Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NASDAQ Rule 7015(b) and (g) to Modify Port Fees, 25745-25747 [2015-10399]
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25745
Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Extension: Rule 15c2–8;
SEC File No. 270–421, OMB Control No.
3235–0481.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 15c2–8 (17 CFR
240.15c2–8). The Commission plans to
submit this existing collection of
information to the Office of
Management and Budget for extension
and approval.
Rule 15c2–8 under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) requires broker-dealers to deliver
preliminary and/or final prospectuses to
certain people under certain
circumstances. In connection with
securities offerings generally, including
initial public offerings (IPOs), the rule
requires broker-dealers to take
reasonable steps to distribute copies of
the preliminary or final prospectus to
anyone who makes a written request, as
well as any broker-dealer who is
expected to solicit purchases of the
security and who makes a request. In
connection with IPOs, the rule requires
a broker-dealer to send a copy of the
preliminary prospectus to any person
who is expected to receive a
confirmation of sale (generally, this
means any person who is expected to
actually purchase the security in the
offering) at least 48 hours prior to the
sending of such confirmation. This
requirement is sometimes referred to as
the ‘‘48 hour rule.’’
Additionally, managing underwriters
are required to take reasonable steps to
ensure that all broker-dealers
participating in the distribution of or
trading in the security have sufficient
copies of the preliminary or final
prospectus, as requested by them, to
enable such broker-dealer to satisfy their
respective prospectus delivery
obligations pursuant to Rule 15c2–8, as
well as Section 5 of the Securities Act
of 1933.
Rule 15c2–8 implicitly requires that
broker-dealers collect information, as
such collection facilitates compliance
with the rule. There is no requirement
to submit collected information to the
Commission. In order to comply with
the rule, broker-dealers participating in
a securities offering must keep accurate
records of persons who have indicated
interest in an IPO or requested a
prospectus, so that they know to whom
they must send a prospectus.
The Commission estimates that the
time broker-dealers will spend
complying with the collection of
information required by the rule is
11,900 hours for equity IPOs and 86,460
hours for other offerings. The
Commission estimates that the total
annualized cost burden (copying and
postage costs) is $23,800,000 for IPOs
and $3,458,400 for other offerings.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549, or send an email to:
PRA_Mailbox@sec.gov.
Dated: April 29, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015–10397 Filed 5–4–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74829; File No. SR–
NASDAQ–2015–042]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
NASDAQ Rule 7015(b) and (g) to
Modify Port Fees
April 29, 2015.
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 April 22,
2015, 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 amend
NASDAQ Rule 7015(b) and (g) to
modify the port fees charged to
members and non-members for ports
used to enter orders into Nasdaq
systems, in connection with the use of
the FIX and OUCH trading
telecommunication protocols.
The text of the proposed rule change
is below; proposed new language is
italicized; proposed deletions are in
brackets.
*
*
*
*
*
7015. Access Services
(a) No change.
(b) Financial Information Exchange
(FIX).
Ports
FIX Trading Port .......
FIX Port for Services
Other than Trading.
Installation
fee
MITCH Wave Port at Secaucus, NJ ........................................................................................................................
U.S.C. 78s(b)(1).
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17:18 May 04, 2015
2 17
Jkt 235001
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CFR 240.19b–4.
Frm 00086
$575[50]/port/month.
$500/port/month.
(c)–(f) No change.
(g) Other Port Fees.
Remote Multi-cast ITCH Wave Ports.
Description
1 15
Price
Fmt 4703
Sfmt 4703
E:\FR\FM\05MYN1.SGM
05MYN1
$2,500
Recurring
monthly fee
$7,500
25746
Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices
Installation
fee
Description
MITCH Wave Port at Weehawken, NJ ....................................................................................................................
MITCH Wave Port at Mahwah, NJ ..........................................................................................................................
The following port fees shall apply in
connection with the use of other trading
telecommunication protocols:
• $575[50] per month for each port
pair, other than Multicast ITCH® data
feed pairs, for which the fee is $1,000
per month for software-based
TotalView-ITCH or $2,500 per month
for combined software- and hardwarebased TotalView-ITCH, and TCP ITCH
data feed pairs, for which the fee is $750
per month.
• An additional $200 per month for
each port used for entering orders or
quotes over the Internet.
• An additional $600 per month for
each port used for market data delivery
over the Internet.
Dedicated OUCH Port Infrastructure
The Dedicated OUCH Port
Infrastructure subscription allows a
member firm to assign up to 30 of its
OUCH ports to a dedicated server
infrastructure for its exclusive use. A
Dedicated OUCH Port Infrastructure
subscription is available to a member
firm for a fee of $5,000 per month,
which is in addition to the standard fees
assessed for each OUCH port. A onetime installation fee of $5,000 is
assessed subscribers for each Dedicated
OUCH Port Server subscription.
(h)–(i) No change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
asabaliauskas on DSK5VPTVN1PROD with NOTICES
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 is proposing to amend Nasdaq
Rule 7015(b) and (g) to modify the
monthly fee it charges for ports used to
VerDate Sep<11>2014
17:18 May 04, 2015
Jkt 235001
2,500
5,000
Recurring
monthly fee
7,500
12,500
enter orders in the Nasdaq Market
Center for the trading of equities, in
connection with the use of FIX and
OUCH trading telecommunication
protocols.
The enhanced ports will use fieldprogrammable gate array (‘‘FPGA’’)
technology, which is a hardware-based
delivery mechanism and an upgrade to
the existing software and software-andhardware based mechanisms. By taking
advantage of hardware parallelism,
FPGA technology is capable of
processing more data packets during
peak market conditions without the
introduction of variable queuing
latency. In other words, the upgrade to
FPGA will improve the predictability of
the telecommunications ports and
thereby add value to the user
experience.
The Exchange is offering new
technology and pricing in order to keep
pace with changes in the industry and
evolving customer needs as new
technologies emerge and products
continue to develop and change. The
costs associated with the hardwarebased delivery system cover creating,
shipping, installing and maintaining the
new equipment and codebase. From a
messaging perspective, the data content
and sequencing on the new hardware
version of the OUCH ports will be the
same as on the legacy software-based
versions of NASDAQ ports that are
being replaced.
their trading experience and thereby
enhance the national market system.
Incremental enhancements such as the
advent of FPGA technology has helped
make the U.S. markets the deepest, most
liquid markets in the world.
The Exchange believes the proposed
rule change is consistent with Section
6(b)(4) of the Act 5 in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which the
Exchange operates or controls, and it
does not unfairly discriminate between
customers, issuers, brokers or dealers.
The Exchange believes that the
proposed fees are reasonable in that
they are based on the costs associated
with purchasing hardware (capital
expenditures) and supporting and
maintaining the infrastructure
(operating expenditures) for the FPGA
enhancement for member firms. In
addition, the FPGA enhancements will
provide value to members far exceeding
the incremental costs imposed. The
Exchange also believes that the
proposed fees are equitable and not
unfairly discriminatory because the fees
apply equally to all users of the FPGAenhanced ports. Moreover, the fees
apply in direct proportion to the
number of ports used by each member.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,3 in
general, and with Section 6(b)(5) of the
Act 4 in particular, in that the proposal
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
continuously strives to offer members
state of the art technology to enhance
NASDAQ does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
To the contrary, NASDAQ believes that
the proposed rule change is procompetitive in that the enhancements
improve the competitiveness of the
NASDAQ Market Center and the overall
quality of the national market system. If,
as NASDAQ believes, the FPGA
enhancement provides NASDAQ a
competitive advantage, other exchanges
will quickly respond by enhancing their
own markets in the same way. Such
innovation and imitation is the very
essence of the competition the Exchange
Act is designed to promote.6
3 15
4 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(5).
Frm 00087
Fmt 4703
Sfmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
5 15
U.S.C. 78f(b)(4).
Chicago Mercantile Exchange is already
using FPGA technology in order entry ports for the
trading of futures. See https://www.cmegroup.com/
globex/files/NewiLinkArchitecture2014.pdf.
6 The
E:\FR\FM\05MYN1.SGM
05MYN1
Federal Register / Vol. 80, No. 86 / Tuesday, May 5, 2015 / Notices
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.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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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.
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–2015–042, and should be
submitted on or before May 26, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Brent J. Fields,
Secretary.
[FR Doc. 2015–10399 Filed 5–4–15; 8:45 am]
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–2015–042 on the subject line.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a closed meeting
on Thursday, May 7, 2015 at 12 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the closed meeting.
Commissioner Gallagher, as duty
officer, voted to consider the items
listed for the closed meeting in closed
session.
The subject matter of the closed
meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters; and
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–2015–042. 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
7 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Sep<11>2014
17:18 May 04, 2015
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
8 17
Jkt 235001
PO 00000
CFR 200.30–3(a)(12).
Frm 00088
Fmt 4703
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted, or postponed, please
contact the Office of the Secretary at
(202) 551–5400.
Dated: April 30, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015–10538 Filed 5–1–15; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request Copies Available
From: U.S. Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
New Information Collection:
Contract Standard for Contractor
Workforce Inclusion; SEC File No. S7–
02–15, OMB Control No. 3235–XXXX.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
Commission) has submitted to the
Office of Management and Budget a
request to approve the collection of
information discussed below.
Section 342 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act of 2010 (the Dodd-Frank Act)
provided that certain agencies,
including the Commission, establish an
Office of Minority and Women
Inclusion (OMWI).1 Section 342(c)(2) of
the Dodd-Frank Act requires the OMWI
Director to include in the Commission’s
procedures for evaluating contract
proposals and hiring service providers a
written statement that the contractor
shall ensure, to the maximum extent
possible, the fair inclusion of women
and minorities in the workforce of the
contractor and, as applicable,
subcontractors.
In addition, section 342(c)(3)(A)
requires the OMWI Director to establish
standards and procedures for
determining whether an agency
contractor or subcontractor ‘‘has failed
to make a good faith effort to include
minorities and women’’ in its
workforce. Section 342(c)(3)(B)(i)
provides that if the OMWI Director
1 12
Sfmt 4703
25747
U.S.C. 5452.
E:\FR\FM\05MYN1.SGM
05MYN1
Agencies
[Federal Register Volume 80, Number 86 (Tuesday, May 5, 2015)]
[Notices]
[Pages 25745-25747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-10399]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74829; File No. SR-NASDAQ-2015-042]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend NASDAQ Rule 7015(b) and (g) to Modify Port Fees
April 29, 2015.
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 April 22, 2015, 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 amend NASDAQ Rule 7015(b) and (g) to
modify the port fees charged to members and non-members for ports used
to enter orders into Nasdaq systems, in connection with the use of the
FIX and OUCH trading telecommunication protocols.
The text of the proposed rule change is below; proposed new
language is italicized; proposed deletions are in brackets.
* * * * *
7015. Access Services
(a) No change.
(b) Financial Information Exchange (FIX).
------------------------------------------------------------------------
Ports Price
------------------------------------------------------------------------
FIX Trading Port.................... $575[50]/port/month.
FIX Port for Services Other than $500/port/month.
Trading.
------------------------------------------------------------------------
(c)-(f) No change.
(g) Other Port Fees.
Remote Multi-cast ITCH Wave Ports.
------------------------------------------------------------------------
Installation Recurring
Description fee monthly fee
------------------------------------------------------------------------
MITCH Wave Port at Secaucus, NJ......... $2,500 $7,500
[[Page 25746]]
MITCH Wave Port at Weehawken, NJ........ 2,500 7,500
MITCH Wave Port at Mahwah, NJ........... 5,000 12,500
------------------------------------------------------------------------
The following port fees shall apply in connection with the use of
other trading telecommunication protocols:
$575[50] per month for each port pair, other than
Multicast ITCH[supreg] data feed pairs, for which the fee is $1,000 per
month for software-based TotalView-ITCH or $2,500 per month for
combined software- and hardware-based TotalView-ITCH, and TCP ITCH data
feed pairs, for which the fee is $750 per month.
An additional $200 per month for each port used for
entering orders or quotes over the Internet.
An additional $600 per month for each port used for market
data delivery over the Internet.
Dedicated OUCH Port Infrastructure
The Dedicated OUCH Port Infrastructure subscription allows a member
firm to assign up to 30 of its OUCH ports to a dedicated server
infrastructure for its exclusive use. A Dedicated OUCH Port
Infrastructure subscription is available to a member firm for a fee of
$5,000 per month, which is in addition to the standard fees assessed
for each OUCH port. A one-time installation fee of $5,000 is assessed
subscribers for each Dedicated OUCH Port Server subscription.
(h)-(i) 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 is proposing to amend Nasdaq Rule 7015(b) and (g) to modify
the monthly fee it charges for ports used to enter orders in the Nasdaq
Market Center for the trading of equities, in connection with the use
of FIX and OUCH trading telecommunication protocols.
The enhanced ports will use field-programmable gate array
(``FPGA'') technology, which is a hardware-based delivery mechanism and
an upgrade to the existing software and software-and-hardware based
mechanisms. By taking advantage of hardware parallelism, FPGA
technology is capable of processing more data packets during peak
market conditions without the introduction of variable queuing latency.
In other words, the upgrade to FPGA will improve the predictability of
the telecommunications ports and thereby add value to the user
experience.
The Exchange is offering new technology and pricing in order to
keep pace with changes in the industry and evolving customer needs as
new technologies emerge and products continue to develop and change.
The costs associated with the hardware-based delivery system cover
creating, shipping, installing and maintaining the new equipment and
codebase. From a messaging perspective, the data content and sequencing
on the new hardware version of the OUCH ports will be the same as on
the legacy software-based versions of NASDAQ ports that are being
replaced.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\3\ in general, and with Section
6(b)(5) of the Act \4\ in particular, in that the proposal 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 continuously
strives to offer members state of the art technology to enhance their
trading experience and thereby enhance the national market system.
Incremental enhancements such as the advent of FPGA technology has
helped make the U.S. markets the deepest, most liquid markets in the
world.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act \5\ in that it provides for the equitable
allocation of reasonable dues, fees and other charges among members and
issuers and other persons using any facility or system which the
Exchange operates or controls, and it does not unfairly discriminate
between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed fees are reasonable in that
they are based on the costs associated with purchasing hardware
(capital expenditures) and supporting and maintaining the
infrastructure (operating expenditures) for the FPGA enhancement for
member firms. In addition, the FPGA enhancements will provide value to
members far exceeding the incremental costs imposed. The Exchange also
believes that the proposed fees are equitable and not unfairly
discriminatory because the fees apply equally to all users of the FPGA-
enhanced ports. Moreover, the fees apply in direct proportion to the
number of ports used by each member.
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. To the contrary,
NASDAQ believes that the proposed rule change is pro-competitive in
that the enhancements improve the competitiveness of the NASDAQ Market
Center and the overall quality of the national market system. If, as
NASDAQ believes, the FPGA enhancement provides NASDAQ a competitive
advantage, other exchanges will quickly respond by enhancing their own
markets in the same way. Such innovation and imitation is the very
essence of the competition the Exchange Act is designed to promote.\6\
---------------------------------------------------------------------------
\6\ The Chicago Mercantile Exchange is already using FPGA
technology in order entry ports for the trading of futures. See
https://www.cmegroup.com/globex/files/NewiLinkArchitecture2014.pdf.
---------------------------------------------------------------------------
[[Page 25747]]
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.\7\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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-NASDAQ-2015-042 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-2015-042. 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-2015-
042, and should be submitted on or before May 26, 2015.
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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Brent J. Fields,
Secretary.
[FR Doc. 2015-10399 Filed 5-4-15; 8:45 am]
BILLING CODE 8011-01-P