Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Existing Fees in NASDAQ Rule 7034, 677-679 [2013-31517]
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Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
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[FR Doc. 2013–31502 Filed 1–3–14; 8:45 am]
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Jkt 232001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 71200; File No. SR–NASDAQ–
2013–157]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Modify the
Existing Fees in NASDAQ Rule 7034
December 30, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on December
16, 2013, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
1 15
2 17
PO 00000
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Burden
(hours)
10
Sfmt 4703
100
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by NASDAQ. 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
NASDAQ is proposing changes to
modify the existing fees that clients colocated in NASDAQ’s Carteret data
center pay for cabinet space,
connectivity, and additional services as
set forth in NASDAQ Rule 7034.
NASDAQ intends to make these fees
effective on January 2, 2014.
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, at
the Commission’s Public Reference
Room, and at the Commission’s Web
site at https://sec.gov.
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. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASDAQ is proposing five
modifications to the current fee
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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678
Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
schedule for colocation offerings set
forth in NASDAQ Rule 7034.
1. NASDAQ is proposing to modify
Rule 7034(a) to reduce cabinet fees for
all cabinet users. Specifically, NASDAQ
is proposing to reduce from $7,000 to
$4,500 the fee for installing a new Super
High Density Cabinet. Additionally,
NASDAQ is proposing to reduce the
ongoing monthly fees for all cabinets:
Super High Density from $13,000 to
$8,000; High Density from $7,000 to
$4,500; Medium High Density from
$6,000 to $3,500; Medium Density from
$5,000 to $2,500; Low Density from
$4,000 to $2,000; and Half Cabinets
from $3,000 to $2,000. These changes
largely cement a temporary fee
reduction that NASDAQ offered at
various times in 2013. The language
describing the temporary fee reduction
is being deleted from the Exchange
rulebook.3
2. NASDAQ is modifying Rule 7034(a)
to clarify that the Multi-Firm Cabinets
Fee is assessed for each firm that
occupies space in a cabinet other than
the firm that contracts with NASDAQ
Technology Services for that cabinet.
This language is intended to better
reflect the original intent of the MultiFirm Cabinets fee and represents no
change in NASDAQ’s billing practice.
3. NASDAQ is increasing by $50 four
connectivity fees set forth in Rule
7034(b): The Category 6 Cable Patch, the
DS–3 Connection, and the Fiber fee
(each from $300 to $350), and also the
POTS Line fee (from $0 to $50). These
are previously filed offerings that users
request to connect to various
telecommunications providers or other
colocation cabinets.
4. NASDAQ is increasing the Ongoing
Monthly Fee for four forms of
connectivity to NASDAQ currently set
forth in Rule 7034(b). Specifically,
NASDAQ is increasing from $15,000 to
$20,000 the monthly fee for the 40Gb
Fiber connection to NASDAQ; from
$5,000 to $10,000 the monthly fee for
the 10Gb Fiber connection to NASDAQ;
from $1,000 to $2,500 the monthly fee
for the 1Gb Fiber connection to
NASDAQ; and from $1,000 to $2,500
the monthly fee for the 1Gb Copper
connection to NASDAQ.
5. Finally, NASDAQ is reducing from
$7,000 to $4,500 the installation fee for
the Super High Density Cabinet Kit set
forth in Rule 7034(d). A user installing
a new Super High Density Cabinet pays
this ‘‘Kit’’ fee for various necessary
cabinet accessories, in addition to the
$4,500 installation fee set forth in Rule
7034(a) which covers the labor and
3 See, e.g., Exchange Act Release No. 69887 (June
29, 2013), 78 FR 40527 (July 5, 2013).
VerDate Mar<15>2010
17:08 Jan 03, 2014
Jkt 232001
materials costs for the actual cabinet
installation service.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 4 in general, and with
Sections 6(b)(4), (b)(5) and (b)(8) of the
Act,5 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which the
Exchange operates or controls, and is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general to protect investors and the
public interest.
The Exchange believes that the
proposed fees changes are consistent
with Section 6(b)(4) of the Act for
multiple reasons. The Exchange
operates in a highly competitive market
in which exchanges offer co-location
services as a means to facilitate the
trading activities of those members who
believe that co-location enhances the
efficiency of their trading. Accordingly,
fees charged for co-location services are
constrained by the active competition
for the order flow of such members. If
a particular exchange charges excessive
fees for co-location services, affected
members will opt to terminate their colocation arrangements with that
exchange, and adopt a possible range of
alternative strategies, including colocating with a different exchange,
placing their servers in a physically
proximate location outside the
exchange’s data center, or pursuing
trading strategies not dependent upon
co-location. Accordingly, the exchange
charging excessive fees would stand to
lose not only co-location revenues but
also revenues associated with the
execution of orders routed to it by
affected members.
The fees are fair and equitable
whether considered in total or
individually. First, NASDAQ is
proposing a major fee reduction for all
colocation users by reducing ongoing
monthly fees for all cabinets and the
fees for installing new Super High
Density Cabinets (both the standard
installation fee set forth in subsection
(a) and the ‘‘Kit’’ fee set forth in
subsection (d)). These fee reduction [sic]
range from 35 to 50 percent, and they
will benefit each cabinet user for each
month in the future. These fee
reductions are offset in part by minor
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4), (5) and (8).
Frm 00046
Fmt 4703
Sfmt 4703
increases of $50 per month for four
connectivity fees set forth in Rule
7034(b) (the Category 6 Cable Patch, the
DS–3 Connection, and the Fiber fee
(from $300 to $350), and also the POTS
Line fee from $0 to $50) and also to the
Ongoing Monthly Fee for three forms on
connectivity set forth in Rule 7034(b)
(the 40Gb Fiber connection, the 10Gb
Fiber connection, the 1Gb Fiber
connection; and the 1Gb Copper
connection to NASDAQ).
Moreover, the Exchange believes the
proposed fees [sic] changes are
reasonable because they are based on
the Exchange’s costs to cover hardware,
installation, testing and connection, as
well expenses involved in maintaining
and managing the colocation facilities.
The proposed fees allow the Exchange
to recoup these costs and make a profit,
while providing customers the ability to
reduce latency in a well-maintained and
operated environment. The Exchange
believes that the proposed fees are
reasonable in that they reflect the costs
and the benefit of the lower latency to
clients.
The Exchange also believes that the
proposed fees are consistent with
Section 6(b)(5) of the Act in that the fees
are equitably allocated and nondiscriminatory. All Exchange members
that voluntarily select various service
options will be charged the same
amount for the same services. As is true
of all co-location services, all co-located
clients have the option to select any
cabinet or connectivity option, and
there is no differentiation among
customers with regard to the fees
charged for the service. Further, the
benefits of selecting such services are
the same for all co-located clients,
irrespective of the locations of their
cabinets within the data center.
The Exchange’s proposal is also
consistent with the requirement of
Section 6(b)(5) of the Act that Exchange
rules be designed to prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest; and are not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The proposal is consistent with these
requirements insomuch as it makes
available to market participants, at a
reasonable fee and on a non-
E:\FR\FM\06JAN1.SGM
06JAN1
Federal Register / Vol. 79, No. 3 / Monday, January 6, 2014 / Notices
discriminatory basis, access to low
latency means of trading.
Finally, for the reasons stated below
in Section 4 of Form 19b–4, the
proposed fees [sic] changes are
consistent with Section 6(b)(8) of the
Act in that they do not impose a burden
on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
Electronic Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
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.
To the contrary, as discussed above, the
Exchange believes that fees for colocation services are constrained by the
robust competition for order flow among
exchanges and non-exchange markets,
because co-location exists to advance
that competition. Further, excessive fees
for co-location services would serve to
impair an exchange’s ability to compete
for order flow rather than burdening
competition. In fact, NASDAQ believes
that the proposal reflects the positive
effects of robust competition but for
which NASDAQ would no incentive to
reduce fees for any colocation offerings.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 6 and paragraph (f) of Rule
19b–4 thereunder.7 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
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:
6 15
7 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Mar<15>2010
17:08 Jan 03, 2014
• 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–2013–157 on the subject line.
Paper Comments
All submissions should refer to File
Number SR–NASDAQ–2013–157. 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–2013–157 and should be
submitted on or before January 27, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–31517 Filed 1–3–14; 8:45 am]
BILLING CODE 8011–01–P
Jkt 232001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71197; File No. SR–BX–
2013–063]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change to Modify the
Extranet Access Fee
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
19, 2013, NASDAQ OMX BX, Inc. (‘‘BX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the 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
The Exchange [sic] to modify the
extranet access fee (‘‘Extranet Access
Fee’’) set forth in BX Rule 7025, as well
as to clarify its applicability. BX will
implement the proposed revised fee on
January 2, 2014.
The text of the proposed rule change
is below. Proposed new language is
italicized; proposed deletions are
bracketed.3
*
*
*
*
*
7025. Extranet Access Fee
Extranet providers that establish a
connection with the Exchange to offer
direct access connectivity to market data
feeds shall be assessed a monthly access
fee of $1,000 [750] per client
organization Customer Premises
Equipment (‘‘CPE’’) Configuration. If an
extranet provider uses multiple CPE
Configurations to provide market data
feeds to any client organization, the
monthly fee shall apply to each such
CPE Configuration. For purposes of this
Rule 7025, the term ‘‘Customer Premises
Equipment Configuration’’ shall mean
any line, circuit, router package, or
other technical configuration used by an
extranet provider to provide a direct
access connection to the Exchange
market data feeds to a recipient’s site.
No extranet access fee will be charged
for connectivity to market data feeds
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Changes are marked to the rules of NASDAQ
OMX BX, Inc. found at https://
nasdaqomxbx.cchwallstreet.com.
2 17
8 17
PO 00000
CFR 200.30–3(a)(12).
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Sfmt 4703
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]]>Agencies
[Federal Register Volume 79, Number 3 (Monday, January 6, 2014)]
[Notices]
[Pages 677-679]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-31517]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 71200; File No. SR-NASDAQ-2013-157]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Modify the Existing Fees in NASDAQ Rule 7034
December 30, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on December 16, 2013, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by NASDAQ. 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
NASDAQ is proposing changes to modify the existing fees that
clients co-located in NASDAQ's Carteret data center pay for cabinet
space, connectivity, and additional services as set forth in NASDAQ
Rule 7034. NASDAQ intends to make these fees effective on January 2,
2014.
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, at the Commission's Public Reference Room, and at the
Commission's Web site at https://sec.gov.
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. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is proposing five modifications to the current fee
[[Page 678]]
schedule for colocation offerings set forth in NASDAQ Rule 7034.
1. NASDAQ is proposing to modify Rule 7034(a) to reduce cabinet
fees for all cabinet users. Specifically, NASDAQ is proposing to reduce
from $7,000 to $4,500 the fee for installing a new Super High Density
Cabinet. Additionally, NASDAQ is proposing to reduce the ongoing
monthly fees for all cabinets: Super High Density from $13,000 to
$8,000; High Density from $7,000 to $4,500; Medium High Density from
$6,000 to $3,500; Medium Density from $5,000 to $2,500; Low Density
from $4,000 to $2,000; and Half Cabinets from $3,000 to $2,000. These
changes largely cement a temporary fee reduction that NASDAQ offered at
various times in 2013. The language describing the temporary fee
reduction is being deleted from the Exchange rulebook.\3\
---------------------------------------------------------------------------
\3\ See, e.g., Exchange Act Release No. 69887 (June 29, 2013),
78 FR 40527 (July 5, 2013).
---------------------------------------------------------------------------
2. NASDAQ is modifying Rule 7034(a) to clarify that the Multi-Firm
Cabinets Fee is assessed for each firm that occupies space in a cabinet
other than the firm that contracts with NASDAQ Technology Services for
that cabinet. This language is intended to better reflect the original
intent of the Multi-Firm Cabinets fee and represents no change in
NASDAQ's billing practice.
3. NASDAQ is increasing by $50 four connectivity fees set forth in
Rule 7034(b): The Category 6 Cable Patch, the DS-3 Connection, and the
Fiber fee (each from $300 to $350), and also the POTS Line fee (from $0
to $50). These are previously filed offerings that users request to
connect to various telecommunications providers or other colocation
cabinets.
4. NASDAQ is increasing the Ongoing Monthly Fee for four forms of
connectivity to NASDAQ currently set forth in Rule 7034(b).
Specifically, NASDAQ is increasing from $15,000 to $20,000 the monthly
fee for the 40Gb Fiber connection to NASDAQ; from $5,000 to $10,000 the
monthly fee for the 10Gb Fiber connection to NASDAQ; from $1,000 to
$2,500 the monthly fee for the 1Gb Fiber connection to NASDAQ; and from
$1,000 to $2,500 the monthly fee for the 1Gb Copper connection to
NASDAQ.
5. Finally, NASDAQ is reducing from $7,000 to $4,500 the
installation fee for the Super High Density Cabinet Kit set forth in
Rule 7034(d). A user installing a new Super High Density Cabinet pays
this ``Kit'' fee for various necessary cabinet accessories, in addition
to the $4,500 installation fee set forth in Rule 7034(a) which covers
the labor and materials costs for the actual cabinet installation
service.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \4\ in general, and with Sections 6(b)(4), (b)(5) and
(b)(8) of the Act,\5\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system
which the Exchange operates or controls, and is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4), (5) and (8).
---------------------------------------------------------------------------
The Exchange believes that the proposed fees changes are consistent
with Section 6(b)(4) of the Act for multiple reasons. The Exchange
operates in a highly competitive market in which exchanges offer co-
location services as a means to facilitate the trading activities of
those members who believe that co-location enhances the efficiency of
their trading. Accordingly, fees charged for co-location services are
constrained by the active competition for the order flow of such
members. If a particular exchange charges excessive fees for co-
location services, affected members will opt to terminate their co-
location arrangements with that exchange, and adopt a possible range of
alternative strategies, including co-locating with a different
exchange, placing their servers in a physically proximate location
outside the exchange's data center, or pursuing trading strategies not
dependent upon co-location. Accordingly, the exchange charging
excessive fees would stand to lose not only co-location revenues but
also revenues associated with the execution of orders routed to it by
affected members.
The fees are fair and equitable whether considered in total or
individually. First, NASDAQ is proposing a major fee reduction for all
colocation users by reducing ongoing monthly fees for all cabinets and
the fees for installing new Super High Density Cabinets (both the
standard installation fee set forth in subsection (a) and the ``Kit''
fee set forth in subsection (d)). These fee reduction [sic] range from
35 to 50 percent, and they will benefit each cabinet user for each
month in the future. These fee reductions are offset in part by minor
increases of $50 per month for four connectivity fees set forth in Rule
7034(b) (the Category 6 Cable Patch, the DS-3 Connection, and the Fiber
fee (from $300 to $350), and also the POTS Line fee from $0 to $50) and
also to the Ongoing Monthly Fee for three forms on connectivity set
forth in Rule 7034(b) (the 40Gb Fiber connection, the 10Gb Fiber
connection, the 1Gb Fiber connection; and the 1Gb Copper connection to
NASDAQ).
Moreover, the Exchange believes the proposed fees [sic] changes are
reasonable because they are based on the Exchange's costs to cover
hardware, installation, testing and connection, as well expenses
involved in maintaining and managing the colocation facilities. The
proposed fees allow the Exchange to recoup these costs and make a
profit, while providing customers the ability to reduce latency in a
well-maintained and operated environment. The Exchange believes that
the proposed fees are reasonable in that they reflect the costs and the
benefit of the lower latency to clients.
The Exchange also believes that the proposed fees are consistent
with Section 6(b)(5) of the Act in that the fees are equitably
allocated and non-discriminatory. All Exchange members that voluntarily
select various service options will be charged the same amount for the
same services. As is true of all co-location services, all co-located
clients have the option to select any cabinet or connectivity option,
and there is no differentiation among customers with regard to the fees
charged for the service. Further, the benefits of selecting such
services are the same for all co-located clients, irrespective of the
locations of their cabinets within the data center.
The Exchange's proposal is also consistent with the requirement of
Section 6(b)(5) of the Act that Exchange rules be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest; and are not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers. The proposal is consistent with these requirements insomuch as
it makes available to market participants, at a reasonable fee and on a
non-
[[Page 679]]
discriminatory basis, access to low latency means of trading.
Finally, for the reasons stated below in Section 4 of Form 19b-4,
the proposed fees [sic] changes are consistent with Section 6(b)(8) of
the Act in that they do not impose a burden on competition not
necessary or appropriate in furtherance of the purposes of the Act.
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. To the contrary, as
discussed above, the Exchange believes that fees for co-location
services are constrained by the robust competition for order flow among
exchanges and non-exchange markets, because co-location exists to
advance that competition. Further, excessive fees for co-location
services would serve to impair an exchange's ability to compete for
order flow rather than burdening competition. In fact, NASDAQ believes
that the proposal reflects the positive effects of robust competition
but for which NASDAQ would no incentive to reduce fees for any
colocation offerings.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \6\ and paragraph (f) of Rule 19b-4
thereunder.\7\ At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2013-157 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-2013-157. 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-2013-157 and should
be submitted on or before January 27, 2014.
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\8\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-31517 Filed 1-3-14; 8:45 am]
BILLING CODE 8011-01-P
