82 FR 12249 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Port-Related Fees at Rules 7015 and 7016(a) To Eliminate Prorated Billing
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 39 (March 1, 2017)
Federal Register Volume 82, Issue 39 (March 1, 2017)
| Page Range | 12249-12251 | |
| FR Document | 2017-03908 |
[Federal Register Volume 82, Number 39 (Wednesday, March 1, 2017)] [Notices] [Pages 12249-12251] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-03908] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80093; File No. SR-BX-2017-010] Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Port-Related Fees at Rules 7015 and 7016(a) To Eliminate Prorated Billing February 23, 2017. 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 February 9, 2017, NASDAQ BX, Inc. (``BX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Exchange's port-related fees at Rules 7015 and 7016(a) to eliminate prorated billing. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqbx.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 \3\ is to harmonize the billing practices for subscription to BX ports and other services provided under Rules 7015 \4\ and 7016(a) \5\ with those of the BX Options Market by no longer applying a prorated fee for subscriptions that are effective other than the first of any given month.\6\ The Exchange does not prorate BX Options Market [[Page 12250]] connectivity subscriptions; thus, Options Participants \7\ are assessed a full month's fee for a connectivity subscription if they direct the Exchange to make the subscribed connectivity live on any day of the month, including the last day thereof. The Exchange notes that the NASDAQ PHLX does not prorate port connectivity under both its equity and options rules.\8\ --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed pricing changes on February 1, 2017 (SR-BX-2017-003). On February 9, 2017, the Exchange withdrew that filing and submitted this filing. \4\ Rule 7015 is titled ``Ports and other Services'' and provides the options for connecting to the BX equity market together with the fees associated with such connectivity. \5\ Rule 7016(a) concerns the fees assessed for Pre-trade Risk Management service ports. Pre-trade Risk Management provides Members with the ability to set a wide range of parameters for orders to facilitate pre-trade protection for FIX, Rash, OUCH and FLITE ports. \6\ See BX Options Market Rules Chapter XV, Section 3(b). \7\ As defined by BX Options Market Rules Chapter I, Section 1(a)(41). \8\ See Securities Exchange Act Release No. 78665 (August 24, 2016), 81 FR 59693 (August 30, 2016) (SR-PHLX-2016-85) (eliminating prorated billing as applied to PSX ports under Access Services Fees). --------------------------------------------------------------------------- Currently, connectivity on BX's equity market under Rules 7015 and 7016(a) is prorated based on the day that it is activated, with the BX Member \9\ only fee liable for the remaining days of the partial month. The Exchange has found that prorating billing has resulted in complexity and increased costs associated with the billing process. As a consequence, the Exchange is harmonizing the billing process with that of the Exchange's Options market and is not permitting prorated billing effective February 1, 2017. --------------------------------------------------------------------------- \9\ As defined by Rule 0120(i). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\11\ 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, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that elimination of prorated fees under Rules 7015 and 7016(a) is reasonable because it will reduce complexity and costs associated with the billing process, and will harmonize it with the process applied to Options Participants. As noted above, Members are currently able to choose when they want a new connectivity subscription to become effective and thus make the determination of when they wish to become fee liable. Members will continue to choose when they become fee liable under the proposed change, but now the Exchange will assess the full month's fee regardless of when the port is subscribed. Thus, Members must weigh whether subscription to a service covered by the rules for less than a full month is worth the full monthly fee. The Exchange believes that elimination of prorated fees under Rules 7015 and 7016(a) is an equitable allocation and is not unfairly discriminatory because it will apply to all new subscribers to the port-related services under Rules 7015 and 7016(a), who are free to choose the date on which their subscription becomes active and thus fee liable. Moreover, the Exchange believes the proposed change is an equitable allocation and is not unfairly discriminatory because it will harmonize the billing process with that of the BX Options Market. Thus, the Exchange will apply the same process to both its Options Participants and Equities Members. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In this instance, although eliminating prorated fees for subscriptions under the rules may result in an increase in fees for new subscriptions to the extent a Member determines to subscribe to a service under Rules 7015 or 7016(a) on a day other than the first day of a given month, the Exchange notes that it is doing so to both simplify the process and harmonize it with the process applied to the Exchange's Options Participants. Moreover, Members may choose the day on which such services become effective and may therefore choose the first day of a month, which would result in no fee increase. Last, the proposed change does not impose a burden on competition because the Exchange's services are completely voluntary and subject to extensive competition both from other exchanges and from off-exchange venues. In sum, if the changes proposed herein are unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\12\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 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-BX-2017-010 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-BX-2017-010. This file number should be included on the subject line if email is used. To help the [[Page 12251]] 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-BX-2017-010 and should be submitted on or before March 22, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-03908 Filed 2-28-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 39 / Wednesday, March 1, 2017 / Notices 12249
PLACE:Commissioners’ Conference notice. For more information or to verify ‘‘Commission’’) the proposed rule
Room, 11555 Rockville Pike, Rockville, the status of meetings, contact Denise change as described in Items I, II, and
Maryland. McGovern at 301–415–0981 or via email III, below, which Items have been
STATUS: Public and Closed. at Denise.McGovern@nrc.gov. prepared by the Exchange. The
* * * * * Commission is publishing this notice to
Week of February 27, 2017 solicit comments on the proposed rule
The NRC Commission Meeting
Wednesday, March 1, 2017 Schedule can be found on the Internet change from interested persons.
10:00 a.m. Briefing on NRC at: http://www.nrc.gov/public-involve/ I. Self-Regulatory Organization’s
International Activities (Closed Ex. public-meetings/schedule.html. Statement of the Terms of Substance of
1 & 9). * * * * * the Proposed Rule Change
Thursday, March 2, 2017 The NRC provides reasonable The Exchange proposes to amend the
accommodation to individuals with Exchange’s port-related fees at Rules
9:00 a.m. Strategic Programmatic disabilities where appropriate. If you
Overview of the Fuel Facilities and 7015 and 7016(a) to eliminate prorated
need a reasonable accommodation to billing.
the Nuclear Materials Users participate in these public meetings, or
Business Lines (Public Meeting) The text of the proposed rule change
need this meeting notice or the is available on the Exchange’s Web site
(Contact: Soly Soto; 301–415–7528). transcript or other information from the at http://nasdaqbx.cchwallstreet.com/,
This meeting will be webcast live at public meetings in another format (e.g., at the principal office of the Exchange,
the Web address—http://www.nrc.gov/. braille, large print), please notify and at the Commission’s Public
Week of March 6, 2017—Tentative Kimberly Meyer, NRC Disability Reference Room.
Program Manager, at 301–287–0739, by
There are no meetings scheduled for videophone at 240–428–3217, or by II. Self-Regulatory Organization’s
the week of March 6, 2017. email at Kimberly.Meyer-Chambers@ Statement of the Purpose of, and
Week of March 13, 2017—Tentative nrc.gov. Determinations on requests for Statutory Basis for, the Proposed Rule
reasonable accommodation will be Change
There are no meetings scheduled for
the week of March 13, 2017. made on a case-by-case basis. In its filing with the Commission, the
* * * * * Exchange included statements
Week of March 20, 2017—Tentative Members of the public may request to concerning the purpose of and basis for
Thursday, March 23, 2017 receive this information electronically. the proposed rule change and discussed
If you would like to be added to the any comments it received on the
9:00 a.m. Hearing on Combined
distribution, please contact the Nuclear proposed rule change. The text of these
Licenses for North Anna Nuclear
Regulatory Commission, Office of the statements may be examined at the
Plant, Unit 3: Section 189a. of the
Secretary, Washington, DC 20555 (301– places specified in Item IV below. The
Atomic Energy Act Proceeding
415–1969), or email Exchange has prepared summaries, set
(Public Meeting), (Contact: James
Brenda.Akstulewicz@nrc.gov or forth in sections A, B, and C below, of
Shea: 301–415–1388).
Patricia.Jimenez@nrc.gov. the most significant aspects of such
This meeting will be webcast live at statements.
the Web address—http://www.nrc.gov/. Dated: February 24, 2017.
Denise L. McGovern, A. Self-Regulatory Organization’s
Friday, March 24, 2017 Policy Coordinator, Office of the Secretary. Statement of the Purpose of, and
10:00 a.m. Briefing on the Annual [FR Doc. 2017–04028 Filed 2–27–17; 11:15 am] Statutory Basis for, the Proposed Rule
Threat Environment (Closed Ex. 1). BILLING CODE 7590–01–P Change
Week of March 27, 2017—Tentative 1. Purpose
There are no meetings scheduled for The purpose of the proposed rule
the week of March 27, 2017. SECURITIES AND EXCHANGE
change 3 is to harmonize the billing
COMMISSION
Week of April 3, 2017—Tentative practices for subscription to BX ports
[Release No. 34–80093; File No. SR–BX– and other services provided under Rules
Tuesday, April 4, 2017 2017–010] 7015 4 and 7016(a) 5 with those of the
10:00 a.m. Meeting with the BX Options Market by no longer
Organization of Agreement States Self-Regulatory Organizations; applying a prorated fee for subscriptions
and the Conference of Radiation NASDAQ BX, Inc.; Notice of Filing and that are effective other than the first of
Control Program Directors (Public Immediate Effectiveness of Proposed any given month.6 The Exchange does
Meeting), (Contact: Paul Michalak: Rule Change To Amend the not prorate BX Options Market
301–415–5804). Exchange’s Port-Related Fees at Rules
7015 and 7016(a) To Eliminate Prorated 3 The Exchange initially filed the proposed
This meeting will be webcast live at
Billing pricing changes on February 1, 2017 (SR–BX–2017–
the Web address—http://www.nrc.gov/. 003). On February 9, 2017, the Exchange withdrew
February 23, 2017. that filing and submitted this filing.
Thursday, April 6, 2017 4 Rule 7015 is titled ‘‘Ports and other Services’’
Pursuant to Section 19(b)(1) of the
10:00 a.m. Meeting with Advisory and provides the options for connecting to the BX
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Securities Exchange Act of 1934 equity market together with the fees associated with
Committee on Reactor Safeguards (‘‘Act’’),1 and Rule 19b–4 thereunder,2 such connectivity.
(Public Meeting), (Contact: Mark notice is hereby given that on February 5 Rule 7016(a) concerns the fees assessed for Pre-
Banks: 301–415–3718). 9, 2017, NASDAQ BX, Inc. (‘‘BX’’ or trade Risk Management service ports. Pre-trade Risk
This meeting will be webcast live at ‘‘Exchange’’) filed with the Securities Management provides Members with the ability to
the Web address—http://www.nrc.gov/. set a wide range of parameters for orders to
and Exchange Commission (‘‘SEC’’ or facilitate pre-trade protection for FIX, Rash, OUCH
* * * * * and FLITE ports.
The schedule for Commission 1 15 U.S.C. 78s(b)(1). 6 See BX Options Market Rules Chapter XV,
meetings is subject to change on short 2 17 CFR 240.19b–4. Section 3(b).
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![Federal Register / Vol. 82, No. 39 / Wednesday, March 1, 2017 / Notices 12251
Commission process and review your SECURITIES AND EXCHANGE I. Summary of the Proposed Rule
comments more efficiently, please use COMMISSION Change
only one method. The Commission will
post all comments on the Commission’s [Release No. 34–80097; File No. SR– The Exchange states that it does not
NYSEMKT–2016–103] currently trade any securities on a UTP
Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the basis. The Exchange proposes new rules
Self-Regulatory Organizations; NYSE to trade all Tape A and Tape C symbols,
submission, all subsequent MKT LLC; Order Instituting on a UTP basis, on its new trading
amendments, all written statements Proceedings To Determine Whether To platform, Pillar.7 In addition, the
with respect to the proposed rule Approve or Disapprove a Proposed
Exchange proposes to adopt rules for the
change that are filed with the Rule Change Allowing the Exchange
trading of the following types of
Commission, and all written To Trade, Pursuant to Unlisted Trading
Exchange-Traded Products: 8 Equity
communications relating to the Privileges, Any NMS Stock Listed on
Linked Notes; Investment Company
proposed rule change between the Another National Securities Exchange;
Units; Index-Linked Exchangeable
Commission and any person, other than Establishing Rules for the Trading
Pursuant to UTP of Exchange-Traded Notes; Equity Gold Shares; Equity
those that may be withheld from the Index-Linked Securities; Commodity-
public in accordance with the Products; and Adopting New Equity
Trading Rules Relating to Trading Linked Securities; Currency-Linked
provisions of 5 U.S.C. 552, will be Securities; Fixed-Income Index-Linked
available for Web site viewing and Halts of Securities Traded Pursuant to
UTP on the Pillar Platform Securities; Futures-Linked Securities;
printing in the Commission’s Public Multifactor-Index-Linked Securities;
Reference Room, 100 F Street NE., February 24, 2017. Trust Certificates; Currency and Index
Washington, DC 20549, on official On November 17, 2016, NYSE MKT Warrants; Portfolio Depositary Receipts;
business days between the hours of LLC (‘‘Exchange’’) filed with the Trust Issued Receipts; Commodity-
10:00 a.m. and 3:00 p.m. Copies of the Securities and Exchange Commission Based Trust Shares; Currency Trust
filing also will be available for (‘‘Commission’’), pursuant to Section Shares; Commodity Index Trust Shares;
inspection and copying at the principal 19(b)(1) of the Securities Exchange Act Commodity Futures Trust Shares;
office of the Exchange. All comments of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and Partnership Units; Paired Trust Shares;
received will be posted without change; Rule 19b–4 thereunder,2 a proposed rule Trust Units; Managed Fund Shares; and
the Commission does not edit personal change to (1) allow the Exchange to Managed Trust Securities.9
identifying information from trade, pursuant to unlisted trading The Exchange represents that the
submissions. You should submit only privileges (‘‘UTP’’), any NMS Stock proposed rules for these ETPs are
information that you wish to make listed on another national securities substantially identical (other than with
available publicly. exchange; (2) establish rules for the respect to certain non-substantive and
All submissions should refer to File trading pursuant to UTP of exchange-
technical amendments) to the rules of
traded products (‘‘ETPs’’ or ‘‘Exchange-
Number SR–BX–2017–010 and should the NYSE Arca Equities exchange for
Traded Products’’); and (3) adopt new
be submitted on or before March 22, the qualification, listing, and trading of
equity trading rules relating to trading
2017. these ETPs.10
halts of securities traded pursuant to
For the Commission, by the Division of UTP on the Exchange’s Pillar trading According to the Exchange, it will
Trading and Markets, pursuant to delegated platform. The proposed rule change was trade securities pursuant to UTP only on
authority.13 published for comment in the Federal its Pillar platform, not on its current
Eduardo A. Aleman, Register on December 1, 2016.3 trading platform. Further, the Exchange
Assistant Secretary. On January 4, 2017, pursuant to states that it does not at this time intend
Section 19(b)(2) of the Act,4 the to list ETPs pursuant to the proposed
[FR Doc. 2017–03908 Filed 2–28–17; 8:45 am]
Commission designated a longer period rules. The Exchange does not propose to
BILLING CODE 8011–01–P
within which to approve the proposed change any of the current rules of the
rule change, disapprove the proposed Exchange pertaining to the listing and
rule change, or institute proceedings to trading of ETPs in the NYSE MKT
determine whether to approve or Company Guide or in its other rules.
disapprove the proposed rule change.5
The Commission has received no 7 According to the Exchange, on January 29, 2015,
comments on the proposed rule change. the Exchange announced the implementation of
Pillar, which is an integrated trading technology
This order institutes proceedings platform designed to use a single specification for
under Section 19(b)(2)(B) of the Act 6 to connecting to the equities and options markets
determine whether to approve or operated by the Exchange and its affiliates, NYSE
disapprove the proposed rule change. Arca, Inc. (‘‘NYSE Arca’’) and New York Stock
Exchange LLC. See Trader Update dated January 29,
2015, available at https://www.nyse.com/
1 15 U.S.C. 78s(b)(1). publicdocs/nyse/markets/nyse/Pillar_Trader_
2 17 CFR 240.19b–4. Update_Jan_2015.pdf.
3 See Securities Exchange Act Release No. 79400 8 The Exchange is proposing to define the term
asabaliauskas on DSK3SPTVN1PROD with NOTICES
(Nov. 25, 2016), 81 FR 86750 (Dec. 1, 2016) ‘‘Exchange Traded Product’’ to mean a security that
(‘‘Notice’’). meets the definition of ‘‘derivative securities
4 15 U.S.C. 78s(b)(2). product’’ in Rule 19b–4(e) under the Exchange Act.
5 See Securities Exchange Act Release No. 79738, This proposed definition is identical to the
82 FR 3068 (Jan. 10, 2017). The Commission definition of ‘‘Derivatives Securities Product’’ in
designated March 1, 2017, as the date by which it NYSE Arca Equities Rule 1.1(bbb).
should approve, disapprove, or institute 9 See Notice, supra note 3.
proceedings to determine whether to approve or 10 See Notice, supra note 3, at 86750, n.6 (citing
disapprove the proposed rule change. NYSE Arca Equities Rules 5 (Listings) and 8
13 17 CFR 200.30–3(a)(12). 6 15 U.S.C. 78s(b)(2)(B). (Trading of Certain Equities Derivatives)).
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Document Created: 2017-03-01 03:39:03
Document Modified: 2017-03-01 03:39:03
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 82 FR 12249 |
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