82 FR 27318 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Merge the OpenView Depth-of-Book Product Into TotalView
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 113 (June 14, 2017)
Federal Register Volume 82, Issue 113 (June 14, 2017)
| Page Range | 27318-27322 | |
| FR Document | 2017-12267 |
[Federal Register Volume 82, Number 113 (Wednesday, June 14, 2017)] [Notices] [Pages 27318-27322] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12267] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80891; File No. SR-NASDAQ-2017-054] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Merge the OpenView Depth-of-Book Product Into TotalView June 8, 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 May 26, 2017, 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, 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 merge the OpenView depth-of-book product into TotalView, and to amend the Exchange's fees at Rules 7023 and 7026 to reflect the merger of these two products, as described further below. The Exchange has designated the proposed amendments to be operative on August 1, 2017. 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend the Exchange's fees at Rules 7023 and 7026 to merge the OpenView depth-of-book product into TotalView. TotalView and OpenView TotalView, the Exchange's complete depth data feed product for Nasdaq-listed securities, provides every eligible order at every price level for all Nasdaq members, as well as Net Order Imbalance information.\3\ OpenView--almost universally purchased in conjunction with Nasdaq's other depth-of-book products, TotalView and Level 2 \4\-- provides the same information as TotalView for stocks listed on other exchanges. --------------------------------------------------------------------------- \3\ Net Order Imbalance information provides data relating to buy and sell interest at the open and close of the trading day, in the context of an Initial Public Offering, and after a trading halt. \4\ See Securities Exchange Act Release No. 79863 (January 23, 2017) 82 FR 8632 (January 27, 2017) (SR-NASDAQ-2017-004) (explaining that Level 2 will be retired as a separate product). --------------------------------------------------------------------------- TotalView and OpenView may be purchased through monthly subscription fees or enterprise license fees. Different fee structures apply if purchasers opt to view TotalView or OpenView using an Enhanced Display Solution (``EDS'') or utilize the data in a non-display fashion using a Managed Data Solution (``MDS''). The current fees associated with TotalView and OpenView that will be affected by the proposed changes, set forth in Rules 7023 and 7026, are as follows: 1. Per Subscriber Fees. Monthly Non-Professional per Subscriber fees are $14 for TotalView,\5\ and $1 for OpenView.\6\ Monthly Professional Subscriber fees are $70 for TotalView,\7\ and $6 for OpenView.\8\ --------------------------------------------------------------------------- \5\ Nasdaq Rule 7023(b)(2)(A). \6\ Nasdaq Rule 7023(b)(3)(A). \7\ Nasdaq Rule 7023(b)(2)(B). Fees are for Display Usage, or for Non-Display Usage based upon indirect access. \8\ Nasdaq Rule 7023(b)(3)(B). Fees are for Display Usage, or for Non-Display Usage based upon indirect access. --------------------------------------------------------------------------- 2. Professional Subscriber Fees for Non-Display Usage. The professional Subscriber fees for Non-Display Usage [[Page 27319]] based upon direct access set forth in Rule 7023(b)(4) allow for the purchase of all depth-of-book products, including TotalView, Level 2 and OpenView, for one fee.\9\ --------------------------------------------------------------------------- \9\ The Rule 7023(b)(4) fees are based on the number of Subscribers; the fee structure allows a Subscriber to obtain any combination of TotalView, Level 2 and OpenView, or all three products, for the same per Subscriber fee. --------------------------------------------------------------------------- 3. Enterprise License Fees. The enterprises [sic] license fees set forth in Nasdaq Rules 7023(c)(1) and (c)(2) allow for the purchase of TotalView and OpenView, and the enterprise license fees at 7023(c)(3) allow for the purchase of all three depth-of-book products, including TotalView, Level 2 and OpenView, under the same fee structure.\10\ --------------------------------------------------------------------------- \10\ The enterprise license fees set forth in Rules 7023(c)(1) and 7023(c)(2) are comprised of two components: An enterprise license fee and per-Subscriber monthly fees. A Distributor may obtain any combination of TotalView, Level 2 and OpenView, or all three products, for the same enterprise license and per-Subscriber monthly fees under Rules 7023(c)(1) and (c)(2). The fee structure set forth in Rule 7023(c)(3) is an enterprise license fee without per-Subscriber monthly fees. A Distributor may obtain any combination of TotalView, Level 2 and OpenView, or all three products, for the enterprise license fee set forth in Rule 7023(c)(3). --------------------------------------------------------------------------- 4. Per Subscriber Fees for Enhanced Display Solutions. The monthly fee for Professional Subscribers using EDS under Rule 7026(a)(1)(B) is $74 for TotalView and Level 2 and $6 for OpenView. Non-Professional Subscribers of EDS pay the applicable TotalView, Level 2 or OpenView rates.\11\ --------------------------------------------------------------------------- \11\ Nasdaq Rule 7026(a)(1)(B). --------------------------------------------------------------------------- 5. Enhanced Display Solution Enterprise License. The EDS enterprise license set forth in Rule 7026(a)(1)(C) allows TotalView and Level 2 to be distributed to an unlimited number of Professional Subscribers for $70, and OpenView for $6. 6. Managed Data Solutions. Rule 7026(b) sets forth a fee structure for MDS that applies the same fees for the distribution of TotalView, Level 2 and OpenView. Proposed Changes The Exchange proposes to amend the fees at Rules 7023 and 7026 to merge OpenView into TotalView. In substance, the Exchange will combine all fees for TotalView and OpenView into a single sum, without increasing the total price of the two products, and make a number of conforming changes to delete specific references to OpenView. The specific fee changes to Rules 7023 and 7026 are as follows: 1. Per Subscriber Fees. Monthly Non-Professional per Subscriber fees will be changed from $14 for TotalView \12\ and $1 for OpenView \13\ to $15 for TotalView, which will be redefined in current Rule 7023(a)(1)(C) to include OpenView data. Monthly Professional Subscriber fees will be changed from $70 for TotalView \14\ and $6 for OpenView \15\ to $76 for TotalView, which will include OpenView data. --------------------------------------------------------------------------- \12\ Nasdaq Rule 7023(b)(2)(A). \13\ Nasdaq Rule 7023(b)(3)(A). \14\ Nasdaq Rule 7023(b)(2)(B). Fees are for Display Usage, or for Non-Display Usage based upon indirect access. \15\ Nasdaq Rule 7023(b)(3)(B). --------------------------------------------------------------------------- 2. Professional Subscriber Fees for Non-Display Usage. There will be no substantive change to the Professional Subscriber fees for Non- Display Usage set forth in Nasdaq Rule 7023(b)(4), which already allows for the purchase of all three depth-of-book products, including OpenView, TotalView and Level 2, under the same fee structure. Explicit references to OpenView will be deleted as a technical, conforming change. 3. Enterprise License Fees. There will be no substantive change to the enterprises [sic] license fees set forth in Nasdaq Rules 7023(c)(1), (c)(2) and (c)(3), which already allow for the purchase of depth-of-book products, including OpenView and TotalView,\16\ for the same fee. Explicit references to OpenView will be deleted as a technical, conforming change. --------------------------------------------------------------------------- \16\ Level 2 data is included under Nasdaq Rule 7023(c)(3). --------------------------------------------------------------------------- 4. Per Subscriber Fees for Enhanced Display Solutions. The monthly fee for Professional Subscribers using EDS will be changed from $74 for TotalView and Level 2 and $6 for OpenView \17\ to $80 for TotalView, which will include all OpenView data, and Level 2. Non-Professional Subscribers of EDS will continue to pay at the applicable TotalView or Level 2 rates.\18\ Explicit references to OpenView will be deleted as a technical, conforming change. --------------------------------------------------------------------------- \17\ Nasdaq Rule 7026(a)(1)(B). \18\ Id. --------------------------------------------------------------------------- 5. Enhanced Display Solution Enterprise License. The monthly professional subscriber fee for purchasers of an enterprise license with EDS will be changed from $70 for TotalView and Level 2 and $6 for OpenView \19\ to $76 for TotalView, which will include all OpenView data, and Level 2. --------------------------------------------------------------------------- \19\ Nasdaq Rule 7026(a)(1)(C). --------------------------------------------------------------------------- 6. Managed Data Solutions. There will be no substantive change to the fee structure for MDS set forth in Rule 7026(b), which already allows for the distribution of all three depth-of-book products, including OpenView, TotalView and Level 2, under the same fee structure. Explicit references to OpenView will be deleted as a technical, conforming change. In addition to all of these changes, the definition of OpenView will be removed from the current Rule book at Rule 7023(a)(1)(B), and the data provided in OpenView will be added to the definition of TotalView currently in Rule 7023(a)(1)(C), which will be re-designated as Rule 7023(a)(1)(B). The proposed rule change will lower administrative costs and simplify the purchase of depth-of-book products, with no impact on fees for most customers. Almost all purchasers of depth products already purchase OpenView in conjunction with TotalView or Level 2, and prices will not change for these customers. Most of the limited number of customers purchasing TotalView or OpenView alone are in the process of phasing out the practice, and will not be materially affected by the proposed change. Depth-of-book customers that purchase TotalView and OpenView together have to manage separate reporting, billing and approvals for two products that they utilize as a single product. The resulting administrative burden applies to four separate categories of fees: (i) Non-Professional per Subscriber fees for TotalView \20\ and OpenView; \21\ (ii) Professional Subscriber fees for TotalView \22\ and OpenView; \23\ (iii) monthly fees for Professional and Non-Professional Subscribers using EDS; \24\ and (iv) monthly subscriber fees for purchasers of an EDS enterprise license.\25\ The proposed change will lessen the administrative burden on these customers--representing the bulk of depth-of-book purchasers--while leaving fees and product quality unaffected. --------------------------------------------------------------------------- \20\ Nasdaq Rule 7023(b)(2)(A). \21\ Nasdaq Rule 7023(b)(3)(A). \22\ Nasdaq Rule 7023(b)(2)(B). \23\ Nasdaq Rule 7023(b)(3)(B). \24\ Nasdaq Rule 7026(a)(1)(B). \25\ Nasdaq Rule 7026(a)(1)(C). --------------------------------------------------------------------------- Nasdaq has engaged in discussions with Distributors that purchase OpenView without TotalView or Level 2--or TotalView or Level 2 without OpenView--and determined that this practice is being phased out. This practice had its origins before Nasdaq became an Exchange, when Nasdaq did not trade a significant number of securities listed on other exchanges. Now, Nasdaq routinely trades the securities of other exchanges, and the rationale for this practice is obsolete. As such, Nasdaq does not expect merging OpenView into TotalView to have a long- term impact on customers that are [[Page 27320]] already in the process of deciding whether to purchase either both products, or neither, because of fundamental changes in the economic environment. The proposed fee change--which leaves the total cost of OpenView and TotalView unchanged--is unlikely to alter that decision. No transition time is needed to merge OpenView into TotalView--they are already offered in a compatible formats [sic] and Distributors require no time to modify their systems to accommodate the change. The proposed fees are optional in that they apply only to firms that elect to purchase these products. The proposed changes do not impact the cost of any other Nasdaq product. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\26\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\27\ 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. --------------------------------------------------------------------------- \26\ 15 U.S.C. 78f(b). \27\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Commission and the courts have repeatedly expressed their preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. In Regulation NMS, while adopting a series of steps to improve the current market model, the Commission highlighted the importance of market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system ``has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.'' \28\ --------------------------------------------------------------------------- \28\ See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting Release''). --------------------------------------------------------------------------- Likewise, in NetCoalition v. Securities and Exchange Commission \29\ (``NetCoalition'') the D.C. Circuit upheld the Commission's use of a market-based approach in evaluating the fairness of market data fees against a challenge claiming that Congress mandated a cost-based approach.\30\ As the court emphasized, the Commission ``intended in Regulation NMS that `market forces, rather than regulatory requirements' play a role in determining the market data . . . to be made available to investors and at what cost.'' \31\ --------------------------------------------------------------------------- \29\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010). \30\ See NetCoalition, at 534-535. \31\ Id. at 537. --------------------------------------------------------------------------- Further, ``[n]o one disputes that competition for order flow is `fierce.' . . . As the SEC explained, `[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution'; [and] `no exchange can afford to take its market share percentages for granted' because `no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers' . . . .'' \32\ --------------------------------------------------------------------------- \32\ Id. at 539 (quoting Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-21)). --------------------------------------------------------------------------- The Exchange believes that the proposal to integrate Nasdaq TotalView and OpenView into a single depth-of-book product is an equitable allocation of reasonable dues, fees or other charges. Almost all purchasers of Nasdaq depth-of-book products already treat TotalView and OpenView as a single, combined product, and the proposed changes will reduce administrative burden. Customers that do not currently purchase both products are already in the process of deciding whether to purchase either both products, or neither, and the proposed fee change--which leaves the total cost of OpenView and TotalView unchanged--is unlikely to alter that decision. The fees for TotalView and OpenView, like all proprietary data fees, are constrained by the Exchange's need to compete for order flow, and are subject to competition from other products and among broker-dealers for customers. If Nasdaq is incorrect in its assessment of these markets, there are no barriers to entry for competitors with substantially similar products. The Exchange believes that the proposed fee changes are an equitable allocation because the fees appropriately reflect the value of depth-of-market data to customers as well as industry practice in which most customers purchase the current versions of TotalView and OpenView concurrently. The proposed fee changes are not unfairly discriminatory because the Exchange will apply the same fee to all similarly-situated subscribers. 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. 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. The question of whether the prices of depth-of-view products are constrained by competitive forces was examined in 2016 by an Administrative Law Judge in an application for review by the Securities Industry and Financial Markets Association of actions taken by Self- Regulatory Organizations.\33\ After a four-day hearing and presentation of substantial evidence, the administrative law judge stated that ``competition plays a significant role in restraining exchange pricing of depth-of-book products'' \34\ because ``depth-of-book products from different exchanges function as substitutes for each other,'' \35\ and, as such, ``the threat of substitution from depth-of-book customers constrains their depth-of-book prices.'' \36\ In addition, the administrative law judge stated that ``[s]hifts in order flow and threats of shifting order flow provide a significant competitive force in the pricing of . . . depth-of-book data.'' \37\ As such, Nasdaq's depth-of-book fees are ``constrained by significant competitive forces.'' \38\ As an example of the impact of market forces on the price of proprietary data, the Exchange recently lowered the Nasdaq Basic enterprise license fee for the distribution of certain information by broker-dealers from $350,000 to $100,000.\39\ --------------------------------------------------------------------------- \33\ Securities Industry and Financial Markets Association, Initial Decision Release No. 1015, 2016 SEC LEXIS 2278 (A.L.J. June 1, 2016). \34\ Id. at 33. \35\ Id. \36\ Id. \37\ Id. at 37. \38\ Id. at 43. \39\ See Securities Exchange Act Release No. 79456 (December 2, 2016) 81 FR 88716 (December 8, 2016) (SR-NASDAQ-2016-162) (fee decrease for an enterprise license for the distribution of Nasdaq Basic to Non-Professional and Professional Subscribers with whom the broker-dealer has a brokerage relationship). --------------------------------------------------------------------------- [[Page 27321]] The proposed changes will integrate Nasdaq TotalView and OpenView into a single depth-of-book product. If the proposed product revisions are unattractive to market participants, it is likely that the Exchange will lose market share. Market forces constrain fees for TotalView, like all depth-of-book products, in three respects. First, all fees related to TotalView are constrained by competition among exchanges and other entities attracting order flow. Firms make decisions regarding depth-of-book products and other proprietary data based on the total cost of interacting with the Exchange, and order flow would be harmed by the supracompetitive pricing of any proprietary data product. Second, the prices of TotalView are constrained by the existence of substitutes that are offered, or may be offered, by entities that offer proprietary data. Third, competition among Distributors for customers will further constrain the cost of TotalView. Competition for Order Flow Fees related to TotalView are constrained by competition among exchanges and other entities seeking to attract order flow. Order flow is the ``life blood'' of the exchanges. Broker-dealers currently have numerous alternative venues for their order flow, including self- regulatory organization (``SRO'') markets, as well as internalizing broker-dealers (``BDs'') and various forms of alternative trading systems (``ATSs''), including dark pools and electronic communication networks (``ECNs''). Each SRO market competes to produce transaction reports via trade executions, and two FINRA-regulated Trade Reporting Facilities (``TRFs'') compete to attract internalized transaction reports. The existence of fierce competition for order flow implies a high degree of price sensitivity on the part of BDs, which may readily reduce costs by directing orders toward the lowest-cost trading venues. The level of competition and contestability in the market for order flow is demonstrated by the numerous examples of entrants that swiftly grew into some of the largest electronic trading platforms and proprietary data producers: Archipelago, Bloomberg Tradebook, Island, RediBook, Attain, TracECN, and the BATS exchanges. A proliferation of dark pools and other ATSs operate profitably with fragmentary shares of consolidated market volume. For a variety of reasons, competition from new entrants, especially for order execution, has increased dramatically over the last decade. Each SRO, TRF, ATS, and BD that competes for order flow is permitted to produce proprietary data products. Many currently do or have announced plans to do so, including NYSE, NYSE Amex, NYSE Arca, the BATS exchanges, and IEX. This is because Regulation NMS deregulated the market for proprietary data. While BDs had previously published their proprietary data individually, Regulation NMS encourages market data vendors and BDs to produce proprietary products cooperatively in a manner never before possible. Order routers and market data vendors can facilitate production of proprietary data products for single or multiple BDs. The potential sources of proprietary products are virtually limitless. The markets for order flow and proprietary data are inextricably linked: A trading platform cannot generate market information unless it receives trade orders. As a result, the competition for order flow constrains the prices that platforms can charge for proprietary data products. Firms make decisions on how much and what types of data to consume based on the total cost of interacting with Nasdaq and other exchanges. Data fees are but one factor in a total platform analysis. If the cost of the product exceeds its expected value, the broker- dealer will choose not to buy it. A supracompetitive increase in the fees charged for either transactions or proprietary data has the potential to impair revenues from both products. In this manner, the competition for order flow will constrain prices for proprietary data products. Substitute Products The price of depth-of-book data is constrained by the existence of competition from other exchanges, such as NYSE and the BATS exchanges, which sell proprietary depth-of-book data. While a small number of highly sophisticated traders purchase depth-of-book products from multiple exchanges, most customers do not. Because most customers would not pay an excessive price for TotalView when substitute data is available from other proprietary sources, the Exchange is constrained in its pricing decisions. Competition Among Distributors Competition among Distributors provides another form of price discipline for proprietary data products to ensure that fees are equitable, fair, reasonable and not unfairly discriminatory. If the price of TotalView were set above competitive levels, Distributors purchasing TotalView would be at a disadvantage relative to their competitors, and would therefore either purchase a substitute or forego the product altogether. In summary, market forces constrain the price of depth-of-book data such as TotalView through competition for order flow, competition from substitute products, and in the competition among vendors for customers. 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 \40\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\41\ --------------------------------------------------------------------------- \40\ 15 U.S.C. 78s(b)(3)(A)(iii). \41\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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: [[Page 27322]] 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-2017-054 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-2017-054. 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-NASDAQ-2017-054, and should be submitted on or before July 5, 2017. --------------------------------------------------------------------------- \42\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\42\ Robert W. Errett, Deputy Secretary. [FR Doc. 2017-12267 Filed 6-13-17; 8:45 am] BILLING CODE 8011-01-P
![27318 Federal Register / Vol. 82, No. 113 / Wednesday, June 14, 2017 / Notices
If the Commission takes such action, the For the Commission, by the Division of proposed rule change. The text of these
Commission shall institute proceedings Trading and Markets, pursuant to delegated statements may be examined at the
to determine whether the proposed rule authority.20 places specified in Item IV below. The
should be approved or disapproved. Robert W. Errett, Exchange has prepared summaries, set
Deputy Secretary. forth in sections A, B, and C below, of
IV. Solicitation of Comments [FR Doc. 2017–12265 Filed 6–13–17; 8:45 am] the most significant aspects of such
Interested persons are invited to BILLING CODE 8011–01–P statements.
submit written data, views, and A. Self-Regulatory Organization’s
arguments concerning the foregoing, Statement of the Purpose of, and the
including whether the proposed rule SECURITIES AND EXCHANGE
Statutory Basis for, the Proposed Rule
change is consistent with the Act. COMMISSION
Change
Comments may be submitted by any of [Release No. 34–80891; File No. SR–
NASDAQ–2017–054]
1. Purpose
the following methods:
The purpose of the proposed rule
Electronic Comments Self-Regulatory Organizations; The change is to amend the Exchange’s fees
NASDAQ Stock Market LLC; Notice of at Rules 7023 and 7026 to merge the
• Use the Commission’s Internet Filing and Immediate Effectiveness of OpenView depth-of-book product into
comment form (http://www.sec.gov/ Proposed Rule Change To Merge the TotalView.
rules/sro.shtml); or OpenView Depth-of-Book Product Into
• Send an email to rule-comments@ TotalView TotalView and OpenView
sec.gov. Please include File Number SR– TotalView, the Exchange’s complete
NASDAQ–2017–053 on the subject line. June 8, 2017. depth data feed product for Nasdaq-
Pursuant to Section 19(b)(1) of the listed securities, provides every eligible
Paper Comments Securities Exchange Act of 1934 order at every price level for all Nasdaq
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 members, as well as Net Order
• Send paper comments in triplicate notice is hereby given that on May 26,
to Brent J. Fields, Secretary, Securities Imbalance information.3 OpenView—
2017, The NASDAQ Stock Market LLC almost universally purchased in
and Exchange Commission, 100 F Street (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
NE., Washington, DC 20549–1090. conjunction with Nasdaq’s other depth-
Securities and Exchange Commission of-book products, TotalView and Level
All submissions should refer to File (‘‘SEC’’ or ‘‘Commission’’) the proposed 2 4—provides the same information as
Number SR–NASDAQ–2017–053. This rule change as described in Items I, II, TotalView for stocks listed on other
file number should be included on the and III below, which Items have been exchanges.
subject line if email is used. To help the prepared by the Exchange. The TotalView and OpenView may be
Commission process and review your Commission is publishing this notice to purchased through monthly
comments more efficiently, please use solicit comments on the proposed rule subscription fees or enterprise license
only one method. The Commission will change from interested persons. fees. Different fee structures apply if
post all comments on the Commission’s I. Self-Regulatory Organization’s purchasers opt to view TotalView or
Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of OpenView using an Enhanced Display
rules/sro.shtml). Copies of the the Proposed Rule Change Solution (‘‘EDS’’) or utilize the data in
submission, all subsequent a non-display fashion using a Managed
amendments, all written statements The Exchange proposes to merge the Data Solution (‘‘MDS’’). The current fees
with respect to the proposed rule OpenView depth-of-book product into associated with TotalView and
change that are filed with the TotalView, and to amend the OpenView that will be affected by the
Commission, and all written Exchange’s fees at Rules 7023 and 7026 proposed changes, set forth in Rules
communications relating to the to reflect the merger of these two 7023 and 7026, are as follows:
proposed rule change between the products, as described further below. 1. Per Subscriber Fees. Monthly Non-
Commission and any person, other than The Exchange has designated the Professional per Subscriber fees are $14
those that may be withheld from the proposed amendments to be operative for TotalView,5 and $1 for OpenView.6
public in accordance with the on August 1, 2017. Monthly Professional Subscriber fees
provisions of 5 U.S.C. 552, will be The text of the proposed rule change are $70 for TotalView,7 and $6 for
available for Web site viewing and is available on the Exchange’s Web site OpenView.8
printing in the Commission’s Public at http://nasdaq.cchwallstreet.com, at 2. Professional Subscriber Fees for
Reference Room, 100 F Street NE., the principal office of the Exchange, and Non-Display Usage. The professional
Washington, DC 20549 on official at the Commission’s Public Reference Subscriber fees for Non-Display Usage
business days between the hours of Room.
3 Net Order Imbalance information provides data
10:00 a.m. and 3:00 p.m. Copies of such II. Self-Regulatory Organization’s relating to buy and sell interest at the open and
filing also will be available for Statement of the Purpose of, and close of the trading day, in the context of an Initial
inspection and copying at the principal Statutory Basis for, the Proposed Rule Public Offering, and after a trading halt.
office of the Exchange. All comments Change 4 See Securities Exchange Act Release No. 79863
received will be posted without change; (January 23, 2017) 82 FR 8632 (January 27, 2017)
In its filing with the Commission, the (SR–NASDAQ–2017–004) (explaining that Level 2
the Commission does not edit personal
mstockstill on DSK30JT082PROD with NOTICES
Exchange included statements will be retired as a separate product).
identifying information from 5 Nasdaq Rule 7023(b)(2)(A).
concerning the purpose of and basis for
submissions. You should submit only 6 Nasdaq Rule 7023(b)(3)(A).
the proposed rule change and discussed
information that you wish to make 7 Nasdaq Rule 7023(b)(2)(B). Fees are for Display
any comments it received on the
available publicly. All submissions Usage, or for Non-Display Usage based upon
should refer to File Number SR– indirect access.
20 17 CFR 200.30–3(a)(12). 8 Nasdaq Rule 7023(b)(3)(B). Fees are for Display
NASDAQ–2017–053, and should be 1 15 U.S.C. 78s(b)(1). Usage, or for Non-Display Usage based upon
submitted on or before July 5, 2017. 2 17 CFR 240.19b–4. indirect access.
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![Federal Register / Vol. 82, No. 113 / Wednesday, June 14, 2017 / Notices 27319
based upon direct access set forth in $1 for OpenView 13 to $15 for OpenView will be deleted as a
Rule 7023(b)(4) allow for the purchase TotalView, which will be redefined in technical, conforming change.
of all depth-of-book products, including current Rule 7023(a)(1)(C) to include In addition to all of these changes, the
TotalView, Level 2 and OpenView, for OpenView data. Monthly Professional definition of OpenView will be removed
one fee.9 Subscriber fees will be changed from from the current Rule book at Rule
3. Enterprise License Fees. The $70 for TotalView 14 and $6 for 7023(a)(1)(B), and the data provided in
enterprises [sic] license fees set forth in OpenView 15 to $76 for TotalView, OpenView will be added to the
Nasdaq Rules 7023(c)(1) and (c)(2) allow which will include OpenView data. definition of TotalView currently in
for the purchase of TotalView and 2. Professional Subscriber Fees for Rule 7023(a)(1)(C), which will be re-
OpenView, and the enterprise license Non-Display Usage. There will be no designated as Rule 7023(a)(1)(B).
fees at 7023(c)(3) allow for the purchase substantive change to the Professional The proposed rule change will lower
of all three depth-of-book products, Subscriber fees for Non-Display Usage administrative costs and simplify the
including TotalView, Level 2 and set forth in Nasdaq Rule 7023(b)(4), purchase of depth-of-book products,
OpenView, under the same fee which already allows for the purchase with no impact on fees for most
structure.10 of all three depth-of-book products, customers. Almost all purchasers of
4. Per Subscriber Fees for Enhanced including OpenView, TotalView and depth products already purchase
Display Solutions. The monthly fee for Level 2, under the same fee structure. OpenView in conjunction with
Professional Subscribers using EDS Explicit references to OpenView will be TotalView or Level 2, and prices will
under Rule 7026(a)(1)(B) is $74 for deleted as a technical, conforming not change for these customers. Most of
TotalView and Level 2 and $6 for change. the limited number of customers
OpenView. Non-Professional 3. Enterprise License Fees. There will purchasing TotalView or OpenView
Subscribers of EDS pay the applicable be no substantive change to the alone are in the process of phasing out
TotalView, Level 2 or OpenView rates.11 enterprises [sic] license fees set forth in the practice, and will not be materially
5. Enhanced Display Solution Nasdaq Rules 7023(c)(1), (c)(2) and affected by the proposed change.
Enterprise License. The EDS enterprise (c)(3), which already allow for the Depth-of-book customers that
license set forth in Rule 7026(a)(1)(C) purchase of depth-of-book products, purchase TotalView and OpenView
allows TotalView and Level 2 to be including OpenView and TotalView,16 together have to manage separate
distributed to an unlimited number of for the same fee. Explicit references to reporting, billing and approvals for two
Professional Subscribers for $70, and OpenView will be deleted as a products that they utilize as a single
OpenView for $6. technical, conforming change. product. The resulting administrative
6. Managed Data Solutions. Rule 4. Per Subscriber Fees for Enhanced burden applies to four separate
7026(b) sets forth a fee structure for Display Solutions. The monthly fee for categories of fees: (i) Non-Professional
MDS that applies the same fees for the Professional Subscribers using EDS will per Subscriber fees for TotalView 20 and
distribution of TotalView, Level 2 and be changed from $74 for TotalView and OpenView; 21 (ii) Professional
OpenView. Level 2 and $6 for OpenView 17 to $80 Subscriber fees for TotalView 22 and
Proposed Changes for TotalView, which will include all OpenView; 23 (iii) monthly fees for
OpenView data, and Level 2. Non- Professional and Non-Professional
The Exchange proposes to amend the Professional Subscribers of EDS will
fees at Rules 7023 and 7026 to merge Subscribers using EDS; 24 and (iv)
continue to pay at the applicable monthly subscriber fees for purchasers
OpenView into TotalView. In substance,
TotalView or Level 2 rates.18 Explicit of an EDS enterprise license.25 The
the Exchange will combine all fees for
references to OpenView will be deleted proposed change will lessen the
TotalView and OpenView into a single
as a technical, conforming change. administrative burden on these
sum, without increasing the total price 5. Enhanced Display Solution
of the two products, and make a number customers—representing the bulk of
Enterprise License. The monthly depth-of-book purchasers—while
of conforming changes to delete specific professional subscriber fee for
references to OpenView. The specific leaving fees and product quality
purchasers of an enterprise license with unaffected.
fee changes to Rules 7023 and 7026 are EDS will be changed from $70 for
as follows: Nasdaq has engaged in discussions
TotalView and Level 2 and $6 for with Distributors that purchase
1. Per Subscriber Fees. Monthly Non-
OpenView 19 to $76 for TotalView, OpenView without TotalView or Level
Professional per Subscriber fees will be
changed from $14 for TotalView 12 and which will include all OpenView data, 2—or TotalView or Level 2 without
and Level 2. OpenView—and determined that this
9 The Rule 7023(b)(4) fees are based on the
6. Managed Data Solutions. There practice is being phased out. This
number of Subscribers; the fee structure allows a will be no substantive change to the fee practice had its origins before Nasdaq
Subscriber to obtain any combination of TotalView, structure for MDS set forth in Rule became an Exchange, when Nasdaq did
Level 2 and OpenView, or all three products, for the 7026(b), which already allows for the
same per Subscriber fee. not trade a significant number of
10 The enterprise license fees set forth in Rules
distribution of all three depth-of-book securities listed on other exchanges.
7023(c)(1) and 7023(c)(2) are comprised of two products, including OpenView, Now, Nasdaq routinely trades the
components: An enterprise license fee and per- TotalView and Level 2, under the same securities of other exchanges, and the
Subscriber monthly fees. A Distributor may obtain fee structure. Explicit references to rationale for this practice is obsolete. As
any combination of TotalView, Level 2 and
OpenView, or all three products, for the same such, Nasdaq does not expect merging
13 Nasdaq Rule 7023(b)(3)(A).
enterprise license and per-Subscriber monthly fees OpenView into TotalView to have a
mstockstill on DSK30JT082PROD with NOTICES
14 Nasdaq Rule 7023(b)(2)(B). Fees are for Display
under Rules 7023(c)(1) and (c)(2). The fee structure long-term impact on customers that are
set forth in Rule 7023(c)(3) is an enterprise license Usage, or for Non-Display Usage based upon
fee without per-Subscriber monthly fees. A indirect access.
15 Nasdaq Rule 7023(b)(3)(B). 20 Nasdaq Rule 7023(b)(2)(A).
Distributor may obtain any combination of
16 Level 2 data is included under Nasdaq Rule 21 Nasdaq Rule 7023(b)(3)(A).
TotalView, Level 2 and OpenView, or all three
products, for the enterprise license fee set forth in 7023(c)(3). 22 Nasdaq Rule 7023(b)(2)(B).
Rule 7023(c)(3). 17 Nasdaq Rule 7026(a)(1)(B). 23 Nasdaq Rule 7023(b)(3)(B).
11 Nasdaq Rule 7026(a)(1)(B). 18 Id. 24 Nasdaq Rule 7026(a)(1)(B).
12 Nasdaq Rule 7023(b)(2)(A). 19 Nasdaq Rule 7026(a)(1)(C). 25 Nasdaq Rule 7026(a)(1)(C).
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![27320 Federal Register / Vol. 82, No. 113 / Wednesday, June 14, 2017 / Notices
already in the process of deciding data . . . to be made available to inter-market competition, the Exchange
whether to purchase either both investors and at what cost.’’ 31 notes that it operates in a highly
products, or neither, because of Further, ‘‘[n]o one disputes that competitive market in which market
fundamental changes in the economic competition for order flow is ‘fierce.’ participants can readily favor competing
environment. The proposed fee . . . As the SEC explained, ‘[i]n the U.S. venues if they deem fee levels at a
change—which leaves the total cost of national market system, buyers and particular venue to be excessive. In such
OpenView and TotalView unchanged— sellers of securities, and the broker- an environment, the Exchange must
is unlikely to alter that decision. dealers that act as their order-routing continually adjust its fees to remain
No transition time is needed to merge agents, have a wide range of choices of competitive with other exchanges and
OpenView into TotalView—they are where to route orders for execution’; with alternative trading systems that
already offered in a compatible formats [and] ‘no exchange can afford to take its have been exempted from compliance
[sic] and Distributors require no time to market share percentages for granted’ with the statutory standards applicable
modify their systems to accommodate because ‘no exchange possesses a to exchanges. Because competitors are
the change. monopoly, regulatory or otherwise, in free to modify their own fees in
The proposed fees are optional in that the execution of order flow from broker response, and because market
they apply only to firms that elect to dealers’ . . . .’’ 32 participants may readily adjust their
purchase these products. The proposed The Exchange believes that the order routing practices, the Exchange
changes do not impact the cost of any proposal to integrate Nasdaq TotalView believes that the degree to which fee
other Nasdaq product. and OpenView into a single depth-of- changes in this market may impose any
book product is an equitable allocation burden on competition is extremely
2. Statutory Basis
of reasonable dues, fees or other limited.
The Exchange believes that its charges. Almost all purchasers of The question of whether the prices of
proposal is consistent with Section 6(b) Nasdaq depth-of-book products already depth-of-view products are constrained
of the Act,26 in general, and furthers the treat TotalView and OpenView as a by competitive forces was examined in
objectives of Sections 6(b)(4) and 6(b)(5) single, combined product, and the 2016 by an Administrative Law Judge in
of the Act,27 in particular, in that it proposed changes will reduce an application for review by the
provides for the equitable allocation of administrative burden. Customers that Securities Industry and Financial
reasonable dues, fees and other charges do not currently purchase both products Markets Association of actions taken by
among members and issuers and other are already in the process of deciding Self-Regulatory Organizations.33 After a
persons using any facility, and is not whether to purchase either both four-day hearing and presentation of
designed to permit unfair products, or neither, and the proposed substantial evidence, the administrative
discrimination between customers, fee change—which leaves the total cost law judge stated that ‘‘competition plays
issuers, brokers, or dealers. of OpenView and TotalView a significant role in restraining exchange
The Commission and the courts have unchanged—is unlikely to alter that pricing of depth-of-book products’’ 34
repeatedly expressed their preference decision. The fees for TotalView and because ‘‘depth-of-book products from
for competition over regulatory OpenView, like all proprietary data fees, different exchanges function as
intervention in determining prices, are constrained by the Exchange’s need substitutes for each other,’’ 35 and, as
products, and services in the securities to compete for order flow, and are such, ‘‘the threat of substitution from
markets. In Regulation NMS, while subject to competition from other depth-of-book customers constrains
adopting a series of steps to improve the products and among broker-dealers for their depth-of-book prices.’’ 36 In
current market model, the Commission customers. If Nasdaq is incorrect in its addition, the administrative law judge
highlighted the importance of market assessment of these markets, there are stated that ‘‘[s]hifts in order flow and
forces in determining prices and SRO no barriers to entry for competitors with threats of shifting order flow provide a
revenues and, also, recognized that substantially similar products. significant competitive force in the
current regulation of the market system The Exchange believes that the pricing of . . . depth-of-book data.’’ 37
‘‘has been remarkably successful in proposed fee changes are an equitable As such, Nasdaq’s depth-of-book fees
promoting market competition in its allocation because the fees are ‘‘constrained by significant
broader forms that are most important to appropriately reflect the value of depth- competitive forces.’’ 38 As an example of
investors and listed companies.’’ 28 of-market data to customers as well as the impact of market forces on the price
Likewise, in NetCoalition v. Securities industry practice in which most of proprietary data, the Exchange
and Exchange Commission 29 customers purchase the current versions recently lowered the Nasdaq Basic
(‘‘NetCoalition’’) the D.C. Circuit upheld of TotalView and OpenView enterprise license fee for the
the Commission’s use of a market-based concurrently. The proposed fee changes distribution of certain information by
approach in evaluating the fairness of are not unfairly discriminatory because broker-dealers from $350,000 to
market data fees against a challenge the Exchange will apply the same fee to $100,000.39
claiming that Congress mandated a cost- all similarly-situated subscribers.
based approach.30 As the court 33 Securities Industry and Financial Markets
B. Self-Regulatory Organization’s
emphasized, the Commission ‘‘intended Association, Initial Decision Release No. 1015, 2016
Statement on Burden on Competition SEC LEXIS 2278 (A.L.J. June 1, 2016).
in Regulation NMS that ‘market forces,
rather than regulatory requirements’ The Exchange does not believe that 34 Id. at 33.
35 Id.
play a role in determining the market the proposed rule change will impose
36 Id.
any burden on competition not
mstockstill on DSK30JT082PROD with NOTICES
37 Id. at 37.
26 15 U.S.C. 78f(b). necessary or appropriate in furtherance 38 Id. at 43.
27 15 U.S.C. 78f(b)(4) and (5). of the purposes of the Act. In terms of 39 See Securities Exchange Act Release No. 79456
28 See Securities Exchange Act Release No. 51808
(December 2, 2016) 81 FR 88716 (December 8, 2016)
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 31 Id.
at 537. (SR–NASDAQ–2016–162) (fee decrease for an
(‘‘Regulation NMS Adopting Release’’). 32 Id.
at 539 (quoting Securities Exchange Act enterprise license for the distribution of Nasdaq
29 NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir.
Release No. 59039 (December 2, 2008), 73 FR Basic to Non-Professional and Professional
2010). 74770, 74782–83 (December 9, 2008) (SR– Subscribers with whom the broker-dealer has a
30 See NetCoalition, at 534–535. NYSEArca–2006–21)). brokerage relationship).
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![27322 Federal Register / Vol. 82, No. 113 / Wednesday, June 14, 2017 / Notices
Electronic Comments SECURITIES AND EXCHANGE I. Self-Regulatory Organization’s
COMMISSION Statement of the Terms of Substance of
• Use the Commission’s Internet the Proposed Rule Change
comment form (http://www.sec.gov/
rules/sro.shtml); or
[Release No. 34–80762; File No. SR–DTC– The Exchange proposes to extend the
2017–007] operation of Penny Pilot Program
• Send an email to rule-comments@ through December 31, 2017. The text of
sec.gov. Please include File Number SR– Self-Regulatory Organizations; The the proposed rule change is provided
NASDAQ–2017–054 on the subject line. Depository Trust Company; Notice of below.
Filing and Immediate Effectiveness of (additions are in italics; deletions are
Paper Comments a Proposed Rule Change To Modify the [bracketed])
DTC Settlement Service Guide To Make
• Send paper comments in triplicate * * * * *
Technical Revisions To Clarify and
to Secretary, Securities and Exchange
Provide Enhanced Transparency With Chicago Board Options Exchange,
Commission, 100 F Street NE., Incorporated Rules
Respect to the Calculation and
Washington, DC 20549–1090. Adjustment of Required Participants * * * * *
All submissions should refer to File Fund Deposits
Number SR–NASDAQ–2017–054. This Rule 6.42. Minimum Increments for
May 24, 2017. Bids and Offers
file number should be included on the
subject line if email is used. To help the Correction The Board of Directors may establish
Commission process and review your In notice document 2017–11151, minimum increments for options traded
comments more efficiently, please use beginning on page 25038, in the issue of on the Exchange. When the Board of
only one method. The Commission will Wednesday, May 31, 2017, make the Directors determines to change the
post all comments on the Commission’s following correction: minimum increments, the Exchange
Internet Web site (http://www.sec.gov/ 1. On page 25041, in the first column, will designate such change as a stated
rules/sro.shtml). Copies of the in the last sentence, ‘‘June 20, 2017’’ policy, practice, or interpretation with
submission, all subsequent should read ‘‘June 21, 2017’’. respect to the administration of Rule
amendments, all written statements 6.42 within the meaning of
[FR Doc. C1–2017–11151 Filed 6–13–17; 8:45 am]
with respect to the proposed rule subparagraph (3)(A) of subsection 19(b)
BILLING CODE 1301–01–D
change that are filed with the of the Exchange Act and will file a rule
Commission, and all written change for effectiveness upon filing
with the Commission. Until such time
communications relating to the SECURITIES AND EXCHANGE
as the Board of Directors makes a
proposed rule change between the COMMISSION
change to the minimum increments, the
Commission and any person, other than following minimum increments shall
those that may be withheld from the [Release No. 34–80883; File No. SR–CBOE– apply to options traded on the
public in accordance with the 2017–045]
Exchange:
provisions of 5 U.S.C. 552, will be (1) No change.
available for Web site viewing and Self-Regulatory Organizations;
(2) No change.
printing in the Commission’s Public Chicago Board Options Exchange,
(3) The decimal increments for bids
Reference Room, 100 F Street NE., Incorporated; Notice of Filing and
and offers for all series of the option
Washington, DC 20549, on official Immediate Effectiveness of a Proposed
classes participating in the Penny Pilot
Rule Change Relating to the Penny
business days between the hours of Program are: $0.01 for all option series
Pilot Program
10:00 a.m. and 3:00 p.m. Copies of the quoted below $3 (including LEAPS),
filing also will be available for June 8, 2017. and $0.05 for all option series $3 and
inspection and copying at the principal Pursuant to Section 19(b)(1) of the above (including LEAPS). For QQQQs,
office of the Exchange. All comments Securities Exchange Act of 1934 (the IWM, and SPY, the minimum increment
received will be posted without change; ‘‘Act’’),1 and Rule 19b–4 thereunder,2 is $0.01 for all option series. The
the Commission does not edit personal notice is hereby given that on May 31, Exchange may replace any option class
identifying information from 2017, Chicago Board Options Exchange, participating in the Penny Pilot Program
submissions. You should submit only Incorporated (the ‘‘Exchange’’ or that has been delisted with the next
information that you wish to make ‘‘CBOE’’) filed with the Securities and most actively-traded, multiply-listed
available publicly. All submissions Exchange Commission (the option class, based on national average
should refer to File Number SR– ‘‘Commission’’) the proposed rule daily volume in the preceding six
NASDAQ–2017–054, and should be change as described in Items I and II, calendar months, that is not yet
below, which Items have been prepared included in the Pilot Program. Any
submitted on or before July 5, 2017.
by the Exchange. The Exchange filed the replacement class would be added on
For the Commission, by the Division of proposal as a ‘‘non-controversial’’ the second trading day following
Trading and Markets, pursuant to delegated proposed rule change pursuant to [January 1, 2017] July 1, 2017. The
authority.42 Section 19(b)(3)(A)(iii) of the Act 3 and Penny Pilot shall expire on [June 30,
Robert W. Errett, Rule 19b–4(f)(6) thereunder.4 The 2017] December 31, 2017.
Commission is publishing this notice to (4) No change.
mstockstill on DSK30JT082PROD with NOTICES
Deputy Secretary.
[FR Doc. 2017–12267 Filed 6–13–17; 8:45 am] solicit comments on the proposed rule . . . Interpretations and Policies:
BILLING CODE 8011–01–P change from interested persons.
.01–.04 No change.
1 15 U.S.C. 78s(b)(1). * * * * *
2 17 CFR 240.19b–4. The text of the proposed rule change
3 15 U.S.C. 78s(b)(3)(A)(iii). is also available on the Exchange’s Web
42 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6). site (http://www.cboe.com/AboutCBOE/
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Document Created: 2017-06-14 01:24:07
Document Modified: 2017-06-14 01:24:07
| 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 | 82 FR 27318 |
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