Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify NASDAQ Rule 7014(g) Concerning Rebates Available Under the NBBO Program, 45250-45252 [2015-18539]
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Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices
Office of Information Services, U.S.
Nuclear Regulatory Commission,
Washington, DC 20555–0001; telephone:
301–415–6258; email:
INFOCOLLECTS.Resource@NRC.GOV.
tkelley on DSK3SPTVN1PROD with NOTICES
B. Submitting Comments
The NRC cautions you not to include
identifying or contact information in
comment submissions that you do not
want to be publicly disclosed in your
comment submission. All comment
submissions are posted at https://
www.regulations.gov and entered into
ADAMS. Comment submissions are not
routinely edited to remove identifying
or contact information.
If you are requesting or aggregating
comments from other persons for
submission to the OMB, then you
should inform those persons not to
include identifying or contact
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submission. Your request should state
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submissions available to the public or
entering the comment into ADAMS.
II. Background
Under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the NRC recently
submitted a request for renewal of an
existing collection of information to
OMB for review entitled, ‘‘NRC Form 7,
Application for NRC Export/Import
License, Amendment, Renewal or
Consent Request(s).’’ The NRC hereby
informs potential respondents that an
agency may not conduct or sponsor, and
that a person is not required to respond
to, a collection of information unless it
displays a currently valid OMB control
number.
The NRC published a Federal
Register notice with a 60-day comment
period on this information collection on
March 17, 2015, 80 FR 13901.
1. The title of the information
collection: NRC Form 7, Application for
NRC Export/Import License,
Amendment, Renewal or Consent
Request(s).
2. OMB approval number: 3150–0027.
3. Type of submission: Extension.
4. The form number if applicable:
NRC Form 7.
5. How often the collection is required
or requested: On occasion.
6. Who will be required or asked to
respond: Any person in the U.S. who
wishes to export or import (a) nuclear
material and equipment subject to the
requirements of a specific license; (b)
amend a license; (c) renew a license; (d)
obtain consent to export Category 1
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quantities of materials listed in
Appendix P to 10 CFR part 110; or (5)
request an exemption from a licensing
requirement under Part 110.
7. The estimated number of annual
responses: 105.
8. The estimated number of annual
respondents: 105.
9. An estimate of the total number of
hours needed annually to comply with
the information collection requirement
or request: 252.
10. Abstract: Persons in the U.S.
wishing to export or import nuclear
material or equipment, who are required
to obtain a specific license, amendment,
license renewal, obtain consent to
export Category 1 quantities of
byproduct material listed in Appendix P
to 10 CFR part 110 or request an
exemption from a licensing requirement
under Part 110. The NRC Form 7
application will be reviewed by the NRC
and by the Executive Branch, and if
applicable statutory, regulatory, and
policy considerations are satisfied, the
NRC will issue an export, import,
amendment or renewal license, or grant
an exemption.
Dated at Rockville, Maryland, this 22nd
day of July 2015.
For the Nuclear Regulatory Commission.
Tremaine U. Donnell,
NRC Clearance Officer, Office of Information
Services.
[FR Doc. 2015–18476 Filed 7–28–15; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75449; File No. SR–
NYSEARCA–2015–55]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the NYSE Arca
Equities Schedule of Fees and
Charges for Exchange Services
July 14, 2015.
Correction
In notice document 2015–17660
beginning on page 42860 in the issue of
Monday, July 20, 2015, make the
following correction:
On page 42862, in the first column, in
the 30th line, ‘‘August 7, 2015’’ should
read ‘‘August 10, 2015’’.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75514; File No. SR–
NASDAQ–2015–084]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
NASDAQ Rule 7014(g) Concerning
Rebates Available Under the NBBO
Program
July 23, 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 July 16,
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 7014(g) concerning
rebates available under the NBBO
Program. The Exchange will implement
the new rebate on July 17, 2015.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.cchwallstreet.com, at
the principal office of the Exchange, 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
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.
[FR Doc. C1–2015–17660 Filed 7–28–15; 8:45 am]
1 15
BILLING CODE 1505–01–D
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
tkelley on DSK3SPTVN1PROD with NOTICES
1. Purpose
NASDAQ is proposing to add a new
$0.0004 per share executed credit in
securities listed on NYSE, which would
be available to any member that
provides shares of liquidity in all
securities through one or more of its
Nasdaq Market Center MPIDs (‘‘MPIDs’’)
that represent 0.50% or more of
Consolidated Volume 3 during the
month. The NBBO Program provides a
per share executed rebate 4 with respect
to all other displayed orders (other than
Designated Retail Orders, as defined in
NASDAQ Rule 7018) in securities
priced at $1 or more per share that
provide liquidity and establish the
NBBO. Currently, NASDAQ offers a
$0.0002 per share executed credit to a
member that either: (1) Executes shares
of liquidity provided in all securities
through one or more of its MPIDs that
represents 0.475% or more of
Consolidated Volume during the month;
or (2) add [sic] NOM Market Maker
liquidity, as defined in Chapter XV,
Section 2 of the Nasdaq Options Market
rules, in Penny Pilot Options and/or
Non-Penny Pilot Options above 0.90%
of total industry customer equity and
ETF option ADV contracts per day in a
month. Thus, the NBBO program
provides an incentive to members to
improve the quality of the market by
rewarding members that provide
significant market-improving order flow
with a credit.
The proposed new rebate, which is
provided in lieu of the current rebate, is
designed to further improve the market
by providing members with a higher
credit as incentive to provide a greater
level of Consolidated Volume to
NASDAQ and to quote aggressively in
Tape A securities. In this regard, the
3 Consolidated Volume is the total consolidated
volume reported to all consolidated transaction
reporting plans by all exchanges and trade reporting
facilities during a month in equity securities,
excluding executed orders with a size of less than
one round lot. For purposes of calculating
Consolidated Volume and the extent of a member’s
trading activity, expressed as a percentage of or
ratio to Consolidated Volume, the date of the
annual reconstitution of the Rusell Investments
Indexes shall be excluded from both total
Consolidated Volume and the member’s trading
activity. See Rule 7018. For purposes of the
proposed tier, the Exchange will calculate
Consolidated Volume during the first month that it
is implemented based on only the day during that
month that the rebate is available.
4 The rebate is provided in addition to any rebate
or credit payable under NASDAQ Rule 7018(a) and
the Investor Support Program (‘‘ISP’’) and Qualified
Market Maker (‘‘QMM’’) Program under NASDAQ
Rule 7014.
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proposed new credit will apply to all
other displayed orders (other than
Designated Retail Orders, as defined in
NASDAQ Rule 7018) in securities listed
on NYSE (‘‘Tape A’’) priced at $1 or
more per share that provide liquidity
and establish the NBBO.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,5 in
general, and with Sections 6(b)(4) and
6(b)(5) of the Act,6 in particular, in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges among members and issuers and
other persons using any facility or
system which the Exchange operates or
controls, and is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest; and is
not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes that the
proposed change to amend Rule 7014(g)
is reasonable because it provides an
opportunity for members that qualify to
receive a rebate of $0.0004 per share
executed for all other displayed orders
(other than Designated Retail Orders, as
defined in Rule 7018) in Tape A
securities priced at $1 or more per share
that provide liquidity and establish the
NBBO.7 Thus the rebate provides
incentive to members to provide
aggressively priced orders in Tape A
securities that improve the market by
setting the NBBO. Requiring a higher
level of Consolidated Volume than the
lower $0.0002 per share executed tier is
consistent with incentivizing member to
provide greater market improving
activity in the form of Consolidated
Volume in return for eligibility for a
higher credit. The Exchange believes
that it is reasonable to limit the higher
credit to Tape A securities because it
desires to improve the market on
NASDAQ in Tape A securities in terms
of setting the NBBO, which is currently
U.S.C. 78f.
U.S.C. 78f(b)(4) and (5).
7This is similar to other programs originating
from BATS Global Markets 2011 filing. See
Securities Exchange Act Release No. 73967 (January
3, 2011), 80 FR 594 (January 7, 2011) (SR–BATS–
2010–038.
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5 15
6 15
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45251
not as robust as price setting in nonTape A securities.
NASDAQ believes the proposed
change is equitable and not unfairly
discriminatory because the $0.0004 per
share executed rebate under the NBBO
Program is available to all members on
an equal basis and provides a rebate for
activity that improves the Exchange’s
market quality through increased
activity and by encouraging the setting
of the NBBO. In this regard, the NBBO
Program encourages higher levels of
liquidity provision into the price
discovery process and is consistent with
the overall goals of enhancing market
quality. Also, the Exchange believes that
the qualification requirement for the
new tier is equitable and not unfairly
discriminatory because it represents an
increased yet attainable level for
members to achieve and to qualify for
this higher rebate. In addition, the
Exchange notes that the new eligibility
standard for the tier, which requires a
member to execute shares of liquidity
provided in all securities through one or
more of its MPIDs that represents 0.50%
or more of Consolidated Volume during
the month, represents a lower
Consolidated Volume requirement than
the QMM Program, which requires at
least 0.70% of Consolidated Volume to
qualify under the lowest credit tier.8
The Exchange believes the proposed
qualification standard is equitable and
not unfairly discriminatory because the
NBBO Program rebates do not apply to
all shares of liquidity provided, and
thus the Consolidated Volume threshold
is set lower.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ does not believe that the
proposed rule changes [sic] will result
in any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.9
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
8See
Rule 7014(e).
78f(b)(8)
9U.S.C.
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45252
Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices
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, NASDAQ is
proposing to enhance the NBBO
Program with an additional and higher
rebate opportunity in Tape A securities
in return for market improving
participation. Consequently, the
proposed changes do not impose a
burden on competition because the
proposed rebate, and incentive
programs generally, are reflective of the
need for exchanges to offer financial
incentives to attract order flow and to
let such financial incentives evolve in
response to competition. Accordingly,
while the Exchange does not believe
that the proposed change will result in
any burden on competition, if the
change proposed herein are unattractive
to market participants it is likely that
NASDAQ will lose market share as a
result.
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.10
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
tkelley on DSK3SPTVN1PROD with NOTICES
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:
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2015–084 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–75504; File No. SR–CTA/
CQ–2015–01]
• 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–2015–084. 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 o File Number SR–
NASDAQ–2015–084, and should be
submitted on or before August 19, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–18539 Filed 7–28–15; 8:45 am]
BILLING CODE 8011–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
1015
U.S.C. 78s(b)(3)(A)(ii).
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17:33 Jul 28, 2015
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CFR 200.30–3(a)(12).
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Consolidated Tape Association; Order
Approving the Twenty Second
Substantive Amendment to the Second
Restatement of the CTA Plan and
Sixteenth Substantive Amendment to
the Restated CQ Plan
July 22, 2015.
I. Introduction
On April 27, 2015, the Consolidated
Tape Association (‘‘CTA’’) Plan and
Consolidated Quotation (‘‘CQ’’) Plan
participants (collectively the
‘‘Participants’’) 1 filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) pursuant to
Section 11A of the Securities Exchange
Act of 1934 (‘‘Act’’),2 and Rule 608
thereunder,3 a proposal to amend the
Second Restatement of the CTA Plan
and Restated CQ Plan (collectively, the
‘‘Plans’’).4The proposals represent the
22nd Substantive Amendment to the
CTA Plan and 16th Substantive
Amendment to the CQ Plan (collectively
‘‘the Amendments’’), and reflect
changes unanimously adopted by the
Participants. The Amendments would
require the Participants to include
timestamps in the trade-report and bidand-offer information that they report to
the Plans’ processor. The proposed
Amendments were published for
comment in the Federal Register on
1 The Participants are: BATS Exchange, Inc.
(‘‘BATS’’), BATS–Y Exchange, Inc. (‘‘BATS–Y’’),
Chicago Board Options Exchange, Inc. (‘‘CBOE’’),
EDGA Exchange, Inc. (‘‘EDGA’’), EDGX Exchange,
Inc. (‘‘EDGX’’), Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’), International Securities
Exchange, LLC (‘‘ISE’’), NASDAQ OMX BX, Inc.
(‘‘Nasdaq BX’’), NASDAQ OMX PHLX, Inc.
(‘‘Nasdaq PSX’’), Nasdaq Stock Market LLC
(‘‘Nasdaq’’), National Stock Exchange (‘‘NSX’’), New
York Stock Exchange LLC (‘‘NYSE’’), NYSE MKT
LLC (‘‘NYSE MKT’’), and NYSE Arca, Inc. (‘‘NYSE
Arca’’).
2 15 U.S.C. 78k–1.
3 17 CFR 242.608.
4 See Securities Exchange Act Release Nos. 10787
(May 10, 1974), 39 FR 17799 (May 20, 1974)
(declaring the CTA Plan effective); 15009 (July 28,
1978), 43 FR 34851 (August 7, 1978) (temporarily
authorizing the CQ Plan); and 16518 (January 22,
1980), 45 FR 6521 (January 28, 1980) (permanently
authorizing the CQ Plan). The most recent
restatement of both Plans was in 1995. The CTA
Plan, pursuant to which markets collect and
disseminate last sale price information for nonNASDAQ listed securities, is a ‘‘transaction
reporting plan’’ under Rule 601 under the Act, 17
CFR 242.601, and a ‘‘national market system plan’’
under Rule 608 under the Act, 17 CFR 242.608. The
CQ Plan, pursuant to which markets collect and
disseminate bid/ask quotation information for listed
securities, is a ‘‘national market system plan’’ under
Rule 608 under the Act, 17 CFR 242.608.
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]]>Agencies
[Federal Register Volume 80, Number 145 (Wednesday, July 29, 2015)]
[Notices]
[Pages 45250-45252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18539]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75514; File No. SR-NASDAQ-2015-084]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify NASDAQ Rule 7014(g) Concerning Rebates Available Under the NBBO
Program
July 23, 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 July 16, 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 7014(g) concerning
rebates available under the NBBO Program. The Exchange will implement
the new rebate on July 17, 2015.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, 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 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.
[[Page 45251]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
NASDAQ is proposing to add a new $0.0004 per share executed credit
in securities listed on NYSE, which would be available to any member
that provides shares of liquidity in all securities through one or more
of its Nasdaq Market Center MPIDs (``MPIDs'') that represent 0.50% or
more of Consolidated Volume \3\ during the month. The NBBO Program
provides a per share executed rebate \4\ with respect to all other
displayed orders (other than Designated Retail Orders, as defined in
NASDAQ Rule 7018) in securities priced at $1 or more per share that
provide liquidity and establish the NBBO. Currently, NASDAQ offers a
$0.0002 per share executed credit to a member that either: (1) Executes
shares of liquidity provided in all securities through one or more of
its MPIDs that represents 0.475% or more of Consolidated Volume during
the month; or (2) add [sic] NOM Market Maker liquidity, as defined in
Chapter XV, Section 2 of the Nasdaq Options Market rules, in Penny
Pilot Options and/or Non-Penny Pilot Options above 0.90% of total
industry customer equity and ETF option ADV contracts per day in a
month. Thus, the NBBO program provides an incentive to members to
improve the quality of the market by rewarding members that provide
significant market-improving order flow with a credit.
---------------------------------------------------------------------------
\3\ Consolidated Volume is the total consolidated volume
reported to all consolidated transaction reporting plans by all
exchanges and trade reporting facilities during a month in equity
securities, excluding executed orders with a size of less than one
round lot. For purposes of calculating Consolidated Volume and the
extent of a member's trading activity, expressed as a percentage of
or ratio to Consolidated Volume, the date of the annual
reconstitution of the Rusell Investments Indexes shall be excluded
from both total Consolidated Volume and the member's trading
activity. See Rule 7018. For purposes of the proposed tier, the
Exchange will calculate Consolidated Volume during the first month
that it is implemented based on only the day during that month that
the rebate is available.
\4\ The rebate is provided in addition to any rebate or credit
payable under NASDAQ Rule 7018(a) and the Investor Support Program
(``ISP'') and Qualified Market Maker (``QMM'') Program under NASDAQ
Rule 7014.
---------------------------------------------------------------------------
The proposed new rebate, which is provided in lieu of the current
rebate, is designed to further improve the market by providing members
with a higher credit as incentive to provide a greater level of
Consolidated Volume to NASDAQ and to quote aggressively in Tape A
securities. In this regard, the proposed new credit will apply to all
other displayed orders (other than Designated Retail Orders, as defined
in NASDAQ Rule 7018) in securities listed on NYSE (``Tape A'') priced
at $1 or more per share that provide liquidity and establish the NBBO.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\5\ in general, and with
Sections 6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or system which the Exchange operates or controls, and is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest; and is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change to amend Rule
7014(g) is reasonable because it provides an opportunity for members
that qualify to receive a rebate of $0.0004 per share executed for all
other displayed orders (other than Designated Retail Orders, as defined
in Rule 7018) in Tape A securities priced at $1 or more per share that
provide liquidity and establish the NBBO.\7\ Thus the rebate provides
incentive to members to provide aggressively priced orders in Tape A
securities that improve the market by setting the NBBO. Requiring a
higher level of Consolidated Volume than the lower $0.0002 per share
executed tier is consistent with incentivizing member to provide
greater market improving activity in the form of Consolidated Volume in
return for eligibility for a higher credit. The Exchange believes that
it is reasonable to limit the higher credit to Tape A securities
because it desires to improve the market on NASDAQ in Tape A securities
in terms of setting the NBBO, which is currently not as robust as price
setting in non-Tape A securities.
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\7\This is similar to other programs originating from BATS
Global Markets 2011 filing. See Securities Exchange Act Release No.
73967 (January 3, 2011), 80 FR 594 (January 7, 2011) (SR-BATS-2010-
038.
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NASDAQ believes the proposed change is equitable and not unfairly
discriminatory because the $0.0004 per share executed rebate under the
NBBO Program is available to all members on an equal basis and provides
a rebate for activity that improves the Exchange's market quality
through increased activity and by encouraging the setting of the NBBO.
In this regard, the NBBO Program encourages higher levels of liquidity
provision into the price discovery process and is consistent with the
overall goals of enhancing market quality. Also, the Exchange believes
that the qualification requirement for the new tier is equitable and
not unfairly discriminatory because it represents an increased yet
attainable level for members to achieve and to qualify for this higher
rebate. In addition, the Exchange notes that the new eligibility
standard for the tier, which requires a member to execute shares of
liquidity provided in all securities through one or more of its MPIDs
that represents 0.50% or more of Consolidated Volume during the month,
represents a lower Consolidated Volume requirement than the QMM
Program, which requires at least 0.70% of Consolidated Volume to
qualify under the lowest credit tier.\8\ The Exchange believes the
proposed qualification standard is equitable and not unfairly
discriminatory because the NBBO Program rebates do not apply to all
shares of liquidity provided, and thus the Consolidated Volume
threshold is set lower.
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\8\See Rule 7014(e).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule changes [sic] will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.\9\
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
[[Page 45252]]
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, NASDAQ is proposing to enhance the
NBBO Program with an additional and higher rebate opportunity in Tape A
securities in return for market improving participation. Consequently,
the proposed changes do not impose a burden on competition because the
proposed rebate, and incentive programs generally, are reflective of
the need for exchanges to offer financial incentives to attract order
flow and to let such financial incentives evolve in response to
competition. Accordingly, while the Exchange does not believe that the
proposed change will result in any burden on competition, if the change
proposed herein are unattractive to market participants it is likely
that NASDAQ will lose market share as a result.
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\9\U.S.C. 78f(b)(8)
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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.\10\
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\10\15 U.S.C. 78s(b)(3)(A)(ii).
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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-2015-084 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-2015-084. 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 o File Number SR-NASDAQ-2015-
084, and should be submitted on or before August 19, 2015.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18539 Filed 7-28-15; 8:45 am]
BILLING CODE 8011-01-P
