83 FR 48492 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7021

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 186 (September 25, 2018)

Page Range		48492-48495
FR Document		2018-20761

Federal Register, Volume 83 Issue 186 (Tuesday, September 25, 2018)

[Federal Register Volume 83, Number 186 (Tuesday, September 25, 2018)]
[Notices]
[Pages 48492-48495]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-20761]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84209; File No. SR-NASDAQ-2018-073]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 7021

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

The Exchange proposes to amend Rule 7021 to address the transition
of reports available on Report Center to a new underlying platform, and
to make technical and clarifying changes.
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

[[Page 48493]]

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 is proposing to amend Rule 7021, concerning the Report
Center, to address the transition of reports available on Report Center
to a new underlying platform, and to make technical and clarifying
changes. Report Center provides members with various reports containing
information concerning the member's own historical quoting and trading
activity on Nasdaq and the FINRA/Nasdaq Trade Reporting Facility, which
is located in Carteret, NJ (``TRF Carteret''). The Exchange will begin
operating a second trade reporting facility, FINRA/Nasdaq TRF Chicago
(``TRF Chicago''), in September of 2018.\3\ The purpose of this
proposed rule change is to inform members of the transition to the new
underlying platform, to clarify the contents of certain reports in
light of the new TRF Chicago, and to make clarifying changes concerning
how the fee is assessed.
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\3\ See Securities Exchange Act Release No. 83559 (June 29,
2018), 83 FR 31589 (July 6, 2018) (SR-FINRA-2018-013).
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The Exchange is beginning a process of replacing the underlying
platform of Report Center with a new platform, Report HQ. Report HQ
will be more robust and user friendly, and thus an improvement over the
existing Report Center platform. Nasdaq is not proposing to change the
fees assessed for the reports under Rule 7021 or assess an additional
fee for access to the Rule 7021 reports on Report HQ. Nasdaq is
beginning the transition with reports that may include TRF data, which
are certain Historical Research Reports under Rule 7021(b) and the
Market Recap report under Rule 7021(d). These reports will be available
on both platforms concurrent with the launch of the TRF Chicago, which
is currently scheduled for September 2018. In light of the timing of
the TRF Chicago and the transition to the Report HQ,\4\ Nasdaq will not
be adding TRF Chicago data to the Historical Research Reports and
Market Recap reports available on Report Center, but will make TRF
Chicago data in those reports available through the Report HQ platform.
The remaining reports available under Rule 7021 do not include TRF data
and consequently will be identical on each platform as they are
transferred over the course of the transition.\5\
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\4\ In this regard, Nasdaq notes that it is beginning the
transition to Report HQ with the only reports that include TRF data.
Thus the Exchange is avoiding the time and expense of programming
new reports for the Report Center platform, which will become
defunct upon completion of the transition.
\5\ The Exchange will provide prior notice via Equity Trader
Alerts of the availability of the reports under Rule 7021 on Report
HQ.
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Any member may have access to the Report HQ platform upon request.
Specifically, an existing Report Center subscriber must submit a Report
HQ Request Form available at https://www.nasdaqtrader.com/EASP/TraderEASP.aspx?id=ReportHQSignUp. Nasdaq will then verify the account
and send the member a registration link.\6\ Upon completion of the
registration process, the member will be able to access both platforms
to access reports, and will not be charged any additional fees for
these reports. If a member does not have an existing Report Center
subscription and requests Report HQ access to the Rule 7021 reports
using the process described immediately above, Nasdaq will create a
login to the Report Center platform in addition to a Report HQ login
for the member, and the member will be charged the current monthly $250
per entitled user, per MPID \7\ fee under Rule 7021. This registration
process ensures that customers are able to access the whole breadth of
reports available and covered by Rule 7021. Any new subscriber to
Report Center will receive both a Report Center and Report HQ login.
Last, during the process of transitioning reports from Report Center to
Report HQ, subscribers will be able to access up to a total of 100
reports under (b)-(f) of the rule on each platform. This will
effectively double the number of reports available for a subscription
for the duration of the transition. All members may access the Rule
7021 reports on Report HQ upon completion of the Report HQ registration
process noted above.
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\6\ See https://business.nasdaq.com/media/NasdaqReportHQ_tcm5044-43704.pdf.
\7\ The Exchange is proposing to clarify under Rule 7021 that
the fee is assessed per entitled user, per MPID, because under the
Nasdaq Report Center each entitled user is entitled to reports for a
single MPID.
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The Exchange is also proposing to remove Monthly Summaries from
Rule 7021, and hold Rule 7021(a) in reserve. No member has accessed
Monthly Summaries in over a year and Nasdaq does not currently provide
the report in Report Center. The Exchange believes that the report is
no longer useful to members and consequently is proposing to eliminate
the report from Rule 7021.
Last, the Exchange is proposing to make two clarifying changes to
Rule 7021. First, as noted above, accessing reports under (b)-(f) do
count toward the cap under Rule 7021. In this regard, when the Exchange
added several reports to the Rule in 2014,\8\ it noted that the
following reports count toward the report cap: Nasdaq Order Execution
and Routing; Market Recap; QView Historical Reports; and Real-Time
Registered Market Maker Report. These reports are found under
paragraphs (c)-(f) of the Rule. In the 2014 filing, the Exchange also
added text that made it clear that the newly-added reports under (g)-
(k) do not count toward the report cap.\9\ The Exchange is proposing to
make it clear that the reports under (b)-(f) are counted toward the
monthly cap. Second, the Exchange is making it clear that the monthly
fee under Rule 7021 is assessed per entitled user, per MPID. Currently
under Rule 7021, a member is billed by each entitled user, i.e., a user
ID, which is tied to a single MPID of the member. The 100 report limit
is tied to a user ID. In practice, a member may have multiple user IDs
so that they may access reports concerning multiple MPIDs. Report HQ
has simplified access to reports by not requiring multiple user IDs,
but rather allows a single user ID per person, who then may be given
access to reports for multiple MPIDs (each for the $250 monthly fee).
Thus, Report HQ will simplify access to the reports under Rule 7021,
but will not alter the fee or what reports are provided in return for
the fee. During the transition, a Report Center subscription will
provide the user with access to the reports for the same MPID for
Report HQ, as described above.
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\8\ See Securities Exchange Act Release No. 73815 (December 11,
2014), 79 FR 75223 (December 17, 2014) (SR-NASDAQ-2014-121).
\9\ Id.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b)

[[Page 48494]]

of the Act,\10\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\11\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by allowing the Exchange to upgrade its systems, which will
benefit members that use Report Center to access the reports found
under Rule 7021. As noted above, Report HQ will be more robust and user
friendly, and thus an improvement over the existing Report Center
platform. The Exchange notes that all members may access the reports
available through Report HQ without additional cost in addition to the
existing fees. Nasdaq is not proposing to change the fees assessed for
the reports under Rule 7021 or assess an additional fee for access to
the Rule 7021 reports on Report HQ. The proposed rule change will not
change the content of any of the reports under Rule 7021, other than
the addition of TRF Chicago data and the deletion of an unused report
that is not currently offered, as discussed above. Moreover, the
Exchange is proposing to allow members to access 100 reports under Rule
7021(b)-(f) on either system. To access these reports, member need only
complete the registration process, which is provided in a non-
discriminatory manner. As noted above, if a member does not have an
existing Report Center subscription and requests Report HQ access to
the Rule 7021 reports using the process described above, Nasdaq will
create a login to the Report Center platform in addition to a Report HQ
login for the member, and the member will be charged the current
monthly $250 per entitled user fee. Thus, all members receiving the
same reports under Rule 7021 will be assessed the same fee. The
Exchange notes that providing members with a cap of 100 reports under
Rule 7021(b)-(f) on each system will allow firms to more easily
transition between the systems. The Exchange believes that the proposed
clarifying changes protect investors and the public interest by
removing ambiguities from the rule, which may cause market participant
confusion over how the fee is assessed and what is included in the 100
report monthly limit. Last, the Exchange believes that removal of the
Monthly Summaries report from Rule 7021 further perfects the Exchange's
rule book and is consistent with the protection of investors because
the Exchange is eliminating an unused report from its rule. As noted
above, no member has accessed Monthly Summaries in over a year and
Nasdaq does not currently provide the report in Report Center. Keeping
the Monthly Summaries text under Rule 7021 would lead to investor
confusion over what reports are available under the rule. Accordingly,
the Exchange believes that it is consistent with the purposes of the
Act to delete the text.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act \12\ 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 or system which the
Exchange operates or controls, and it does not unfairly discriminate
between customers, issuers, brokers or dealers. The Exchange is
proposing a transition process that will not affect the fee assessed
for the reports under Rule 7021. In this regard, the Exchange notes
that all members receiving the reports under Rule 7021 will be assessed
the same fee. Accordingly, the Exchange believes that the proposed
change is an equitable allocation of a reasonable fee and does not
unfairly discriminate.
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\12\ 15 U.S.C. 78f(b)(4).
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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, but it is rather pro-
competitive. The proposal is reflective of the Exchange's efforts to
upgrade its systems to improve the experience of its members. The
Exchange is not increasing fees nor limiting the information available
to members through a subscription under Rule 7021 other than the
elimination of an unused report. Moreover, the proposed rule change
will ensure that all members receiving the same reports under Rule 7021
will be assessed the same fee regardless of the platform used to access
the report. To the extent that the upgraded platform improves the
experience of members, it may make the Exchange a more attractive
venue, which will help to retain existing members and potentially
attract new members. Consequently, other trading venues may be
compelled to improve their services in response.

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) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. Waiver
of the operative delay would allow the Exchange to provide members with
access to TRF Chicago data through Report HQ and make related changes
to Rule 7021 concurrent with the launch of TRF Chicago in September
2018. The Commission believes that waiver of the 30-day operative delay
is consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the operative delay and
designates the proposed rule change operative upon filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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

[[Page 48495]]

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 change 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 rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2018-073 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-2018-073. 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-2018-073, and should be submitted
on or before October 16, 2018.
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\18\ 17 CFR 200.30-3(a)(12).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Brent J. Fields,
Secretary.
[FR Doc. 2018-20761 Filed 9-24-18; 8:45 am]
BILLING CODE 8011-01-P

48492 Federal Register / Vol. 83, No. 186 / Tuesday, September 25, 2018 / Notices

proposed rule change does not address Therefore, the Commission hereby Washington, DC 20549, on official
competitive issues but relates to the waives the 30-day operative delay and business days between the hours of
administration and functioning of the designates the proposed rule change as 10:00 a.m. and 3:00 p.m. Copies of the
Exchange by allowing the Exchange operative upon filing.16 filing also will be available for
greater flexibility in attracting and At any time within 60 days of the inspection and copying at the principal
retaining well qualified officers to the filing of the proposed rule change, the office of the Exchange. All comments
role of CRO that are not designated as Commission summarily may received will be posted without change.
an Executive Vice President or Senior temporarily suspend such rule change if Persons submitting comments are
Vice President. it appears to the Commission that such cautioned that we do not redact or edit
action is: (i) Necessary or appropriate in personal identifying information from
C. Self-Regulatory Organization’s the public interest; (ii) for the protection comment submissions. You should
Statement on Comments on the of investors; or (iii) otherwise in submit only information that you wish
Proposed Rule Change Received From furtherance of the purposes of the Act. to make available publicly. All
Members, Participants, or Others If the Commission takes such action, the submissions should refer to File
No written comments were either Commission shall institute proceedings Number SR–GEMX–2018–31 and
solicited or received. to determine whether the proposed rule should be submitted on or before
III. Date of Effectiveness of the should be approved or disapproved. October 16, 2018.
Proposed Rule Change and Timing for IV. Solicitation of Comments For the Commission, by the Division of
Commission Action Trading and Markets, pursuant to delegated
Interested persons are invited to authority.17
Because the foregoing proposed rule submit written data, views, and Eduardo A. Aleman,
change does not: (i) Significantly affect arguments concerning the foregoing,
the protection of investors or the public Assistant Secretary.
including whether the proposed rule
interest; (ii) impose any significant [FR Doc. 2018–20758 Filed 9–24–18; 8:45 am]
change is consistent with the Act.
burden on competition; and (iii) become Comments may be submitted by any of BILLING CODE 8011–01–P
operative for 30 days from the date on the following methods:
which it was filed, or such shorter time
as the Commission may designate, it has Electronic Comments SECURITIES AND EXCHANGE
become effective pursuant to Section • Use the Commission’s internet COMMISSION
19(b)(3)(A)(iii) of the Act 12 and comment form (http://www.sec.gov/ [Release No. 34–84209; File No. SR–
subparagraph (f)(6) of Rule 19b–4 rules/sro.shtml); or NASDAQ–2018–073]
thereunder.13 • Send an email to rule-comments@
A proposed rule change filed under sec.gov. Please include File Number SR– Self-Regulatory Organizations; The
Rule 19b–4(f)(6) 14 normally does not GEMX–2018–31 on the subject line. Nasdaq Stock Market LLC; Notice of
become operative prior to 30 days after Filing and Immediate Effectiveness of
Paper Comments
the date of the filing. However, Rule Proposed Rule Change To Amend Rule
19b–4(f)(6)(iii) 15 permits the • Send paper comments in triplicate 7021
Commission to designate a shorter time to Secretary, Securities and Exchange
Commission, 100 F Street NE, September 19, 2018.
if such action is consistent with the
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
protection of investors and the public
All submissions should refer to File Securities Exchange Act of 1934
interest. The Exchange has asked the
Number SR–GEMX–2018–31. This file (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission to waive the 30-day
operative delay so that the proposed number should be included on the notice is hereby given that on
rule change may become operative subject line if email is used. To help the September 6, 2018, The Nasdaq Stock
immediately upon filing. The Exchange Commission process and review your Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’)
notes that waiver of the operative delay comments more efficiently, please use filed with the Securities and Exchange
will allow it to amend its By-Laws by only one method. The Commission will Commission (‘‘Commission’’) the
September 26, 2018. The Exchange post all comments on the Commission’s proposed rule change as described in
states that the boards of the Affiliated internet website (http://www.sec.gov/ Items I and II below, which Items have
Exchanges will collectively meet on that rules/sro.shtml). Copies of the been prepared by the Exchange. The
date to address, among other matters, submission, all subsequent Commission is publishing this notice to
certain annual corporate ‘‘housekeeping amendments, all written statements solicit comments on the proposed rule
items,’’ which the Exchange states has with respect to the proposed rule change from interested persons.
historically included Exchange officer change that are filed with the I. Self-Regulatory Organization’s
appointments. As such, the Commission Commission, and all written Statement of the Terms of Substance of
believes that waiver of the operative communications relating to the the Proposed Rule Change
delay is consistent with the protection proposed rule change between the
The Exchange proposes to amend
of investors and the public interest. Commission and any person, other than
Rule 7021 to address the transition of
those that may be withheld from the
reports available on Report Center to a
12 15 U.S.C. 78s(b)(3)(A)(iii). public in accordance with the
new underlying platform, and to make
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– provisions of 5 U.S.C. 552, will be
4(f)(6)(iii) requires a self-regulatory organization to technical and clarifying changes.
available for website viewing and The text of the proposed rule change
daltland on DSKBBV9HB2PROD with NOTICES

give the Commission written notice of its intent to
file the proposed rule change, along with a brief printing in the Commission’s Public is available on the Exchange’s website at
description and text of the proposed rule change, Reference Room, 100 F Street NE, http://nasdaq.cchwallstreet.com, at the
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time 16 For purposes only of waiving the 30-day
principal office of the Exchange, and at
as designated by the Commission. The Exchange operative delay, the Commission has also
has satisfied this requirement. considered the proposed rule’s impact on
17 17 CFR 200.30–3(a)(12).
14 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
15 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.

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Federal Register / Vol. 83, No. 186 / Tuesday, September 25, 2018 / Notices 48493

the Commission’s Public Reference platforms concurrent with the launch of members may access the Rule 7021
Room. the TRF Chicago, which is currently reports on Report HQ upon completion
scheduled for September 2018. In light of the Report HQ registration process
II. Self-Regulatory Organization’s
of the timing of the TRF Chicago and the noted above.
Statement of the Purpose of, and
transition to the Report HQ,4 Nasdaq The Exchange is also proposing to
Statutory Basis for, the Proposed Rule
Change will not be adding TRF Chicago data to remove Monthly Summaries from Rule
the Historical Research Reports and 7021, and hold Rule 7021(a) in reserve.
In its filing with the Commission, the Market Recap reports available on No member has accessed Monthly
Exchange included statements Report Center, but will make TRF Summaries in over a year and Nasdaq
concerning the purpose of and basis for Chicago data in those reports available does not currently provide the report in
the proposed rule change and discussed through the Report HQ platform. The Report Center. The Exchange believes
any comments it received on the remaining reports available under Rule that the report is no longer useful to
proposed rule change. The text of these 7021 do not include TRF data and members and consequently is proposing
statements may be examined at the consequently will be identical on each to eliminate the report from Rule 7021.
places specified in Item IV below. The platform as they are transferred over the
Exchange has prepared summaries, set Last, the Exchange is proposing to
course of the transition.5
forth in sections A, B, and C below, of make two clarifying changes to Rule
Any member may have access to the
the most significant aspects of such 7021. First, as noted above, accessing
Report HQ platform upon request.
statements. reports under (b)–(f) do count toward
Specifically, an existing Report Center
the cap under Rule 7021. In this regard,
A. Self-Regulatory Organization’s subscriber must submit a Report HQ
when the Exchange added several
Statement of the Purpose of, and Request Form available at https://
reports to the Rule in 2014,8 it noted
Statutory Basis for, the Proposed Rule www.nasdaqtrader.com/EASP/
that the following reports count toward
Change TraderEASP.aspx?id=ReportHQSignUp.
the report cap: Nasdaq Order Execution
Nasdaq will then verify the account and
1. Purpose and Routing; Market Recap; QView
send the member a registration link.6
The Exchange is proposing to amend Historical Reports; and Real-Time
Upon completion of the registration
Rule 7021, concerning the Report Registered Market Maker Report. These
process, the member will be able to
Center, to address the transition of reports are found under paragraphs (c)–
access both platforms to access reports,
reports available on Report Center to a (f) of the Rule. In the 2014 filing, the
and will not be charged any additional
new underlying platform, and to make Exchange also added text that made it
fees for these reports. If a member does
technical and clarifying changes. Report clear that the newly-added reports
not have an existing Report Center
Center provides members with various under (g)–(k) do not count toward the
subscription and requests Report HQ
reports containing information report cap.9 The Exchange is proposing
access to the Rule 7021 reports using the
concerning the member’s own historical to make it clear that the reports under
process described immediately above,
quoting and trading activity on Nasdaq (b)–(f) are counted toward the monthly
Nasdaq will create a login to the Report
and the FINRA/Nasdaq Trade Reporting cap. Second, the Exchange is making it
Center platform in addition to a Report
Facility, which is located in Carteret, NJ clear that the monthly fee under Rule
HQ login for the member, and the
(‘‘TRF Carteret’’). The Exchange will 7021 is assessed per entitled user, per
member will be charged the current
begin operating a second trade reporting MPID. Currently under Rule 7021, a
monthly $250 per entitled user, per
facility, FINRA/Nasdaq TRF Chicago member is billed by each entitled user,
MPID 7 fee under Rule 7021. This
(‘‘TRF Chicago’’), in September of i.e., a user ID, which is tied to a single
registration process ensures that
2018.3 The purpose of this proposed MPID of the member. The 100 report
customers are able to access the whole
rule change is to inform members of the limit is tied to a user ID. In practice, a
breadth of reports available and covered
transition to the new underlying member may have multiple user IDs so
by Rule 7021. Any new subscriber to
platform, to clarify the contents of that they may access reports concerning
Report Center will receive both a Report
certain reports in light of the new TRF multiple MPIDs. Report HQ has
Center and Report HQ login. Last,
Chicago, and to make clarifying changes simplified access to reports by not
during the process of transitioning
concerning how the fee is assessed. requiring multiple user IDs, but rather
reports from Report Center to Report
The Exchange is beginning a process allows a single user ID per person, who
HQ, subscribers will be able to access
of replacing the underlying platform of then may be given access to reports for
up to a total of 100 reports under (b)–
Report Center with a new platform, multiple MPIDs (each for the $250
(f) of the rule on each platform. This
Report HQ. Report HQ will be more monthly fee). Thus, Report HQ will
will effectively double the number of
robust and user friendly, and thus an simplify access to the reports under
reports available for a subscription for
improvement over the existing Report Rule 7021, but will not alter the fee or
the duration of the transition. All
Center platform. Nasdaq is not what reports are provided in return for
proposing to change the fees assessed 4 In this regard, Nasdaq notes that it is beginning
the fee. During the transition, a Report
for the reports under Rule 7021 or assess the transition to Report HQ with the only reports Center subscription will provide the
an additional fee for access to the Rule that include TRF data. Thus the Exchange is user with access to the reports for the
avoiding the time and expense of programming new same MPID for Report HQ, as described
7021 reports on Report HQ. Nasdaq is reports for the Report Center platform, which will
beginning the transition with reports become defunct upon completion of the transition.
above.
that may include TRF data, which are 5 The Exchange will provide prior notice via
2. Statutory Basis
certain Historical Research Reports
daltland on DSKBBV9HB2PROD with NOTICES

Equity Trader Alerts of the availability of the
under Rule 7021(b) and the Market reports under Rule 7021 on Report HQ. The Exchange believes that its
6 See https://business.nasdaq.com/media/
Recap report under Rule 7021(d). These proposal is consistent with Section 6(b)
NasdaqReportHQ_tcm5044-43704.pdf.
reports will be available on both 7 The Exchange is proposing to clarify under Rule
8 See Securities Exchange Act Release No. 73815
7021 that the fee is assessed per entitled user, per
3 SeeSecurities Exchange Act Release No. 83559 MPID, because under the Nasdaq Report Center (December 11, 2014), 79 FR 75223 (December 17,
(June 29, 2018), 83 FR 31589 (July 6, 2018) (SR– each entitled user is entitled to reports for a single 2014) (SR–NASDAQ–2014–121).
FINRA–2018–013). MPID. 9 Id.

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48494 Federal Register / Vol. 83, No. 186 / Tuesday, September 25, 2018 / Notices

of the Act,10 in general, and furthers the investors because the Exchange is C. Self-Regulatory Organization’s
objectives of Section 6(b)(5) of the Act,11 eliminating an unused report from its Statement on Comments on the
in particular, in that it is designed to rule. As noted above, no member has Proposed Rule Change Received From
promote just and equitable principles of accessed Monthly Summaries in over a Members, Participants, or Others
trade, to remove impediments to and year and Nasdaq does not currently No written comments were either
perfect the mechanism of a free and provide the report in Report Center. solicited or received.
open market and a national market Keeping the Monthly Summaries text
system, and, in general to protect III. Date of Effectiveness of the
under Rule 7021 would lead to investor
investors and the public interest, by Proposed Rule Change and Timing for
confusion over what reports are Commission Action
allowing the Exchange to upgrade its
available under the rule. Accordingly,
systems, which will benefit members Because the foregoing proposed rule
the Exchange believes that it is
that use Report Center to access the change does not: (i) Significantly affect
reports found under Rule 7021. As consistent with the purposes of the Act
to delete the text. the protection of investors or the public
noted above, Report HQ will be more interest; (ii) impose any significant
robust and user friendly, and thus an The Exchange believes the proposed burden on competition; and (iii) become
improvement over the existing Report rule change is consistent with Section operative for 30 days from the date on
Center platform. The Exchange notes 6(b)(4) of the Act 12 in that it provides which it was filed, or such shorter time
that all members may access the reports for the equitable allocation of reasonable as the Commission may designate, it has
available through Report HQ without dues, fees and other charges among become effective pursuant to Section
additional cost in addition to the members and issuers and other persons 19(b)(3)(A) of the Act 13 and Rule 19b–
existing fees. Nasdaq is not proposing to using any facility or system which the 4(f)(6) thereunder.14
change the fees assessed for the reports Exchange operates or controls, and it A proposed rule change filed
under Rule 7021 or assess an additional does not unfairly discriminate between pursuant to Rule 19b–4(f)(6) under the
fee for access to the Rule 7021 reports customers, issuers, brokers or dealers. Act 15 normally does not become
on Report HQ. The proposed rule The Exchange is proposing a transition operative for 30 days after the date of its
change will not change the content of filing. However, Rule 19b–4(f)(6)(iii) 16
process that will not affect the fee
any of the reports under Rule 7021, permits the Commission to designate a
other than the addition of TRF Chicago assessed for the reports under Rule
7021. In this regard, the Exchange notes shorter time if such action is consistent
data and the deletion of an unused with the protection of investors and the
report that is not currently offered, as that all members receiving the reports
public interest. The Exchange has
discussed above. Moreover, the under Rule 7021 will be assessed the
requested that the Commission waive
Exchange is proposing to allow same fee. Accordingly, the Exchange
the 30-day operative delay so that the
members to access 100 reports under believes that the proposed change is an proposed rule change may become
Rule 7021(b)–(f) on either system. To equitable allocation of a reasonable fee operative upon filing. Waiver of the
access these reports, member need only and does not unfairly discriminate. operative delay would allow the
complete the registration process, which Exchange to provide members with
B. Self-Regulatory Organization’s
is provided in a non-discriminatory access to TRF Chicago data through
manner. As noted above, if a member Statement on Burden on Competition
Report HQ and make related changes to
does not have an existing Report Center The Exchange does not believe that Rule 7021 concurrent with the launch of
subscription and requests Report HQ the proposed rule change will impose TRF Chicago in September 2018. The
access to the Rule 7021 reports using the any burden on competition not Commission believes that waiver of the
process described above, Nasdaq will necessary or appropriate in furtherance 30-day operative delay is consistent
create a login to the Report Center with the protection of investors and the
of the purposes of the Act, but it is
platform in addition to a Report HQ public interest. Accordingly, the
rather pro-competitive. The proposal is
login for the member, and the member Commission hereby waives the
will be charged the current monthly reflective of the Exchange’s efforts to
upgrade its systems to improve the operative delay and designates the
$250 per entitled user fee. Thus, all proposed rule change operative upon
members receiving the same reports experience of its members. The
Exchange is not increasing fees nor filing.17
under Rule 7021 will be assessed the At any time within 60 days of the
same fee. The Exchange notes that limiting the information available to
filing of the proposed rule change, the
providing members with a cap of 100 members through a subscription under
Commission summarily may
reports under Rule 7021(b)–(f) on each Rule 7021 other than the elimination of
temporarily suspend such rule change if
system will allow firms to more easily an unused report. Moreover, the it appears to the Commission that such
transition between the systems. The proposed rule change will ensure that action is necessary or appropriate in the
Exchange believes that the proposed all members receiving the same reports
clarifying changes protect investors and under Rule 7021 will be assessed the 13 15 U.S.C. 78s(b)(3)(A).
the public interest by removing same fee regardless of the platform used 14 17 CFR 240.19b–4(f)(6). As required under Rule
ambiguities from the rule, which may to access the report. To the extent that 19b–4(f)(6)(iii), the Exchange provided the
cause market participant confusion over the upgraded platform improves the Commission with written notice of its intent to file
how the fee is assessed and what is the proposed rule change, along with a brief
experience of members, it may make the description and the text of the proposed rule
included in the 100 report monthly Exchange a more attractive venue, change, at least five business days prior to the date
limit. Last, the Exchange believes that of filing of the proposed rule change, or such
daltland on DSKBBV9HB2PROD with NOTICES

which will help to retain existing
removal of the Monthly Summaries shorter time as designated by the Commission.
members and potentially attract new 15 17 CFR 240.19b–4(f)(6).
report from Rule 7021 further perfects
members. Consequently, other trading 16 17 CFR 240.19b–4(f)(6)(iii).
the Exchange’s rule book and is
consistent with the protection of venues may be compelled to improve 17 For purposes only of waiving the 30-day

their services in response. operative delay, the Commission also has
considered the proposed rule’s impact on
10 15 U.S.C. 78f(b). efficiency, competition, and capital formation. See
11 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78f(b)(4). 15 U.S.C. 78c(f).

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Document Created: 2018-09-25 00:21:49
Document Modified: 2018-09-25 00:21:49

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 48492