83 FR 28039 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Descriptions of Certain Data Feeds Within the Nasdaq Options Market

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 116 (June 15, 2018)

[Federal Register Volume 83, Number 116 (Friday, June 15, 2018)]
[Notices]
[Pages 28039-28041]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12854]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83405; File No. SR-NASDAQ-2018-040]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Descriptions of Certain Data Feeds Within the Nasdaq Options 
Market

June 11, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on May 30, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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[[Page 28040]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the descriptions of certain data 
feeds within the Nasdaq Options Market LLC (``NOM'') Chapter VI, 
Section 19, entitled ``Data Feeds and Trade Information.'' The Exchange 
also proposes to correct an error within the fee schedule.
    The text of the proposed rule change is available on the Exchange's 
website 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 the 
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 Exchange proposes to amend Chapter VI, Section 19, entitled 
``Data Feeds and Trade Information'' to further detail the type of 
information available on Nasdaq ITCH to Trade Options (ITTO) or Best of 
Nasdaq Options (BONO) which describes symbol directory information with 
a more specific description of the options symbol directory that was 
recently utilized in ISE Rule 718(a).\3\ The Exchange also proposes to 
correct an inadvertent omission within Chapter XV, Section 3 pertaining 
to an options port fee.
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    \3\ The data provided for each options series includes the 
symbols (series and underlying security), put or call indicator, 
expiration date, the strike price of the series, and whether the 
option series is available for trading on ISE and identifies if the 
series is available for closing transactions only.
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Chapter VI, Section 19
    The Exchange desires to amend the description of ITTO which 
currently provides, ``ITTO is a data feed that provides quotation 
information for individual orders on the NOM book, last sale 
information for trades executed on NOM, and Order Imbalance Information 
as set forth in NOM Rules Chapter VI, Section 8.'' The Exchange 
proposes to amend this sentence to provide, ``ITTO is a data feed that 
provides full order and quote depth information for individual orders 
and quotes on the NOM book, last sale information for trades executed 
on NOM, and Order Imbalance Information as set forth in NOM Rules 
Chapter VI, Section 8.'' The Exchange proposes this language to make 
clear that this data feed has full order and quote information and not 
top of book information. The Exchange believes this proposed language 
will bring greater clarity to this description. The ITTO feed is not 
changing.
    Also, today ITTO and BONO have an options symbol directory within 
those data feeds. The Exchange proposes to add a sentence to each of 
those data feeds to describe the data provided for each options series. 
The data includes the symbol (series and underlying security), put or 
call indicator, expiration date, the strike price of the series, and 
whether the option series is available for trading on NOM and 
identifies if the series is available for closing transactions only. 
The Exchange inadvertently excluded this information when it originally 
filed the description for these feeds. The Exchange believes that 
adding this language will bring greater clarity to each of these feeds.
    The Exchange also proposes to replace the word ``Exchange'' with 
``NOM'' in Section 19(a).
Chapter XV, Section 3
    The Exchange filed a rule change to reorganize its port fees.\4\ 
The Exchange added a new section 3(i) which included the order and 
quote protocols are available on NOM. The Exchange noted in that rule 
change that it was not amending any pricing related to the protocols, 
rather the Exchange relocated and reorganized certain fees including 
the OTTO Port Fee. The Exchange relocated the OTTO port fee to section 
3(i) and noted the OTTO Port Fee was $750, per port, per month. The 
Exchange did not properly carry over the description of the OTTO Port 
Fee, which was $750, per port, per month, per mnemonic. The Exchange 
proposes to correct this error by adding ``per mnemonic'' back to this 
fee as it never intended to amend the manner in which an OTTO Port was 
billed.
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    \4\ Securities and Exchange Act Release No. 83193 (May 9, 2018), 
83 FR 22539 (May 15, 2018) (SR-NASDAQ-2018-036).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934,\5\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\6\ 
in particular, in that it is designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
for a free and open market and a national market system, and, in 
general, to protect investors and the public interest, by providing 
greater transparency to the data feed information offered on NOM. The 
Exchange's proposal to add more detail to both the ITTO and BONO data 
feeds will bring greater transparency to the Exchange's Rules. The 
Exchange believes that the proposed rule change is consistent with the 
protection of investors and the public interest as it provides 
information relating to the data available on the Exchange for the 
benefit of its Members within its Rules and adds greater transparency 
to these offerings. Finally, the amendments seek to add greater clarity 
to the data offerings and conform the text of the offerings across its 
Nasdaq affiliated markets.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange's proposal to correct an inadvertent error within 
Chapter XV, Section 3 will clarify the manner in which OTTO Ports are 
billed today on NOM. The Exchange did not properly carry over the 
description of the OTTO Port Fee, which was $750, per port, per month, 
per mnemonic. The Exchange proposes to correct this error by adding 
``per mnemonic'' back to this fee as it never intended to amend the 
manner in which an OTTO Port was billed. The Exchange believes that 
this correct to the OTTO feed within Chapter XV, Section 3 is 
consistent with the Act and the protection of investors and the public 
interest because it will make clear how OTTO Ports are billed today.

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

    In accordance with Section 6(b)(8) of the Act,\7\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intra-market competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The data feed 
offerings are available to any market participant. The Exchange's 
proposal to amend the description of the data offerings will bring 
greater transparency to the Rulebook. The amendments seek to add 
greater clarity to the data

[[Page 28041]]

offerings and conform the text of the offerings. The Exchange's 
proposal to correct an inadvertent error within Chapter XV, Section 3 
will clarify the manner in which OTTO Ports are billed today on NOM. 
All OTTO Ports will continue to be billed in a uniform manner.
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    \7\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice the 
Exchange's intent to file the proposed rule change, along with a 
brief description and 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. The 
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative for 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative upon filing. The Exchange states that such waiver 
will allow it to update its rules to provide more detail regarding its 
data offerings and properly reflect the manner in which an OTTO Port is 
currently billed. The Exchange believes this will further the 
protection of investors and the public interest because it will provide 
greater transparency as to the data offerings available to members and 
avoid confusion by correcting an error on its fee schedule. For this 
reason, the Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest 
and, therefore, the Commission designates the proposed rule change to 
be operative upon filing.\12\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 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 Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NASDAQ-2018-040 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-2018-040. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NASDAQ-2018-040 and should be submitted 
on or before July 6, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12854 Filed 6-14-18; 8:45 am]
 BILLING CODE 8011-01-P