81 FR 88311 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Change the Titles of Equities Rule 7015 and Options Chapter XV, Section 3, and To Make Related Changes
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 235 (December 7, 2016)
Federal Register Volume 81, Issue 235 (December 7, 2016)
| Page Range | 88311-88312 | |
| FR Document | 2016-29292 |
[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)] [Notices] [Pages 88311-88312] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29292] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79447; File No. SR-NASDAQ-2016-163] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Change the Titles of Equities Rule 7015 and Options Chapter XV, Section 3, and To Make Related Changes December 1, 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 November 28, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to rename the title of rules that assess fees for connectivity to systems operated by the Exchange or FINRA under Equities Rule 7015 and Options Chapter XV, Section 3, and to make related changes to other rules that reference the renamed rules. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to rename related text in Rule 7015 and Chapter XV, Section 3, to more accurately reflect the services being provided and eliminate an outdated term. Both Rule 7015 and Chapter XV, Section 3, include connectivity to services that are not related to connecting to the Exchange trading system, such as TradeInfo,\3\ Specialized Services Related to FINRA/NASDAQ Trade Reporting Facility,\4\ and the NASDAQ IPO Workstation.\5\ As a consequence, the Exchange believes that it is appropriate to rename the title of Rule 7015 as ``Ports and other Services'' and rename the title of Chapter XV, Section 3, as ``NASDAQ Options Market--Ports and other Services,'' which the Exchange believes more accurately describe the depth and breadth of services provided to members under those rules. --------------------------------------------------------------------------- \3\ TradeInfo is an Internet-based tool that, among other things, allows users to view all of the NASDAQ order and execution information for their entire firm for both equities and options through a single interface. TradeInfo may be subscribed to under both Rule 7015 and Chapter XV Section 3. \4\ Specialized Services Related to FINRA/NASDAQ Trade Reporting Facility includes WebLink ACT or Nasdaq Workstation Post Trade, and ACT Workstation. See Rule 7015(e). \5\ The NASDAQ IPO Workstation provides subscribing member firms with the IPO Indicator service, which provides information on order execution that would be received in an IPO during the launch process. --------------------------------------------------------------------------- The Exchange is also proposing to amend reference to the title of Rule 7015 in Rule 7007(a), which is titled ``Collection of Exchange Fees and Other Claims and Billing Policy,'' and is also amending reference to the title of Chapter XV, Section 3, found under Section 7(c)(2) of Chapter XV to reflect the amended titles of Rule 7015 and Chapter XV, Section 3. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\7\ [[Page 88312]] in particular, in that it is designed to promote just and equitable principles of trade, 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, by clarifying applicability of rules whose current titles could confuse market participants. Specifically, the Exchange is eliminating the term ``Access'' and replacing it with the phrase ``Ports and other'' because the new titles will more accurately describe the depth and breadth of services provided to members under Rule 7015 and Chapter XV, Section 3. As explained above, the various connectivity and services offered under Rule 7015 and Chapter XV, Section 3, include services listed that are not related to connecting to the Exchange such as TradeInfo, Specialized Services Related to FINRA/NASDAQ Trade Reporting Facility, or the NASDAQ IPO Workstation. These services allow members to view information and are not related to connecting to the Exchange. Thus, the changes proposed herein do not impact the fees, connectivity or services described under Rule 7015 and Chapter XV, Section 3, but rather merely clarify and harmonize the terminology used to better align it with what is provided under the rules. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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. The Exchange believes that, to the extent it has any impact on competition, the proposed change will promote competition by making it clear to all market participants and exchange competitors what is provided under Rule 7015 and Chapter XV, Section 3. 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 foregoing 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, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(iii). \9\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay so that the proposed rule change will become operative on filing. The Exchange stated that the proposed rule change promotes the protection of investors and the public interest by clarifying and harmonizing the terminology used in the Exchange's rules. Waiver of the operative delay would allow the Exchange, without delay, to rename the rules to make clear what the rules cover, therefore, the Commission believes that waiver of the 30- day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission designates the proposed rule change to be operative upon filing.\11\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6)(iii). \11\ For purposes only of waiving the 30-day operative delay, the Commission also has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NASDAQ-2016-163 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-2016-163. 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-2016-163, and should be submitted on or before December 28, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-29292 Filed 12-6-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices 88311
Order, the Applicant informed the than five years, the first two years in an any comments it received on the
advisory client of the capacity in which appropriate office of the Applicant, and proposed rule change. The text of these
it may act with respect to the be available for inspection by the staff statements may be examined at the
transaction and that it received the of the Commission. places specified in Item IV below. The
advisory client’s consent (if the By the Commission. Exchange has prepared summaries, set
Applicant informs the client orally of Brent J. Fields, forth in sections A, B, and C below, of
the capacity in which it may act with the most significant aspects of such
Secretary.
respect to such transaction or obtains statements.
[FR Doc. 2016–29298 Filed 12–6–16; 8:45 am]
oral consent, such records may, for
example, include recordings of BILLING CODE 8011–01–P A. Self-Regulatory Organization’s
telephone conversations or Statement of the Purpose of, and
contemporaneous written notations); Statutory Basis for, the Proposed Rule
SECURITIES AND EXCHANGE Change
and (c) documentation sufficient to
COMMISSION
enable assessment of compliance by the 1. Purpose
Applicant with sections 206(1) and (2) [Release No. 34–79447; File No. SR–
The purpose of the proposed rule
of the Advisers Act in connection with NASDAQ–2016–163]
change is to rename related text in Rule
its reliance on this Order.3 In each case,
Self-Regulatory Organizations; The 7015 and Chapter XV, Section 3, to
such records will be maintained and
NASDAQ Stock Market LLC; Notice of more accurately reflect the services
preserved in an easily accessible place
Filing and Immediate Effectiveness of being provided and eliminate an
for a period of not less than five years,
Proposed Rule Change To Change the outdated term. Both Rule 7015 and
the first two years in an appropriate
Titles of Equities Rule 7015 and Chapter XV, Section 3, include
office of the Applicant, and be available
Options Chapter XV, Section 3, and To connectivity to services that are not
for inspection by the staff of the
Make Related Changes related to connecting to the Exchange
Commission.
11. The Applicant will adopt written trading system, such as TradeInfo,3
December 1, 2016. Specialized Services Related to FINRA/
compliance policies and procedures Pursuant to Section 19(b)(1) of the
reasonably designed to ensure, and the NASDAQ Trade Reporting Facility,4 and
Securities Exchange Act of 1934 the NASDAQ IPO Workstation.5 As a
Applicant’s chief compliance officer (‘‘Act’’),1 and Rule 19b–4 thereunder,2
will monitor, the Applicant’s consequence, the Exchange believes that
notice is hereby given that on November it is appropriate to rename the title of
compliance with the conditions of this 28, 2016, The NASDAQ Stock Market
Order. The Applicant’s chief Rule 7015 as ‘‘Ports and other Services’’
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed and rename the title of Chapter XV,
compliance officer will, on at least a with the Securities and Exchange
quarterly basis, conduct testing Section 3, as ‘‘NASDAQ Options
Commission (‘‘SEC’’ or ‘‘Commission’’) Market—Ports and other Services,’’
reasonably sufficient to verify such the proposed rule change as described
compliance. Such written policies and which the Exchange believes more
in Items I and II below, which Items accurately describe the depth and
procedures, monitoring and testing will have been prepared by the Exchange.
address, without limitation: (a) breadth of services provided to members
The Commission is publishing this under those rules.
Compliance by the Applicant with its notice to solicit comments on the
disclosure and consent requirements The Exchange is also proposing to
proposed rule change from interested amend reference to the title of Rule 7015
under this Order; (b) the integrity and persons.
operation of electronic systems in Rule 7007(a), which is titled
employed by the Applicant in I. Self-Regulatory Organization’s ‘‘Collection of Exchange Fees and Other
connection with its reliance on this Statement of the Terms of the Substance Claims and Billing Policy,’’ and is also
Order; (c) compliance by the Applicant of the Proposed Rule Change amending reference to the title of
with its recordkeeping obligations under The Exchange proposes to rename the Chapter XV, Section 3, found under
this Order; and (d) whether there is any title of rules that assess fees for Section 7(c)(2) of Chapter XV to reflect
evidence of the Applicant engaging in connectivity to systems operated by the the amended titles of Rule 7015 and
‘‘dumping’’ in connection with its Exchange or FINRA under Equities Rule Chapter XV, Section 3.
reliance on this Order.4 The Applicant’s 7015 and Options Chapter XV, Section 2. Statutory Basis
chief compliance officer will document 3, and to make related changes to other
the frequency and results of such The Exchange believes that its
rules that reference the renamed rules. proposal is consistent with Section 6(b)
monitoring and testing, and the The text of the proposed rule change
Applicant will maintain and preserve of the Act,6 in general, and furthers the
is available on the Exchange’s Web site
such documentation in an easily objectives of Section 6(b)(5) of the Act,7
at http://nasdaq.cchwallstreet.com, at
accessible place for a period of not less the principal office of the Exchange, and 3 TradeInfo is an Internet-based tool that, among
at the Commission’s Public Reference other things, allows users to view all of the
3 For example, under sections 206(1) and (2), an Room. NASDAQ order and execution information for their
adviser may not engage in any transaction on a entire firm for both equities and options through a
principal basis with a client that is not consistent II. Self-Regulatory Organization’s single interface. TradeInfo may be subscribed to
with the best interests of the client or that
subrogates the client’s interests to the adviser’s
Statement of the Purpose of, and under both Rule 7015 and Chapter XV Section 3.
Statutory Basis for, the Proposed Rule 4 Specialized Services Related to FINRA/
asabaliauskas on DSK3SPTVN1PROD with NOTICES
own. Cf. Investment Advisers Act Release No. 2106
(Jan. 31, 2003) (adopting Rule 206(4)–6). Change NASDAQ Trade Reporting Facility includes
4 See Report of the Securities and Exchange WebLink ACT or Nasdaq Workstation Post Trade,
Commission, Investment Trusts and Investment In its filing with the Commission, the and ACT Workstation. See Rule 7015(e).
5 The NASDAQ IPO Workstation provides
Companies, H.R. Doc. No. 279, 76th Cong., 2d Sess., Exchange included statements
subscribing member firms with the IPO Indicator
pt. 3, at 2581, 2589 (1939); Hearings on S.3580 concerning the purpose of and basis for service, which provides information on order
Before a Subcommittee of the Commission on the proposed rule change and discussed
Banking and Currency, 76th Cong., 3d Sess. 209, execution that would be received in an IPO during
212–23 (1940); Hearings on S. 3580 Before the the launch process.
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f(b).
Subcomm. of the Comm. on Banking and Currency,
76th Cong., 3d Sess. 322 (1940). 2 17 CFR 240.19b–4. 7 15 U.S.C. 78f(b)(5).
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![88312 Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices
in particular, in that it is designed to become effective pursuant to Section • Send an email to rule-comments@
promote just and equitable principles of 19(b)(3)(A)(iii) of the Act 8 and sec.gov. Please include File Number SR–
trade, to remove impediments to and subparagraph (f)(6) of Rule 19b–4 NASDAQ–2016–163 on the subject line.
perfect the mechanism of a free and thereunder.9
open market and a national market A proposed rule change filed under Paper Comments
system, and, in general to protect Rule 19b–4(f)(6) normally does not • Send paper comments in triplicate
investors and the public interest, by become operative for 30 days after the to Secretary, Securities and Exchange
clarifying applicability of rules whose date of its filing. However, Rule 19b– Commission, 100 F Street NE.,
current titles could confuse market 4(f)(6)(iii) 10 permits the Commission to
participants. Specifically, the Exchange Washington, DC 20549–1090.
designate a shorter time if such action
is eliminating the term ‘‘Access’’ and is consistent with the protection of All submissions should refer to File
replacing it with the phrase ‘‘Ports and investors and the public interest. The Number SR–NASDAQ–2016–163. This
other’’ because the new titles will more Exchange has requested that the file number should be included on the
accurately describe the depth and Commission waive the 30-day operative subject line if email is used. To help the
breadth of services provided to members delay so that the proposed rule change Commission process and review your
under Rule 7015 and Chapter XV, will become operative on filing. The comments more efficiently, please use
Section 3. As explained above, the Exchange stated that the proposed rule only one method. The Commission will
various connectivity and services change promotes the protection of post all comments on the Commission’s
offered under Rule 7015 and Chapter investors and the public interest by Internet Web site (http://www.sec.gov/
XV, Section 3, include services listed clarifying and harmonizing the
that are not related to connecting to the rules/sro.shtml). Copies of the
terminology used in the Exchange’s submission, all subsequent
Exchange such as TradeInfo, rules. Waiver of the operative delay
Specialized Services Related to FINRA/ amendments, all written statements
would allow the Exchange, without with respect to the proposed rule
NASDAQ Trade Reporting Facility, or delay, to rename the rules to make clear
the NASDAQ IPO Workstation. These change that are filed with the
what the rules cover, therefore, the
services allow members to view Commission, and all written
Commission believes that waiver of the
information and are not related to communications relating to the
30-day operative delay is consistent
connecting to the Exchange. Thus, the with the protection of investors and the proposed rule change between the
changes proposed herein do not impact public interest. Therefore, the Commission and any person, other than
the fees, connectivity or services Commission designates the proposed those that may be withheld from the
described under Rule 7015 and Chapter rule change to be operative upon public in accordance with the
XV, Section 3, but rather merely clarify filing.11 provisions of 5 U.S.C. 552, will be
and harmonize the terminology used to At any time within 60 days of the available for Web site viewing and
better align it with what is provided filing of such proposed rule change, the printing in the Commission’s Public
under the rules. Commission summarily may Reference Room, 100 F Street NE.,
B. Self-Regulatory Organization’s temporarily suspend such rule change if Washington, DC 20549 on official
Statement on Burden on Competition it appears to the Commission that such business days between the hours of
action is necessary or appropriate in the 10:00 a.m. and 3:00 p.m. Copies of such
The Exchange does not believe that
public interest, for the protection of filing also will be available for
the proposed rule change will impose
any burden on competition not investors, or otherwise in furtherance of inspection and copying at the principal
necessary or appropriate in furtherance the purposes of the Act. If the office of the Exchange. All comments
of the purposes of the Act. The Commission takes such action, the received will be posted without change;
Exchange believes that, to the extent it Commission shall institute proceedings the Commission does not edit personal
has any impact on competition, the to determine whether the proposed rule identifying information from
proposed change will promote change should be approved or submissions. You should submit only
competition by making it clear to all disapproved. information that you wish to make
market participants and exchange IV. Solicitation of Comments available publicly. All submissions
competitors what is provided under should refer to File Number SR–
Rule 7015 and Chapter XV, Section 3. Interested persons are invited to NASDAQ–2016–163, and should be
submit written data, views, and submitted on or before December 28,
C. Self-Regulatory Organization’s arguments concerning the foregoing, 2016.
Statement on Comments on the including whether the proposed rule
Proposed Rule Change Received From change is consistent with the Act. For the Commission, by the Division of
Members, Participants, or Others Comments may be submitted by any of Trading and Markets, pursuant to delegated
the following methods: authority.12
No written comments were either
solicited or received. Brent J. Fields,
Electronic Comments
Secretary.
III. Date of Effectiveness of the • Use the Commission’s Internet [FR Doc. 2016–29292 Filed 12–6–16; 8:45 am]
Proposed Rule Change and Timing for comment form (http://www.sec.gov/ BILLING CODE 8011–01–P
Commission Action rules/sro.shtml); or
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Because the foregoing proposed rule
change does not (i) significantly affect 8 15 U.S.C. 78s(b)(3)(A)(iii).
the protection of investors or the public 9 17 CFR 240.19b–4(f)(6).
interest; (ii) impose any significant 10 17 CFR 240.19b–4(f)(6)(iii).
11 For purposes only of waiving the 30-day
burden on competition; and (iii) become
operative delay, the Commission also has
operative for 30 days from the date on considered the proposed rule’s impact on
which it was filed, or such shorter time efficiency, competition, and capital formation. See
as the Commission may designate, it has 15 U.S.C. 78c(f). 12 17 CFR 200.30–3(a)(12).
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Document Created: 2016-12-07 05:31:26
Document Modified: 2016-12-07 05:31:26
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 88311 |
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