83 FR 35302 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7015(b) To Provide for Port Connectivity the FINRA/Nasdaq Trade Reporting Facility Chicago
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 143 (July 25, 2018)
Federal Register Volume 83, Issue 143 (July 25, 2018)
| Page Range | 35302-35303 | |
| FR Document | 2018-15846 |
[Federal Register Volume 83, Number 143 (Wednesday, July 25, 2018)] [Notices] [Pages 35302-35303] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-15846] [[Page 35302]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83670; File No. SR-NASDAQ-2018-056] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7015(b) To Provide for Port Connectivity the FINRA/Nasdaq Trade Reporting Facility Chicago July 19, 2018. 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 July 6, 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, 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 transaction fees at Rule 7015(b) to provide for port connectivity [sic] the FINRA/Nasdaq Trade Reporting Facility Chicago, as described further below. 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 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 Exchange proposes to amend Rules 7015(b) to establish fees for Financial Information Exchange or ``FIX'' Port connectivity to the FINRA/Nasdaq Trade Reporting Facility Chicago (``FINRA/Nasdaq TRF Chicago''). The FINRA/Nasdaq TRF Chicago is a second iteration of the FINRA/Nasdaq Trade Reporting Facility (now known as the FINRA/Nasdaq Trade Reporting Facility Carteret or ``FINRA/Nasdaq TRF Carteret'') that the Commission approved on June 29, 2018.\3\ The FINRA/Nasdaq TRF Chicago is expected to launch in September 2018. --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 83559 (June 29, 2018), 83 FR 31589 (July 6, 2018) (SR-FINRA-2018-013). --------------------------------------------------------------------------- The proposal will amend Rule 7015(b), which presently charges a $500 per port per month fee for FIX Ports to connect to the ``FINRA/ Nasdaq Trade Reporting Facility, ORF, and TRACE.'' The proposal will amend this provision of the Rule to: (i) Refer to the FINRA/Nasdaq Trade Facility by its new name, the ``FINRA/Nasdaq TRF Carteret''; (ii) apply a $500 per port per month fee to FIX Ports to connect to the FINRA/Nasdaq TRF Chicago; and (3) waive this fee for FIX Port connections to the FINRA/Nasdaq TRF Chicago until November 1, 2018 so as to encourage firms to test connectivity to the new facility and also to provide them with a transition period to adjust to the new fees. As of November 1, 2018, the same fee that the Exchange charges for FIX Ports to connect to the FINRA/Nasdaq TRF Carteret will apply to FIX Port connections to the FINRA/Nasdaq TRF Chicago.\4\ --------------------------------------------------------------------------- \4\ For avoidance of doubt, the Exchange notes that a firm that pays a fee for a FIX Port to connect to the FINRA/Nasdaq TRF Carteret will also be liable for an additional fee to connect to the FINRA/Nasdaq TRF Chicago. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\6\ 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that the Exchange's proposal to charge a fee for FIX Ports that connect to the FINRA/Nasdaq TRF Chicago is reasonable because the proposed fee accounts for the costs to the Exchange of developing and maintaining connectivity to the FINRA/Nasdaq TRF Chicago. The proposed fee is also reasonable because it mirrors a fee that the Exchange already charges for connections to the FINRA/ Nasdaq TRF Carteret, which is the sister facility to the FINRA/Nasdaq TRF Chicago and to which the Chicago facility will be identical in all material respects. The Exchange also believes that it is reasonable to waive the aforementioned fee for a brief transition period to allow participants to test and configure their connections to the FINRA/Nasdaq TRF Chicago and also to facilitate an adjustment to the new fees. The Exchange believes that the proposal is an equitable allocation and is not unfairly discriminatory because the Exchange will apply the same fee--and the same fee waiver--to all similarly situated members that choose to connect to the FINRA/Nasdaq TRF Chicago. It is also equitable to temporarily waive fees for connecting to the new facility because doing so will ease the burden of testing and configuring the connections. 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. [[Page 35303]] In this instance, the proposed changes do not impose a burden on competition because the proposed fee for connectivity to the FINRA/ Nasdaq TRF Chicago will be the same as that which the Exchange presently charges to connect to the Chicago facility's sister facility, the FINRA/Nasdaq TRF Carteret. Moreover, use of and connection to the FINRA/Nasdaq TRF Chicago is voluntary. If a firm does not wish to pay fees to connect to the FINRA/Nasdaq TRF Chicago, it may choose instead to connect to a competing trade reporting facility that charges lower fees. Lastly, the proposed fee waiver does not burden competition because it will apply only for a brief transition period. Such transitional fee waivers are a commonly accepted means of facilitating the adoption, testing, and use of new functionalities and the attraction of new participants.\7\ --------------------------------------------------------------------------- \7\ See, e.g., Securities Exchange Act Release No. 81095 (July 7, 2017), 82 FR 32409 (July 13, 2017) (SR-ISE-2017-62) (temporarily waiving port fees for connections to the re-platformed Nasdaq ISE Exchange). --------------------------------------------------------------------------- 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.\8\ --------------------------------------------------------------------------- \8\ 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-NASDAQ-2018-056 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-2018-056. 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-2018-056, and should be submitted on or before August 15, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-15846 Filed 7-24-18; 8:45 am] BILLING CODE 8011-01-P
![35302 Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s discrimination between customers,
COMMISSION Statement of the Purpose of, and issuers, brokers, or dealers.
Statutory Basis for, the Proposed Rule The Exchange believes that the
[Release No. 34–83670; File No. SR– Change Exchange’s proposal to charge a fee for
NASDAQ–2018–056] 1. Purpose FIX Ports that connect to the FINRA/
Nasdaq TRF Chicago is reasonable
Self-Regulatory Organizations; The The Exchange proposes to amend because the proposed fee accounts for
Nasdaq Stock Market LLC; Notice of Rules 7015(b) to establish fees for the costs to the Exchange of developing
Filing and Immediate Effectiveness of Financial Information Exchange or and maintaining connectivity to the
Proposed Rule Change To Amend Rule ‘‘FIX’’ Port connectivity to the FINRA/ FINRA/Nasdaq TRF Chicago. The
7015(b) To Provide for Port Nasdaq Trade Reporting Facility proposed fee is also reasonable because
Connectivity the FINRA/Nasdaq Trade Chicago (‘‘FINRA/Nasdaq TRF it mirrors a fee that the Exchange
Reporting Facility Chicago Chicago’’). The FINRA/Nasdaq TRF already charges for connections to the
Chicago is a second iteration of the FINRA/Nasdaq TRF Carteret, which is
July 19, 2018. FINRA/Nasdaq Trade Reporting Facility the sister facility to the FINRA/Nasdaq
(now known as the FINRA/Nasdaq TRF Chicago and to which the Chicago
Pursuant to Section 19(b)(1) of the
Trade Reporting Facility Carteret or facility will be identical in all material
Securities Exchange Act of 1934
‘‘FINRA/Nasdaq TRF Carteret’’) that the respects.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission approved on June 29, The Exchange also believes that it is
notice is hereby given that on July 6,
2018.3 The FINRA/Nasdaq TRF Chicago reasonable to waive the aforementioned
2018, The Nasdaq Stock Market LLC is expected to launch in September fee for a brief transition period to allow
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 2018. participants to test and configure their
Securities and Exchange Commission connections to the FINRA/Nasdaq TRF
(‘‘Commission’’) the proposed rule The proposal will amend Rule
7015(b), which presently charges a $500 Chicago and also to facilitate an
change as described in Items I, II, and adjustment to the new fees.
per port per month fee for FIX Ports to
III below, which Items have been The Exchange believes that the
connect to the ‘‘FINRA/Nasdaq Trade
prepared by the Exchange. The proposal is an equitable allocation and
Reporting Facility, ORF, and TRACE.’’
Commission is publishing this notice to The proposal will amend this provision is not unfairly discriminatory because
solicit comments on the proposed rule of the Rule to: (i) Refer to the FINRA/ the Exchange will apply the same fee—
change from interested persons. Nasdaq Trade Facility by its new name, and the same fee waiver—to all
the ‘‘FINRA/Nasdaq TRF Carteret’’; (ii) similarly situated members that choose
I. Self-Regulatory Organization’s
apply a $500 per port per month fee to to connect to the FINRA/Nasdaq TRF
Statement of the Terms of Substance of
FIX Ports to connect to the FINRA/ Chicago. It is also equitable to
the Proposed Rule Change
Nasdaq TRF Chicago; and (3) waive this temporarily waive fees for connecting to
The Exchange proposes to amend the fee for FIX Port connections to the the new facility because doing so will
Exchange’s transaction fees at Rule FINRA/Nasdaq TRF Chicago until ease the burden of testing and
7015(b) to provide for port connectivity November 1, 2018 so as to encourage configuring the connections.
[sic] the FINRA/Nasdaq Trade Reporting firms to test connectivity to the new B. Self-Regulatory Organization’s
Facility Chicago, as described further facility and also to provide them with a Statement on Burden on Competition
below. The text of the proposed rule transition period to adjust to the new
fees. As of November 1, 2018, the same The Exchange does not believe that
change is available on the Exchange’s
fee that the Exchange charges for FIX the proposed rule change will impose
website at http://nasdaq.cchwallstreet. any burden on competition not
com/, at the principal office of the Ports to connect to the FINRA/Nasdaq
TRF Carteret will apply to FIX Port necessary or appropriate in furtherance
Exchange, and at the Commission’s of the purposes of the Act. In terms of
connections to the FINRA/Nasdaq TRF
Public Reference Room. inter-market competition, the Exchange
Chicago.4
II. Self-Regulatory Organization’s notes that it operates in a highly
2. Statutory Basis competitive market in which market
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule The Exchange believes that its participants can readily favor competing
Change proposal is consistent with Section 6(b) venues if they deem fee levels at a
of the Act,5 in general, and furthers the particular venue to be excessive, or
In its filing with the Commission, the objectives of Sections 6(b)(4) and 6(b)(5) rebate opportunities available at other
Exchange included statements of the Act,6 in particular, in that it venues to be more favorable. In such an
concerning the purpose of and basis for provides for the equitable allocation of environment, the Exchange must
the proposed rule change and discussed reasonable dues, fees and other charges continually adjust its fees to remain
any comments it received on the among members and issuers and other competitive with other exchanges and
proposed rule change. The text of these persons using any facility, and is not with alternative trading systems that
statements may be examined at the designed to permit unfair have been exempted from compliance
places specified in Item IV below. The with the statutory standards applicable
Exchange has prepared summaries, set 3 See Securities Exchange Act Release No. 83559
to exchanges. Because competitors are
(June 29, 2018), 83 FR 31589 (July 6, 2018) (SR– free to modify their own fees in
daltland on DSKBBV9HB2PROD with NOTICES
forth in sections A, B, and C below, of
FINRA–2018–013). response, and because market
the most significant aspects of such 4 For avoidance of doubt, the Exchange notes that participants may readily adjust their
statements. a firm that pays a fee for a FIX Port to connect to order routing practices, the Exchange
the FINRA/Nasdaq TRF Carteret will also be liable
for an additional fee to connect to the FINRA/
believes that the degree to which fee
Nasdaq TRF Chicago. changes in this market may impose any
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b). burden on competition is extremely
2 17 CFR 240.19b–4. 6 15 U.S.C. 78f(b)(4) and (5). limited.
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![Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices 35303
In this instance, the proposed changes Electronic Comments SECURITIES AND EXCHANGE
do not impose a burden on competition COMMISSION
because the proposed fee for • Use the Commission’s internet
connectivity to the FINRA/Nasdaq TRF comment form (http://www.sec.gov/ Submission for OMB Review;
Chicago will be the same as that which rules/sro.shtml); or Comment Request
the Exchange presently charges to • Send an email to rule-comments@
connect to the Chicago facility’s sister Upon Written Request, Copies Available
sec.gov. Please include File Number SR–
facility, the FINRA/Nasdaq TRF From: Securities and Exchange
NASDAQ–2018–056 on the subject line. Commission, Office of FOIA Services,
Carteret. Moreover, use of and
Paper Comments 100 F Street NE, Washington, DC
connection to the FINRA/Nasdaq TRF
20549–2736
Chicago is voluntary. If a firm does not • Send paper comments in triplicate
wish to pay fees to connect to the Extension:
to Secretary, Securities and Exchange Form 1–E, Regulation E, SEC File No. 270–
FINRA/Nasdaq TRF Chicago, it may
Commission, 100 F Street NE, 221, OMB Control No. 3235–0232
choose instead to connect to a
Washington, DC 20549–1090.
competing trade reporting facility that Notice is hereby given that, pursuant
charges lower fees. All submissions should refer to File to the Paperwork Reduction Act of 1995
Lastly, the proposed fee waiver does Number SR–NASDAQ–2018–056. This (44 U.S.C. 3501 et seq.), the Securities
not burden competition because it will file number should be included on the and Exchange Commission (the
apply only for a brief transition period. subject line if email is used. To help the ‘‘Commission’’) has submitted to the
Such transitional fee waivers are a Commission process and review your Office of Management and Budget a
commonly accepted means of comments more efficiently, please use request for extension of the previously
facilitating the adoption, testing, and only one method. The Commission will approved collection of information
use of new functionalities and the post all comments on the Commission’s discussed below.
attraction of new participants.7 internet website (http://www.sec.gov/ Form 1–E (17 CFR 239.200) under the
rules/sro.shtml). Copies of the Securities Act of 1933 (15 U.S.C. 77a et
C. Self-Regulatory Organization’s submission, all subsequent seq.) (‘‘Securities Act’’) is the form that
Statement on Comments on the a small business investment company
amendments, all written statements
Proposed Rule Change Received From (‘‘SBIC’’) or business development
with respect to the proposed rule
Members, Participants, or Others company (‘‘BDC’’) uses to notify the
change that are filed with the
Commission, and all written Commission that it is claiming an
No written comments were either
communications relating to the exemption under Regulation E from
solicited or received.
proposed rule change between the registering its securities under the
III. Date of Effectiveness of the Commission and any person, other than Securities Act. Rule 605 of Regulation E
Proposed Rule Change and Timing for (17 CFR 230.605) under the Securities
those that may be withheld from the
Commission Action Act requires an SBIC or BDC claiming
public in accordance with the
such an exemption to file an offering
The foregoing rule change has become provisions of 5 U.S.C. 552, will be circular with the Commission that must
effective pursuant to Section available for website viewing and also be provided to persons to whom an
19(b)(3)(A)(ii) of the Act.8 printing in the Commission’s Public offer is made. Form 1–E requires an
Reference Room, 100 F Street NE, issuer to provide the names and
At any time within 60 days of the
filing of the proposed rule change, the Washington, DC 20549 on official addresses of the issuer, its affiliates,
Commission summarily may business days between the hours of directors, officers, and counsel; a
temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the description of events which would
it appears to the Commission that such filing also will be available for make the exemption unavailable; the
action is: (i) Necessary or appropriate in inspection and copying at the principal jurisdictions in which the issuer intends
the public interest; (ii) for the protection office of the Exchange. All comments to offer the securities; information about
of investors; or (iii) otherwise in received will be posted without change. unregistered securities issued or sold by
furtherance of the purposes of the Act. Persons submitting comments are the issuer within one year before filing
If the Commission takes such action, the cautioned that we do not redact or edit the notification on Form 1–E;
Commission shall institute proceedings personal identifying information from information as to whether the issuer is
to determine whether the proposed rule comment submissions. You should presently offering or contemplating
should be approved or disapproved. submit only information that you wish offering any other securities; and
to make available publicly. All exhibits, including copies of the rule
IV. Solicitation of Comments submissions should refer to File 605 offering circular and any
Number SR–NASDAQ–2018–056, and underwriting contracts.
Interested persons are invited to
should be submitted on or before The Commission uses the information
submit written data, views, and
August 15, 2018. provided in the notification on Form 1–
arguments concerning the foregoing,
E and the offering circular to determine
including whether the proposed rule For the Commission, by the Division of whether an offering qualifies for the
change is consistent with the Act. Trading and Markets, pursuant to delegated exemption under Regulation E. The
Comments may be submitted by any of authority.9
Commission estimates that, each year,
daltland on DSKBBV9HB2PROD with NOTICES
the following methods: Eduardo A. Aleman, one issuer files one notification on Form
7 See, e.g., Securities Exchange Act Release No.
Assistant Secretary. 1–E, together with offering circulars,
81095 (July 7, 2017), 82 FR 32409 (July 13, 2017)
[FR Doc. 2018–15846 Filed 7–24–18; 8:45 am] with the Commission.1 Based on the
(SR–ISE–2017–62) (temporarily waiving port fees BILLING CODE 8011–01–P
for connections to the re-platformed Nasdaq ISE 1 According to Commission records, one issuer
Exchange). filed two notifications on Form 1–E, together with
8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 200.30–3(a)(12). offering circulars, during 2013 and 2014.
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Document Created: 2018-07-25 00:45:06
Document Modified: 2018-07-25 00:45:06
| 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 | 83 FR 35302 |
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