Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Offer a Volume Discount for the Bulk Purchase of Aged Reports Within the Category of Historical Research and Administrative Reports Under NASDAQ Rule 7022, 51628-51630 [2014-20559]
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51628
Federal Register / Vol. 79, No. 168 / Friday, August 29, 2014 / Notices
and to the Office of Management and
Budget for their evaluation. The Postal
Service does not expect this amended
notice to have any adverse effect on
individual privacy rights. The affected
systems are as follows:
USPS
910.000
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*
[ADD TEXT]
6. To verify a customer’s identity to
access services.
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RETENTION AND DISPOSAL
SYSTEM NAME: Identity and Document
Verification Services
Accordingly, for the reasons stated,
the Postal Service proposes changes in
the existing systems of records as
follows:
USPS
PURPOSE(S)
910.000
SYSTEM NAME:
Identity and Document Verification
Services
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[CHANGE TO READ]
6. Records pertaining to identity
verification are retained 7.5 years, to
align with Federal Identity, Credential,
and Access Management (FICAM)
guidance unless retained longer by
request of the customer.
[RENUMBER REMAINING TEXT]
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Stanley F. Mires,
Attorney, Federal Requirements.
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM
[FR Doc. 2014–20627 Filed 8–28–14; 8:45 am]
[CHANGE TO READ]
Customers who apply for identity and
document verification services. Any
customer who verifies his or her
identity through USPS to access
services.
CATEGORIES OF RECORDS IN THE SYSTEM
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[CHANGE TO READ]
3. Verification and payment
information: Credit and/or debit card
information or other account number,
government issued ID type and number,
verification question and answer, and
payment confirmation code.
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[CHANGE TO READ]
6. Transaction information: Clerk
signature; employee logon; transaction
type, date and time, location, source of
transaction; product use and inquiries.
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BILLING CODE 7710–P
notice is hereby given that on August
22, 2014, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, 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 a proposal
to [sic] offer a volume discount for the
bulk purchase of aged reports within the
category of Historical Research and
Administrative Reports under NASDAQ
Rule 7022.
*
*
*
*
*
SECURITIES AND EXCHANGE
COMMISSION
7022. Historical Research and
Administrative Reports
[Release No. 34–72911; File No. SR–
NASDAQ–2014–086]
(a) No Change.
(b) The charge to be paid by the
purchaser of an Historical Research
Report regarding a Nasdaq security that
wishes to obtain a license to redistribute
the information contained in the report
to subscribers shall be determined in
accordance with the following schedule:
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Offer a
Volume Discount for the Bulk
Purchase of Aged Reports Within the
Category of Historical Research and
Administrative Reports Under
NASDAQ Rule 7022
August 25, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2
NUMBER OF SUBSCRIBERS
wreier-aviles on DSK5TPTVN1PROD with NOTICES
1–500
A. Market Summary Statistics:
More often than once a month .....................................
Once a month, quarter, or year ....................................
B. Reserved
C. Nasdaq Issues Summary Statistics:
More often than once a month .....................................
Once a month, quarter, or year ....................................
Annual set of aged reports previously distributed more
often than once a month. ..........................................
D. Intra-Day Quote and Intra-Day Time and Sales Data:
For a security and/or a market participant for a day ....
For all market participants for a day or for all securities for a day .............................................................
1 15
U.S.C. 78s(b)(1).
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1,000–4999
10,000+
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$350
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$550
275
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1,000
500
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3,000
3,000
3,000
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Federal Register / Vol. 79, No. 168 / Friday, August 29, 2014 / Notices
(c) No change.
(d) No change.
*
*
*
*
*
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
wreier-aviles on DSK5TPTVN1PROD with NOTICES
1. Purpose
NASDAQ proposes to offer a volume
discount for the bulk purchase of an
existing report within the Nasdaq Issues
Summary Statistics category of
Historical Research and Administrative
Reports under subsection C of NASDAQ
Rule 7022(b). The pricing schedule for
Nasdaq Issues Summary Statistics
reports currently includes only short
interest information.3 The fee schedule
for NASDAQ Issues Summary Statistics
is currently divided into two tiers, one
for reports distributed once per month
or less, and a second for reports
distributed more than once monthly.
NASDAQ is proposing to add a third
tier of fees for Nasdaq Issues Summary
Statistics reports for the purchase and
distribution of a full year of the twicemonthly report of short interest on
NASDAQ provided that the individual
reports are each aged a full year.
NASDAQ has been requested to offer a
volume discount for the distribution of
short interest reports aged more than
one year that Distributors can make
available to Subscribers in annual sets
of twenty-four reports. The existing
reports will be delivered in annual sets
via an acceptable medium where each of
the individual reports is sent
simultaneously.
NASDAQ has determined to assess a
fee of $3,000 for access to the annual
sets of aged reports of short interest on
3 In 2013, NASDAQ moved the Daily List and
Fundamental Data formerly covered by this rule
into new NASDAQ Rule 7022(d). See Exchange Act
Release No. 68636 (Jan. 11, 2013). In the future, this
category may include other information that
properly falls within the category of Nasdaq Issues
Summary Statistics.
VerDate Mar<15>2010
15:29 Aug 28, 2014
Jkt 232001
NASDAQ. This is less than a Distributor
would pay to distribute twenty-four
short interest reports that will constitute
each annual set of reports because the
data in the annual set will be aged at
least one year and therefore will be less
valuable to investors. In addition, unlike
the existing fee tiers, the volume
discount will not be indexed to the
number of subscribers receiving the
annual set of reports; all Distributors
will pay the $3,000 fee regardless of the
number of recipients to which they
distribute it.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,4 in
general, and with Section 6(b)(4) 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
NASDAQ operates or controls. The
volume discount is a pricing convention
that exists in NASDAQ’s current fee
schedule and the fee schedules of
multiple other exchanges. The volume
discount currently exists for transaction
fees, market access fees, and market data
fees where members and other market
participants pay lower unit costs as they
purchase increasing amounts of a given
product or service. The volume discount
is predicated upon the well-accepted
principle that the purchase and sale of
a product becomes more efficient and
less costly per unit as volumes
purchased and sold increase.
NASDAQ believes that the proposed
fee is also consistent with Section
6(b)(5) of the Act,6 in that it is 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. The
Exchange believes that the proposed
volume discount enhances transparency
and facilitates transactions through the
dissemination of increased volumes of
transaction-based data.
Finally, NASDAQ believes that the
proposed fee is also consistent with
Section 11A(c)(1)(D) of the Act,7 in that
4 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78k–1(c)(1)(D).
5 15
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
51629
it provides for a fee that is not
unreasonably discriminatory in nature.
The proposed volume discount is
available equally to all members and
other market participants that may seek
short interest reports in annual sets.
Additionally, while the $3,000 flat fee is
substantially less than a distributor
would pay to distribute the twenty-four
individual short interest reports,
NASDAQ believes that this volume
discount is fair and reasonable and not
unreasonably discriminatory because
the data contained in the annual sets
will be aged at least one year and
therefore of less value to investors than
are current reports. For the same
reasons, NASDAQ believes it is fair and
equitable and not unreasonably
discriminatory that the volume discount
will not be indexed to the number of
subscribers receiving the aggregated
report; all distributors will pay the
$3,000 fee regardless of the number of
recipients to which they distribute it.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ does not believe that the
proposed rule change will result in an
undue burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
As described above, the volume
discount already exists in many forms,
and it has not [sic] found to impose any
burden on competition. In this case,
NASDAQ does not believe the volume
discount will impose any burden on
competition. With respect to
distributors, the proposal would reduce
fees for all market participants that
purchase and distribute the reports,
therefore each participant should be
positioned equally with respect to such
distribution.
With respect to competitors or
NASDAQ, the proposed volume
discount does not impose any burden
on competition. NASDAQ competitors
that distribute similar data are equallywell positioned to offer a volume
discount for similar data. To the extent
that NASDAQ’s proposed volume
discount prompts competitors to offer
volume discounts, this effect is procompetitive and beneficial to investors.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were either
solicited or received.
E:\FR\FM\29AUN1.SGM
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Federal Register / Vol. 79, No. 168 / Friday, August 29, 2014 / Notices
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,8 and paragraph (f) 9 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:
wreier-aviles on DSK5TPTVN1PROD with NOTICES
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–2014–086 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2014–086. 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
8 15
9 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Mar<15>2010
15:29 Aug 28, 2014
Jkt 232001
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–
NASDAQ–2014–086, and should be
submitted on or before September 19,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–20559 Filed 8–28–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72908; File No. SR–FICC–
2014–01]
Self-Regulatory Organization; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change To
Amend the Government Securities
Division Rulebook in Order To
Establish an Early Unwind Intraday
Charge in Connection With the
Inclusion of GCF Repo® Positions in
GSD’s Intraday Participant Clearing
Fund Requirement, and GSD’s Hourly
Internal Surveillance Cycles
August 25, 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 August
11, 2014, the Fixed Income Clearing
Corporation (‘‘FICC’’) 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 FICC. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.3
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 On January 10, 2014, FICC filed advance notice
SR–FICC–2014–801 pursuant to Section 806(e)(1) of
Title VIII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act titled the Payment,
Clearing, and Settlement Supervision Act of 2010,
12 U.S.C. 5465(e)(1), and Rule 19b–4(n)(1)(i) of the
Securities Exchange Act of 1934, 17 CFR 240.19b–
4(n)(1)(i). The Commission published notice for
comment in the Federal Register on February 10,
2014. Securities Exchange Act Release No. 34–
71469 (February 4, 2014), 79 FR 7722 (February 10,
2014) (SR–FICC–2014–801). FICC filed Amendment
No. 1 to this advance notice on August 11, 2014.
A copy of the advance notice and Amendment No.
1 15
PO 00000
Frm 00105
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Sfmt 4703
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The Government Securities Division
(‘‘GSD’’) of FICC is proposing to amend
the GSD Rulebook (the ‘‘Rules’’) in order
to establish an early unwind intraday
charge to protect against the exposure
that may result from intraday cash
substitutions and early unwind of
interbank allocations 4 in connection
with GSD’s proposal to include the
underlying collateral pertaining to the
GCF Repo® 5 positions in GSD’s noon
intraday 6 participant Clearing Fund
requirement (‘‘CFR’’) calculation, and
GSD’s hourly internal surveillance
cycles.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
FICC 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. FICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
GSD is proposing to amend its Rules
in order to establish an early unwind
intraday charge (‘‘EUIC’’) 7 (discussed
below) to protect against the exposure
1 are available at https://www.dtcc.com/legal/secrule-filings.aspx.
4 The ‘‘early unwind of interbank allocations’’
refers to the automatic return of the collateral from
the reverse repo side (cash lender) to FICC’s
account at the repo side’s (cash borrower’s)
settlement bank and the return of cash to the
reverse repo side, which typically occurs before the
opening of Fedwire.
5 The GCF Repo® service enables dealers to trade
general collateral repos, based on rate, term, and
underlying product, throughout the day without
requiring intra-day, trade-for-trade settlement on a
Deliver-versus-Payment (‘‘DVP’’) basis. The service
fosters a highly liquid market for securities
financing. GCF Repo® is a registered trademark of
The Depository Trust & Clearing Corporation.
6 Noon intraday refers to the routine intraday
margining cycle which is based on a 12:00 p.m. (ET)
position snap shot. Pursuant to Rule 4, FICC may
request additional margin outside of the formal
intraday margin calls.
7 In connection with GSD’s proposal to include
the underlying collateral pertaining to the GCF
Repo® positions in its noon intraday CFR, GSD
discovered circumstances under which a member
would be charged an EUIC. If, however, a member
is assessed an EUIC under circumstances that were
not initially contemplated and the EUIC charge is
deemed unnecessary, management will have the
discretion to waive such charge.
E:\FR\FM\29AUN1.SGM
29AUN1
]]>Agencies
[Federal Register Volume 79, Number 168 (Friday, August 29, 2014)]
[Notices]
[Pages 51628-51630]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-20559]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72911; File No. SR-NASDAQ-2014-086]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Offer a Volume Discount for the Bulk Purchase of Aged Reports Within
the Category of Historical Research and Administrative Reports Under
NASDAQ Rule 7022
August 25, 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 August 22, 2014, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, 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 a proposal to [sic] offer a volume
discount for the bulk purchase of aged reports within the category of
Historical Research and Administrative Reports under NASDAQ Rule 7022.
* * * * *
7022. Historical Research and Administrative Reports
(a) No Change.
(b) The charge to be paid by the purchaser of an Historical
Research Report regarding a Nasdaq security that wishes to obtain a
license to redistribute the information contained in the report to
subscribers shall be determined in accordance with the following
schedule:
Number of Subscribers
----------------------------------------------------------------------------------------------------------------
1-500 501-999 1,000-4999 5,000-9,999 10,000+
----------------------------------------------------------------------------------------------------------------
A. Market Summary Statistics:
More often than once a month $250 $350 $450 $550 $750
Once a month, quarter, or 125 175 225 275 375
year.......................
B. Reserved
C. Nasdaq Issues Summary
Statistics:
More often than once a month 500 600 700 800 1,000
Once a month, quarter, or 250 300 350 400 500
year.......................
Annual set of aged reports 3,000 3,000 3,000 3,000 3,000
previously distributed more
often than once a month....
D. Intra-Day Quote and Intra-Day
Time and Sales Data:
For a security and/or a 200 300 400 500 700
market participant for a
day........................
For all market participants 1,000 1,500 2,500 3,500 5,000
for a day or for all
securities for a day.......
----------------------------------------------------------------------------------------------------------------
[[Page 51629]]
(c) No change.
(d) No change.
* * * * *
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
NASDAQ proposes to offer a volume discount for the bulk purchase of
an existing report within the Nasdaq Issues Summary Statistics category
of Historical Research and Administrative Reports under subsection C of
NASDAQ Rule 7022(b). The pricing schedule for Nasdaq Issues Summary
Statistics reports currently includes only short interest
information.\3\ The fee schedule for NASDAQ Issues Summary Statistics
is currently divided into two tiers, one for reports distributed once
per month or less, and a second for reports distributed more than once
monthly.
---------------------------------------------------------------------------
\3\ In 2013, NASDAQ moved the Daily List and Fundamental Data
formerly covered by this rule into new NASDAQ Rule 7022(d). See
Exchange Act Release No. 68636 (Jan. 11, 2013). In the future, this
category may include other information that properly falls within
the category of Nasdaq Issues Summary Statistics.
---------------------------------------------------------------------------
NASDAQ is proposing to add a third tier of fees for Nasdaq Issues
Summary Statistics reports for the purchase and distribution of a full
year of the twice-monthly report of short interest on NASDAQ provided
that the individual reports are each aged a full year. NASDAQ has been
requested to offer a volume discount for the distribution of short
interest reports aged more than one year that Distributors can make
available to Subscribers in annual sets of twenty-four reports. The
existing reports will be delivered in annual sets via an acceptable
medium where each of the individual reports is sent simultaneously.
NASDAQ has determined to assess a fee of $3,000 for access to the
annual sets of aged reports of short interest on NASDAQ. This is less
than a Distributor would pay to distribute twenty-four short interest
reports that will constitute each annual set of reports because the
data in the annual set will be aged at least one year and therefore
will be less valuable to investors. In addition, unlike the existing
fee tiers, the volume discount will not be indexed to the number of
subscribers receiving the annual set of reports; all Distributors will
pay the $3,000 fee regardless of the number of recipients to which they
distribute it.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\4\ in general, and with Section
6(b)(4) 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 NASDAQ operates or controls. The volume discount is a pricing
convention that exists in NASDAQ's current fee schedule and the fee
schedules of multiple other exchanges. The volume discount currently
exists for transaction fees, market access fees, and market data fees
where members and other market participants pay lower unit costs as
they purchase increasing amounts of a given product or service. The
volume discount is predicated upon the well-accepted principle that the
purchase and sale of a product becomes more efficient and less costly
per unit as volumes purchased and sold increase.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
NASDAQ believes that the proposed fee is also consistent with
Section 6(b)(5) of the Act,\6\ in that it is 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. The Exchange believes that
the proposed volume discount enhances transparency and facilitates
transactions through the dissemination of increased volumes of
transaction-based data.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Finally, NASDAQ believes that the proposed fee is also consistent
with Section 11A(c)(1)(D) of the Act,\7\ in that it provides for a fee
that is not unreasonably discriminatory in nature. The proposed volume
discount is available equally to all members and other market
participants that may seek short interest reports in annual sets.
Additionally, while the $3,000 flat fee is substantially less than a
distributor would pay to distribute the twenty-four individual short
interest reports, NASDAQ believes that this volume discount is fair and
reasonable and not unreasonably discriminatory because the data
contained in the annual sets will be aged at least one year and
therefore of less value to investors than are current reports. For the
same reasons, NASDAQ believes it is fair and equitable and not
unreasonably discriminatory that the volume discount will not be
indexed to the number of subscribers receiving the aggregated report;
all distributors will pay the $3,000 fee regardless of the number of
recipients to which they distribute it.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78k-1(c)(1)(D).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule change will result
in an undue burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act, as amended. As described
above, the volume discount already exists in many forms, and it has not
[sic] found to impose any burden on competition. In this case, NASDAQ
does not believe the volume discount will impose any burden on
competition. With respect to distributors, the proposal would reduce
fees for all market participants that purchase and distribute the
reports, therefore each participant should be positioned equally with
respect to such distribution.
With respect to competitors or NASDAQ, the proposed volume discount
does not impose any burden on competition. NASDAQ competitors that
distribute similar data are equally-well positioned to offer a volume
discount for similar data. To the extent that NASDAQ's proposed volume
discount prompts competitors to offer volume discounts, this effect is
pro-competitive and beneficial to investors.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were either solicited or received.
[[Page 51630]]
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,\8\ and paragraph (f) \9\ 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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-2014-086 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2014-086. 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; 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-
086, and should be submitted on or before September 19, 2014.
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. 2014-20559 Filed 8-28-14; 8:45 am]
BILLING CODE 8011-01-P
