Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Offer the QView Service, 61041-61042 [2012-24573]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 194 (Friday, October 5, 2012)]
[Notices]
[Pages 61041-61042]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-24573]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67952; File No. SR-BX-2012-061]


Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Offer the 
QView Service

October 1, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 21, 2012, NASDAQ OMX BX, Inc. (``BX'' or 
``Exchange'') filed with the Securities and Exchange Commission (the 
``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 the 
Substance of the Proposed Rule Change

    BX proposes to adopt the QView service under Rule 7058. The 
Exchange is proposing to implement the rule change as soon as possible, 
but in no event greater than thirty calendar days from the filing date 
of this proposal. The text of the proposed rule change is available at 
https://nasdaqomxbx.cchwallstreet.com, at BX'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, the self-regulatory organization 
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 III 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
    The Exchange is proposing to adopt the new QView service. QView is 
a web-based, front-end application, which provides a subscribing member 
firm with increased transparency over its trading activity on the 
Exchange by allowing the member firm to track its Exchange order 
flow.\3\ In particular, a QView subscriber is able to track all of its 
trading activity on the Exchange through detailed order and execution 
summaries. QView provides a subscribing member with statistics 
concerning the total number of executions, total volume, dollar value 
of executions, executions by symbol, add versus remove, buy versus 
sell, display versus non-display, number of open orders, use of routing 
strategies and liquidity code designation. QView also provides 
information concerning how the subscribing member firm ranks in BX 
market activity as compared to other BX participants. The data provided 
by QView is available to the subscribing member both in real-time and 
historically. Subscribing member firms are also able to export such 
data from QView to other systems.
---------------------------------------------------------------------------

    \3\ A subscribing member possessing multiple MPIDs must 
designate the MPIDs for which it would like to receive QView 
information. A subscribing member, however, may elect to monitor 
only the activity occurring through certain ports associated with a 
subscribed MPID. A member firm seeking to subscribe to QView that 
accesses the Exchange through a sponsored arrangement with another 
Exchange member must provide the Exchange with an executed sponsored 
access data agreement prior to subscribing to QView. The sponsored 
access data agreement makes clear that the subscribing member firm 
is permitted to designate the sponsoring firm's MPID for 
subscription to QView. A copy of this form may be found here: https://www.nasdaqtrader.com/content/productsservices/trading/QView/QView_SponsoredAccessAgreement.pdf.
---------------------------------------------------------------------------

    A member firm must subscribe to TradeInfo BX \4\ to subscribe to 
QView. QView was developed to work in conjunction with TradeInfo BX, so 
that a subscriber to QView is able to seamlessly filter down to the 
specific order or execution information of the orders and executions 
provided in the QView dashboard interface. The dashboard also allows a 
QView subscriber to track his/her executions and open orders in real-
time, as well as view its executions and open orders as an overall 
summary, with all totals displayed by quantity, share volume, or dollar 
value. As such, QView provides both an overall summary of a subscribing 
member firm's activity, as well as detailed order and execution 
information, thus providing the subscriber a comprehensive tool to 
track its trading activity.\5\
---------------------------------------------------------------------------

    \4\ TradeInfo BX is a web-based tool that, among other things, 
allows users access to all of the BX order and execution information 
for their entire firm for both equities and options through a single 
interface. TradeInfo BX is offered complimentary as part of the 
Workstation or separately for a fee of $95 per user per month. See 
Rule 7015.
    \5\ For example, QView will inform a subscribing member of its 
executions in a particular day and provide a link to the details of 
those executions, which is provided by TradeInfo.
---------------------------------------------------------------------------

    BX notes that an identical QView service is currently offered by 
its sister exchange, The NASDAQ Stock Market LLC for a fee of $600 per 
month, per member firm.\6\ BX is proposing to offer QView at no cost at 
the present time, but may assess a fee in the future. If it determines 
to assess a fee, the Exchange will file a rule change proposal with the 
Commission.
---------------------------------------------------------------------------

    \6\ See NASDAQ Rule 7058.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b)(5) of the Act,\7\ which requires that the rules of an 
exchange be designed to prevent fraudulent and manipulative acts and 
practices, promote just and equitable principles of trade, foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, protect investors and the public interest. The 
Exchange believes the proposed rule

[[Page 61042]]

change is consistent with these requirements because the proposed 
service provides subscribing members with a useful analytical tool with 
which they may access information concerning their order and trade 
activity occurring on the Exchange. With this information, subscribing 
members may more closely monitor and analyze such activity, and make 
more informed investment decisions. Accordingly, the Exchange believes 
that the proposed service will further goals of the Act by providing 
subscribing members with greater transparency with respect to their 
order activity on the Exchange. As noted above, the proposed QView 
service is identical to the NASDAQ QView service currently offered to 
NASDAQ members.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. To 
the contrary, the proposed rule change is pro-competitive in that it 
will allow the Exchange to disseminate a new service on a voluntary 
basis. QView is voluntary on the part of the Exchange, which is not 
required to offer such products and services, and voluntary on the part 
of prospective users that are not required to use it and may obtain the 
information from other sources.

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

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\10\ 
However, Rule 19b-4(f)(6)(iii) \11\ 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 it may offer QView 
at the earliest reasonable time possible. The Exchange notes that the 
services offered by BX QView are identical to services offered by 
NASDAQ's QView. The Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest because such waiver would allow the Exchange to 
immediately offer its QView service so members may benefit immediately 
by tracking their order flow on the Exchange. For this reason, the 
Commission designates the proposed rule change to be operative upon the 
operative date of the Filing.\12\
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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. 
The Exchange has satisfied this requirement.
    \11\ Id.
    \12\ For the purposes only of waiving the 30-day operative 
delay, 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 such 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-BX-2012-061 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549.

All submissions should refer to File Number SR-BX-2012-061. 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 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-BX-2012-061 and should be 
submitted on or before October 26, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24573 Filed 10-4-12; 8:45 am]
BILLING CODE 8011-01-P