81 FR 95664 - Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Require That an Issuer of Securities Listed Under Chapter 16 Notify IEX About Certain Changes to the Index, Portfolio, or Reference Asset Underlying the Security
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 249 (December 28, 2016)
Federal Register Volume 81, Issue 249 (December 28, 2016)
| Page Range | 95664-95666 | |
| FR Document | 2016-31311 |
[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)] [Notices] [Pages 95664-95666] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31311] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79652; File No. SR-IEX-2016-21] Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Require That an Issuer of Securities Listed Under Chapter 16 Notify IEX About Certain Changes to the Index, Portfolio, or Reference Asset Underlying the Security December 21, 2016. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on December 15, 2016, the Investors Exchange LLC (``IEX'' or the ``Exchange'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Pursuant to the provisions of Section 19(b)(1) under the Securities Exchange Act of 1934 (``Act''),\4\ and Rule 19b-4 thereunder,\5\ Investors Exchange LLC (``IEX'' or ``Exchange'') is filing with the Securities and Exchange Commission (``Commission'' or ``SEC'') proposed rule changes to require that, among other things, an issuer of an ETP listed under Chapter 16 notify IEX about certain changes to the index, portfolio, or reference asset underlying the security. The Exchange has designated this proposal as non-controversial and provided the Commission with the notice required by Rule 19b-4(f)(6)(iii) under the Act.\6\ --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(1). \5\ 17 CFR 240.19b-4. \6\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.iextrading.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 self-regulatory organization 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 statement [sic] may be examined at the places specified in Item IV below. The self-regulatory organization 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 IEX listing rules require issuers to notify IEX about substitution listing events. Specifically, Rule 14.002(a)(32) defines a ``Substitution Listing Event'' \7\ as certain changes in the equity or legal structure of a company and Rule 14.207(e)(4) requires a listed company to provide notification to IEX about these events no later than 15 days before implementation of the event. These events generally would require IEX to review the entity for compliance with the applicable listing requirements. --------------------------------------------------------------------------- \7\ A ``Substitution Listing Event'' means: A reverse stock split, re-incorporation or a change in the Company's place of organization, the formation of a holding company that replaces a listed Company, reclassification or exchange of a Company's listed shares for another security, the listing of a new class of securities in substitution for a previously-listed class of securities or any technical change whereby the Shareholders of the original Company receive a share-for-share interest in the new Company without any change in their equity position or rights. --------------------------------------------------------------------------- IEX proposes to expand the definition of a Substitution Listing Event to include cases where an issuer of securities listed under Chapter 16 replaces, or significantly modifies, the index, portfolio, or reference asset underlying its security (including, but not limited to, a significant modification to the index methodology, a change in the index provider, or a change in control of the index provider). This type of change would require IEX to review the changes to the index, portfolio, or [[Page 95665]] reference asset for compliance with the applicable listing requirements and may require IEX to make a rule filing with the Commission to continue listing the product with the revised index, portfolio, or reference asset.\8\ --------------------------------------------------------------------------- \8\ Other types of changes may also require IEX to make a rule filing with the Commission to continue listing the changed product. --------------------------------------------------------------------------- IEX believes it is appropriate to require notification of these changes in the same manner as other Substitution Listing Events,\9\ which will increase to 15 days the time available to IEX to conduct its initial review of the revised index, portfolio, or reference asset underlying the security, evaluate compliance with the listing requirements, and determine if a rule filing is required.\10\ --------------------------------------------------------------------------- \9\ Listed companies would be required to provide notification of a Substitution Listing Event by filing the appropriate form as designated by the Exchange. See Rule 14.207(e)(4). \10\ Currently, at a minimum, IEX believes that an issuer must disclose such changes under Rule 14.207(b)(1), which requires public disclosure of any material information that would reasonably be expected to affect the value of its securities or influence investors' decisions, and must notify the Exchange's Regulation Department at least 10 minutes prior to such announcement. --------------------------------------------------------------------------- IEX also proposes to modify Rule 16.101 to highlight that certain changes to the index, portfolio, or reference asset underlying a security is a Substitution Listing Event that requires 15 calendar days' notice. The new language also emphasizes that such a change may affect the company's compliance with the listing requirements and may require IEX to file a new rule filing pursuant to Section 19(b)(1) of the Act \11\ and for such rule filing to be approved by the SEC or otherwise take effect (as applicable), before the product can be listed or traded. The new rule language also indicates that IEX will halt trading if a company effectuates a change that requires such a filing before it is approved by the SEC or otherwise takes effect (as applicable). The new rule language would also indicate that IEX will commence delisting proceedings if a company effectuates a change in the case where IEX determines not to submit a rule filing or withdraws a rule filing, or where the SEC disapproves a rule filing.\12\ The proposed rule changes are substantially identical to recent changes to Nasdaq Stock Market LLC (``Nasdaq'') rules.\13\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(1). \12\ The proposed rule change would also add language to Rule 16.101 to encourage companies to consult with IEX staff sufficiently in advance of such changes to allow review and preparation of a rule filing and SEC approval, if necessary, and to clarify that IEX has sole discretion as to whether it chooses to submit a rule filing and, if submitted, whether to withdraw such rule filing. \13\ See Securities Exchange Act Release No. 77706 (April 26, 2016), 81 FR 26275 (May 2, 2016) (SR-NASDAQ-2016-059). --------------------------------------------------------------------------- The Exchange does not currently list any ETPs. The proposed rule changes would be applicable in the event IEX lists ETPs. 2. Statutory Basis IEX believes that the proposed rule change is consistent with Section 6(b) \14\ of the Act in general, and furthers the objectives of Section 6(b)(5) of the Act,\15\ in particular, in that it 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 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. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f. \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- IEX believes that the proposed requirement that an issuer of securities that would be listed under Chapter 16 notify IEX 15 calendar days in advance of certain changes to the index, portfolio, or reference asset underlying the security is consistent with the investor protection objectives of Section 6(b)(5) of the Act. Specifically, the proposed change will help to ensure that IEX has sufficient time to review the revised index, portfolio, or reference asset and determine whether the product complies with IEX's listing requirements and whether a rule filing must be filed by IEX pursuant to Section 19(b)(1) of the Act and approved by the Commission or otherwise take effect (as applicable), which will help protect investors. Similarly, the provisions that provide that IEX will (i) halt trading if a company effectuates a change that requires such a filing before it is approved by the SEC or otherwise takes effect (as applicable); and (ii) commence delisting proceedings if a company effectuates a change in the case where IEX determines not to submit a rule filing or withdraws a rule filing, or where the SEC disapproves a rule filing are consistent with the public interest and the protection of investors because they is [sic] designed to enable the Exchange to ensure that the necessary rule filings regarding IEX listed ETPs are approved or otherwise take effect (as applicable). B. Self-Regulatory Organization's Statement on Burden on Competition IEX does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not based on competitive factors, but rather is designed to ensure that IEX staff would have adequate time to review a change to an index, portfolio, or reference asset for compliance with the listing requirements and to file and obtain approval or effectiveness of a rule change, if necessary. As such, the Exchange believes that the proposed change will have no impact on competition. 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 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, it has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- 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. 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 [[Page 95666]] 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-IEX-2016-21 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-IEX-2016-21. 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 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-IEX-2016-21 and should be submitted on or before January 18, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-31311 Filed 12-27-16; 8:45 am] BILLING CODE 8011-01-P
![95664 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices
would have an equal opportunity to provisions, policies and purposes of the notice required by Rule 19b–4(f)(6)(iii)
borrow and lend on equal terms based Act and the extent to which such under the Act.6
on an interest rate formula that is participation is on a basis different from The text of the proposed rule change
objective and verifiable. With respect to or less advantageous than that of the is available at the Exchange’s Web site
the relief from section 17(a)(2) of the other participants. at www.iextrading.com, at the principal
Act, applicants note that any collateral For the Commission, by the Division of office of the Exchange, and at the
pledged to secure an interfund loan Investment Management, under delegated Commission’s Public Reference Room.
would be subject to the same conditions authority. II. Self-Regulatory Organization’s
imposed by any other lender to a Fund Robert W. Errett, Statement of the Purpose of, and
that imposes conditions on the quality Deputy Secretary. Statutory Basis for, the Proposed Rule
of or access to collateral for a borrowing [FR Doc. 2016–31290 Filed 12–27–16; 8:45 am] Change
(if the lender is another Fund) or the BILLING CODE 8011–01–P
same or better conditions (in any other In its filing with the Commission, the
circumstance).5 self-regulatory organization included
5. Applicants also believe that the statements concerning the purpose of
SECURITIES AND EXCHANGE
limited relief from section 18(f)(1) of the and basis for the proposed rule change
COMMISSION and discussed any comments it received
Act that is necessary to implement the
facility (because the lending Funds are [Release No. 34–79652; File No. SR–IEX– on the proposed rule change. The text
2016–21] of these statement [sic] may be
not banks) is appropriate in light of the
conditions and safeguards described in examined at the places specified in Item
Self-Regulatory Organizations; IV below. The self-regulatory
the application and because the Funds Investors Exchange LLC; Notice of
would remain subject to the organization has prepared summaries,
Filing and Immediate Effectiveness of set forth in Sections A, B, and C below,
requirement of section 18(f)(1) that all Proposed Rule Change To Require
borrowings of a Fund, including of the most significant aspects of such
That an Issuer of Securities Listed statements.
combined interfund loans and bank Under Chapter 16 Notify IEX About
borrowings, have at least 300% asset Certain Changes to the Index, A. Self-Regulatory Organization’s
coverage. Portfolio, or Reference Asset Statement of the Purpose of, and
6. Section 6(c) of the Act permits the Underlying the Security Statutory Basis for, the Proposed Rule
Commission to exempt any persons or Change
transactions from any provision of the December 21, 2016.
Act if such exemption is necessary or Pursuant to Section 19(b)(1) 1 of the 1. Purpose
appropriate in the public interest and Securities Exchange Act of 1934 (the IEX listing rules require issuers to
consistent with the protection of ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notify IEX about substitution listing
investors and the purposes fairly notice is hereby given that, on December events. Specifically, Rule 14.002(a)(32)
intended by the policy and provisions of 15, 2016, the Investors Exchange LLC defines a ‘‘Substitution Listing Event’’ 7
the Act. Section 12(d)(1)(J) of the Act (‘‘IEX’’ or the ‘‘Exchange’’) filed with the as certain changes in the equity or legal
provides that the Commission may Securities and Exchange Commission structure of a company and Rule
exempt any person, security, or (the ‘‘Commission’’) the proposed rule 14.207(e)(4) requires a listed company
transaction, or any class or classes of change as described in Items I and II to provide notification to IEX about
persons, securities, or transactions, from below, which Items have been prepared these events no later than 15 days before
any provision of section 12(d)(1) if the by the self-regulatory organization. The implementation of the event. These
exemption is consistent with the public Commission is publishing this notice to events generally would require IEX to
interest and the protection of investors. solicit comments on the proposed rule review the entity for compliance with
Section 17(b) of the Act authorizes the change from interested persons. the applicable listing requirements.
Commission to grant an order IEX proposes to expand the definition
I. Self-Regulatory Organization’s of a Substitution Listing Event to
permitting a transaction otherwise
Statement of the Terms of Substance of include cases where an issuer of
prohibited by section 17(a) if it finds
the Proposed Rule Change securities listed under Chapter 16
that (a) the terms of the proposed
transaction are fair and reasonable and Pursuant to the provisions of Section replaces, or significantly modifies, the
do not involve overreaching on the part 19(b)(1) under the Securities Exchange index, portfolio, or reference asset
of any person concerned; (b) the Act of 1934 (‘‘Act’’),4 and Rule 19b–4 underlying its security (including, but
proposed transaction is consistent with thereunder,5 Investors Exchange LLC not limited to, a significant modification
the policies of each registered (‘‘IEX’’ or ‘‘Exchange’’) is filing with the to the index methodology, a change in
investment company involved; and (c) Securities and Exchange Commission the index provider, or a change in
the proposed transaction is consistent (‘‘Commission’’ or ‘‘SEC’’) proposed rule control of the index provider). This type
with the general purposes of the Act. changes to require that, among other of change would require IEX to review
Rule 17d–1(b) under the Act provides things, an issuer of an ETP listed under the changes to the index, portfolio, or
that in passing upon an application filed Chapter 16 notify IEX about certain
6 17 CFR 240.19b–4(f)(6)(iii).
under the rule, the Commission will changes to the index, portfolio, or
7A ‘‘Substitution Listing Event’’ means: A reverse
consider whether the participation of reference asset underlying the security.
stock split, re-incorporation or a change in the
the registered investment company in a The Exchange has designated this Company’s place of organization, the formation of
sradovich on DSK3GMQ082PROD with NOTICES
joint enterprise, joint arrangement or proposal as non-controversial and a holding company that replaces a listed Company,
profit sharing plan on the basis provided the Commission with the reclassification or exchange of a Company’s listed
shares for another security, the listing of a new class
proposed is consistent with the of securities in substitution for a previously-listed
1 15 U.S.C. 78s(b)(1).
2 15
class of securities or any technical change whereby
5 Applicants state that any pledge of securities to U.S.C. 78a. the Shareholders of the original Company receive
3 17 CFR 240.19b–4.
secure an interfund loan could constitute a a share-for-share interest in the new Company
4 15 U.S.C. 78s(b)(1).
purchase of securities for purposes of section without any change in their equity position or
17(a)(2) of the Act. 5 17 CFR 240.19b–4. rights.
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![Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 95665
reference asset for compliance with the changes to Nasdaq Stock Market LLC B. Self-Regulatory Organization’s
applicable listing requirements and may (‘‘Nasdaq’’) rules.13 Statement on Burden on Competition
require IEX to make a rule filing with The Exchange does not currently list IEX does not believe that the
the Commission to continue listing the any ETPs. The proposed rule changes proposed rule change will result in any
product with the revised index, would be applicable in the event IEX burden on competition that is not
portfolio, or reference asset.8 lists ETPs. necessary or appropriate in furtherance
IEX believes it is appropriate to of the purposes of the Act.
2. Statutory Basis The proposed rule change is not based
require notification of these changes in
the same manner as other Substitution on competitive factors, but rather is
IEX believes that the proposed rule
Listing Events,9 which will increase to designed to ensure that IEX staff would
change is consistent with Section 6(b) 14
have adequate time to review a change
15 days the time available to IEX to of the Act in general, and furthers the
to an index, portfolio, or reference asset
conduct its initial review of the revised objectives of Section 6(b)(5) of the Act,15
for compliance with the listing
index, portfolio, or reference asset in particular, in that it is designed to requirements and to file and obtain
underlying the security, evaluate prevent fraudulent and manipulative approval or effectiveness of a rule
compliance with the listing acts and practices, to promote just and change, if necessary. As such, the
requirements, and determine if a rule equitable principles of trade, to foster Exchange believes that the proposed
filing is required.10 cooperation and coordination with change will have no impact on
IEX also proposes to modify Rule persons engaged in facilitating competition.
16.101 to highlight that certain changes transactions in securities, to remove
impediments to and perfect the C. Self-Regulatory Organization’s
to the index, portfolio, or reference asset Statement on Comments on the
underlying a security is a Substitution mechanism of a free and open market
and a national market system and, in Proposed Rule Change Received From
Listing Event that requires 15 calendar Members, Participants, or Others
general, to protect investors and the
days’ notice. The new language also
public interest. Written comments were neither
emphasizes that such a change may
IEX believes that the proposed solicited nor received.
affect the company’s compliance with
the listing requirements and may requirement that an issuer of securities III. Date of Effectiveness of the
require IEX to file a new rule filing that would be listed under Chapter 16 Proposed Rule Change and Timing for
pursuant to Section 19(b)(1) of the Act 11 notify IEX 15 calendar days in advance Commission Action
and for such rule filing to be approved of certain changes to the index,
Because the proposed rule change
by the SEC or otherwise take effect (as portfolio, or reference asset underlying
does not: (i) Significantly affect the
applicable), before the product can be the security is consistent with the
protection of investors or the public
listed or traded. The new rule language investor protection objectives of Section
interest; (ii) impose any significant
also indicates that IEX will halt trading 6(b)(5) of the Act. Specifically, the
burden on competition; and (iii) become
proposed change will help to ensure
if a company effectuates a change that operative for 30 days from the date on
that IEX has sufficient time to review which it was filed, or such shorter time
requires such a filing before it is
the revised index, portfolio, or reference as the Commission may designate if
approved by the SEC or otherwise takes
asset and determine whether the consistent with the protection of
effect (as applicable). The new rule
product complies with IEX’s listing investors and the public interest, it has
language would also indicate that IEX requirements and whether a rule filing
will commence delisting proceedings if become effective pursuant to Section
must be filed by IEX pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–
a company effectuates a change in the 19(b)(1) of the Act and approved by the
case where IEX determines not to 4(f)(6) thereunder.16
Commission or otherwise take effect (as At any time within 60 days of the
submit a rule filing or withdraws a rule applicable), which will help protect
filing, or where the SEC disapproves a filing of the proposed rule change, the
investors. Similarly, the provisions that Commission summarily may
rule filing.12 The proposed rule changes provide that IEX will (i) halt trading if temporarily suspend such rule change if
are substantially identical to recent a company effectuates a change that it appears to the Commission that such
requires such a filing before it is action is necessary or appropriate in the
8 Other types of changes may also require IEX to
approved by the SEC or otherwise takes public interest, for the protection of
make a rule filing with the Commission to continue
listing the changed product.
effect (as applicable); and (ii) commence investors, or otherwise in furtherance of
9 Listed companies would be required to provide delisting proceedings if a company the purposes of the Act. If the
notification of a Substitution Listing Event by filing effectuates a change in the case where Commission takes such action, the
the appropriate form as designated by the Exchange. IEX determines not to submit a rule Commission shall institute proceedings
See Rule 14.207(e)(4). filing or withdraws a rule filing, or
10 Currently, at a minimum, IEX believes that an to determine whether the proposed rule
issuer must disclose such changes under Rule
where the SEC disapproves a rule filing change should be approved or
14.207(b)(1), which requires public disclosure of are consistent with the public interest disapproved.
any material information that would reasonably be and the protection of investors because
expected to affect the value of its securities or they is [sic] designed to enable the IV. Solicitation of Comments
influence investors’ decisions, and must notify the
Exchange’s Regulation Department at least 10 Exchange to ensure that the necessary Interested persons are invited to
minutes prior to such announcement. rule filings regarding IEX listed ETPs are submit written data, views and
sradovich on DSK3GMQ082PROD with NOTICES
11 15 U.S.C. 78s(b)(1). approved or otherwise take effect (as
12 The proposed rule change would also add
applicable). 16 17 CFR 240.19b–4(f)(6). As required under Rule
language to Rule 16.101 to encourage companies to 19b–4(f)(6)(iii), the Exchange provided the
consult with IEX staff sufficiently in advance of Commission with written notice of its intent to file
13 See Securities Exchange Act Release No. 77706
such changes to allow review and preparation of a the proposed rule change, along with a brief
rule filing and SEC approval, if necessary, and to (April 26, 2016), 81 FR 26275 (May 2, 2016) (SR– description and the text of the proposed rule
clarify that IEX has sole discretion as to whether it NASDAQ–2016–059). change, at least five business days prior to the date
14 15 U.S.C. 78f.
chooses to submit a rule filing and, if submitted, of filing of the proposed rule change, or such
whether to withdraw such rule filing. 15 15 U.S.C. 78f(b)(5). shorter time as designated by the Commission.
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![95666 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices
arguments concerning the foregoing, SECURITIES AND EXCHANGE at the Commission’s Public Reference
including whether the proposed rule COMMISSION Room.
change is consistent with the Act.
II. Self-Regulatory Organization’s
Comments may be submitted by any of [Release No. 34–79649; File No. SR–
NASDAQ–2016–172]
Statement of the Purpose of, and
the following methods: Statutory Basis for, the Proposed Rule
Electronic Comments Self-Regulatory Organizations; The Change
• Use the Commission’s Internet NASDAQ Stock Market LLC; Notice of In its filing with the Commission, the
comment form (http://www.sec.gov/ Filing and Immediate Effectiveness of Exchange included statements
rules/sro.shtml); or Proposed Rule Change To Modify concerning the purpose of and basis for
Administrative Charges for the proposed rule change and discussed
• Send an email to rule-comments@
Distributors of Proprietary Data Feed any comments it received on the
sec.gov. Please include File Number SR–
Products proposed rule change. The text of these
IEX–2016–21 on the subject line.
statements may be examined at the
Paper Comments December 21, 2016. places specified in Item IV below. The
Pursuant to Section 19(b)(1) of the Exchange has prepared summaries, set
• Send paper comments in triplicate Securities Exchange Act of 1934 forth in sections A, B, and C below, of
to Secretary, Securities and Exchange (‘‘Act’’),1 and Rule 19b–4 thereunder,2 the most significant aspects of such
Commission, 100 F Street NE., notice is hereby given that on December statements.
Washington, DC 20549–1090. 14, 2016, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed A. Self-Regulatory Organization’s
All submissions should refer to File
with the Securities and Exchange Statement of the Purpose of, and
Number SR–IEX–2016–21. This file
Commission (‘‘SEC’’ or ‘‘Commission’’) Statutory Basis for, the Proposed Rule
number should be included on the
the proposed rule change as described Change
subject line if email is used. To help the
Commission process and review your in Items I, II, and III below, which Items 1. Purpose
comments more efficiently, please use have been prepared by the Exchange.
The purpose of the proposed rule
only one method. The Commission will The Commission is publishing this
change is to change the billing cycle for
post all comments on the Commission’s notice to solicit comments on the
administrative fees paid by distributors
Internet Web site (http://www.sec.gov/ proposed rule change from interested
of Nasdaq market data from annual to
rules/sro.shtml). Copies of the persons.
monthly, and to: (1) Replace the current
submission, all subsequent I. Self-Regulatory Organization’s $500 annual administrative fee assessed
amendments, all written statements Statement of the Terms of the Substance to distributors of delayed market data
with respect to the proposed rule of the Proposed Rule Change with a $50 monthly administrative fee,
change that are filed with the and (2) replace the current $1,000
Commission, and all written The Exchange proposes to amend the
annual administrative fee assessed to
communications relating to the Exchange’s data fees at Rule 7035 to
distributors of real-time market data
proposed rule change between the change the billing cycle for
with a $100 monthly administrative fee.
Commission and any person, other than administrative fees paid by distributors
those that may be withheld from the of Nasdaq market data from annual to Annual Administrative Fee
public in accordance with the monthly, and to: (1) Replace the current Nasdaq assesses an annual
provisions of 5 U.S.C. 552, will be $500 annual administrative fee assessed administrative fee to any market data
available for Web site viewing and to distributors of delayed market data distributor that receives a proprietary
printing in the Commission’s Public with a $50 monthly administrative fee, market data product. The amount of that
Reference Room, 100 F Street NE., and (2) replace the current $1,000 fee is $500 for delayed market data and
Washington, DC 20549, on official annual administrative fee assessed to $1,000 for real-time market data.
business days between the hours of distributors of real-time market data Distributors of both delayed and real-
10:00 a.m. and 3:00 p.m. Copies of the with a $100 monthly administrative fee. time market data are not required to pay
filing also will be available for The proposal is described further both fees; they are charged only the
inspection and copying at the principal below.3 higher fee. The time difference between
office of the Exchange. All comments While these amendments are effective ‘‘delayed’’ and ‘‘real-time’’ data varies
received will be posted without change; upon filing, the Exchange has by product. Nasdaq Basic data, for
the Commission does not edit personal designated the proposed amendments to example, is considered delayed after 15
identifying information from be operative on January 1, 2017. minutes, while data from the Nasdaq
submissions. You should submit only The text of the proposed rule change Market Pathfinders Service is
information that you wish to make is available on the Exchange’s Web site considered delayed after 24 hours. The
available publicly. All submissions at http://nasdaq.cchwallstreet.com, at specific delay interval applicable to
should refer to File Number SR–IEX– the principal office of the Exchange, and each product is published on the
2016–21 and should be submitted on or Nasdaq Trader Web site. The fee is not
before January 18, 2017. 1 15 U.S.C. 78s(b)(1). prorated if the distributor receives the
2 17 CFR 240.19b–4. data feed for less than a year.
For the Commission, by the Division of 3 NASDAQ BX, Inc. and NASDAQ PHLX LLC are
Trading and Markets, pursuant to delegated filing companion proposals similar to this one. All Proposed Changes
sradovich on DSK3GMQ082PROD with NOTICES
authority.17 three proposals will change the billing cycle for
administrative fees paid by distributors of market
The Exchange proposes to change the
Eduardo A. Aleman, billing cycle for administrative fees paid
data from annual to monthly, and will: (1) replace
Assistant Secretary. the current $500 annual administrative fee assessed by distributors of Nasdaq market data
[FR Doc. 2016–31311 Filed 12–27–16; 8:45 am] to distributors of delayed market data with a $50 from annual to monthly, and to: (1)
monthly administrative fee, and (2) replace the
BILLING CODE 8011–01–P
current $1,000 annual administrative fee assessed to
replace the current $500 annual
distributors of real-time market data with a $100 administrative fee assessed to
17 17 CFR 200.30–3(a)(12). monthly administrative fee. distributors of delayed market data with
VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1](https://thefederalregister.org/doc/81_FR_95913/page/3.svg)
Document Created: 2016-12-28 02:16:28
Document Modified: 2016-12-28 02:16:28
| 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 95664 |
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