Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Data Collection Requirements in Rule 4470, 14272-14274 [2017-05344]
Download as PDF
<![CDATA[
14272
Federal Register / Vol. 82, No. 51 / Friday, March 17, 2017 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
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.
[FR Doc. 2017–05337 Filed 3–16–17; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80229; File No. SR–
NASDAQ–2017–024]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Data Collection Requirements in Rule
4470
March 13, 2017.
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 February
28, 2017, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 4770 to modify the date of
Appendix B Web site data publication
pursuant to the Regulation NMS Plan to
Implement a Tick Size Pilot Program
(‘‘Plan’’).
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.cchwallstreet.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
1 15
VerDate Sep<11>2014
20:02 Mar 16, 2017
Jkt 241001
1. Purpose
Rule 4770(b) (Compliance with Data
Collection Requirements) 3 implements
the data collection and Web site
publication requirements of the Plan.4
Commentary .08 to Rule 4770 provides,
among other things, that the
requirement that the Exchange make
certain data publicly available on the
Nasdaq Web site pursuant to Appendix
B and C to the Plan shall commence at
the beginning of the Pilot Period,5 and
that Nasdaq shall make data for the PrePilot Period publicly available on the
Nasdaq Web site pursuant to Appendix
B and C to the Plan by February 28,
2017.6
Nasdaq is proposing amendments to
Commentary .08 to Rule 4770 to delay
the date by which Pre-Pilot and Pilot
Appendix B data is to be made publicly
available on Nasdaq’s Web site from
February 28, 2017, until April 28, 2017.
Appendix C data for the Pre-Pilot Period
through the month of January 2017 will
be published on the Nasdaq Web site on
February 28, 2017, and, thereafter, on
the original 30-day schedule.7 As some
3 See Rule 4770(b). See also Securities Exchange
Act Release No. 77456 (March 28, 2016), 81 FR
18925 (April 1, 2016) (SR–NASDAQ–2016–043).
4 The Participants filed the Plan to comply with
an order issued by the Commission on June 24,
2014. See Letter from Brendon J. Weiss, Vice
President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014
(‘‘SRO Tick Size Plan Proposal’’). See Securities
Exchange Act Release No 72460 (June 24, 2014), 79
FR 36840 (June 30, 2014); see also Securities
Exchange Act Release No. 74892 (May 6, 2015), 80
FR 27513 (May 13, 2015).
5 Unless otherwise defined herein, capitalized
terms have the meaning ascribed to them in Rule
4770.
6 On November 30, 2016, the SEC granted
exemptive relief to the Participants to, among other
things, delay the publication of Web site data
pursuant to Appendices B and C to the Plan until
February 28, 2017, and to delay the ongoing Web
site publication by ninety days such that data
would be published within 120 calendar days
following the end of the month. See Letter from
David S. Shillman, Associate Director, Division of
Trading and Markets, Commission, to Marcia E.
Asquith, Senior Vice President and Corporate
Secretary, FINRA, dated November 30, 2016; see
also Securities Exchange Act Release No. 79546
(December 14, 2016), 81 FR 92932 (December 20,
2016) (SR–NASDAQ–2016–165).
7 Since, under Rule 4770(b)(4), Nasdaq is not
independently publishing Market Maker
profitability data collected pursuant to Item I of
Appendix C of the Plan, no corresponding change
to the language of Rule 4770(b)(4) relating to the
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
of the data reporting requirements set
forth in Rule 4770 require members to
report data to their Designated
Examining Authority (‘‘DEA’’), which
may not be Nasdaq, the Exchange is also
proposing to add references in
Commentary .08 to reflect the fact that
the Exchange or the DEA may be
publishing such data.
In the SRO Tick Size Plan Proposal,
the Participants stated that the public
data will be made available for free ‘‘on
a disaggregated basis by trading center’’
on the Web sites of the Participants and
the Designated Examining Authorities.8
However, market participants have
expressed confidentiality concerns
regarding this approach for over-thecounter (‘‘OTC’’) data.9 Thus, Nasdaq is
filing the instant proposed rule change
to provide additional time to assess a
means of addressing the confidentiality
concerns raised in connection with the
publication of Appendix B data related
to OTC activity in furtherance of the
objectives of the Plan.10 Pursuant to this
amendment, Appendix B data
publication will be delayed until April
28, 2017. The Participants anticipate
filing additional proposed rule changes
to address Appendix B data publication.
Nasdaq has filed the proposed rule
change for immediate effectiveness. The
operative date of the proposed rule
change will be the date of filing.
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 Section 6(b)(5) of the Act,12
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, 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
timing of the publication of Appendix C data for the
Pilot Period is needed.
8 See Securities Exchange Act Release No. 73511
(November 3, 2014), 79 FR 66423 (November 7,
2014) (Notice of Filing of Proposed National Market
System Plan to Implement a Tick Size Pilot Program
on a One-Year Pilot Basis, File No. 4–657) (‘‘Tick
Size Plan Proposal’’).
9 See letters from Adam C. Cooper, Senior
Managing Director and Chief Legal Officer, Citadel
Securities, to Brent J. Fields, Secretary,
Commission, dated December 21, 2016 (‘‘Citadel
letter’’); and William Hebert, Managing Director,
Financial Information Forum, to Robert W. Errett,
Deputy Secretary, Commission, dated December 21,
2016 (‘‘FIF letter’’).
10 In connection with its filing to implement a
similar change in its rules, the Financial Industry
Regulatory Authority, Inc. is also submitting an
exemptive request to the SEC on behalf of all Plan
Participants requesting relief from the relevant
requirements of the Plan.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
E:\FR\FM\17MRN1.SGM
17MRN1
Federal Register / Vol. 82, No. 51 / Friday, March 17, 2017 / Notices
general to protect investors and the
public interest. Nasdaq also believes
that the proposal is consistent with
Section 6(b)(8) of the Act,13 which
requires that Exchange rules not impose
any burden on competition that is not
necessary or appropriate.
The Plan is designed to allow the
Commission, market participants, and
the public to study and assess the
impact of increment conventions on the
liquidity and trading of the common
stock of small-capitalization companies.
Nasdaq believes that this proposal is
consistent with the Act because it is in
furtherance of the objectives of Section
VII(A) of the Plan in that it is designed
to provide Nasdaq with additional time
to assess a means of addressing the
confidentiality concerns raised in
connection with the publication of
Appendix B data, to comply with the
Plan’s requirements that the data made
publicly available will not identify the
trading center that generated the data.
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
proposed rule change implements the
provisions of the Plan.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii), the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
13 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(6).
14 15
VerDate Sep<11>2014
20:02 Mar 16, 2017
Jkt 241001
Exchange has filed the proposed rule
change for immediate effectiveness and
has requested that the Commission
waive the requirement that the proposed
rule change not become operative for 30
days after the date of the filing so that
it may become operative on February
28, 2017.
The Exchange notes that the proposed
rule change is intended to address
confidentiality concerns raised in
connection with the publication of OTC
Appendix B data by permitting the
Exchange to delay Web site publication
of its Appendix B data from February
28, 2017 to April 28, 2017.16 The
Exchange notes that the delay would
provide additional time to assess a
means of addressing the confidentiality
concerns. The Exchange notes that it
expects Participants to file proposed
rule changes related to publishing
Appendix B data.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Exchange to
delay publication of its Appendix B data
until April 28, 2017. As noted above,
commenters continue to raise concerns
about the publication of OTC Appendix
B data.17 Delaying publication of
Exchange’s Appendix B data 18 will
prevent the publication of partial (i.e.,
Exchange-only) Appendix B data
required under the Plan. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change to be operative on
February 28, 2017.19
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
16 See supra note 9. The Commission notes that
FINRA has submitted a proposed rule change to
delay the publication of OTC Appendix B data. See
SR–FINRA–2017–005.
17 The Commission notes that FINRA has filed a
proposed rule change that is intended to mitigate
confidentiality concerns raised by commenters
regarding the publication of OTC Appendix B data.
See SR–FINRA–2017–006.
18 The Commission notes that other Participants
have proposed to delay the publication of their
Appendix B data until April 28, 2017. See SR–
BatsBYX–2017–05; SR–BatsBZX–2017–15; SR–
BatsEDGA–2017–05; SR–BatsEDGX–2017–13; SR–
BX–2017–016; SR–CHX–2017–05; SR–FINRA–
2017–005; SR–IEX–2017–07; SR–Phlx–2017–22;
SR–NYSE–2017–10; SR–NYSEArca–2017–19; SR–
NYSEMKT–2017–11.
19 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
14273
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2017–024 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–2017–024. 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 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;
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–2017–024, and should be
submitted on or before April 7, 2017.
E:\FR\FM\17MRN1.SGM
17MRN1
14274
Federal Register / Vol. 82, No. 51 / Friday, March 17, 2017 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05344 Filed 3–16–17; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice: 9922]
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Notice of Determinations; Culturally
Significant Object Imported for
Exhibition Determinations: ‘‘Now Then:
Chris Killip and the Making of In
Flagrante’’ Exhibition
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), E.O. 12047 of March 27, 1978, the
Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236–3 of August 28, 2000 (and, as
appropriate, Delegation of Authority No.
257–1 of December 11, 2015), I hereby
determine that an object to be included
in the exhibition ‘‘Now Then: Chris
Killip and the Making of In Flagrante,’’
imported from abroad for temporary
exhibition within the United States, is
of cultural significance. The object is
imported pursuant to a loan agreement
with the foreign owner or custodian. I
also determine that the exhibition or
display of the exhibit object at the J.
Paul Getty Museum at the Getty Center,
Los Angeles, California, from on or
about May 23, 2017, until on or about
August 13, 2017, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. I have ordered that Public
Notice of these Determinations be
published in the Federal Register.
For further information, including an
object list, contact the Office of Public
Diplomacy and Public Affairs in the
Office of the Legal Adviser, U.S.
Department of State (telephone: 202–
632–6471; email: section2459@
state.gov). The mailing address is U.S.
Department of State, L/PD, SA–5, Suite
5H03, Washington, DC 20522–0505.
Alyson Grunder,
Deputy Assistant Secretary for Policy, Bureau
of Educational and Cultural Affairs,
Department of State.
[FR Doc. 2017–05318 Filed 3–16–17; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice: 9921]
Notice of Determinations; Culturally
Significant Objects Imported for
Exhibition Determinations: ‘‘Inventing
Utamaro: A Japanese Masterpiece
Rediscovered’’ Exhibition
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), E.O. 12047 of March 27, 1978, the
Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236–3 of August 28, 2000 (and, as
appropriate, Delegation of Authority No.
257–1 of December 11, 2015), I hereby
determine that the objects to be
included in the exhibition ‘‘Inventing
Utamaro: A Japanese Masterpiece
Rediscovered,’’ imported from abroad
for temporary exhibition within the
United States, are of cultural
significance. The objects are imported
pursuant to a loan agreement with the
foreign owner or custodian. I also
determine that the exhibition or display
of the exhibit objects at the Arthur M.
Sackler Gallery, Smithsonian
Institution, Washington, District of
Columbia, from on or about April 8,
2017, until on or about July 9, 2017, and
at possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these Determinations
be published in the Federal Register.
For further information, including a
list of the imported objects, contact the
Office of Public Diplomacy and Public
Affairs in the Office of the Legal
Adviser, U.S. Department of State
(telephone: 202–632–6471; email:
section2459@state.gov). The mailing
address is U.S. Department of State,
L/PD, SA–5, Suite 5H03, Washington,
DC 20522–0505.
Alyson Grunder,
Deputy Assistant Secretary for Policy, Bureau
of Educational and Cultural Affairs,
Department of State.
[FR Doc. 2017–05314 Filed 3–16–17; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Environmental Impact Statement:
Dallas County, Texas
Texas Department of
Transportation (TxDOT), Federal
AGENCY:
20 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
20:02 Mar 16, 2017
Jkt 241001
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
Highway Administration (FHWA),
Department of Transportation.
ACTION: Federal notice of intent to
prepare an Environmental Impact
Statement (EIS).
FHWA, on behalf of TxDOT,
is issuing this notice to advise the
public that an EIS will be prepared for
a proposed transportation project to
construct State Highway (SH) 190, from
Interstate Highway (IH) 30 to IH 20,
within southeast Dallas County.
FOR FURTHER INFORMATION CONTACT:
Travis Owens, P.E., Transportation
Engineer, 4777 E. Highway 80,
Mesquite, Texas 75150; telephone: (214)
320–6625; email: travis.owens@
txdot.gov. TxDOT’s normal business
hours are 8:00 a.m.—5:00 p.m., Monday
through Friday.
SUPPLEMENTARY INFORMATION: The
environmental review, consultation, and
other actions required by applicable
Federal environmental laws for this
project are being, or have been, carriedout by TxDOT pursuant to 23 U.S.C. 327
and a Memorandum of Understanding
dated December 16, 2014, and executed
by FHWA and TxDOT. TxDOT will
prepare an EIS for the proposed SH 190,
from IH 30 at the President George Bush
Turnpike interchange south to IH 20
within southeast Dallas County. The
proposed SH 190 project is listed in the
Metropolitan Transportation Plan of the
North Central Texas Council of
Governments (NCTCOG), Mobility 2040,
as a new location six-lane tolled facility.
Previously, a Notice of Intent to
prepare an EIS was published on July 1,
2005, in the Federal Register and the
Texas Register and notification letters
were sent to Federal, State and Tribal
agencies to inform them of the study
and to request information. From 2005–
2014, TxDOT conducted planning
studies that developed and evaluated
several tolled project alternatives along
the 11-mile corridor. This effort has
included the involvement of the public,
local municipalities, and resource
agencies, the sharing of information
through stakeholder and agency
meetings, the creation of a project Web
site (www.theeastbranch.org), and
conducting four public meetings. The
new NOI signifies that TxDOT will
restart the work preparing the EIS. The
EIS may use and rely on the planning
studies already prepared.
The project is needed to address
north/south system linkage between IH
30 and IH 20 in southeast Dallas
County. Currently, the only major
transportation facility within a
reasonable distance connecting these
two interstates is IH 635, which is
SUMMARY:
E:\FR\FM\17MRN1.SGM
17MRN1
]]>Agencies
[Federal Register Volume 82, Number 51 (Friday, March 17, 2017)]
[Notices]
[Pages 14272-14274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05344]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80229; File No. SR-NASDAQ-2017-024]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Data Collection Requirements in Rule 4470
March 13, 2017.
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 February 28, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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.
---------------------------------------------------------------------------
\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 Rule 4770 to modify the date of
Appendix B Web site data publication pursuant to the Regulation NMS
Plan to Implement a Tick Size Pilot Program (``Plan'').
The text of the proposed rule change is available on the Exchange's
Web site at https://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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
Rule 4770(b) (Compliance with Data Collection Requirements) \3\
implements the data collection and Web site publication requirements of
the Plan.\4\ Commentary .08 to Rule 4770 provides, among other things,
that the requirement that the Exchange make certain data publicly
available on the Nasdaq Web site pursuant to Appendix B and C to the
Plan shall commence at the beginning of the Pilot Period,\5\ and that
Nasdaq shall make data for the Pre-Pilot Period publicly available on
the Nasdaq Web site pursuant to Appendix B and C to the Plan by
February 28, 2017.\6\
---------------------------------------------------------------------------
\3\ See Rule 4770(b). See also Securities Exchange Act Release
No. 77456 (March 28, 2016), 81 FR 18925 (April 1, 2016) (SR-NASDAQ-
2016-043).
\4\ The Participants filed the Plan to comply with an order
issued by the Commission on June 24, 2014. See Letter from Brendon
J. Weiss, Vice President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014 (``SRO Tick Size Plan
Proposal''). See Securities Exchange Act Release No 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014); see also Securities Exchange Act
Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015).
\5\ Unless otherwise defined herein, capitalized terms have the
meaning ascribed to them in Rule 4770.
\6\ On November 30, 2016, the SEC granted exemptive relief to
the Participants to, among other things, delay the publication of
Web site data pursuant to Appendices B and C to the Plan until
February 28, 2017, and to delay the ongoing Web site publication by
ninety days such that data would be published within 120 calendar
days following the end of the month. See Letter from David S.
Shillman, Associate Director, Division of Trading and Markets,
Commission, to Marcia E. Asquith, Senior Vice President and
Corporate Secretary, FINRA, dated November 30, 2016; see also
Securities Exchange Act Release No. 79546 (December 14, 2016), 81 FR
92932 (December 20, 2016) (SR-NASDAQ-2016-165).
---------------------------------------------------------------------------
Nasdaq is proposing amendments to Commentary .08 to Rule 4770 to
delay the date by which Pre-Pilot and Pilot Appendix B data is to be
made publicly available on Nasdaq's Web site from February 28, 2017,
until April 28, 2017. Appendix C data for the Pre-Pilot Period through
the month of January 2017 will be published on the Nasdaq Web site on
February 28, 2017, and, thereafter, on the original 30-day schedule.\7\
As some of the data reporting requirements set forth in Rule 4770
require members to report data to their Designated Examining Authority
(``DEA''), which may not be Nasdaq, the Exchange is also proposing to
add references in Commentary .08 to reflect the fact that the Exchange
or the DEA may be publishing such data.
---------------------------------------------------------------------------
\7\ Since, under Rule 4770(b)(4), Nasdaq is not independently
publishing Market Maker profitability data collected pursuant to
Item I of Appendix C of the Plan, no corresponding change to the
language of Rule 4770(b)(4) relating to the timing of the
publication of Appendix C data for the Pilot Period is needed.
---------------------------------------------------------------------------
In the SRO Tick Size Plan Proposal, the Participants stated that
the public data will be made available for free ``on a disaggregated
basis by trading center'' on the Web sites of the Participants and the
Designated Examining Authorities.\8\ However, market participants have
expressed confidentiality concerns regarding this approach for over-
the-counter (``OTC'') data.\9\ Thus, Nasdaq is filing the instant
proposed rule change to provide additional time to assess a means of
addressing the confidentiality concerns raised in connection with the
publication of Appendix B data related to OTC activity in furtherance
of the objectives of the Plan.\10\ Pursuant to this amendment, Appendix
B data publication will be delayed until April 28, 2017. The
Participants anticipate filing additional proposed rule changes to
address Appendix B data publication.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 73511 (November 3,
2014), 79 FR 66423 (November 7, 2014) (Notice of Filing of Proposed
National Market System Plan to Implement a Tick Size Pilot Program
on a One-Year Pilot Basis, File No. 4-657) (``Tick Size Plan
Proposal'').
\9\ See letters from Adam C. Cooper, Senior Managing Director
and Chief Legal Officer, Citadel Securities, to Brent J. Fields,
Secretary, Commission, dated December 21, 2016 (``Citadel letter'');
and William Hebert, Managing Director, Financial Information Forum,
to Robert W. Errett, Deputy Secretary, Commission, dated December
21, 2016 (``FIF letter'').
\10\ In connection with its filing to implement a similar change
in its rules, the Financial Industry Regulatory Authority, Inc. is
also submitting an exemptive request to the SEC on behalf of all
Plan Participants requesting relief from the relevant requirements
of the Plan.
---------------------------------------------------------------------------
Nasdaq has filed the proposed rule change for immediate
effectiveness. The operative date of the proposed rule change will be
the date of filing.
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 Section
6(b)(5) of the Act,\12\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, 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
[[Page 14273]]
general to protect investors and the public interest. Nasdaq also
believes that the proposal is consistent with Section 6(b)(8) of the
Act,\13\ which requires that Exchange rules not impose any burden on
competition that is not necessary or appropriate.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stock of small-
capitalization companies. Nasdaq believes that this proposal is
consistent with the Act because it is in furtherance of the objectives
of Section VII(A) of the Plan in that it is designed to provide Nasdaq
with additional time to assess a means of addressing the
confidentiality concerns raised in connection with the publication of
Appendix B data, to comply with the Plan's requirements that the data
made publicly available will not identify the trading center that
generated the data.
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 proposed rule change
implements the provisions of the Plan.
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 \14\ and Rule 19b-
4(f)(6) thereunder.\15\
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has filed
the proposed rule change for immediate effectiveness and has requested
that the Commission waive the requirement that the proposed rule change
not become operative for 30 days after the date of the filing so that
it may become operative on February 28, 2017.
The Exchange notes that the proposed rule change is intended to
address confidentiality concerns raised in connection with the
publication of OTC Appendix B data by permitting the Exchange to delay
Web site publication of its Appendix B data from February 28, 2017 to
April 28, 2017.\16\ The Exchange notes that the delay would provide
additional time to assess a means of addressing the confidentiality
concerns. The Exchange notes that it expects Participants to file
proposed rule changes related to publishing Appendix B data.
---------------------------------------------------------------------------
\16\ See supra note 9. The Commission notes that FINRA has
submitted a proposed rule change to delay the publication of OTC
Appendix B data. See SR-FINRA-2017-005.
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to delay publication of its Appendix
B data until April 28, 2017. As noted above, commenters continue to
raise concerns about the publication of OTC Appendix B data.\17\
Delaying publication of Exchange's Appendix B data \18\ will prevent
the publication of partial (i.e., Exchange-only) Appendix B data
required under the Plan. Therefore, the Commission hereby waives the
30-day operative delay and designates the proposed rule change to be
operative on February 28, 2017.\19\
---------------------------------------------------------------------------
\17\ The Commission notes that FINRA has filed a proposed rule
change that is intended to mitigate confidentiality concerns raised
by commenters regarding the publication of OTC Appendix B data. See
SR-FINRA-2017-006.
\18\ The Commission notes that other Participants have proposed
to delay the publication of their Appendix B data until April 28,
2017. See SR-BatsBYX-2017-05; SR-BatsBZX-2017-15; SR-BatsEDGA-2017-
05; SR-BatsEDGX-2017-13; SR-BX-2017-016; SR-CHX-2017-05; SR-FINRA-
2017-005; SR-IEX-2017-07; SR-Phlx-2017-22; SR-NYSE-2017-10; SR-
NYSEArca-2017-19; SR-NYSEMKT-2017-11.
\19\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2017-024 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-2017-024. 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 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; 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-2017-024, and should
be submitted on or before April 7, 2017.
[[Page 14274]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05344 Filed 3-16-17; 8:45 am]
BILLING CODE 8011-01-P
