83 FR 40803 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing at Chapter XV, Section 2 Entitled “Nasdaq Options Market-Fees and Rebates”
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 159 (August 16, 2018)
Federal Register Volume 83, Issue 159 (August 16, 2018)
| Page Range | 40803-40805 | |
| FR Document | 2018-17635 |
[Federal Register Volume 83, Number 159 (Thursday, August 16, 2018)] [Notices] [Pages 40803-40805] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17635] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83824; File No. SR-NASDAQ-2018-063] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing at Chapter XV, Section 2 Entitled ``Nasdaq Options Market--Fees and Rebates'' August 10, 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 31, 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 pricing at Chapter XV, Section 2 entitled ``Nasdaq Options Market--Fees and Rebates,'' which governs pricing for Nasdaq Participants using The Nasdaq Options Market LLC (``NOM''), Nasdaq's facility for executing and routing standardized equity and index options. The Exchange proposes to amend an incentive offered today related to its subsidy program, the Market Access and Routing Subsidy or ``MARS.'' While the changes proposed herein are effective upon filing, the Exchange has designated the amendments become operative on August 1, 2018. 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 NOM proposes to amend the Exchange's pricing at Chapter XV, Section 2 entitled ``Nasdaq Options Market--Fees and Rebates.'' Specifically, the Exchange proposes to amend an incentive in note ``d'' offered to NOM Participants that qualify for any MARS Payment Tier in Chapter XV, Section 2(6) related to the MARS subsidy program. MARS pays a subsidy to NOM Participants that provide certain order routing functionalities to other NOM Participants and/or use such functionalities themselves.\3\ --------------------------------------------------------------------------- \3\ Generally, under MARS, the Exchange pays participating NOM Participants to subsidize their costs of providing routing services to route orders to NOM. The Exchange believes that the proposed amendment to MARS will continue to attract higher volumes of electronic equity and ETF options volume to the Exchange from non- NOM Participants as well as NOM Participants. The order routing functionalities permit NOM Participants to provide access and connectivity to other Participants as well as utilize such access for themselves. The Exchange notes that one NOM Participant is eligible for payments under MARS, while another NOM Participant might potentially be liable for transaction charges associated with the execution of the order, because those orders were delivered to the Exchange through a NOM Participant's connection to the Exchange and that Participant qualified for the MARS Payment. --------------------------------------------------------------------------- Background on MARS Today, to qualify for MARS, a NOM Participant's routing system (hereinafter ``System'') is required to meet certain criteria.\4\ --------------------------------------------------------------------------- \4\ Specifically the Participant's System is required to: (1) Enable the electronic routing of orders to all of the U.S. options exchanges, including NOM; (2) provide current consolidated market data from the U.S. options exchanges; and (3) be capable of interfacing with NOM's API to access current NOM match engine functionality. The Participant's System would also need to cause NOM to be one of the top three default destination exchanges for (a) individually executed marketable orders if NOM is at the national best bid or offer (``NBBO''), regardless of size or time, or (b) orders that establish a new NBBO on NOM's Order Book, but allow any user to manually override NOM as a default destination on an order- by-order basis. Any NOM Participant is permitted to avail itself of this arrangement, provided that its order routing functionality incorporates the features described herein and the Participant satisfies NOM that it appears to be robust and reliable. Participants remain solely responsible for implementing and operating its System. --------------------------------------------------------------------------- MARS Payments are made to NOM Participants that have System Eligibility and have routed the requisite number of Eligible Contracts daily in a month (``Average Daily Volume''), which were executed on NOM.\5\ Today, NOM Participants that have System Eligibility and have executed the requisite number of Eligible Contracts in a month will be paid the following rebates: \6\ --------------------------------------------------------------------------- \5\ For the purpose of qualifying for the MARS Payment, Eligible Contracts may include Firm, Non-NOM Market Maker, Broker-Dealer, or Joint Back Office or ``JBO'' equity option orders that add liquidity and are electronically delivered and executed. Eligible Contracts do not include Mini Option orders. \6\ The specified MARS Payments are paid on all executed Eligible Contracts that add liquidity, which are routed to NOM through a participating NOM Participant's System and meet the requisite Eligible Contracts ADV. No payments are made with respect to orders that are routed to NOM, but not executed. Also, a Participant is not entitled to receive any other revenue from the Exchange for the use of its System specifically with respect to orders routed to NOM. ---------------------------------------------------------------------------------------------------------------- Average Daily Tiers Volume MARS payment MARS payment (``ADV'') (penny) (non-penny) ---------------------------------------------------------------------------------------------------------------- 1............................................................... 2,000 $0.07 $0.15 2............................................................... 5,000 0.09 0.20 3............................................................... 10,000 0.11 0.30 4............................................................... 20,000 0.15 0.50 5............................................................... 45,000 0.17 0.60 ---------------------------------------------------------------------------------------------------------------- [[Page 40804]] NOM Participants that qualify for Customer \7\ and Professional \8\ Penny Pilot Options Rebate to Add Liquidity Tier 6 will receive an extra $0.09 per contract rebate in addition to any MARS Payment tier on MARS Eligible Contracts the NOM Participant qualifies for in a given month. --------------------------------------------------------------------------- \7\ The term ``Customer'' or (``C'') applies to any transaction that is identified by a Participant for clearing in the Customer range at The Options Clearing Corporation which is not for the account of broker or dealer or for the account of a ``Professional.'' See Chapter XV. \8\ The term ``Professional'' or (``P'') means any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s) pursuant to Chapter I, Section 1(a)(48). All Professional orders shall be appropriately marked by Participants. See Chapter XV. --------------------------------------------------------------------------- Incentive Today, the Exchange pays certain Customer and Professional Penny Pilot Options Rebates to Add Liquidity. These rebates are structured as a 6 tier rebate program ranging from $0.20 to $0.48 per contract, with increasing volume requirements for each tier. In addition to the Customer and Professional Penny Pilot Options Rebates to Add Liquidity, the NOM Participant may also qualify for an additional rebate provided the NOM Participant qualifies for any MARS Payment Tier for each transaction which adds liquidity in Penny Pilot Options in that month. Further, the Exchange pays an additional $0.04 per contract Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity for each transaction which adds liquidity in Penny Pilot Options in that month, in addition to qualifying Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity Tiers 1-6.\9\ Also, today, NOM Participants that qualify for a note ``c'' incentive receive the greater of the note ``c'' or note ``d'' incentive.\10\ --------------------------------------------------------------------------- \9\ See Chapter XV, Section 2(1), note ``d.'' \10\ The note ``c'' incentive can be found at Chapter XV, Section 2(1) and provides additional incentives to NOM Participants that qualify for the Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity Tier 6 in addition to meeting certain criteria specified in note ``c''. --------------------------------------------------------------------------- The Exchange now proposes to amend note ``d'' to increase the additional $0.04 per contract Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity currently offered to NOM Participants that qualify for any MARS Payment Tier in addition to qualifying for Customer and/or Professional Rebate to Add Liquidity Tier 1 to $0.05 per contract for each transaction which adds liquidity in Penny Pilot Options in that month. For those NOM Participants that qualify for Customer and/or Professional Rebate to Add Liquidity Tiers 2-6, the Exchange will continue to provide the additional $0.04 per contract rebate for each transaction that adds liquidity in Penny Pilot Options in that month, provided the NOM Participant also qualifies for any MARS Payment Tier. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\11\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\12\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among Participants and issuers and other persons using any facility or system which the Exchange operates or controls, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b). \12\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes it is reasonable to amend note ``d'' in Chapter XV, Section 2(1) to increase the additional $0.04 per contract rebate for NOM Participants qualifying for Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity Tier 1 in addition to qualifying for any MARS Payment tier to $0.05 per contract for each transaction that adds liquidity in Penny Pilot Options for that month. The proposed amendment should continue to encourage NOM Participants to qualify for the Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity Tier 1 in addition to any MARS Payment tier, thereby executing a greater amount of order flow on NOM to the benefit of all market participants who may interact with the order flow. Furthermore, the proposed changes will allow the Exchange to remain competitive with other options exchanges that offer similar incentives.\13\ --------------------------------------------------------------------------- \13\ See MIAX PEARL Fee Schedule, Section 1(a). MIAX PEARL offers priority customers and non-priority customers a $0.25 per contract maker rebate in tier 1 for adding liquidity in penny classes. See Cboe BZX Options Exchange (``BZX'') Fee Schedule. BZX offers customers and professionals a base rebate of $0.25 per contract for adding liquidity in penny pilot options. Under NOM's proposal, NOM Participants would similarly have the opportunity to earn up a $0.25 per contract Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity in Tier 1 (i.e., the $0.20 per contract Tier 1 rebate plus the additional $0.05 note ``d'' incentive), provided they meet the requisite qualifications. --------------------------------------------------------------------------- Further, the Exchange's proposal to amend the note ``d'' incentive as described above is equitable and not unfairly discriminatory. All NOM Participants are eligible to qualify for a MARS Payment, provided they have System Eligibility, and all NOM Participants may be eligible for the Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity Tier 1 provided they execute qualifying volume. All NOM Participants are eligible to qualify for the note ``d'' incentive provided the requisite requirements are met. The Exchange would uniformly pay the additional note ``d'' incentive to all qualifying NOM Participants. 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. The Exchange's proposal to amend the note ``d'' incentive as described above does not impose an undue burden on competition. All NOM Participants are eligible to qualify for a MARS Payment, provided they have System Eligibility, and all NOM Participants may be eligible for a Penny Pilot Options Customer and/or Professional Rebate to Add Liquidity provided they execute qualifying volume. All NOM Participants are eligible to qualify for the note ``d'' incentive provided the requisite requirements are met. The Exchange would uniformly pay the additional note ``d'' incentive to all qualifying NOM Participants. Furthermore, 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. The Exchange's proposal reflects this competitive environment as it will allow the Exchange remain competitive with other options exchanges that offer similar incentives, as discussed above.\14\ --------------------------------------------------------------------------- \14\ See note 13 above. --------------------------------------------------------------------------- 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.\15\ --------------------------------------------------------------------------- \15\ 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 [[Page 40805]] 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-2018-063 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-2018-063. 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-2018-063, and should be submitted on or before September 6, 2018. --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ Robert W. Errett, Deputy Secretary. [FR Doc. 2018-17635 Filed 8-15-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40803
For the Commission, by the Division of I. Self-Regulatory Organization’s forth in sections A, B, and C below, of
Trading and Markets, pursuant to delegated Statement of the Terms of Substance of the most significant aspects of such
authority.18 the Proposed Rule Change statements.
Brent J. Fields, The Exchange proposes to amend the A. Self-Regulatory Organization’s
Secretary. Exchange’s pricing at Chapter XV, Statement of the Purpose of, and
[FR Doc. 2018–17628 Filed 8–15–18; 8:45 am] Section 2 entitled ‘‘Nasdaq Options Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P Market—Fees and Rebates,’’ which Change
governs pricing for Nasdaq Participants
using The Nasdaq Options Market LLC 1. Purpose
SECURITIES AND EXCHANGE (‘‘NOM’’), Nasdaq’s facility for NOM proposes to amend the
COMMISSION executing and routing standardized Exchange’s pricing at Chapter XV,
equity and index options. The Exchange Section 2 entitled ‘‘Nasdaq Options
proposes to amend an incentive offered Market—Fees and Rebates.’’
[Release No. 34–83824; File No. SR–
today related to its subsidy program, the Specifically, the Exchange proposes to
NASDAQ–2018–063]
Market Access and Routing Subsidy or amend an incentive in note ‘‘d’’ offered
Self-Regulatory Organizations; The ‘‘MARS.’’ to NOM Participants that qualify for any
While the changes proposed herein MARS Payment Tier in Chapter XV,
Nasdaq Stock Market LLC; Notice of
are effective upon filing, the Exchange Section 2(6) related to the MARS
Filing and Immediate Effectiveness of
has designated the amendments become subsidy program. MARS pays a subsidy
Proposed Rule Change To Amend the operative on August 1, 2018.
Exchange’s Pricing at Chapter XV, to NOM Participants that provide
The text of the proposed rule change
Section 2 Entitled ‘‘Nasdaq Options certain order routing functionalities to
is available on the Exchange’s website at
Market—Fees and Rebates’’ other NOM Participants and/or use such
http://nasdaq.cchwallstreet.com/, at the
principal office of the Exchange, and at functionalities themselves.3
August 10, 2018.
the Commission’s Public Reference Background on MARS
Pursuant to Section 19(b)(1) of the Room.
Securities Exchange Act of 1934 Today, to qualify for MARS, a NOM
II. Self-Regulatory Organization’s Participant’s routing system (hereinafter
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Statement of the Purpose of, and ‘‘System’’) is required to meet certain
notice is hereby given that on July 31, Statutory Basis for, the Proposed Rule criteria.4
2018, The Nasdaq Stock Market LLC Change MARS Payments are made to NOM
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
In its filing with the Commission, the Participants that have System Eligibility
Securities and Exchange Commission
Exchange included statements and have routed the requisite number of
(‘‘Commission’’) the proposed rule
concerning the purpose of and basis for Eligible Contracts daily in a month
change as described in Items I, II, and (‘‘Average Daily Volume’’), which were
the proposed rule change and discussed
III, below, which Items have been any comments it received on the executed on NOM.5 Today, NOM
prepared by the Exchange. The proposed rule change. The text of these Participants that have System Eligibility
Commission is publishing this notice to statements may be examined at the and have executed the requisite number
solicit comments on the proposed rule places specified in Item IV below. The of Eligible Contracts in a month will be
change from interested persons. Exchange has prepared summaries, set paid the following rebates: 6
Average Daily MARS MARS
Tiers Volume payment payment
(‘‘ADV’’) (penny) (non-penny)
1 ................................................................................................................................................... 2,000 $0.07 $0.15
2 ................................................................................................................................................... 5,000 0.09 0.20
3 ................................................................................................................................................... 10,000 0.11 0.30
4 ................................................................................................................................................... 20,000 0.15 0.50
5 ................................................................................................................................................... 45,000 0.17 0.60
18 17
CFR 200.30–3(a)(12). Participant’s connection to the Exchange and that appears to be robust and reliable. Participants
1 15
U.S.C. 78s(b)(1). Participant qualified for the MARS Payment. remain solely responsible for implementing and
2 17 CFR 240.19b–4. 4 Specifically the Participant’s System is required operating its System.
3 Generally, under MARS, the Exchange pays to: (1) Enable the electronic routing of orders to all 5 For the purpose of qualifying for the MARS
participating NOM Participants to subsidize their of the U.S. options exchanges, including NOM; (2) Payment, Eligible Contracts may include Firm, Non-
provide current consolidated market data from the NOM Market Maker, Broker-Dealer, or Joint Back
costs of providing routing services to route orders
U.S. options exchanges; and (3) be capable of Office or ‘‘JBO’’ equity option orders that add
to NOM. The Exchange believes that the proposed
interfacing with NOM’s API to access current NOM liquidity and are electronically delivered and
amendment to MARS will continue to attract higher match engine functionality. The Participant’s
volumes of electronic equity and ETF options executed. Eligible Contracts do not include Mini
System would also need to cause NOM to be one
volume to the Exchange from non-NOM Option orders.
of the top three default destination exchanges for 6 The specified MARS Payments are paid on all
Participants as well as NOM Participants. The order
sradovich on DSK3GMQ082PROD with NOTICES
(a) individually executed marketable orders if NOM
routing functionalities permit NOM Participants to is at the national best bid or offer (‘‘NBBO’’), executed Eligible Contracts that add liquidity,
provide access and connectivity to other regardless of size or time, or (b) orders that establish which are routed to NOM through a participating
Participants as well as utilize such access for a new NBBO on NOM’s Order Book, but allow any NOM Participant’s System and meet the requisite
themselves. The Exchange notes that one NOM user to manually override NOM as a default Eligible Contracts ADV. No payments are made
Participant is eligible for payments under MARS, destination on an order-by-order basis. Any NOM with respect to orders that are routed to NOM, but
while another NOM Participant might potentially Participant is permitted to avail itself of this not executed. Also, a Participant is not entitled to
be liable for transaction charges associated with the arrangement, provided that its order routing receive any other revenue from the Exchange for the
execution of the order, because those orders were functionality incorporates the features described use of its System specifically with respect to orders
delivered to the Exchange through a NOM herein and the Participant satisfies NOM that it routed to NOM.
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![Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40805
temporarily suspend such rule change if to make available publicly. All II. Self-Regulatory Organization’s
it appears to the Commission that such submissions should refer to File Statement of the Purpose of, and
action is: (i) Necessary or appropriate in Number SR–NASDAQ–2018–063, and Statutory Basis for, the Proposed Rule
the public interest; (ii) for the protection should be submitted on or before Change
of investors; or (iii) otherwise in September 6, 2018. In its filing with the Commission, the
furtherance of the purposes of the Act. Exchange included statements
For the Commission, by the Division of
If the Commission takes such action, the concerning the purpose of and basis for
Trading and Markets, pursuant to delegated
Commission shall institute proceedings the proposed rule change and discussed
authority.16
to determine whether the proposed rule any comments it received on the
should be approved or disapproved. Robert W. Errett,
proposed rule change. The text of these
Deputy Secretary.
IV. Solicitation of Comments statements may be examined at the
[FR Doc. 2018–17635 Filed 8–15–18; 8:45 am] places specified in Item IV below. The
Interested persons are invited to BILLING CODE 8011–01–P Exchange has prepared summaries, set
submit written data, views, and
forth in sections A, B, and C below, of
arguments concerning the foregoing,
the most significant aspects of such
including whether the proposed rule SECURITIES AND EXCHANGE statements.
change is consistent with the Act. COMMISSION
Comments may be submitted by any of A. Self-Regulatory Organization’s
the following methods: Statement of the Purpose of, and
[Release No. 34–83823; File No. SR–
Statutory Basis for, the Proposed Rule
Electronic Comments NASDAQ–2018–064]
Change
• Use the Commission’s internet
comment form (http://www.sec.gov/ Self-Regulatory Organizations; The 1. Purpose
rules/sro.shtml); or Nasdaq Stock Market LLC; Notice of The purpose of the proposed rule
• Send an email to rule-comments@ Filing and Immediate Effectiveness of change is to amend the Exchange’s fees
sec.gov. Please include File Number SR– Proposed Rule Change To Amend at Rule 7014(e), concerning Qualified
NASDAQ–2018–063 on the subject line. Fees Under Rules 7014(e) and 7018(a) Market Makers (‘‘QMMs’’),5 to apply
Paper Comments August 10, 2018
additional criteria required to qualify for
a fee of $0.0029 per share executed, and
• Send paper comments in triplicate Pursuant to Section 19(b)(1) of the to amend Rule 7018(a), concerning the
to Secretary, Securities and Exchange Securities Exchange Act of 1934 fees and credits provided for the use of
Commission, 100 F Street NE, (‘‘Act’’),1 and Rule 19b–4 thereunder,2 the order execution and routing services
Washington, DC 20549–1090. notice is hereby given that, on August of the Nasdaq Market Center by
All submissions should refer to File 1, 2018, The Nasdaq Stock Market LLC members for all securities priced at $1
Number SR–NASDAQ–2018–063. This (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the or more that it trades, to assess no fees
file number should be included on the Securities and Exchange Commission for Midpoint Extended Life Orders in
subject line if email is used. To help the (‘‘SEC’’ or ‘‘Commission’’) the proposed securities of all three Tapes. Rule
Commission process and review your rule change as described in Items I, II, 7014(e) provides the fees and rebates
comments more efficiently, please use and III below, which Items have been applicable to QMMs. Rule 7018(a)(1)
only one method. The Commission will prepared by the Exchange. The sets forth the fees and credits for the
post all comments on the Commission’s Commission is publishing this notice to execution and routing of orders in
internet website (http://www.sec.gov/ solicit comments on the proposed rule Nasdaq-listed securities (Tape C); Rule
rules/sro.shtml). Copies of the change from interested persons. 7018(a)(2) sets forth the fees and credits
submission, all subsequent for the execution and routing of
amendments, all written statements I. Self-Regulatory Organization’s securities listed on the New York Stock
with respect to the proposed rule Statement of the Terms of Substance of Exchange LLC (Tape A); and Rule
change that are filed with the the Proposed Rule Change 7018(a)(3) sets forth the fees and credits
Commission, and all written for the execution and routing of
The Exchange proposes to amend the
communications relating to the securities listed on exchanges other than
Exchange’s fees at Rule 7014(e) to apply
proposed rule change between the Nasdaq and NYSE (Tape B). The
additional criteria required to qualify for
Commission and any person, other than Exchange is proposing to assess no fee
a fee of $0.0029 per share executed, and
those that may be withheld from the for all Midpoint Extended Life Orders.
to amend Rule 7018(a) to assess no fees
public in accordance with the First Change
for Midpoint Extended Life Orders 3 in
provisions of 5 U.S.C. 552, will be
securities of all three Tapes.4 Under Rule 7014(e), the Exchange
available for website viewing and
printing in the Commission’s Public The text of the proposed rule change charges a QMM $0.0030 per share
Reference Room, 100 F Street NE, is available on the Exchange’s website at executed for removing liquidity in
Washington, DC 20549 on official http://nasdaq.cchwallstreet.com/, at the Nasdaq-listed securities priced at $1 or
business days between the hours of principal office of the Exchange, and at more, and $0.00295 per share executed
10:00 a.m. and 3:00 p.m. Copies of the the Commission’s Public Reference for removing liquidity in securities
filing also will be available for Room. priced at $1 or more per share listed on
inspection and copying at the principal
sradovich on DSK3GMQ082PROD with NOTICES
5 To be designated a QMM, a member must meet
office of the Exchange. All comments 16 17 CFR 200.30–3(a)(12).
the following criteria: (1) The member is not
received will be posted without change. 1 15 U.S.C. 78s(b)(1). assessed any ‘‘Excess Order Fee’’ under Rule 7018
2 17 CFR 240.19b–4.
Persons submitting comments are during the month; (2) the member quotes at the
3 See Rule 4702(b)(14).
cautioned that we do not redact or edit NBBO at least 25% of the time during regular
4 Tape C securities are those that are listed on the market hours in an average of at least 1,000
personal identifying information from Exchange, Tape A securities are those that are listed securities per day during the month; and (3) the
comment submissions. You should on NYSE, and Tape B securities are those that are member is a registered Nasdaq market maker. See
submit only information that you wish listed on exchanges other than Nasdaq or NYSE. Rule 7014(d).
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Document Created: 2018-08-16 01:02:32
Document Modified: 2018-08-16 01:02:32
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| FR Citation | 83 FR 40803 |
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