Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify NASDAQ Rule 7018 Fees, 61358-61360 [2014-24227]
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61358
Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices
appropriate in furtherance of the
purposes of the Act. In particular, the
increase to the Linkage Routing Fee will
apply equally to all non-customers.
Additionally, although different linkage
fees are assessed to different market
participants (i.e., non-customers vs
public customers), as described above,
non-customer order flow can, in most
cases, more easily route directly to other
markets if desired and thus avoid
Linkage fees. Therefore, it is equitable to
assess a reasonable fee to cover the costs
incurred for processing non-customer
Linkage orders while continuing to
exempt such public customer orders.
The Exchange believes that the proposal
to increase the linkage fee amount
assessed to non-customers will not
cause an unnecessary burden on
intermarket competition because
although the total fee amount assessed
to an order routed via Linkage (i.e., the
Linkage Routing fee and applicable C2
taker fee) may not always be lower than
assessed at other exchanges, noncustomer market participants may, as
noted above, choose to specify that C2
not route orders away on its [sic] behalf,
designate the order as Immediate or
Cancel, or route directly to exchanges
posting the best market to avoid Linkage
routing fees. To the extent that the
proposed changes make C2 a more
attractive marketplace for market
participants at other exchanges, such
market participants are welcome to
become C2 market participants.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
mstockstill on DSK4VPTVN1PROD 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)
of the Act 6 and paragraph (f) of Rule
19b–4 7 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. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
6 15
U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4(f).
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change 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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–24207 Filed 10–9–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–73303; File No. SR–
NASDAQ–2014–096]
• 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–
C2–2014–025 on the subject line.
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
NASDAQ Rule 7018 Fees
Paper Comments
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
September 29, 2014, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II and III below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
• 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–C2–2014–025. 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–C2–
2014–025, and should be submitted on
or before October 31, 2014.
PO 00000
Frm 00084
Fmt 4703
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October 6, 2014.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
NASDAQ is proposing to modify
NASDAQ Rule 7018 fees assessed for
execution and routing securities listed
on NASDAQ, the New York Stock
Exchange (‘‘NYSE’’) and on exchanges
other than NASDAQ and NYSE.
The text of the proposed rule change
is available at nasdaq.cchwallstreet.com
at NASDAQ’s principal office, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASDAQ included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of those
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\10OCN1.SGM
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Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices
forth in sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
NASDAQ is proposing to amend
Rules 7018(1), (2) and (3) to modify fees
assessed for execution and routing
securities listed on NASDAQ (‘‘Tape
C’’), NYSE (‘‘Tape A’’) and on exchanges
other than NASDAQ and the NYSE
(‘‘Tape B’’), respectively. Currently
under each of the rules noted above, the
Exchange provides a credit of $0.0029
per share executed to a member with (i)
shares of liquidity provided in all
securities during the month
representing more than 0.10% of
Consolidated Volume during the month,
through one or more of its Nasdaq
Market Center MPIDs, and (ii) Total
Volume, as defined in Chapter XV,
Section 2 of the Nasdaq Options Market
rules, of 100,000 or more contracts per
day in a month executed through one or
more of its Nasdaq Options Market
MPIDs. The Exchange has the same
eligibility requirements for this credit
tier and provides the same credit to
members for each of the securities of the
three Tapes under its rules.3 NASDAQ
is proposing to reduce the Consolidated
Volume eligibility requirement of the
tier from more than 0.10% to more than
0.08% for each type of security. The
Exchange believes that the proposed
lower Consolidated Volume
requirement will encourage market
participant activity and will also
support price discovery and liquidity
provision.
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 Sections 6(b)(4) and
6(b)(5) 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, and is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
This proposal is reasonable, equitable
and not unfairly discriminatory for the
reasons noted below.
NASDAQ believes that the proposed
rule changes to the rebate tiers through
3 See
Rules 7018(a)(1), (2) and (3).
U.S.C. 78f.
5 15 U.S.C. 78f(b)(4) and (5).
which members may earn a $0.0029 per
share executed rebate are reasonable
because they will continue to provide a
significant price reduction for members
that support liquidity on both NASDAQ
and the Nasdaq Options Market, while
reducing the Consolidated Volume
requirement, which may provide
incentive to market participants to
increase their [sic] overall liquidity they
provide in order to qualify for the credit.
In addition, NASDAQ believes that the
proposed rule changes are consistent
with an equitable allocation of fees
because they reflect an allocation of
rebates to liquidity providers designed
to encourage beneficial market activity,
with greater incentives for market
participants that provide greater
liquidity.
NASDAQ believes that the proposed
rule changes are not unfairly
discriminatory because they apply
uniformly to securities of each of the
Tapes and all members that are eligible
for the tier will receive the credit.
NASDAQ also believes that the changes
are not unfairly discriminatory because
they increase the availability of higher
rebates without eliminating any of the
other means by which a member may
earn a higher rebate under Rule 7018(a).
Lastly, NASDAQ believes that the
changes are not unfairly discriminatory
because market participants may qualify
for a comparable or a higher rebate
through alternative means that do not
require participation in Nasdaq Options
Market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ does not believe that the
proposed rule changes will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.6
NASDAQ notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment,
NASDAQ must continually adjust its
fees to remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. Because
competitors are free to modify their own
fees in response, and because market
participants may readily adjust their
order routing practices, NASDAQ
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. In this instance, the change to
the routing credit tier does not impose
a burden on competition because
NASDAQ’s routing services are optional
and are the subject of competition from
other exchanges and broker-dealers that
offer routing services, as well as the
ability of members to develop their own
routing capabilities. In sum, if the
changes proposed herein are
unattractive to market participants, it is
likely that NASDAQ will lose market
share as a result. Accordingly, NASDAQ
does not believe that the proposed
changes will impair the ability of
members or competing order execution
venues to maintain their competitive
standing in the financial markets.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.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.
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–2014–096 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2014–096. This
4 15
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U.S.C. 78f(b)(8).
Frm 00085
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7 15
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61359
E:\FR\FM\10OCN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
10OCN1
61360
Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices
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–2014–096, and should be
submitted on or before October 31,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–24227 Filed 10–9–14; 8:45 am]
BILLING CODE 8011–01–P
mstockstill on DSK4VPTVN1PROD with NOTICES
[Release No. 34–73304; File No. SR–NYSE–
2014–54]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change That
Constitutes a Stated Interpretation
With Respect to the Meaning,
Administration, and Enforcement of
Rule 46
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes a rule change
that constitutes a stated interpretation
with respect to the meaning,
administration, and enforcement of Rule
46. The Exchange is not proposing any
changes to the text of the current
version of Rule 46. The proposed rule
change is available on the Exchange’s
Web site at www.nyse.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
October 6, 2014.
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that October 2,
2014, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
1. Purpose
The New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) proposes a
rule change that constitutes a stated
interpretation with respect to the
meaning, administration, and
enforcement of Rule 46 in connection
with the transfer of qualified
Intercontinental Exchange, Inc. (‘‘ICE’’)
staff Floor Governors to NYSE
Regulation, Inc. (‘‘NYSE Regulation’’).
Rule 46 permits the Exchange to
appoint active NYSE members 4 as Floor
2 15
U.S.C. 78a.
CFR 240.19b–4.
4 Rule 2(a) states that the term ‘‘member,’’ when
referring to a natural person, means a natural
3 17
8 17
1 15
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
VerDate Sep<11>2014
17:09 Oct 09, 2014
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Frm 00086
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Officials.5 Rule 46 also permits the
Exchange to appoint ‘‘qualified’’ ICE
employees to act as Floor Governors,
one of the more senior types of Floor
Officials.6 Supplementary Material .10
defines ‘‘qualified’’ employees as
‘‘employees of ICE or any of its
subsidiaries, excluding employees of
NYSE Regulation, Inc., who shall have
satisfied any applicable testing or
qualification required by the NYSE for
all Floor Governors.’’
The prohibition on appointing NYSE
Regulation employees to act as Floor
Governors was put in place when the
‘‘qualified Exchange employee’’
category of Floor Official was adopted
in 2008.7 The prohibition was necessary
to avoid potential conflicts of interest
insofar as the process for qualifying
Floor Officials, including Floor
Governors, was performed by NYSE
Regulation.8 However, while Rule 46
prohibits appointment of NYSE
Regulation employees to act as Floor
Governors, the Exchange believes that
the Rule does not prohibit already
qualified Floor Governors from
becoming NYSE Regulation employees.
The hiring by NYSE Regulation of ICE
employees or members who are already
person associated with a member organization who
has been approved by the Exchange and designated
by such member organization to effect transactions
on the Exchange trading Floor or any facility
thereof.
5 Floor Officials are delegated certain authority
from the Board of Directors of the Exchange to
supervise and regulate active openings and unusual
situations that arise in connection with the making
of bids, offers or transactions on the trading Floor,
and to review and approve certain trading actions,
such as trades to be effected at wide variations in
price and delayed openings and trading halts.
6 Pursuant to Rules 46 and 46A, Floor Governors
are one of several ranks of the broader category of
Floor Officials, including, in order of increasing
seniority, Floor Officials, Senior Floor Officials,
Executive Floor Officials, Floor Governors and
Executive Floor Governors. See Securities Exchange
Act Release No. 57627 (April 4, 2008), 73 FR 19919
(April 11, 2008) (SR–NYSE–2008–19).
7 See Securities Exchange Act Release No. 34–
57627 (April 4, 2008), 73 FR 19919 (April 11, 2008)
(SR–NYSE–2007–2).
8 NYSE Regulation examined the fitness of
prospective Floor Officials and administered a
mandatory education program, which all candidates
for Floor Official, including Floor Governor, had to
complete. NYSE Regulation also administered a
qualifying examination. See Securities Exchange
Act Release No. 34–57627 (April 4, 2008), 73 FR
19919 (April 11, 2008) (SR–NYSE–2007–2). On June
14, 2010, the Exchange, NYSE Regulation and
FINRA [sic] retained the Financial Industry
Regulatory Authority (‘‘FINRA’’) pursuant to a
Regulatory Services Agreement (‘‘RSA’’) to perform
the market surveillance, enforcement and other
miscellaneous functions that up to that point had
been performed by NYSE Regulation, including all
education and testing-related regulatory services on
behalf of NYSE Regulation, including the Floor
Official mandatory education program and
qualification testing. See Securities Exchange Act
Release No. 62355 (June 22, 2010), 75 FR 36729
(June 28, 2010) (SR–NYSE–2010–46).
E:\FR\FM\10OCN1.SGM
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Agencies
[Federal Register Volume 79, Number 197 (Friday, October 10, 2014)]
[Notices]
[Pages 61358-61360]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24227]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73303; File No. SR-NASDAQ-2014-096]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify NASDAQ Rule 7018 Fees
October 6, 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 September 29, 2014, The NASDAQ Stock Market LLC (``NASDAQ'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I, II and
III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
NASDAQ is proposing to modify NASDAQ Rule 7018 fees assessed for
execution and routing securities listed on NASDAQ, the New York Stock
Exchange (``NYSE'') and on exchanges other than NASDAQ and NYSE.
The text of the proposed rule change is available at
nasdaq.cchwallstreet.com at NASDAQ's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASDAQ included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of those statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set
[[Page 61359]]
forth in sections A, B, and C below, of the most significant parts of
such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is proposing to amend Rules 7018(1), (2) and (3) to modify
fees assessed for execution and routing securities listed on NASDAQ
(``Tape C''), NYSE (``Tape A'') and on exchanges other than NASDAQ and
the NYSE (``Tape B''), respectively. Currently under each of the rules
noted above, the Exchange provides a credit of $0.0029 per share
executed to a member with (i) shares of liquidity provided in all
securities during the month representing more than 0.10% of
Consolidated Volume during the month, through one or more of its Nasdaq
Market Center MPIDs, and (ii) Total Volume, as defined in Chapter XV,
Section 2 of the Nasdaq Options Market rules, of 100,000 or more
contracts per day in a month executed through one or more of its Nasdaq
Options Market MPIDs. The Exchange has the same eligibility
requirements for this credit tier and provides the same credit to
members for each of the securities of the three Tapes under its
rules.\3\ NASDAQ is proposing to reduce the Consolidated Volume
eligibility requirement of the tier from more than 0.10% to more than
0.08% for each type of security. The Exchange believes that the
proposed lower Consolidated Volume requirement will encourage market
participant activity and will also support price discovery and
liquidity provision.
---------------------------------------------------------------------------
\3\ See Rules 7018(a)(1), (2) and (3).
---------------------------------------------------------------------------
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
Sections 6(b)(4) and 6(b)(5) 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, and is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. This proposal is reasonable, equitable and not
unfairly discriminatory for the reasons noted below.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
NASDAQ believes that the proposed rule changes to the rebate tiers
through which members may earn a $0.0029 per share executed rebate are
reasonable because they will continue to provide a significant price
reduction for members that support liquidity on both NASDAQ and the
Nasdaq Options Market, while reducing the Consolidated Volume
requirement, which may provide incentive to market participants to
increase their [sic] overall liquidity they provide in order to qualify
for the credit. In addition, NASDAQ believes that the proposed rule
changes are consistent with an equitable allocation of fees because
they reflect an allocation of rebates to liquidity providers designed
to encourage beneficial market activity, with greater incentives for
market participants that provide greater liquidity.
NASDAQ believes that the proposed rule changes are not unfairly
discriminatory because they apply uniformly to securities of each of
the Tapes and all members that are eligible for the tier will receive
the credit. NASDAQ also believes that the changes are not unfairly
discriminatory because they increase the availability of higher rebates
without eliminating any of the other means by which a member may earn a
higher rebate under Rule 7018(a). Lastly, NASDAQ believes that the
changes are not unfairly discriminatory because market participants may
qualify for a comparable or a higher rebate through alternative means
that do not require participation in Nasdaq Options Market.
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule changes will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.\6\ NASDAQ notes
that it operates in a highly competitive market in which market
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
NASDAQ must continually adjust its fees to remain competitive with
other exchanges and with alternative trading systems that have been
exempted from compliance with the statutory standards applicable to
exchanges. Because competitors are free to modify their own fees in
response, and because market participants may readily adjust their
order routing practices, NASDAQ believes that the degree to which fee
changes in this market may impose any burden on competition is
extremely limited. In this instance, the change to the routing credit
tier does not impose a burden on competition because NASDAQ's routing
services are optional and are the subject of competition from other
exchanges and broker-dealers that offer routing services, as well as
the ability of members to develop their own routing capabilities. In
sum, if the changes proposed herein are unattractive to market
participants, it is likely that NASDAQ will lose market share as a
result. Accordingly, NASDAQ does not believe that the proposed changes
will impair the ability of members or competing order execution venues
to maintain their competitive standing in the financial markets.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\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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\7\ 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-NASDAQ-2014-096 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2014-096. This
[[Page 61360]]
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-
096, and should be submitted on or before October 31, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-24227 Filed 10-9-14; 8:45 am]
BILLING CODE 8011-01-P