Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Not Charge the Extranet Access Fee, 8769-8771 [2014-03128]
Download as PDF
Federal Register / Vol. 79, No. 30 / Thursday, February 13, 2014 / Notices
reported to the FINRA/NASDAQ TRF
and the value of its other data products.
Competition has also driven NASDAQ
continually to improve its data offerings
and to cater to customers’ data needs.
The NASDAQ Basic product itself is a
product of this competition, offering a
subset of core data to users that may not
wish to receive or pay for all
consolidated data. Moreover, as detailed
in the section of this proposed rule
change discussing its purpose,
NASDAQ has made continual
enhancements to the NASDAQ Basic
product to ensure that it remains an
attractive offering to its customers.
Despite these enhancements and a
dramatic increase in message traffic,
NASDAQ’s fees for professional usage of
NASDAQ Basic have hitherto remained
flat.
The existence of numerous
alternatives to NASDAQ Basic,
including real-time consolidated data,
free delayed consolidated data, and
proprietary data from other sources
ensures that NASDAQ cannot set
unreasonable fees, or fees that are
unreasonably discriminatory, without
losing business to these alternatives.
Accordingly, NASDAQ believes that the
acceptance of the NASDAQ Basic
product in the marketplace
demonstrates the consistency of these
fees with applicable statutory standards.
Likewise, the fee changes proposed
herein will be subject to these same
competitive forces. If the proposed fee
increase is excessive, or if the proposals
for an enterprise license and netting are
unattractive to market participants, only
NASDAQ will suffer, since its
customers will merely migrate to
competitive alternatives.
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.
emcdonald on DSK67QTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.24 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,
24 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Mar<15>2010
18:44 Feb 12, 2014
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03121 Filed 2–12–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2014–011 on the subject line.
[Release No. 34–71506; File No. SR–BX–
2014–008]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Not Charge
the Extranet Access Fee
February 7, 2014.
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–2014–011. 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–2014–011 and should be
submitted on or before March 6, 2014.
25 17
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8769
PO 00000
CFR 200.30–3(a)(12).
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Fmt 4703
Sfmt 4703
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 January
31, 2014, 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 proposes to not charge
the extranet access fee (‘‘Extranet Access
Fee’’) set forth in BX Rule 7025.
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 not be assessed a monthly
access fee [of $1,000] 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
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
E:\FR\FM\13FEN1.SGM
13FEN1
8770
Federal Register / Vol. 79, No. 30 / Thursday, February 13, 2014 / Notices
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
containing only consolidated data. For
purposes of this rule, consolidated data
includes data disseminated by the UTP
SIP.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
emcdonald on DSK67QTVN1PROD with NOTICES
1. Purpose
The Exchange is proposing to change
the Extranet Access Fee as set forth in
BX Rule 7025 so that there is no charge.
BX Rule 7025 currently provides that
[sic] for extranet providers that establish
a connection with the Exchange to offer
direct access connectivity to market data
feeds to be assessed a monthly access
fee of $1,000 per recipient Customer
Premises Equipment (‘‘CPE’’)
Configuration.4
Specifically, the Exchange proposes to
reduce the Extranet Access Fee from
$1,000 per recipient CPE Configuration
per month to free. An Extranet Access
Fee has been in place since its
introduction in 2009 5 and provided for
free during the first year of operation. At
the end of this period, the initial fee of
$750 per recipient CPE Configuration
per month remained in place although
it was never billed. Since extranet
providers have never yet been billed for
4 See Securities Exchange Act Release No. 71197
(December 30, 2013), 79 FR 679 (January 6, 2014)
(SR–BX–2013–063). As defined in BX Rule 7025, a
‘‘Customer Premises Equipment Configuration’’
means 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.
5 See Securities Exchange Act Release No. 59615
(March 20, 2009), 74 FR 14604 (March 31, 2009)
(SR–BX–2009–005).
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18:44 Feb 12, 2014
Jkt 232001
this fee, the Exchange now proposes to
change BX Rule 7025 to reflect that
there will be no charge for extranet
providers that establish a connection
with the Exchange to offer direct access
connectivity to market data feeds.
Additionally, because the Exchange
has thus far never collected an Extranet
Access Fee, it does not intend to charge
the $1,000 Extranet Access Fee for
January 2014.6
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,7 in general, and
with Section 6(b)(4) of the Act,8 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. All similarly
situated extranet providers that
establish an extranet connection with
the Exchange to access market data
feeds from the Exchange will not be
subject to an Extranet Access Fee.
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.
No fee is being charged and this applies
across all extranet providers and none
are compelled to establish a connection
with the Exchange to offer access
connectivity to market data feeds.
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)(ii) of the Act.9 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,
6 The Exchange will not back-bill any extranet
providers for extranet connections with the
Exchange to offer direct access connectivity to
market data feeds.
7 15 U.S.C. 78f [sic].
8 15 U.S.C. 78f(b)(4).
9 15 U.S.C. 78s(b)(3)(A)(ii).
PO 00000
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or otherwise in furtherance of the
purposes of the Act. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2014–008 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–BX–2014–008. 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 on official business
days between the hours of 10:00 a.m.
and 3:00 p.m. Copies of such filing also
will be available for inspection and
copying at the principal offices of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BX–
2014–008, and should be submitted on
or before March 6, 2014.
E:\FR\FM\13FEN1.SGM
13FEN1
Federal Register / Vol. 79, No. 30 / Thursday, February 13, 2014 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03128 Filed 2–12–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71513; File No. SR–CBOE–
2013–100]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of Proposed Rule Change Relating to
CBSX Trading Permit Holder Eligibility
February 7, 2014.
I. Introduction
On October 23, 2013, Chicago Board
Options Exchange, Incorporated (the
‘‘Exchange’’ or ‘‘CBOE’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’), pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (the ‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change to add Rule 50.4A to the rules
of the CBOE Stock Exchange, LLC
(‘‘CBSX’’).3 The proposed rule change
was published for comment in the
Federal Register on November 12,
2013.4 The Commission received four
comment letters on the proposal.5 CBOE
responded to the comments on
December 20, 2013.6 On December 20,
2013, the Commission extended the
time period for Commission action to
February 10, 2014.7 This order approves
the proposed rule change.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 CBSX is a stock execution facility of CBOE.
4 See Securities Exchange Act Release No. 70806
(November 5, 2013), 78 FR 67424 (‘‘Notice’’).
5 See letter from Chris Concannon, Executive Vice
President, Virtu Financial BD, LLC, to Elizabeth M.
Murphy, Secretary, Commission, dated November
11, 2013 (‘‘Virtu Letter’’); letter from Martin H.
Kaplan, Gusrae Kaplan Nusbaum PLLC, to Kevin M.
O’Neill, Deputy Secretary, Commission, dated
November 18, 2013 (‘‘Gusrae Kaplan Nusbaum
Letter’’); letter from James Ongena, General
Counsel, Chicago Stock Exchange, Inc., to Elizabeth
M. Murphy, Secretary, Commission, dated
December 3, 2013 (‘‘CHX Letter’’); and letter from
Mary Ann Burns, Chief Operating Officer, Futures
Industry Association, to Elizabeth M. Murphy,
Secretary, Commission, dated December 3, 2013
(‘‘FIA Letter’’).
6 See letter from Corinne Klott, Attorney, CBOE,
to Elizabeth M. Murphy, Secretary, Commission,
dated December 20, 2013 (‘‘CBOE Letter’’).
7 See Securities Exchange Act Release No. 71152,
78 FR 79035 (December 27, 2013).
emcdonald on DSK67QTVN1PROD with NOTICES
1 15
VerDate Mar<15>2010
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The Exchange proposes to adopt Rule
50.4A regarding eligibility for CBSX
Trading Permit Holders. Proposed Rule
50.4A provides that a CBSX Trading
Permit Holder (‘‘TPH’’) may become or
remain a CBSX TPH only if it is a
member of a national securities
association.8 All CBSX TPHs would
have six months from the approval of
the rule filing to become a member of
a national securities association. The
proposed rule also provides that CBSX
will terminate, upon written notice, the
TPH status of any CBSX TPH that fails
to meet this requirement.
CBOE states that it conducts
surveillance of trading on CBSX and
examines the securities-related
operations of TPHs for compliance with
CBSX Rules and the federal securities
laws, rules and regulations. CBSX TPHs
may submit orders to other trading
venues as customers through executing
broker-dealers, which are ultimately
executed on those other trading venues
(‘‘away trading activity’’). Because away
trading activity does not occur on
CBSX’s market, CBOE states that it does
not have access to all necessary order
and trade information for this trading
activity, as it does for trading activity
done directly on CBSX, from which it
can directly conduct systematic
surveillance reviews.
The Exchange notes that, although
other national securities exchanges
require their members to be members of
another national securities exchange or
a national securities association,9 the
other national securities exchanges may
not have direct access to the order and
transaction information related to the
away trading activity of their members,
as is the case with CBOE, and thus may
not be in a position to review the away
trading activity for potential violations
of federal securities laws, rules and
regulations.10 The Exchange states that
requiring a CBSX TPH to be a member
of a national securities association (i.e.
FINRA), but not providing it the option
of becoming a member of another
national securities exchange, is
appropriate to ensure that the CBSX
TPH’s away trading activity is subject to
appropriate regulatory review.
According to the Exchange, FINRA rules
currently require each FINRA member
to submit order data for trading activity
on all venues (including away trading
activity) to FINRA on a regular basis.11
The Exchange explains that this order
data audit trail provides FINRA the
necessary information related to each
member’s away trading activity to
review for and detect possible violations
of the federal securities laws, rules and
regulations. This, in turn, would allow
FINRA to detect possible violations of
federal securities laws, rules, and
regulations, and take appropriate
regulatory and disciplinary action
against a CBSX TPH as one of its
regulators, or otherwise refer such
matter to CBOE for review and
consideration of disciplinary action.
Proposed Rule 50.4A requires CBSX
TPHs to become a member of FINRA
within six months of the date of
approval of this rule change.12 CBOE
will announce the date by which CBSX
TPHs must comply with this new
requirement (the ‘‘Compliance Date’’) in
a Regulatory Circular.13 The Exchange
notes that if it determines that there are
extenuating circumstances which result
in a CBSX TPH not being able to comply
by the Compliance Date, the Exchange
may permit the CBSX TPH to retain its
TPH status beyond the Compliance Date
for such period of time as the Exchange
deems reasonably necessary to enable
the CBSX TPH to become a member of
FINRA.14
8 Currently, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) is the only registered
national securities association. CBOE states that this
proposal furthers compliance with Undertaking O
of the June 11, 2013 Order Instituting
Administrative and Cease-and-Desist Proceedings
involving CBOE and C2 Options Exchange, Inc.,
which requires CBOE to enhance its regulation of
CBSX-only TPHs. CBOE notes that this proposed
rule change is only one component of its efforts to
enhance its regulation of all CBSX TPHs, including
CBSX-only TPHs. CBOE notes that although there
will technically no longer be any CBSX-only TPHs
if the proposed rule change is approved, the
Exchange still believes that the proposal will
enhance the general regulatory oversight of CBSX
TPHs, including those former CBSX-only TPHs.
9 See, e.g., BATS Exchange, Inc. Rule 2.3, BATS
Y-Exchange, Inc. Rule 2.3, EDGA Exchange, Inc.
Rule 2.3(a), EDGX Exchange, Inc. Rule 2.3(a),
NASDAQ Stock Market LLC Rule 1002(e), and New
York Stock Exchange LLC Rule 2.
10 The Exchange notes that it may obtain an audit
trail of this ‘‘away activity’’ from which it will be
able to conduct direct systematic surveillance
reviews once the National Market System
consolidated audit trail is finalized and
implemented.
11 See, e.g., FINRA Rules 7440 and 7450.
12 As of December 20, 2013, 38 CBSX TPHs would
be affected by this eligibility requirement (i.e., are
not already members of FINRA).
13 The Exchange will also issue periodic written
reminders to all CBSX TPHs affected by this
requirement that the CBSX TPH must become a
FINRA member by the Compliance Date.
14 The Exchange notes that the ability to extend
certain time limits where extenuating
circumstances exist is consistent with and similar
to other Exchange rules. See e.g., CBOE Rule 3.19
and CBOE Rule 3.30.
II. Description of the Proposal
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Agencies
[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8769-8771]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03128]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71506; File No. SR-BX-2014-008]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Not
Charge the Extranet Access Fee
February 7, 2014.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 31, 2014, 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.
---------------------------------------------------------------------------
\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
The Exchange proposes to not charge the extranet access fee
(``Extranet Access Fee'') set forth in BX Rule 7025.
The text of the proposed rule change is below. Proposed new
language is italicized; proposed deletions are bracketed.\3\
---------------------------------------------------------------------------
\3\ Changes are marked to the rules of NASDAQ OMX BX, Inc. found
at https://nasdaqomxbx.cchwallstreet.com.
---------------------------------------------------------------------------
* * * * *
7025. Extranet Access Fee
Extranet providers that establish a connection with the Exchange to
offer direct access connectivity to market data feeds shall not be
assessed a monthly access fee [of $1,000] 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
[[Page 8770]]
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
containing only consolidated data. For purposes of this rule,
consolidated data includes data disseminated by the UTP SIP.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to change the Extranet Access Fee as set
forth in BX Rule 7025 so that there is no charge. BX Rule 7025
currently provides that [sic] for extranet providers that establish a
connection with the Exchange to offer direct access connectivity to
market data feeds to be assessed a monthly access fee of $1,000 per
recipient Customer Premises Equipment (``CPE'') Configuration.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 71197 (December 30,
2013), 79 FR 679 (January 6, 2014) (SR-BX-2013-063). As defined in
BX Rule 7025, a ``Customer Premises Equipment Configuration'' means
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.
---------------------------------------------------------------------------
Specifically, the Exchange proposes to reduce the Extranet Access
Fee from $1,000 per recipient CPE Configuration per month to free. An
Extranet Access Fee has been in place since its introduction in 2009
\5\ and provided for free during the first year of operation. At the
end of this period, the initial fee of $750 per recipient CPE
Configuration per month remained in place although it was never billed.
Since extranet providers have never yet been billed for this fee, the
Exchange now proposes to change BX Rule 7025 to reflect that there will
be no charge for extranet providers that establish a connection with
the Exchange to offer direct access connectivity to market data feeds.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 59615 (March 20,
2009), 74 FR 14604 (March 31, 2009) (SR-BX-2009-005).
---------------------------------------------------------------------------
Additionally, because the Exchange has thus far never collected an
Extranet Access Fee, it does not intend to charge the $1,000 Extranet
Access Fee for January 2014.\6\
---------------------------------------------------------------------------
\6\ The Exchange will not back-bill any extranet providers for
extranet connections with the Exchange to offer direct access
connectivity to market data feeds.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and with Section 6(b)(4)
of the Act,\8\ 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. All similarly situated extranet
providers that establish an extranet connection with the Exchange to
access market data feeds from the Exchange will not be subject to an
Extranet Access Fee.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f [sic].
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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. No
fee is being charged and this applies across all extranet providers and
none are compelled to establish a connection with the Exchange to offer
access connectivity to market data feeds.
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)(ii) of the Act.\9\ At any time within 60 days of the filing
of the proposed rule change, the Commission summarily may temporarily
suspend such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-BX-2014-008 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-BX-2014-008. 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 on official business days between the hours
of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be
available for inspection and copying at the principal offices of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-BX-
2014-008, and should be submitted on or before March 6, 2014.
[[Page 8771]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03128 Filed 2-12-14; 8:45 am]
BILLING CODE 8011-01-P