written                               I. Self-Regulatory Organization’s                       Global Markets, LLC (the ‘‘Distributor’’)
                                                     communications relating to the                            Statement of the Terms of Substance of                  will be the principal underwriter and
                                                     proposed rule change between the                          the Proposed Rule Change                                distributor of the Fund’s Shares. State
                                                     Commission and any person, other than                                                                             Street Bank and Trust Company (the
                                                                                                                  The Exchange is proposing a rule                     ‘‘Sub-Administrator’’, ‘‘Custodian’’,
                                                     those that may be withheld from the                       change to list and trade shares of the                  ‘‘Transfer Agent’’ or ‘‘Lending Agent’’)
                                                     public in accordance with the                             SPDRDoubleLine Short Term Total                         will serve as sub-administrator,
                                                     provisions of 5 U.S.C. 552, will be                       Return Tactical ETF (the ‘‘Fund’’) of the               custodian, transfer agent, and, where
                                                     available for Web site viewing and                        SSgA Active Trust (the ‘‘Trust’’) under                 applicable, lending agent for the Fund.
                                                     printing in the Commission’s Public                       BATS Rule 14.11(i) (‘‘Managed Fund                         BATS Rule 14.11(i)(7) provides that, if
                                                     Reference Room, 100 F Street NE.,                         Shares’’). The shares of the Fund are                   the investment adviser to the
                                                     Washington, DC 20549, on official                         collectively referred to herein as the                  investment company issuing Managed
                                                     business days between the hours of                        ‘‘Shares.’’                                             Fund Shares is affiliated with a broker-
                                                     10:00 a.m. and 3:00 p.m. Copies of the                       The text of the proposed rule change                 dealer, such investment adviser shall
                                                     filing also will be available for                         is available at the Exchange’s Web site                 erect a ‘‘fire wall’’ between the
                                                     inspection and copying at Nasdaq’s                        at www.batstrading.com, at the                          investment adviser and the broker-
                                                     principal office. All comments received                   principal office of the Exchange, and at                dealer with respect to access to
                                                     will be posted without change; the                        the Commission’s Public Reference                       information concerning the composition
                                                     Commission does not edit personal                         Room.                                                   and/or changes to such investment
                                                     identifying information from                              II. Self-Regulatory Organization’s                      company portfolio.5 In addition, Rule
                                                     submissions. You should submit only                       Statement of the Purpose of, and                          3 The Commission approved BATS Rule 14.11(i)
                                                     information that you wish to make                         Statutory Basis for, the Proposed Rule                  in Securities Exchange Act Release No. 65225
                                                     available publicly. All submissions                       Change                                                  (August 30, 2011), 76 FR 55148 (September 6, 2011)
                                                     should refer to File Number SR–                                                                                   (SR–BATS–2011–018).
                                                     NASDAQ–2016–014 and should be                               In its filing with the Commission, the                  4 See Registration Statement on Form N–1A for
                                                                                                               Exchange included statements                            the Trust, dated October 8, 2015 (File Nos. 333–
                                                     submitted on or before March 4, 2016.
                                                                                                               concerning the purpose of and basis for                 173276 and 811–22542). The descriptions of the
                                                       For the Commission, by the Division of                  the proposed rule change and discussed                  Fund and the Shares contained herein are based, in
                                                     Trading and Markets, pursuant to delegated                                                                        part, on information in the Registration Statement.
                                                                                                               any comments it received on the                         The Commission has issued an order granting
                                                     authority.13                                              proposed rule change. The text of these                 certain exemptive relief to the Trust under the
asabaliauskas on DSK9F6TC42PROD with NOTICES2




                                                     Robert W. Errett,                                         statements may be examined at the                       Investment Company Act of 1940 (15 U.S.C. 80a–
                                                                                                               places specified in Item IV below. The                  1) (‘‘1940 Act’’) (the ‘‘Exemptive Order’’). See
                                                     Deputy Secretary.                                                                                                 Investment Company Act Release No. 29524
                                                     [FR Doc. 2016–02837 Filed 2–11–16; 8:45 am]               Exchange has prepared summaries, set                    (December 13, 2010) (File No. 812–13487).
                                                     BILLING CODE 8011–01–P
                                                                                                               forth in Sections A, B, and C below, of                   5 An investment adviser to an open-end fund is

                                                                                                               the most significant parts of such                      required to be registered under the Investment
                                                                                                               statements.                                             Advisers Act of 1940 (the ‘‘Advisers Act’’). As a
                                                                                                                                                                       result, the Adviser and its related personnel as well
                                                                                                                                                                       as the Sub-Adviser and its related personnel are
                                                                                                                 1 15   U.S.C. 78s(b)(1).                              subject to the provisions of Rule 204A–1 under the
                                                       13 17   CFR [sic] § 200.30–3(a)(12) and (59).             2 17   CFR 240.19b–4.                                                                             Continued




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Document Created: 2016-02-12 01:24:30
Document Modified: 2016-02-12 01:24:30
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 7597 

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