Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees Assessed for Connectivity to the Exchange Under Rule 7015, and To Eliminate Fees Assessed Under Rules 7033 and 7059, 692-695 [2013-31515]
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Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71198; File No. SR–
NASDAQ–2013–161]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Fees Assessed for Connectivity to the
Exchange Under Rule 7015, and To
Eliminate Fees Assessed Under Rules
7033 and 7059
December 30, 2013.
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
20, 2013, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
NASDAQ proposes to amend fees
assessed for connectivity to the
Exchange under Rule 7015, and to
eliminate fees assessed under Rules
7033 and 7059. NASDAQ is also making
two minor technical changes to Rule
7015(g). NASDAQ will implement the
fee change effective January 2, 2014.
The text of the proposed rule change
is below. Proposed new language is
italicized; deletions are in brackets.
*
*
*
*
*
Nasdaq Workstation Trader .....................................................
Nasdaq Workstation Post Trade ..............................................
7015. Access Services
The following charges are assessed by
Nasdaq for connectivity to systems
operated by NASDAQ, including the
Nasdaq Market Center, the FINRA/
NASDAQ Trade Reporting Facility, and
FINRA’s OTCBB Service. The following
fees are not applicable to the NASDAQ
Options Market LLC. For related options
fees for Access Services refer to Chapter
XV, Section 3 of the Options Rules.
(a) No change.
(b) Financial Information Exchange
(FIX)
Ports
Price
FIX Trading Port ...........
FIX Port for Services
Other than Trading.
$550 [500]/port/
month.
$500/port/month.
(c) No change.
(d) New Nasdaq Workstation
$575 [475] per user per month (including: data entitlement package; the Trade
Reporting File Upload service, which allows subscribing members to upload
multiple trade reports in batches to Automated Confirmation Transaction Service (‘‘ACT’’); and the ACT Reject Scan service, which provides a list of all of a
member’s rejected ACT trade entries and a copy of each rejected trade report
form submitted to ACT).
See Rule 7015(e).
(e) Specialized Services Related to
FINRA/NASDAQ Trade Reporting
Facility
CTCI fee ...................................................................................
WebLink ACT or Nasdaq Workstation .....................................
Post Trade ................................................................................
ACT Workstation ......................................................................
(f) No change.
$575/month
$525 [425.00]/month (full functionality) or
$275 [225.00]/month (up to an average of twenty transactions per day each
month) (For the purposes of this service only, a transaction is defined as an
original trade entry, either on trade date or as-of transactions per month.)
A subscription includes: the Trade Reporting File Upload service, which allows
subscribing members to upload multiple trade reports in batches to ACT; and
the ACT Reject Scan service, which provides a list of all of a member’s rejected ACT trade entries and a copy of each rejected trade report form submitted to ACT.
$525/logon/month.
(g) Other Port Fees
REMOTE MULTI-CAST ITCH WAVE PORTS
Description
Installation fee
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MITCH Wave Port at Secaucus, NJ ........................................................................................................................
MITCH Wave Port at Weehawken, NJ ....................................................................................................................
MITCH Wave Port at Newark, NJ ...........................................................................................................................
The following port fees shall apply in
connection with the use of other trading
telecommunication protocols:
• $550[500] per month for each port
pair, other than Multicast ITCH® data
1 15
U.S.C. 78s(b)(1).
VerDate Mar<15>2010
17:08 Jan 03, 2014
feed pairs, for which the fee is $1,000
per month for software-based
TotalView-ITCH or $2,500 per month
for combined software- and hardwarebased TotalView-ITCH, and TCP ITCH
2 17
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Fmt 4703
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$7,500
7,500
7,500
data feed pairs, for which the fee is $750
per month.
• An additional $200 per month for
each port used for entering orders or
quotes over the Internet.
CFR 240.19b–4.
Frm 00060
$2,500
2,500
2,500
Recurring
monthly fee
E:\FR\FM\06JAN1.SGM
06JAN1
Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
• An additional $600 per month for
each port used for market data delivery
over the Internet.
Dedicated OUCH Port Infrastructure
The Dedicated OUCH Port
Infrastructure subscription will not be
implemented until the first quarter of
2014. The Exchange will provide public
notice thereof at least five days prior to
the implementation date.
The Dedicated OUCH Port
Infrastructure subscription allows a
member firm to assign up to 30 of its
OUCH ports to a dedicated server
infrastructure for its exclusive use. A
Dedicated OUCH Port Infrastructure
subscription is available to a member
firm for a fee of $5,000 per month,
which is in addition to the standard fees
assessed for each OUCH port. A onetime installation fee of $5,000 is
assessed subscribers for each Dedicated
OUCH Port Server subscription.
[NASDAQ is waiving the $5,000
installation fee for all subscriptions
received through August 15, 2013.]
(h) No change.
*
*
*
*
*
7033. Reserved[Trade Reporting File
Upload
The Trade Reporting File Upload
service allows subscribing members to
upload multiple trade reports in batches
to the Automated Confirmation
Transaction (ACT) service via the
Nasdaq Workstation or WeblinkACT
2.0.
The Trade Reporting File Upload
service is available to members for a fee
of $25 per user, per month.]
*
*
*
*
*
7059. Reserved[ACT Reject Scan
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ACT Reject Scan service provides a
subscribing member with a list of all of
its rejected Automated Confirmation
Transaction Service (ACT) trade entries
and a copy of each rejected trade report
form submitted to ACT.
ACT Reject Scan service is available
to members at no cost beginning
October 1, 2012 and for a fee of $75 per
user, per month beginning November 1,
2012.]
*
*
*
*
*
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
VerDate Mar<15>2010
17:08 Jan 03, 2014
Jkt 232001
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
The purpose of the proposed rule
change is to amend certain fees under
Rule 7015 relating to Access Services
and eliminate stand-alone fees assessed
for services provided under Rules 7033
and 7059, which have been offered as
add-on services to a Nasdaq Workstation
(‘‘Workstation’’) or Weblink ACT
(‘‘Weblink’’) subscription but now will
be included in all Workstation and
Weblink subscriptions.
The Exchange is proposing to amend
Rules 7015(d) and (e) to increase fees
assessed for subscription to the
Workstation and Weblink to reflect the
addition of the Trade Reporting File
Upload and ACT Reject Scan services,
which are currently offered as add-on
services to a Workstation or Weblink
subscription and will now be offered
with every such subscription. The Trade
Reporting File Upload service allows a
member to upload multiple trade
reports in batches to the Automated
Confirmation Transaction (‘‘ACT’’)
service via a Workstation or Weblink.
The ACT Reject Scan service provides a
subscriber with a list of all of its rejected
ACT trade entries and a copy of each
rejected trade report form submitted to
ACT.
Currently, the Exchange assesses a fee
of $25 per user, per month for
subscription to the Trade Reporting File
Upload service under Rule 7033, and a
fee of $75 per user, per month for
subscription to the ACT Reject Scan
service under Rule 7059. NASDAQ is
proposing to increase the fee for
subscription to the Workstation under
Rule 7015(d) from $475 to $575 per
user, per month, and increase the fee for
subscription to Weblink from $425 to
$525 per user, per month for full
functionality and from $225 to $275 per
user, per month for a transaction-limited
subscription. As a consequence of
including Trade Reporting File Upload
and ACT Reject Scan services with
every Workstation and Weblink
subscription, NASDAQ is eliminating
the separate rule text describing these
services found under Rule 7033 and
7059, respectively, and including the
descriptive text from those rules under
Rules 7015(d) and (e). The Exchange
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693
notes that it last increased fees for
subscription to the Workstation in
August 2006,3 raising the fee from $435
to $475 per user, per month, and last
increased fees for subscription to
Weblink ACT in January 2012,4 raising
the fee from $375 to $425 per user, per
month for full functionality and $200 to
$225 per user, per month for a
transaction-limited subscription.
NASDAQ is also amending fees under
Rules 7015(b) and (g), which relate to
trading port connectivity. Specifically,
NASDAQ is proposing to increase the
fee assessed under Rule 7015(b) for
Financial Information Exchange (‘‘FIX’’)
trading ports. FIX trading ports allow
member firms to enter, modify and
cancel orders in the NASDAQ System
and receive Drop reports of executions.
NASDAQ is proposing to increase the
fee assessed for a FIX trading port from
$500 to $550 per port, per month.
NASDAQ is also proposing to increase
the fee assessed for trading port pairs
under Rule 7015(g), other than Multicast
ITCH, TotalView-ITCH, and TCP ITCH
port pairs.5 Currently, the Exchange
assesses a fee of $500 per month, per
port pair and NASDAQ is proposing to
increase the fee to $550 per month, per
port pair. NASDAQ notes that it last
increased both of the trading port fees
under Rules 7015(b) and (g) in August
2009, raising the fees from $400 to $500
per port (or port pair), per month.6
The Exchange is also proposing to
make a technical correction to the
trading port rule text under Rule 7015(g)
and to delete text from Rule 7015(g),
which relates to a time-limited waiver of
the Dedicated OUCH Port Infrastructure
installation fees that has since expired.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,7 in
general, and Section 6(b)(4) of the Act,8
in particular, because 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 that NASDAQ
operates or controls, and it does not
unfairly discriminate between
3 See Securities Exchange Act Release No. 54500
(September 25, 2006), 71 FR 58026 (October 2,
2006) (SR–NASDAQ–2006–025).
4 See Securities Exchange Act Release No. 66288
(February 1, 2012), 77 FR 6164 (February 7, 2012)
(SR–NASDAQ–2012–017).
5 The $500 port pair fee under Rule 7015(g)
provides subscription to an OUCH, RASH, or Drop
port pair.
6 See Securities Exchange Act Release No. 60546
(August 20, 2009), 74 FR 43184 (August 26, 2009)
(SR–NASDAQ–2009–058).
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(4).
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Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
customers, issuers, brokers or dealers.
The proposed increases to the
Workstation and Weblink fees are
reasonable because they reflect the
added value that subscribing members
receive from the inclusion of the Trade
Reporting File Upload and ACT Reject
Scan services in every subscription.
NASDAQ notes that the combined value
of the two services under the current
rule is $100 per user, per month and
NASDAQ is proposing to increase the
fees for the Workstation and unlimited
Weblink subscription by an equal
amount. NASDAQ believes the lower
increase in the transaction-limited
Weblink fee of $50 per user, per month
is reasonable and not unfairly
discriminatory because those
subscribers will likewise have limited
use of the Trade Reporting File Upload
and ACT Reject Scan services. NASDAQ
notes that an existing subscriber to the
Workstation or unrestricted Weblink
that also subscribes to the Trade
Reporting File Upload and ACT Reject
Scan add on services will see no
increase in the fees assessed for the
services received, and subscribers to the
transaction-limited Weblink service that
also subscribe to the Trade Reporting
File Upload and ACT Reject Scan
services will see a decrease in the total
fees assessed for the add-on services. In
contrast, current subscribers to the
Workstation or Weblink that subscribe
to no add-on services or a single add-on
service will experience a fee increase.
NASDAQ believes that it is reasonable
and not unfairly discriminatory to
increase fees for such subscribers to the
Workstation and Weblink because the
subscribers are receiving additional
services valued in the amount of the fee
increase and, consequently will derive
benefit from the addition of the
enhancements. NASDAQ notes that
Workstation and Weblink subscribers
that determine that the enhancements
do not provide benefit to support the
additional cost of the subscriptions may
alternatively subscribe to third party
front end systems or develop front end
applications of their own.
NASDAQ believes that the proposal to
increase fees for trading ports under
Rules 7015(b) and (g) is reasonable [sic]
not unfairly discriminatory because the
fee increases will realign the cost of
administering and enhancing the
connectivity options offered by the
services with the revenue generated by
the fee, which have diverged since the
fees were last increased in August
2009.9 In particular, NASDAQ believes
that the proposed fees will cover the
costs associated with responding to
customer requests, configuring
NASDAQ’s systems, programming to
user specifications, and administering
the service, among other things, and
may provide NASDAQ with a profit.
Moreover, NASDAQ believes that the
proposed changes to Rules 7015(b) and
(g) constitute equitable allocations of
fees because, under each individual
rule, all member firms would be charged
the same fee and receive the same
number of access ports. As such,
NASDAQ believes that the proposed
increase in port fees under Rules
7015(b) and (g) are both equitably
allocated and reasonable.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ 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.
The increased Workstation and Weblink
fees are reflective of the addition of the
Trade Reporting File Upload and ACT
Reject Scan services and the benefit
member firms receive from these
enhancements. As noted, the proposed
increase in fees for subscription to
trading ports will realign the cost of
administering and enhancing the service
with the revenue generated by the fees,
which have diverged since the fees were
last increased in August 2009.10 The
Exchange must, from time to time,
increase fees as general costs associated
with offering services increase. The
burden of covering these increased costs
is most appropriately born by the users
of the service. NASDAQ notes that, if
the proposed port fees are set too high,
given the competitive nature of the
market for execution and routing
services, market participants could
simply opt to connect with market
centers other than the Exchange to
access liquidity available on NASDAQ
by directing order flow to the other
market centers that are required to route
to NASDAQ if it has posted the best
available price.
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,11 and paragraph (f) 12 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–2013–161 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
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2013–161. 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;
11 15
9 Supra
note 6.
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10 Id.
17:08 Jan 03, 2014
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
06JAN1
Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
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–2013–161, and should be
submitted on or before January 27, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–31515 Filed 1–3–14; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Notice of Availability of a Final
Environmental Assessment (Final EA)
and a Finding of No Significant Impact
(FONSI)/Record of Decision (ROD) for
the Proposed Construction and
Operation of a Replacement Aerial
Tramway, South Franklin Mountain, El
Paso, Texas
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of Availability of a Final
Environmental Assessment (Final EA)
and a Finding of No Significant Impact
(FONSI)/Record of Decision (ROD) for
the Proposed Construction and
Operation of a Replacement Aerial
Tramway, South Franklin Mountain, El
Paso, Texas.
mstockstill on DSK4VPTVN1PROD with NOTICES
AGENCY:
SUMMARY: The Federal Aviation
Administration (FAA) is issuing this
notice to advise the public that the FAA
has prepared, and approved on
November 6, 2013, a Finding of No
Significant Impact (FONSI)/Record of
Decision (ROD) based on the Final
Environmental Assessment (Final EA)
for the Proposed Construction and
Operation of a Replacement Aerial
Tramway (ATRAM), South Franklin
Mountain, El Paso, Texas. The FAA
prepared the Final EA in accordance
with the National Environmental Policy
Act and the FAA’s regulations and
guidelines for environmental documents
and the Final EA was signed on
September 30, 2013. Copies of the Final
EA and/or FONSI/ROD are available by
contacting Ms. Virginia Marcks through
the contact information provided below.
FOR FURTHER INFORMATION CONTACT: Ms.
Virginia Marcks, Manager, Infrastructure
Engineering Center, Chicago, AJW–
C15H, Federal Aviation Administration,
2300 East Devon Avenue, Des Plaines,
Illinois 60018. Telephone number: (847)
294–7494.
The Final
EA evaluated the construction and
operation of a replacement ATRAM on
South Franklin Mountain, in Franklin
Mountains State Park, El Paso, Texas.
The new ATRAM would replace the 58year old existing ATRAM, which is
beyond its operational service life and
for which general maintenance and
upkeep have become impractical and
cost-intensive. The existing ATRAM has
reached the point where replacement
parts cannot be found and has many
operational deficiencies and areas of
concern. The replacement ATRAM,
which would be constructed parallel to
the existing ATRAM on South Franklin
Mountain, would comply with industry
standards for tramways.
The new ATRAM system would
consist of a lower terminal, three
intermediate towers, and an upper
terminal. The new lower terminal
facility would be located approximately
1,000 feet downhill from the existing
location and the three intermediate
towers would be located in the general
vicinity of the existing intermediate
tower location. A new upper terminal
would be located atop South Franklin
Mountain south of the current upper
terminal. The new ATRAM would have
an enclosed cabin which would
accommodate and transport a minimum
of four people and have a total load
carrying capacity of 2,000 pounds.
After the new ATRAM system is fully
operational, the FAA would
decommission, demolish, remove the
existing ATRAM system, and restore the
lower terminal and intermediate parcels
prior to transfer of the parcels to the
Texas Parks and Wildlife Department.
The Final EA has been prepared in
accordance with the National
Environmental Policy Act (NEPA) of
1969, as amended, and FAA Order
1050.1E, ‘‘Environmental Impacts:
Policies and Procedures.’’ In addition,
FAA Order 5050.4B, ‘‘National
Environmental Policy Act (NEPA)
Implementing Instructions for Airport
Actions’’ has been used as guidance in
the preparation of the environmental
analysis.
SUPPLEMENTARY INFORMATION:
Issued in Des Plaines, Illinois, on
December 27, 2013.
Virginia Marcks,
Manager, Infrastructure Engineering Center,
Chicago, AJW–C15H, Federal Aviation
Administration.
[FR Doc. 2013–31543 Filed 1–3–14; 8:45 am]
13 17
CFR 200.30–3(a)(12).
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17:08 Jan 03, 2014
BILLING CODE 4910–13–P
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695
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Notice of Passenger Facility Charge
(PFC) Approvals and Disapprovals
Federal Aviation
Administration (FAA), DOT.
ACTION: Monthly Notice of PFC
Approvals and Disapprovals. In October
2013, there were four applications
approved. This notice also includes
information on two applications, one
approved in January 2012 and the other
approved in September 2013,
inadvertently left off the January 2012
and September 2013 notices,
respectively. Additionally, 12 approved
amendments to previously approved
applications are listed.
AGENCY:
SUMMARY: The FAA publishes a monthly
notice, as appropriate, of PFC approvals
and disapprovals under the provisions
of the Aviation Safety and Capacity
Expansion Act of 1990 (Title IX of the
Omnibus Budget Reconciliation Act of
1990) (Pub. L. 101–508) and Part 158 of
the Federal Aviation Regulations (14
CFR Part 158). This notice is published
pursuant to paragraph d of § 158.29.
PFC Applications Approved
Public Agency: City of Burlington,
Vermont.
Application Number: 11–05–C–00–
BTV.
Application Type: Impose and use a
PFC.
PFC Level: $4.50.
Total PFC Revenue Approved in This
Decision: $5,240,755.
Earliest Charge Effective Date: April 1,
2014.
Estimated Charge Expiration Date:
February 1, 2016.
Class of Air Carriers Not Required to
Collect PFC’s: On-demand air taxi
commercial operators.
Determination: Approved. Based on
information contained in the public
agency’s application, the FAA has
determined that the approved class
accounts for less than 1 percent of the
total annual enplanements at Burlington
International Airport.
Brief Description of Projects Approved
for Collection and Use:
Snow removal equipment purchase.
Rehabilitate a portion of the cargo
apron.
Terminal building renovation.
Land acquisition for noise abatement.
Land acquisition for development.
Reconstruct, mark and light taxiway A
north.
Storm water management plan.
Security projects.
E:\FR\FM\06JAN1.SGM
06JAN1
]]>Agencies
[Federal Register Volume 79, Number 3 (Monday, January 6, 2014)]
[Notices]
[Pages 692-695]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-31515]
[[Page 692]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71198; File No. SR-NASDAQ-2013-161]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Fees Assessed for Connectivity to the Exchange Under Rule 7015,
and To Eliminate Fees Assessed Under Rules 7033 and 7059
December 30, 2013.
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 20, 2013, 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 proposes to amend fees assessed for connectivity to the
Exchange under Rule 7015, and to eliminate fees assessed under Rules
7033 and 7059. NASDAQ is also making two minor technical changes to
Rule 7015(g). NASDAQ will implement the fee change effective January 2,
2014.
The text of the proposed rule change is below. Proposed new
language is italicized; deletions are in brackets.
* * * * *
7015. Access Services
The following charges are assessed by Nasdaq for connectivity to
systems operated by NASDAQ, including the Nasdaq Market Center, the
FINRA/NASDAQ Trade Reporting Facility, and FINRA's OTCBB Service. The
following fees are not applicable to the NASDAQ Options Market LLC. For
related options fees for Access Services refer to Chapter XV, Section 3
of the Options Rules.
(a) No change.
(b) Financial Information Exchange (FIX)
------------------------------------------------------------------------
Ports Price
------------------------------------------------------------------------
FIX Trading Port.......................... $550 [500]/port/month.
FIX Port for Services Other than Trading.. $500/port/month.
------------------------------------------------------------------------
(c) No change.
(d) New Nasdaq Workstation
------------------------------------------------------------------------
------------------------------------------------------------------------
Nasdaq Workstation Trader.............. $575 [475] per user per month
(including: data entitlement
package; the Trade Reporting
File Upload service, which
allows subscribing members to
upload multiple trade reports
in batches to Automated
Confirmation Transaction
Service (``ACT''); and the ACT
Reject Scan service, which
provides a list of all of a
member's rejected ACT trade
entries and a copy of each
rejected trade report form
submitted to ACT).
Nasdaq Workstation Post Trade.......... See Rule 7015(e).
------------------------------------------------------------------------
(e) Specialized Services Related to FINRA/NASDAQ Trade Reporting
Facility
------------------------------------------------------------------------
------------------------------------------------------------------------
CTCI fee............................... $575/month
WebLink ACT or Nasdaq Workstation...... $525 [425.00]/month (full
functionality) or
Post Trade............................. $275 [225.00]/month (up to an
average of twenty transactions
per day each month) (For the
purposes of this service only,
a transaction is defined as an
original trade entry, either
on trade date or as-of
transactions per month.)
A subscription includes: the
Trade Reporting File Upload
service, which allows
subscribing members to upload
multiple trade reports in
batches to ACT; and the ACT
Reject Scan service, which
provides a list of all of a
member's rejected ACT trade
entries and a copy of each
rejected trade report form
submitted to ACT.
ACT Workstation........................ $525/logon/month.
------------------------------------------------------------------------
(f) No change.
(g) Other Port Fees
Remote Multi-Cast ITCH Wave Ports
------------------------------------------------------------------------
Installation Recurring
Description fee monthly fee
------------------------------------------------------------------------
MITCH Wave Port at Secaucus, NJ......... $2,500 $7,500
MITCH Wave Port at Weehawken, NJ........ 2,500 7,500
MITCH Wave Port at Newark, NJ........... 2,500 7,500
------------------------------------------------------------------------
The following port fees shall apply in connection with the use of
other trading telecommunication protocols:
$550[500] per month for each port pair, other than
Multicast ITCH[supreg] data feed pairs, for which the fee is $1,000 per
month for software-based TotalView-ITCH or $2,500 per month for
combined software- and hardware-based TotalView-ITCH, and TCP ITCH data
feed pairs, for which the fee is $750 per month.
An additional $200 per month for each port used for
entering orders or quotes over the Internet.
[[Page 693]]
An additional $600 per month for each port used for market
data delivery over the Internet.
Dedicated OUCH Port Infrastructure
The Dedicated OUCH Port Infrastructure subscription will not be
implemented until the first quarter of 2014. The Exchange will provide
public notice thereof at least five days prior to the implementation
date.
The Dedicated OUCH Port Infrastructure subscription allows a member
firm to assign up to 30 of its OUCH ports to a dedicated server
infrastructure for its exclusive use. A Dedicated OUCH Port
Infrastructure subscription is available to a member firm for a fee of
$5,000 per month, which is in addition to the standard fees assessed
for each OUCH port. A one-time installation fee of $5,000 is assessed
subscribers for each Dedicated OUCH Port Server subscription.
[NASDAQ is waiving the $5,000 installation fee for all
subscriptions received through August 15, 2013.]
(h) No change.
* * * * *
7033. Reserved[Trade Reporting File Upload
The Trade Reporting File Upload service allows subscribing members
to upload multiple trade reports in batches to the Automated
Confirmation Transaction (ACT) service via the Nasdaq Workstation or
WeblinkACT 2.0.
The Trade Reporting File Upload service is available to members for
a fee of $25 per user, per month.]
* * * * *
7059. Reserved[ACT Reject Scan
ACT Reject Scan service provides a subscribing member with a list
of all of its rejected Automated Confirmation Transaction Service (ACT)
trade entries and a copy of each rejected trade report form submitted
to ACT.
ACT Reject Scan service is available to members at no cost
beginning October 1, 2012 and for a fee of $75 per user, per month
beginning November 1, 2012.]
* * * * *
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
The purpose of the proposed rule change is to amend certain fees
under Rule 7015 relating to Access Services and eliminate stand-alone
fees assessed for services provided under Rules 7033 and 7059, which
have been offered as add-on services to a Nasdaq Workstation
(``Workstation'') or Weblink ACT (``Weblink'') subscription but now
will be included in all Workstation and Weblink subscriptions.
The Exchange is proposing to amend Rules 7015(d) and (e) to
increase fees assessed for subscription to the Workstation and Weblink
to reflect the addition of the Trade Reporting File Upload and ACT
Reject Scan services, which are currently offered as add-on services to
a Workstation or Weblink subscription and will now be offered with
every such subscription. The Trade Reporting File Upload service allows
a member to upload multiple trade reports in batches to the Automated
Confirmation Transaction (``ACT'') service via a Workstation or
Weblink. The ACT Reject Scan service provides a subscriber with a list
of all of its rejected ACT trade entries and a copy of each rejected
trade report form submitted to ACT.
Currently, the Exchange assesses a fee of $25 per user, per month
for subscription to the Trade Reporting File Upload service under Rule
7033, and a fee of $75 per user, per month for subscription to the ACT
Reject Scan service under Rule 7059. NASDAQ is proposing to increase
the fee for subscription to the Workstation under Rule 7015(d) from
$475 to $575 per user, per month, and increase the fee for subscription
to Weblink from $425 to $525 per user, per month for full functionality
and from $225 to $275 per user, per month for a transaction-limited
subscription. As a consequence of including Trade Reporting File Upload
and ACT Reject Scan services with every Workstation and Weblink
subscription, NASDAQ is eliminating the separate rule text describing
these services found under Rule 7033 and 7059, respectively, and
including the descriptive text from those rules under Rules 7015(d) and
(e). The Exchange notes that it last increased fees for subscription to
the Workstation in August 2006,\3\ raising the fee from $435 to $475
per user, per month, and last increased fees for subscription to
Weblink ACT in January 2012,\4\ raising the fee from $375 to $425 per
user, per month for full functionality and $200 to $225 per user, per
month for a transaction-limited subscription.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 54500 (September 25,
2006), 71 FR 58026 (October 2, 2006) (SR-NASDAQ-2006-025).
\4\ See Securities Exchange Act Release No. 66288 (February 1,
2012), 77 FR 6164 (February 7, 2012) (SR-NASDAQ-2012-017).
---------------------------------------------------------------------------
NASDAQ is also amending fees under Rules 7015(b) and (g), which
relate to trading port connectivity. Specifically, NASDAQ is proposing
to increase the fee assessed under Rule 7015(b) for Financial
Information Exchange (``FIX'') trading ports. FIX trading ports allow
member firms to enter, modify and cancel orders in the NASDAQ System
and receive Drop reports of executions. NASDAQ is proposing to increase
the fee assessed for a FIX trading port from $500 to $550 per port, per
month. NASDAQ is also proposing to increase the fee assessed for
trading port pairs under Rule 7015(g), other than Multicast ITCH,
TotalView-ITCH, and TCP ITCH port pairs.\5\ Currently, the Exchange
assesses a fee of $500 per month, per port pair and NASDAQ is proposing
to increase the fee to $550 per month, per port pair. NASDAQ notes that
it last increased both of the trading port fees under Rules 7015(b) and
(g) in August 2009, raising the fees from $400 to $500 per port (or
port pair), per month.\6\
---------------------------------------------------------------------------
\5\ The $500 port pair fee under Rule 7015(g) provides
subscription to an OUCH, RASH, or Drop port pair.
\6\ See Securities Exchange Act Release No. 60546 (August 20,
2009), 74 FR 43184 (August 26, 2009) (SR-NASDAQ-2009-058).
---------------------------------------------------------------------------
The Exchange is also proposing to make a technical correction to
the trading port rule text under Rule 7015(g) and to delete text from
Rule 7015(g), which relates to a time-limited waiver of the Dedicated
OUCH Port Infrastructure installation fees that has since expired.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\7\ in general, and Section
6(b)(4) of the Act,\8\ in particular, because 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 that
NASDAQ operates or controls, and it does not unfairly discriminate
between
[[Page 694]]
customers, issuers, brokers or dealers. The proposed increases to the
Workstation and Weblink fees are reasonable because they reflect the
added value that subscribing members receive from the inclusion of the
Trade Reporting File Upload and ACT Reject Scan services in every
subscription. NASDAQ notes that the combined value of the two services
under the current rule is $100 per user, per month and NASDAQ is
proposing to increase the fees for the Workstation and unlimited
Weblink subscription by an equal amount. NASDAQ believes the lower
increase in the transaction-limited Weblink fee of $50 per user, per
month is reasonable and not unfairly discriminatory because those
subscribers will likewise have limited use of the Trade Reporting File
Upload and ACT Reject Scan services. NASDAQ notes that an existing
subscriber to the Workstation or unrestricted Weblink that also
subscribes to the Trade Reporting File Upload and ACT Reject Scan add
on services will see no increase in the fees assessed for the services
received, and subscribers to the transaction-limited Weblink service
that also subscribe to the Trade Reporting File Upload and ACT Reject
Scan services will see a decrease in the total fees assessed for the
add-on services. In contrast, current subscribers to the Workstation or
Weblink that subscribe to no add-on services or a single add-on service
will experience a fee increase. NASDAQ believes that it is reasonable
and not unfairly discriminatory to increase fees for such subscribers
to the Workstation and Weblink because the subscribers are receiving
additional services valued in the amount of the fee increase and,
consequently will derive benefit from the addition of the enhancements.
NASDAQ notes that Workstation and Weblink subscribers that determine
that the enhancements do not provide benefit to support the additional
cost of the subscriptions may alternatively subscribe to third party
front end systems or develop front end applications of their own.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
NASDAQ believes that the proposal to increase fees for trading
ports under Rules 7015(b) and (g) is reasonable [sic] not unfairly
discriminatory because the fee increases will realign the cost of
administering and enhancing the connectivity options offered by the
services with the revenue generated by the fee, which have diverged
since the fees were last increased in August 2009.\9\ In particular,
NASDAQ believes that the proposed fees will cover the costs associated
with responding to customer requests, configuring NASDAQ's systems,
programming to user specifications, and administering the service,
among other things, and may provide NASDAQ with a profit. Moreover,
NASDAQ believes that the proposed changes to Rules 7015(b) and (g)
constitute equitable allocations of fees because, under each individual
rule, all member firms would be charged the same fee and receive the
same number of access ports. As such, NASDAQ believes that the proposed
increase in port fees under Rules 7015(b) and (g) are both equitably
allocated and reasonable.
---------------------------------------------------------------------------
\9\ Supra note 6.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ 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. The increased
Workstation and Weblink fees are reflective of the addition of the
Trade Reporting File Upload and ACT Reject Scan services and the
benefit member firms receive from these enhancements. As noted, the
proposed increase in fees for subscription to trading ports will
realign the cost of administering and enhancing the service with the
revenue generated by the fees, which have diverged since the fees were
last increased in August 2009.\10\ The Exchange must, from time to
time, increase fees as general costs associated with offering services
increase. The burden of covering these increased costs is most
appropriately born by the users of the service. NASDAQ notes that, if
the proposed port fees are set too high, given the competitive nature
of the market for execution and routing services, market participants
could simply opt to connect with market centers other than the Exchange
to access liquidity available on NASDAQ by directing order flow to the
other market centers that are required to route to NASDAQ if it has
posted the best available price.
---------------------------------------------------------------------------
\10\ Id.
---------------------------------------------------------------------------
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,\11\ and paragraph (f) \12\ of Rule 19b-4,
thereunder.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(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.
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-2013-161 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 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2013-161. 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;
[[Page 695]]
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-2013-161, and should be submitted on or before January 27, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-31515 Filed 1-3-14; 8:45 am]
BILLING CODE 8011-01-P
