Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify NASDAQ Rule 7021 Fees, 75223-75225 [2014-29511]

Download as PDF Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices 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.6 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NASDAQ–2014–111, and should be submitted on or before January 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–29497 Filed 12–16–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73815; File No. SR– NASDAQ–2014–121] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify NASDAQ Rule 7021 Fees Paper Comments mstockstill on DSK4VPTVN1PROD with NOTICES • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NASDAQ–2014–111 on the subject line. 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 December 5, 2014, The NASDAQ Stock Market LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a 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. • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2014–111. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., December 11, 2014. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change NASDAQ is proposing to modify fees assessed under NASDAQ Rule 7021 for the NasdaqTrader.com Trading and Compliance Data Package (‘‘Data Package’’). While the changes proposed herein are effective upon filing, the Exchange has designated that the amendments be operative on January 2, 2015. 7 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 6 15 U.S.C. 78s(b)(3)(a)[sic](ii). VerDate Sep<11>2014 19:49 Dec 16, 2014 Jkt 235001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 75223 The text of the proposed rule change is available at nasdaq.cchwallstreet.com at NASDAQ’s principal office, 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, NASDAQ 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 those 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 parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose NASDAQ is proposing to amend Rule 7021 to increase the fee assessed for subscription to the Data Package and eliminate a little-used report.3 The Data Package allows member firms to obtain information regarding their own historical quoting and trading activity on NASDAQ. The Data Package also provides member firms with information concerning their compliance with NASDAQ and FINRA rules. When NASDAQ last increased the fees for the Data Package in February 2012,4 the service provided subscribers the following reports: Monthly Compliance Report Cards, which outline a firm’s own compliance with various FINRA rules; Monthly Summaries, which provide monthly trading volume statistics for the top 50 market participants broken down by industry sector, security or type of trading; and Historical Research Reports, which provide a variety of historical trading data such as a market maker’s quote updates, order activity, and detailed trade reporting information. Additionally, NASDAQ offered subscribers the ability to receive the detailed trade report (Equity Trade Journal) via a secure FTP dissemination as an option. These reports, which continue to be offered as part of Data Package, are based on the subscribing member firm’s historical trade 3 The Data Package is also commonly referred to as the Report Center. 4 See Securities Exchange Act Release No. 66078 (January 3, 2012), 77 FR 1125 (January 9, 2012) (SR– NASDAQ–2011–173). E:\FR\FM\17DEN1.SGM 17DEN1 mstockstill on DSK4VPTVN1PROD with NOTICES 75224 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices information taken from NASDAQ and the FINRA/NASDAQ Trade Reporting Facility. NASDAQ has continued to enhance what is offered in the Data Package to make it a more useful tool to member firms.5 In this regard, NASDAQ now provides the following new historical reports, which do not count toward the 25 and 100 monthly report limits under the rule when accessed: Execution Invoice Detail, which provides a member firm with enhanced detail of its executions; Month to Date Invoice Summary, which provides a member firm with a summary of its trading at any point in the month; Excessive Messaging Invoice Detail, which informs a member firm of whether its order activity at any point in a month will qualify for the Excess Order Fee under Rule 7018(m); Investor Support Program Invoice Detail, which informs a member firm of whether its order activity at any point in the month will qualify for the Investor Support Program under Rule 7014; and Qualified Market Maker Invoice Detail, which informs a member firm of whether its order activity at any point in the month will qualify for the Qualified Market Maker Program under Rule 7014. In addition, NASDAQ has enhanced the service with the following new reports, which do count toward the 25 and 100 monthly report limits under the rule when accessed: NASDAQ Order Execution and Routing, which provides a detailed daily summary of a member firm’s executions on NASDAQ and those routed to other markets; Market Recap, which provides a daily snapshot in a timeline format of all market events occurring during the day, such as trading halts and limit up/limit down pauses; QView 6 Historical Reports, which provide both daily and monthly summaries of trading based on volume, routing strategy, and order type; and Real-Time Registered Market Maker Report, which provides a market maker with a real-time assessment of whether it is meeting its market making obligations in the securities for which it is a market maker. NASDAQ is also proposing to eliminate the Monthly Compliance Report Card report from the service. NASDAQ notes that the report is not used significantly by subscribers to the service. In addition to having very little demand, the Monthly Compliance 5 See https://www.nasdaqtrader.com/ trader.aspx?id=reportcenter. 6 QView provides a member firm with the ability to track its order flow on NASDAQ, and view both real-time data and download reports of such order flow. See Rule 7058. Data Package offers QView historical data, but not real-time reports of order flow. VerDate Sep<11>2014 19:49 Dec 16, 2014 Jkt 235001 Report Card is similar to reports offered by FINRA at no cost.7 NASDAQ currently offers two monthly Data Package subscriptions: a basic subscription of $175 providing up to 25 reports per month; and a premium subscription of $225 providing up to 100 reports per month. As noted above, NASDAQ last increased the fee for Data Package in February 2012,8 and since then has enhanced the service with several new reports noted above. NASDAQ is proposing to increase the monthly fee assessed for up to 100 reports from $225 to $250 to cover the costs associated with enhancing and offering the service, and to ensure that the service continues to provide NASDAQ with a profit. In addition to increasing the fee assessed for the 100 report subscription, NASDAQ is proposing to eliminate the basic level subscription. As described above, NASDAQ has substantially increased the number of reports available to subscribers, including those that count against the monthly report limits of the two fee tiers. As a consequence, NASDAQ has observed that the lower tier provides an inadequate number of reports to be useful to most subscribers. Accordingly, NASDAQ is proposing to eliminate the lower tier. Lastly, NASDAQ is proposing to rename the service as the NASDAQ Report Center. NASDAQ notes that the service is commonly referred to as the Report Center, and changing the name to reflect the commonly-used name will avoid any market participant confusion caused by the two names. Moreover, NASDAQ believes that the proposed new name is more reflective of the nature of the service. 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,9 in general, and with Sections 6(b)(4) and 6(b)(5) of the Act,10 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 or system which the Exchange operates or controls, and is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable 7 FINRA offers Equity Report Cards, which allow firms to track their compliance with equity trading rules related to OATS, best execution, market order timeliness, trade reporting, Reg NMS Trade Throughs, and the NASDAQ Market Center. See https://www.finra.org/Industry/Compliance/ ReportCenter/P015063. 8 Supra note 4. 9 15 U.S.C. 78f. 10 15 U.S.C. 78f(b)(4) and (5). PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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; and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. NASDAQ believes that the proposed increase to the fee assessed under the rule is reasonable because it will allow NASDAQ to realign the fees assessed for the service with the costs it incurs in offering and enhancing it, while also ensuring that NASDAQ continues to realize a profit. The Exchange notes that it has substantially enhanced the service since the last time the fee was increased. Moreover, eliminating the lower tier is reasonable because NASDAQ has observed that the 25 report limit is too low for most member firms given the expansion of reports available to them through the service. As a consequence, the lower tier has limited applicability, yet represents a cost to NASDAQ in monitoring and administering the fee in relation to a subscriber’s usage. NASDAQ believes that the increased fee and elimination of the lower fee tier is an equitable allocation because the increased fee will apply to all subscribers uniformly. NASDAQ notes that under the proposed changes member firms currently subscribing to the lower tier will experience a greater fee increase than those currently subscribing to the higher tier. NASDAQ believes elimination of the lower tier is equitable because the limited number of member firms that subscribe to the lower tier will receive the benefit of a substantially increased monthly report limit. The Exchange believes that the proposed changes are not unfairly discriminatory because they now apply a uniform fee per subscription, thus eliminating a distinction made in the fee assessed based on the number of reports available per month. The Exchange notes that some member firms may incur a disproportionate increase in fees as compared to others under the proposed change as a result of the elimination of the lower tier subscription. The Exchange does not believe that this change is unfairly discriminatory because it eliminates a distinction in the fee assessed based on the number of reports, which is of declining applicability and use, and provides all member firms with the same level of service at the same cost. E:\FR\FM\17DEN1.SGM 17DEN1 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES As noted, NASDAQ incurs costs in monitoring a subscribing member firm’s report limit and in administering the fee. Consequently, reducing the number of fee tiers will reduce NASDAQ’s costs, thereby allowing NASDAQ to keep the fee lower than it would otherwise be. In addition, NASDAQ does not believe that elimination of the Monthly Compliance Report Card reports from the service is unfairly discriminatory. As noted, the report is used very little by subscribing member firms and any member firm that seeks similar information may obtain similar reports from FINRA at no cost. Lastly, NASDAQ believes that the proposed name change will avoid any market participant confusion due to the name of the service used in the rule and the commonly-used name. NASDAQ notes that the proposed change does not affect what is offered by the service in any way. B. Self-Regulatory Organization’s Statement on Burden on Competition NASDAQ does not believe that the proposed rule changes will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended.11 NASDAQ notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, NASDAQ must carefully balance the fees it assesses with the costs incurred to remain competitive with other exchanges. To the extent NASDAQ’s fees are too high or another exchange’s products and services provide greater value, NASDAQ will likely lose subscriber revenue. As such, NASDAQ believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In this instance, NASDAQ last increased the Data Package fees in February 2012 and NASDAQ is now realigning the fee assessed for the subscription to the service with the costs it incurs in offering it. Such costs include adding enhancements to the service to make it more useful to subscribers. Moreover, increasing the fees also allows NASDAQ to continue to derive a profit from the service, which will allow NASDAQ to continue to offer the service in the long term. Moreover, NASDAQ believes that the fee increase does not impose a burden on competition because the service is optional and member firms may develop their own alternatives to the service or acquire similar functionality through third parties. For these reasons, NASDAQ does not believe that the proposed changes will impose any unnecessary burden on competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing change has become effective pursuant to Section 19(b)(3)(A) of the Act,12 and paragraph (f) 13 of Rule 19b–4, thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NASDAQ–2014–121 on the subject line. Paper Comments • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2014–121. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://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 12 15 11 15 U.S.C. 78f(b)(8). VerDate Sep<11>2014 19:49 Dec 16, 2014 13 17 Jkt 235001 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). Frm 00112 Fmt 4703 proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NASDAQ–2014–121, and should be submitted on or before January 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–29511 Filed 12–16–14; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION Reporting and Recordkeeping Requirements Under OMB Review Small Business Administration. 30-Day notice. AGENCY: ACTION: The Small Business Administration (SBA) is publishing this notice to comply with requirements of the Paperwork Reduction Act (PRA) (44 U.S.C. Chapter 35), which requires agencies to submit proposed reporting and recordkeeping requirements to OMB for review and approval, and to publish a notice in the Federal Register notifying the public that the agency has made such a submission. This notice also allows an additional 30 days for public comments. DATES: Submit comments on or before January 16, 2015. ADDRESSES: Comments should refer to the information collection by name and/ or OMB Control Number and should be sent to: Agency Clearance Officer, Curtis Rich, Small Business Administration, 409 3rd Street SW., 5th Floor, Washington, DC 20416; and SBA Desk Officer, Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Washington, DC 20503. SUMMARY: 14 17 Sfmt 4703 75225 E:\FR\FM\17DEN1.SGM CFR 200.30–3(a)(12). 17DEN1

Agencies

[Federal Register Volume 79, Number 242 (Wednesday, December 17, 2014)]
[Notices]
[Pages 75223-75225]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29511]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73815; File No. SR-NASDAQ-2014-121]


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

December 11, 2014.
    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 December 5, 2014, The NASDAQ Stock Market LLC (``NASDAQ'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a 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 the 
Substance of the Proposed Rule Change

    NASDAQ is proposing to modify fees assessed under NASDAQ Rule 7021 
for the NasdaqTrader.com Trading and Compliance Data Package (``Data 
Package''). While the changes proposed herein are effective upon 
filing, the Exchange has designated that the amendments be operative on 
January 2, 2015.
    The text of the proposed rule change is available at 
nasdaq.cchwallstreet.com at NASDAQ's principal office, 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, NASDAQ 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 those 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 parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    NASDAQ is proposing to amend Rule 7021 to increase the fee assessed 
for subscription to the Data Package and eliminate a little-used 
report.\3\  The Data Package allows member firms to obtain information 
regarding their own historical quoting and trading activity on NASDAQ. 
The Data Package also provides member firms with information concerning 
their compliance with NASDAQ and FINRA rules. When NASDAQ last 
increased the fees for the Data Package in February 2012,\4\ the 
service provided subscribers the following reports: Monthly Compliance 
Report Cards, which outline a firm's own compliance with various FINRA 
rules; Monthly Summaries, which provide monthly trading volume 
statistics for the top 50 market participants broken down by industry 
sector, security or type of trading; and Historical Research Reports, 
which provide a variety of historical trading data such as a market 
maker's quote updates, order activity, and detailed trade reporting 
information. Additionally, NASDAQ offered subscribers the ability to 
receive the detailed trade report (Equity Trade Journal) via a secure 
FTP dissemination as an option. These reports, which continue to be 
offered as part of Data Package, are based on the subscribing member 
firm's historical trade

[[Page 75224]]

information taken from NASDAQ and the FINRA/NASDAQ Trade Reporting 
Facility.
---------------------------------------------------------------------------

    \3\ The Data Package is also commonly referred to as the Report 
Center.
    \4\ See Securities Exchange Act Release No. 66078 (January 3, 
2012), 77 FR 1125 (January 9, 2012) (SR-NASDAQ-2011-173).
---------------------------------------------------------------------------

    NASDAQ has continued to enhance what is offered in the Data Package 
to make it a more useful tool to member firms.\5\ In this regard, 
NASDAQ now provides the following new historical reports, which do not 
count toward the 25 and 100 monthly report limits under the rule when 
accessed: Execution Invoice Detail, which provides a member firm with 
enhanced detail of its executions; Month to Date Invoice Summary, which 
provides a member firm with a summary of its trading at any point in 
the month; Excessive Messaging Invoice Detail, which informs a member 
firm of whether its order activity at any point in a month will qualify 
for the Excess Order Fee under Rule 7018(m); Investor Support Program 
Invoice Detail, which informs a member firm of whether its order 
activity at any point in the month will qualify for the Investor 
Support Program under Rule 7014; and Qualified Market Maker Invoice 
Detail, which informs a member firm of whether its order activity at 
any point in the month will qualify for the Qualified Market Maker 
Program under Rule 7014. In addition, NASDAQ has enhanced the service 
with the following new reports, which do count toward the 25 and 100 
monthly report limits under the rule when accessed: NASDAQ Order 
Execution and Routing, which provides a detailed daily summary of a 
member firm's executions on NASDAQ and those routed to other markets; 
Market Recap, which provides a daily snapshot in a timeline format of 
all market events occurring during the day, such as trading halts and 
limit up/limit down pauses; QView \6\ Historical Reports, which provide 
both daily and monthly summaries of trading based on volume, routing 
strategy, and order type; and Real-Time Registered Market Maker Report, 
which provides a market maker with a real-time assessment of whether it 
is meeting its market making obligations in the securities for which it 
is a market maker. NASDAQ is also proposing to eliminate the Monthly 
Compliance Report Card report from the service. NASDAQ notes that the 
report is not used significantly by subscribers to the service. In 
addition to having very little demand, the Monthly Compliance Report 
Card is similar to reports offered by FINRA at no cost.\7\ NASDAQ 
currently offers two monthly Data Package subscriptions: a basic 
subscription of $175 providing up to 25 reports per month; and a 
premium subscription of $225 providing up to 100 reports per month. As 
noted above, NASDAQ last increased the fee for Data Package in February 
2012,\8\ and since then has enhanced the service with several new 
reports noted above. NASDAQ is proposing to increase the monthly fee 
assessed for up to 100 reports from $225 to $250 to cover the costs 
associated with enhancing and offering the service, and to ensure that 
the service continues to provide NASDAQ with a profit. In addition to 
increasing the fee assessed for the 100 report subscription, NASDAQ is 
proposing to eliminate the basic level subscription. As described 
above, NASDAQ has substantially increased the number of reports 
available to subscribers, including those that count against the 
monthly report limits of the two fee tiers. As a consequence, NASDAQ 
has observed that the lower tier provides an inadequate number of 
reports to be useful to most subscribers. Accordingly, NASDAQ is 
proposing to eliminate the lower tier.
---------------------------------------------------------------------------

    \5\ See https://www.nasdaqtrader.com/trader.aspx?id=reportcenter.
    \6\ QView provides a member firm with the ability to track its 
order flow on NASDAQ, and view both real-time data and download 
reports of such order flow. See Rule 7058. Data Package offers QView 
historical data, but not real-time reports of order flow.
    \7\ FINRA offers Equity Report Cards, which allow firms to track 
their compliance with equity trading rules related to OATS, best 
execution, market order timeliness, trade reporting, Reg NMS Trade 
Throughs, and the NASDAQ Market Center. See https://www.finra.org/Industry/Compliance/ReportCenter/P015063.
    \8\ Supra note 4.
---------------------------------------------------------------------------

    Lastly, NASDAQ is proposing to rename the service as the NASDAQ 
Report Center. NASDAQ notes that the service is commonly referred to as 
the Report Center, and changing the name to reflect the commonly-used 
name will avoid any market participant confusion caused by the two 
names. Moreover, NASDAQ believes that the proposed new name is more 
reflective of the nature of the service.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\9\ in general, and with 
Sections 6(b)(4) and 6(b)(5) of the Act,\10\ 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 or system which the Exchange operates or controls, and is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, 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; and are not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    NASDAQ believes that the proposed increase to the fee assessed 
under the rule is reasonable because it will allow NASDAQ to realign 
the fees assessed for the service with the costs it incurs in offering 
and enhancing it, while also ensuring that NASDAQ continues to realize 
a profit. The Exchange notes that it has substantially enhanced the 
service since the last time the fee was increased. Moreover, 
eliminating the lower tier is reasonable because NASDAQ has observed 
that the 25 report limit is too low for most member firms given the 
expansion of reports available to them through the service. As a 
consequence, the lower tier has limited applicability, yet represents a 
cost to NASDAQ in monitoring and administering the fee in relation to a 
subscriber's usage.
    NASDAQ believes that the increased fee and elimination of the lower 
fee tier is an equitable allocation because the increased fee will 
apply to all subscribers uniformly. NASDAQ notes that under the 
proposed changes member firms currently subscribing to the lower tier 
will experience a greater fee increase than those currently subscribing 
to the higher tier. NASDAQ believes elimination of the lower tier is 
equitable because the limited number of member firms that subscribe to 
the lower tier will receive the benefit of a substantially increased 
monthly report limit.
    The Exchange believes that the proposed changes are not unfairly 
discriminatory because they now apply a uniform fee per subscription, 
thus eliminating a distinction made in the fee assessed based on the 
number of reports available per month. The Exchange notes that some 
member firms may incur a disproportionate increase in fees as compared 
to others under the proposed change as a result of the elimination of 
the lower tier subscription. The Exchange does not believe that this 
change is unfairly discriminatory because it eliminates a distinction 
in the fee assessed based on the number of reports, which is of 
declining applicability and use, and provides all member firms with the 
same level of service at the same cost.

[[Page 75225]]

As noted, NASDAQ incurs costs in monitoring a subscribing member firm's 
report limit and in administering the fee. Consequently, reducing the 
number of fee tiers will reduce NASDAQ's costs, thereby allowing NASDAQ 
to keep the fee lower than it would otherwise be. In addition, NASDAQ 
does not believe that elimination of the Monthly Compliance Report Card 
reports from the service is unfairly discriminatory. As noted, the 
report is used very little by subscribing member firms and any member 
firm that seeks similar information may obtain similar reports from 
FINRA at no cost.
    Lastly, NASDAQ believes that the proposed name change will avoid 
any market participant confusion due to the name of the service used in 
the rule and the commonly-used name. NASDAQ notes that the proposed 
change does not affect what is offered by the service in any way.

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

    NASDAQ does not believe that the proposed rule changes will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended.\11\ NASDAQ notes 
that it operates in a highly competitive market in which market 
participants can readily favor competing venues if they deem fee levels 
at a particular venue to be excessive. In such an environment, NASDAQ 
must carefully balance the fees it assesses with the costs incurred to 
remain competitive with other exchanges. To the extent NASDAQ's fees 
are too high or another exchange's products and services provide 
greater value, NASDAQ will likely lose subscriber revenue. As such, 
NASDAQ believes that the degree to which fee changes in this market may 
impose any burden on competition is extremely limited. In this 
instance, NASDAQ last increased the Data Package fees in February 2012 
and NASDAQ is now realigning the fee assessed for the subscription to 
the service with the costs it incurs in offering it. Such costs include 
adding enhancements to the service to make it more useful to 
subscribers. Moreover, increasing the fees also allows NASDAQ to 
continue to derive a profit from the service, which will allow NASDAQ 
to continue to offer the service in the long term. Moreover, NASDAQ 
believes that the fee increase does not impose a burden on competition 
because the service is optional and member firms may develop their own 
alternatives to the service or acquire similar functionality through 
third parties. For these reasons, NASDAQ does not believe that the 
proposed changes will impose any unnecessary burden on competition.
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    \11\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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

    The foregoing change has become effective pursuant to Section 
19(b)(3)(A) of the Act,\12\ and paragraph (f) \13\ of Rule 19b-4, 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f).
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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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2014-121 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2014-121. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal offices of the Exchange. 
All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-NASDAQ-2014-
121, and should be submitted on or before January 7, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-29511 Filed 12-16-14; 8:45 am]
BILLING CODE 8011-01-P
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