Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Chapter XV, Entitled “Options Pricing,” at Section 2 Governing Pricing for NASDAQ Members, 69755-69760 [2015-28508]
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Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
that FTSE 100 options are designed to
provide different and additional
opportunities for investors to hedge or
speculate on the market risk on the
FTSE 100 Index by listing an option
directly on the FTSE 100 Index.
The Exchanges believes that the FTSE
100 Index is not easily susceptible to
manipulation. The index is a broadbased index and has high market
capitalizations. The FTSE 100 Index is
comprised of 100 of the largest
companies traded on the London Stock
Exchange and no single component
comprises more than 10% of the index,
making it not easily subject to market
manipulation.
Additionally, because the index has
100 of the largest and most liquid stocks
listed on the London Stock Exchange,
the Exchange believes that the initial
listing requirements are appropriate to
trade options on the index. In addition,
similar to other broad-based indexes,
the Exchange proposes to adopt various
maintenance criteria, which would
require continual compliance and
periodic compliance.
FTSE 100 options would be subject to
the same rules that currently govern
other CBOE index options, including
sales practice rules,30 margin
requirements 31 and trading rules.32 The
Exchange would apply the same default
position limits for broad-based index
options to FTSE 100 options.
Specifically, the applicable position
limits would be 25,000 contracts
(standard limit/on the same side of the
market) and 15,000 contracts (near-term
limit). The exercise limit for FTSE 100
options would be equivalent to the
position limit for FTSE 100 options.
These same position and exercise limits
would apply to FLEX trading. All
position limit hedge exemptions would
apply. The Exchange would apply
existing index option margin
requirements for the purchase and sale
of FTSE 100 options.
The Exchange represents that it has an
adequate surveillance program in place
for FTSE 100 options. The Exchange
also represents that it has the necessary
systems capacity to support the new
option series.
B. Self-Regulatory Organization's
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act. Specifically, CBOE
believes that the introduction of new
cash index options will enhance
competition among market participants
and will provide a new type of options
to compete with FTSE 100 futures and
European-traded derivatives on the
FTSE 100 Index to the benefit of
investors and the marketplace.
www.lseg.com/sites/default/files/content/
documents/%E2%80%A2LSEG_ITA_Products_
Factsheet_v10.pdf.
30 See Chapter IX (Doing Business with the
Public).
31 See Chapter XII (Margins).
32 See e.g., Chapters IV (Business Conduct), VI
(Doing Business on the Exchange Floor), Chapter
VIII (Market-Makers, Trading Crowds and Modified
Trading Systems) and Chapter XXIV (Index
Options).
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–CBOE–2015±100. This file
number should be included on the
subject line if email is used. To help the
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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 solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
will:
A. By order approve or disapprove
such proposed rule change, or
B. Institute proceedings to determine
whether the proposed rule change
should be 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 rulecomments@sec.gov. Please include File
Number SR–CBOE–2015–100 on the
subject line.
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Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2015–100 and should be submitted on
or before December 1, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.33
Brent J. Fields,
Secretary.
[FR Doc. 2015–28516 Filed 11–9–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76344; File No. SR–
NASDAQ–2015–115]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
Chapter XV, Entitled ‘‘Options
Pricing,’’ at Section 2 Governing
Pricing for NASDAQ Members
November 4, 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 October
22, 2015, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
33 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
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.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Chapter XV, entitled ‘‘Options Pricing,’’
at Section 2, which governs pricing for
NASDAQ members using the NASDAQ
Options Market (‘‘NOM’’), NASDAQ’s
facility for executing and routing
standardized equity and index options,
to amend the Customer 3 and
Professional 4 Penny Pilot 5 Options
3 The term ‘‘Customer’’ applies to any transaction
that is identified by a Participant for clearing in the
Customer range at The Options Clearing
Corporation (‘‘OCC’’) which is not for the account
of broker or dealer or for the account of a
‘‘Professional’’ (as that term is defined in Chapter
I, Section 1(a)(48)).
4 The term ‘‘Professional’’ means any person or
entity that (i) is not a broker or dealer in securities,
and (ii) places more than 390 orders in listed
options per day on average during a calendar month
for its own beneficial account(s) pursuant to
Chapter I, Section 1(a)(48). All Professional orders
shall be appropriately marked by Participants.
5 See Securities Exchange Act Release Nos. 57579
(March 28, 2008), 73 FR 18587 (April 4, 2008) (SR–
NASDAQ–2008–026) (notice of filing and
immediate effectiveness establishing Penny Pilot);
60874 (October 23, 2009), 74 FR 56682 (November
2, 2009)(SR–NASDAQ–2009–091) (notice of filing
and immediate effectiveness expanding and
extending Penny Pilot); 60965 (November 9, 2009),
74 FR 59292 (November 17, 2009)(SR–NASDAQ–
2009–097) (notice of filing and immediate
effectiveness adding seventy-five classes to Penny
Pilot); 61455 (February 1, 2010), 75 FR 6239
(February 8, 2010) (SR–NASDAQ–2010–013)
(notice of filing and immediate effectiveness adding
seventy-five classes to Penny Pilot); 62029 (May 4,
2010), 75 FR 25895 (May 10, 2010) (SR–NASDAQ–
2010–053) (notice of filing and immediate
effectiveness adding seventy-five classes to Penny
Pilot); 65969 (December 15, 2011), 76 FR 79268
(December 21, 2011) (SR–NASDAQ–2011–169)
(notice of filing and immediate effectiveness
extension and replacement of Penny Pilot); 67325
(June 29, 2012), 77 FR 40127 (July 6, 2012) (SR–
NASDAQ–2012–075) (notice of filing and
immediate effectiveness and extension and
replacement of Penny Pilot through December 31,
2012); 68519 (December 21, 2012), 78 FR 136
(January 2, 2013) (SR–NASDAQ–2012–143) (notice
of filing and immediate effectiveness and extension
and replacement of Penny Pilot through June 30,
2013); 69787 (June 18, 2013), 78 FR 37858 (June 24,
2013) (SR–NASDAQ–2013–082) (notice of filing
and immediate effectiveness and extension and
replacement of Penny Pilot through December 31,
2013); 71105 (December 17, 2013), 78 FR 77530
(December 23, 2013) (SR–NASDAQ–2013–154)
(notice of filing and immediate effectiveness and
extension and replacement of Penny Pilot through
June 30, 2014); 79 FR 31151 (May 23, 2014), 79 FR
31151 (May 30, 2014) (SR–NASDAQ–2014–056)
(notice of filing and immediate effectiveness and
extension and replacement of Penny Pilot through
December 31, 2014); 73686 (December 2, 2014), 79
FR 71477 (November 25, 2014) (SR–NASDAQ–
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Rebates to Add Liquidity. The proposed
amendments apply to volume from
October 22, 2015 through October 30,
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.
A. Self-Regulatory Organization's
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Chapter XV, Section 2, entitled
‘‘NASDAQ Options Market—Fees and
Rebates’’ to amend the Customer and
Professional Penny Pilot Options
Rebates to Add Liquidity. Each of the
proposed rule changes will be detailed
below.
Customer and Professional Penny Pilot
Options Rebates To Add Liquidity
Today, the Exchange offers tiered
Penny Pilot Options Rebates to Add
Liquidity to Customers and
Professionals based on various criteria
with rebates ranging from $0.20 to $0.48
per contract. Participants may qualify
for Customer and Professional Penny
Pilot Options Rebates to Add Liquidity
by adding a certain amount of liquidity
as specified by each tier.6
2014–115) (notice of filing and immediate
effectiveness and extension and replacement of
Penny Pilot through June 30, 2015) and 75283 (June
24, 2015), 80 FR 37347 (June 30, 2015) (SR–
NASDAQ–2015–063) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
Relating to Extension of the Exchange’s Penny Pilot
Program and Replacement of Penny Pilot Issues
That Have Been Delisted.) See also NOM Rules,
Chapter VI, Section 5.
6 Tiers 6 and 7 are calculated based on Total
Volume. Total Volume is defined as Customer,
Professional, Firm, Broker-Dealer, Non-NOM
Market Maker and NOM Market Maker volume in
Penny Pilot Options and/or Non-Penny Pilot
Options which either adds or removes liquidity on
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Note ‘‘e’’ of Chapter XV, Section 2(1)
The Exchange proposes to amend
current note ‘‘e’’ to permit Participants
that qualify for the Tier 8 Customer and
Professional Penny Pilot Options Rebate
to Add Liquidity 7 to achieve a higher
rebate. Currently, note ‘‘e’’ states:
‘‘[P]articipants that add Customer,
Professional, Firm, Non-NOM Market
Maker and/or Broker-Dealer liquidity in
Penny Pilot Options and/or Non- Penny
Pilot Options of 1.15% or more of total
industry customer equity and ETF
option ADV contracts per day in a
month will receive an additional $0.02
per contract Penny Pilot Options
Customer Rebate to Add Liquidity for
each transaction which adds liquidity in
Penny Pilot Options in that month.
Participants that add Customer,
Professional, Firm, Non-NOM Market
Maker and/or Broker-Dealer liquidity in
Penny Pilot Options and/or Non-Penny
Pilot Options of 1.40% or more of total
industry customer equity and ETF
option ADV contracts per day in a
month will receive an additional $0.05
per contract Penny Pilot Options
Customer Rebate to Add Liquidity for
each transaction which adds liquidity in
Penny Pilot Options in that month.’’
The Exchange is amending note ‘‘e’’ to
clearly denote that there will now be
three ways to earn an additional rebate
for Participants that qualify for the Tier
8 Customer and Professional Penny
Pilot Options Rebate to Add Liquidity.
The first two additional rebates
currently apply today, and will be
demarcated as ‘‘1’’ and ‘‘2.’’ The
Exchange proposes to pay a new
additional $0.05 per contract rebate to
Participants that qualify for the Tier 8
rebate of $0.48 per contract, from
October 22, 2015 through October 30,
2015, for a total of $0.53 per contract,
NOM. See note ‘‘b’’ in Section 2(1) of Chapter XV.
The Exchange utilizes data from OCC to determine
the total industry customer equity and ETF options
ADV figure. OCC classifies equity and ETF options
volume under the equity options category. Also,
both customer and professional orders that are
transacted on options exchanges clear in the
customer range at OCC and therefore both customer
and professional volume would be included in the
total industry figure to calculate rebate tiers.
7 Tier 8 of the Customer and Professional Rebate
to Add Liquidity Tiers pays a $0.48 per contract
rebate to Participants that add Customer,
Professional, Firm, Non-NOM Market Maker and/or
Broker-Dealer liquidity in Penny Pilot Options and/
or Non-Penny Pilot Options above 0.75% or more
of total industry customer equity and ETF option
ADV contracts per day in a month or Participant
adds (1) Customer and/or Professional liquidity in
Penny Pilot Options and/or Non-Penny Pilot
Options of 30,000 or more contracts per day in a
month, (2) the Participant has certified for the
Investor Support Program set forth in Rule 7014,
and/or (3) the Participant qualifies for rebates under
the Qualified Market Maker Program set forth in
Rule 7014.
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Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
provide the Participant meets the
requisite criteria. The new incentive
would require the Participant to: (a)
Add Customer, Professional, Firm, NonNOM Market Maker and/or BrokerDealer liquidity in Penny Pilot Options
and/or Non-Penny Pilot Options above
0.85% of total industry customer equity
and ETF option ADV contracts per day
from October 22, 2015 through October
30, 2015 in a month and (b) add
liquidity in all securities through one or
more of its Nasdaq Market Center
MPIDs 8 that represent 1.00% or more of
Consolidated Volume from October 22,
2015 through October 30, 2015.
Consolidated Volume shall mean the
total consolidated volume reported to
all consolidated transaction reporting
plans by all exchanges and trade
reporting facilities during a month 9 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
an equity member’s trading activity,
expressed as a percentage of or ratio to
Consolidated Volume, the date of the
annual reconstitution of the Russell
Investments Indexes shall be excluded
from both total Consolidated Volume
and the member’s trading activity.
The Exchange believes that this new
added incentive will encourage
Participants to add even more liquidity
on NOM to earn a higher rebate. Also,
the Exchange is not only providing
Participants another manner in which to
earn a higher options rebate by
participating in the options market, but
is also permitting equities volume to
qualify for the options rebate, thereby
benefitting the Nasdaq Market Center as
well as the NOM market, by
incentivizing order flow to these
markets.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Note ‘‘d’’ of Chapter XV, Section 2(1)
Currently, note ‘‘d’’ of Chapter XV,
Section 2(1) states that Participants that
qualify for Customer or Professional
Rebate to Add Liquidity Tiers 7 10 or 8
in a given month will be assessed a
Professional, Firm, Non-NOM Market
8 MPIDS are four character alpha code market
participant identifiers used to report trades.
9 For purposes of this filing, the Consolidated
Volume shall only apply to volume from October
22, 2015 through October 30, 2015.
10 Customer and Professional Rebate to Add
Liquidity Tier 7 pays a $0.47 per contract rebate to
Participants that have Total Volume of 150,000 or
more contracts per day in a month, of which 50,000
or more contracts per day in a month must be
Customer and/or Professional liquidity in Penny
Pilot Options. ‘‘Total Volume’’ is defined as
Customer, Professional, Firm, Broker-Dealer, NonNOM Market Maker and NOM Market Maker
volume in Penny Pilot Options and/or Non-Penny
Pilot Options which either adds or removes
liquidity on NOM.
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Maker, NOM Market Maker or BrokerDealer Fee for Removing Liquidity in
Penny Pilot Options of $0.50 per
contract. Currently, the Professional,
Firm, Non-NOM Market Maker, NOM
Market Maker or Broker-Dealer Fee for
Removing Liquidity in Penny Pilot
Options is $0.54 per contract for these
Participants.11
The Exchange proposes to remove the
incentive to obtain a lower Professional,
Firm, Non-NOM Market Maker, NOM
Market Maker or Broker-Dealer Fee for
Removing Liquidity in Penny Pilot
Options for Participants that qualify for
Tier 7 of the Customer and Professional
Penny Pilot Options Rebate to Add
Liquidity as of October 22, 2015. This
incentive will remain for Participants
that qualify for Tier 8, as is the case
today. The Exchange desires to
incentivize market participants to add
liquidity in the highest tier in order to
obtain the lower Professional, Firm,
Non-NOM Market Maker, NOM Market
Maker or Broker-Dealer Fee for
Removing Liquidity in Penny Pilot
Options. Note ‘‘d’’ will be amended to
remove Tier 7. Additionally, from
October 1, 2015 through the date of this
filing, no member has qualified for the
lower Professional, Firm, Non-NOM
Market Maker, NOM Market Maker or
Broker-Dealer Fee for Removing
Liquidity in Penny Pilot Options of
$0.50 per contract with Tier 7.
Typographical Correction
The Exchange proposes to remove the
period at the end of Customer and
Professional Penny Pilot Options Rebate
to Add Liquidity Tier 8 to conform the
rule text.
2. Statutory Basis
NASDAQ believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,12 in
general, and with Section 6(b)(4) and
6(b)(5) of the Act,13 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.
Customer volume is important because
it continues to attract liquidity to the
Exchange, which benefits all market
participants. Further, with respect to
Professional liquidity, the Exchange
initially established Professional pricing
11 SPY transactions are assessed a $0.50 per
contract Fee for Removing Liquidity in Penny Pilot
Options for all Participants except Customer.
12 15 U.S.C. 78f.
13 15 U.S.C. 78f(b)(4) and (5).
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69757
in order to ‘‘. . . bring additional
revenue to the Exchange.’’ 14 The
Exchange noted in the Professional
Filing that it believes ‘‘. . . that the
increased revenue from the proposal
would assist the Exchange to recoup
fixed costs.’’ 15 Further, the Exchange
noted in that filing that it believes that
establishing separate pricing for a
Professional, which ranges between that
of a Customer and market maker,
accomplishes this objective.16
Customer and Professional Penny Pilot
Options Rebates to Add Liquidity
Note ‘‘e’’ of Chapter XV, Section 2(1)
The Exchange’s proposal to amend
note ‘‘e’’ to provide for an additional
means to earn a higher rebate for
Participants that qualify for the Tier 8
Customer and Professional Penny Pilot
Options Rebate to Add Liquidity is
reasonable because the opportunity to
earn a higher rebate of $0.53 17 per
contract, provided the qualifications are
met, will incentivize Participants to
transact an even greater number of
qualifying Customer and/or Professional
volume, which liquidity will benefit
other market participants by providing
them the opportunity to interact with
that liquidity. The Exchange’s proposal
to permit Participants to obtain a higher
rebate of $0.53 per contract, provided
they qualify for the Tier 8 rebate and the
new criteria 18 by adding volume from
October 22, 2015 through October 30,
14 See Securities Exchange Act Release No. 64494
(May 13, 2011), 76 FR 29014 (May 19, 2011) (SR–
NASDAQ–2011–066) (‘‘Professional Filing’’). In this
filing, the Exchange addressed the perceived
favorable pricing of Professionals who were
assessed fees and paid rebates like a Customer prior
to the filing. The Exchange noted in that filing that
a Professional, unlike a retail Customer, has access
to sophisticated trading systems that contain
functionality not available to retail Customers.
15 See Professional Filing.
16 See Professional Filing. The Exchange also in
the Professional Filing that it believes the role of the
retail Customer in the marketplace is distinct from
that of the Professional and the Exchange’s fee
proposal at that time accounted for this distinction
by pricing each market participant according to
their roles and obligations.
17 Tier 8 pays a rebate of $0.48 per contract and
the additional rebate proposed for note ‘‘e’’ would
be a $0.05 per contract rebate for a total of $0.53
per contract.
18 New note ‘‘e’’ requires Participants to (a) add
Customer, Professional, Firm, Non-NOM Market
Maker and/or Broker-Dealer liquidity in Penny Pilot
Options and/or Non-Penny Pilot Options above
0.85% of total industry customer equity and ETF
option ADV contracts per day from October 22,
2015 through October 30, 2015 and (b) add liquidity
in all securities through one or more of its Nasdaq
Market Center MPIDs that represent 1.00% or more
of Consolidated Volume from October 22, 2015
through October 30, 2015 in order to receive an
additional $0.05 per contract Penny Pilot Options
Customer Rebate to Add Liquidity.
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Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
2015,19 which criteria includes the
addition of options and equity volume,
is reasonable because the Exchange is
encouraging market participants to send
order flow to both the options and
equity markets to receive the rebate.
Incentivizing Participants to add
options liquidity through the payment
of an additional rebate is not novel and
exists today.20 Today, the Customer and
Professional Penny Pilot Options Rebate
to Add Liquidity Tier 8 includes, as part
of the qualifying criteria, a certification
for the Investor Support Program 21 as
set forth in Rule 7014 and qualification
in the QMM Program.22 These two
programs are equity programs which
require participation in the form of
adding liquidity. The concept of
participating in the equities market as a
means to qualify for an options rebate
exists today. The Exchange’s proposal
would require Participants to add
liquidity in all securities through one or
more of its Nasdaq Market Center
19 Monthly volume prior to October 22, 2015 will
not count toward the calculation of this rebate
incentive.
20 Today, note ‘‘e’’ provides two opportunities to
earn a higher rebate. Participants that add
Customer, Professional, Firm, Non-NOM Market
Maker and/or Broker-Dealer liquidity in Penny Pilot
Options and/or Non- Penny Pilot Options of 1.15%
or more of total industry customer equity and ETF
option ADV contracts per day in a month receive
an additional $0.02 per contract Penny Pilot
Options Customer Rebate to Add Liquidity for each
transaction which adds liquidity in Penny Pilot
Options in that month; or Participants may add
Customer, Professional, Firm, Non-NOM Market
Maker and/or Broker-Dealer liquidity in Penny Pilot
Options and/or Non-Penny Pilot Options of 1.40%
or more of total industry customer equity and ETF
option ADV contracts per day in a month to receive
an additional $0.05 per contract Penny Pilot
Options Customer Rebate to Add Liquidity for each
transaction which adds liquidity in Penny Pilot
Options in that month.
21 For a detailed description of the Investor
Support Program or ISP, see Securities Exchange
Act Release No. 63270 (November 8, 2010), 75 FR
69489 (November 12, 2010) (NASDAQ–2010–141)
(notice of filing and immediate effectiveness) (the
‘‘ISP Filing’’). See also Securities Exchange Act
Release Nos. 63414 (December 2, 2010), 75 FR
76505 (December 8, 2010) (NASDAQ–2010–153)
(notice of filing and immediate effectiveness); and
63628 (January 3, 2011), 76 FR 1201 (January 7,
2011) (NASDAQ–2010–154) (notice of filing and
immediate effectiveness).
22 A QMM is a NASDAQ member that makes a
significant contribution to market quality by
providing liquidity at the national best bid and offer
(‘‘NBBO’’) in a large number of stocks for a
significant portion of the day. In addition, the
NASDAQ equity member must avoid imposing the
burdens on NASDAQ and its market participants
that may be associated with excessive rates of entry
of orders away from the inside and/or order
cancellation. The designation ‘‘QMM’’ reflects the
QMM’s commitment to provide meaningful and
consistent support to market quality and price
discovery by extensive quoting at the NBBO in a
large number of securities. In return for its
contributions, certain financial benefits are
provided to a QMM with respect to a particular
MPID (a ‘‘QMM MPID’’), as described under Rule
7014(e).
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MPIDS that represent 1.00% or more of
Consolidated Volume during the
month.23 Consolidated Volume shall
mean the total consolidated volume
reported to all consolidated transaction
reporting plans by all exchanges and
trade reporting facilities during a
month 24 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 an equity member’s trading
activity, expressed as a percentage of or
ratio to Consolidated Volume, the date
of the annual reconstitution of the
Russell Investments Indexes shall be
excluded from both total Consolidated
Volume and the member’s trading
activity.
The Exchange is not only providing
Participants with a manner in which to
earn an additional options rebate, but
also expanding the qualifications to
permit participation in the equities
market to qualify for the additional
rebate. This participation benefits the
Nasdaq Market Center as well as the
NOM market by incentivizing order
flow to these markets. As with existing
tiers that require participation in both
the Nasdaq Market Center and NOM,
this additional rebate recognizes the
prevalence of trading in which members
simultaneously trade different asset
classes within the same strategy.
Because cash equities and options
markets are linked, with liquidity and
trading patterns on one market affecting
those on the other, the Exchange
believes that pricing incentives that
encourage market participant activity in
NOM also support price discovery and
liquidity provision in the Nasdaq
Market Center. Further, because the
proposed incentive which is being
added in note ‘‘e’’ require significant
levels of liquidity provision, which
benefits all market participants, and
because activity in NOM also supports
price discovery and liquidity provision
in the Nasdaq Market Center due to the
increasing propensity of market
participants to be active in both markets
and the influence of each market on the
pricing of securities in the other, this
proposal is reasonable. Moreover, the
incentive has the potential to make the
applicable higher rebate available to a
wider range of market participants by
introducing an additional means of
qualification. Finally, other options
exchanges today pay rebates to
23 For purposes of this filing, the Consolidated
Volume shall only apply to volume from October
22, 2015 through October 30, 2015.
24 Id.
PO 00000
Frm 00127
Fmt 4703
Sfmt 4703
participants that add order both options
and equity order flow.25
The Exchange’s proposal to amend
note ‘‘e’’ to provide for an additional
means to earn a higher rebate for
Participants that qualify for the Tier 8
Customer and Professional Penny Pilot
Options Rebate to Add Liquidity is
equitable and not unfairly
discriminatory because all Participants
may qualify for Tier 8 and the
additional incentive. Qualifying
Participants will be uniformly paid the
rebate provided the requirements are
met for the time period from October 22,
2015 through October 30, 2015. The
Exchange’s proposal to permit
Participants to receive an additional
$0.05 per contract rebate in addition to
the Tier 8 rebate of $0.48 per contract,
provided they qualify for Tier 8 and add
options and equity volume as specified
in the new note ‘‘e’’ criteria,26 is
equitable and not unfairly
discriminatory because market
participants today may qualify for a
comparable or a higher rebate through
alternative means that does not require
participation in NOM.
Note ‘‘d’’ of Chapter XV, Section 2(1)
The Exchange’s proposal to remove
the incentive in note ‘‘d’’ for
Participants that qualify for Tier 7 and
continue to apply the incentive for
Participants that qualify for Tier 8 is
reasonable because the Exchange desires
to incentivize market participants to add
liquidity in the highest tier in order to
obtain the lower Professional, Firm,
Non-NOM Market Maker, NOM Market
Maker or Broker-Dealer Fee for
Removing Liquidity in Penny Pilot
Options.27 This proposal will shift the
applicability of note ‘‘d’’ to the highest
rebate tier only.
The Exchange’s proposal to remove
the incentive in note ‘‘d’’ for
Participants that qualify for Tier 7 and
continue to apply the incentive for
Participants that qualify for Tier 8 is
equitable and not unfairly
discriminatory because the Exchange
will uniformly apply the incentive to all
Participants that qualify for Tier 8.28 No
25 BATS Exchange Inc. (‘‘BATS’’) and NYSE Arca,
Inc. (NYSE Arca’’) offer Cross-Asset Step-Up Tiers
on its equity market. See BATS BZX Exchange Fee
Schedule. See also NYSE Arca Equities Schedule of
Fees and Charges for Exchange Services and NYSE
Arca Options Fees and Charges.
26 See note 20.
27 Currently, the Professional, Firm, Non-NOM
Market Maker, NOM Market Maker or Broker-Dealer
Fee for Removing Liquidity in Penny Pilot Options
is $0.54 per contract for these Participants, except
in SPY where it is $0.50 per contract for these
Participants.
28 To date for the month of October 2015, no
member has qualified for the lower Professional,
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Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
Participant will receive the incentive in
note ‘‘d’’ for qualification in Tier 7 as of
October 22, 2015 and all Participants
that have met the Customer and
Professional Penny Pilot Options Rebate
to Add Liquidity in Tier 8 would
continue to receive the note ‘‘d’’
incentive.
Typographical Correction
The Exchange’s proposal to remove
the period at the end of Customer and
Professional Penny Pilot Options Rebate
to Add Liquidity Tier 8 for consistency
is reasonable, equitable and not unfairly
discriminatory.
B. Self-Regulatory Organization's
Statement on Burden on Competition
NASDAQ does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
Customer and Professional Penny Pilot
Options Rebates to Add Liquidity
asabaliauskas on DSK5VPTVN1PROD with NOTICES
New Note ‘‘e’’ of Chapter XV, Section
2(1)
The Exchange’s proposal to adopt a
new note ‘‘e’’ incentive does not impose
an undue burden on intra-market
competition because all Participants are
eligible to qualify for the Tier 8
Customer or Professional Rebate to Add
Liquidity Tier, provided they meet the
qualifications for that tier, and
additionally all Participants may qualify
for the additional requirements in new
note ‘‘e’’.29 Further, this new additional
note ‘‘e’’ rebate will be uniformly paid
to those Participants that are eligible for
the rebate.
Furthermore, incentivizing
Participants to add not only options, but
equities volume does not impose an
undue burden on intra-market
competition because cash equities and
options markets are linked, with
liquidity and trading patterns on one
market affecting those on the other, the
Exchange believes that pricing
incentives that encourage market
participant activity in NOM also
support price discovery and liquidity
provision in the Nasdaq Market Center.
Further, the pricing incentives require
significant levels of liquidity provision,
which benefits all market participants
on NOM and the Nasdaq Market Center.
Moreover, the changes have the
potential to make the applicable
incentives available to a wider range of
Firm, Non-NOM Market Maker, NOM Market Maker
or Broker-Dealer Fee for Removing Liquidity in
Penny Pilot Options of $0.50 per contract with Tier
7.
29 See note 20.
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19:41 Nov 09, 2015
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market participants by introducing an
additional means of qualification.
Note ‘‘d’’ of Chapter XV, Section 2(1)
The Exchange’s proposal to remove
the incentive in note ‘‘d’’ from
Participants that qualify for Customer
and Professional Penny Pilot Options
Rebate to Add Liquidity Tier 7 and
continue to apply the incentive to
Participants that qualify for Customer
and Professional Penny Pilot Options
Rebate to Add Liquidity Tier 8 does not
impose an undue burden on intramarket competition because the
Exchange will uniformly apply the
incentive to all Participants. No
Participant will receive the incentive in
note ‘‘d’’ for Tier 7 qualification as of
October 22, 2015 and all Participants
that have met the criteria for Customer
and Professional rebate Tier 8 would
continue to receive the note ‘‘d’’
incentive. Further, there are no
Participants that qualified for the Tier 7
incentive from October 1, 2015 through
the date of this filing.
The Exchange’s proposal addressed
herein does not impose an inter-market
burden on competition because the
Exchange operates in a highly
competitive market in which many
sophisticated and knowledgeable
market participants can readily and do
send order flow to competing exchanges
if they deem fee levels or rebate
incentives at a particular exchange to be
excessive or inadequate. These market
forces support the Exchange belief that
the proposed rebate structure and tiers
proposed herein are competitive with
rebates and tiers in place on other
exchanges. The Exchange believes that
this competitive marketplace continues
to impact the rebates present on the
Exchange today and substantially
influences the proposals set forth above.
Other options markets offer similar
rebates to incentive market participants
to direct order flow to their markets.
The Exchange believes that continuing
to offer rebates and increasing those
rebates and providing opportunities to
earn higher rebates will benefit the
marketplace by continuing to reward
liquidity providers and thereby offering
other market participants an
opportunity to interact with this order
flow.
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.
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
69759
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.30
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–2015–115 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–2015–115. 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.,
30 15
E:\FR\FM\10NON1.SGM
U.S.C. 78s(b)(3)(A)(ii).
10NON1
69760
Federal Register / Vol. 80, No. 217 / Tuesday, November 10, 2015 / Notices
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2015–115, and should be
submitted on or before December 1,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Brent J. Fields,
Secretary.
[FR Doc. 2015–28508 Filed 11–9–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76352; File No. SR–CBOE–
2015–093]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fees
Schedule
November 4, 2015.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
30, 2015, Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) 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 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 the
Fees Schedule relating to Continuing
Education Fees. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
31 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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19:41 Nov 09, 2015
Jkt 238001
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.
A. Self-Regulatory Organization's
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fees Schedule.3 Specifically, the
Exchange proposes to make changes to
the Continuing Education Fees section
of the Fees Schedule to provide that
continuing education for all registration
except the Series 56 will be $55 if
conducted via Web-delivery. Continuing
education for all registration except the
Series 56 will remain $100 if conducted
at a testing center.
On August 8, 2015, the Securities and
Exchange Commission approved SR–
FINRA–2015–015 relating proposed
changes to FINRA Rule 1250 to provide
a Web-based delivery method for
completing the Regulatory Element of
the continuing education requirements.4
Pursuant to the rule change, effective
October 1, 2015, the Regulatory Element
of the Continuing Education Programs
for the S106 for Investment Company
and Variable Contracts Representatives,
the S201 for Registered Principals and
Supervisors, and the S901 for
Operations Professionals will be
administered through Web-based
delivery or such other technological
manner and format as specified by
FINRA. The Regulatory Element of these
Continuing Education Programs will
continue to be offered at testing centers
until no later than six months after
3 The Exchange initially filed the proposed fee
change on October 2, 2015 (SR–CBOE–2015–086).
On October 9, 2015, the Exchange withdrew SR–
CBOE–2015–086.
4 See Securities Exchange Act Release No. 75581
(July 31, 2015), 80 FR 47018 (August 6, 2015)
(Order Approving a Proposed Rule Change to
Provide a Web-based Delivery Method for
Completing the Regulatory Element of the
Continuing Education Requirements) (SR–FINRA–
2015–015).
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
January 4, 2016.5 Pursuant to the
Approval Order to SR–FINRA–2015–
015, the fee for test-center delivery of
the Regulatory Element of the S106,
S201, and S901 Continuing Education
Programs will continue to be $100 per
session through no later than six months
after January 4, 2016 when the programs
will no longer be offered at testing
centers. The fee for Web-based delivery
of the Regulatory Elements of the S106,
S201, and S901 Continuing Education
Programs, however, will be $55.
The Exchange currently utilizes
FINRA’s Continuing Education
Programs for its own continuing
education requirements. Consistent with
SR–FINRA–2015–015, the Exchange
recently filed SR–CBOE–2015–084 6
relating to continuing education. In that
filing, the Exchange proposed to follow
the changes set forth in SR–FINRA–
2015–015 with respect to Web-based
delivery of the Regulatory Element of
the Continuing Education Programs for
the S106 for Investment Company and
Variable Contracts Representatives, the
S201 for Registered Principals and
Supervisors, and the S901 for
Operations Professionals. Consistent
with SR–CBOE–2015–084, this
proposed rule change, proposes to
amend the Fees Schedule to provide
that effective immediately, the fee for
Web-based delivery of the Regulatory
Elements of the S106, S201, and S901
Continuing Education Programs will be
$55. The fee for test-center delivery of
the Regulatory Element of the S106,
S201, and S901 Continuing Education
Programs will continue to be $100 per
session until test-center delivery of the
Regulatory Element is phased out and
the programs are no longer offered at
testing centers. At that time, the
Exchange will file another fee filing to
remove the test center option for
delivery of the Regulatory Element from
the Fees Schedule.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.7 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
5 Test-center delivery of the Regulatory Element
will be phased out by no later than six months after
January 4, 2016. See Securities Exchange Act
Release No. 75581 (July 31, 2015), 80 FR 47018
(August 6, 2015) (Order Approving a Proposed Rule
Change To Provide a Web-Based Delivery Method
for Completing the Regulatory Element of the
Continuing Education) (SR–FINRA–2015–015).
6 Available at https://www.cboe.com/publish/
RuleFilingsSEC/SR-CBOE-2015-084.pdf
7 15 U.S.C. 78f(b).
E:\FR\FM\10NON1.SGM
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]]>Agencies
[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)]
[Notices]
[Pages 69755-69760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28508]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76344; File No. SR-NASDAQ-2015-115]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Chapter XV, Entitled ``Options Pricing,'' at Section 2 Governing
Pricing for NASDAQ Members
November 4, 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 October 22, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange
[[Page 69756]]
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 Substance
of the Proposed Rule Change
The Exchange proposes to amend Chapter XV, entitled ``Options
Pricing,'' at Section 2, which governs pricing for NASDAQ members using
the NASDAQ Options Market (``NOM''), NASDAQ's facility for executing
and routing standardized equity and index options, to amend the
Customer \3\ and Professional \4\ Penny Pilot \5\ Options Rebates to
Add Liquidity. The proposed amendments apply to volume from October 22,
2015 through October 30, 2015.
---------------------------------------------------------------------------
\3\ The term ``Customer'' applies to any transaction that is
identified by a Participant for clearing in the Customer range at
The Options Clearing Corporation (``OCC'') which is not for the
account of broker or dealer or for the account of a ``Professional''
(as that term is defined in Chapter I, Section 1(a)(48)).
\4\ The term ``Professional'' means any person or entity that
(i) is not a broker or dealer in securities, and (ii) places more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s) pursuant to Chapter
I, Section 1(a)(48). All Professional orders shall be appropriately
marked by Participants.
\5\ See Securities Exchange Act Release Nos. 57579 (March 28,
2008), 73 FR 18587 (April 4, 2008) (SR-NASDAQ-2008-026) (notice of
filing and immediate effectiveness establishing Penny Pilot); 60874
(October 23, 2009), 74 FR 56682 (November 2, 2009)(SR-NASDAQ-2009-
091) (notice of filing and immediate effectiveness expanding and
extending Penny Pilot); 60965 (November 9, 2009), 74 FR 59292
(November 17, 2009)(SR-NASDAQ-2009-097) (notice of filing and
immediate effectiveness adding seventy-five classes to Penny Pilot);
61455 (February 1, 2010), 75 FR 6239 (February 8, 2010) (SR-NASDAQ-
2010-013) (notice of filing and immediate effectiveness adding
seventy-five classes to Penny Pilot); 62029 (May 4, 2010), 75 FR
25895 (May 10, 2010) (SR-NASDAQ-2010-053) (notice of filing and
immediate effectiveness adding seventy-five classes to Penny Pilot);
65969 (December 15, 2011), 76 FR 79268 (December 21, 2011) (SR-
NASDAQ-2011-169) (notice of filing and immediate effectiveness
extension and replacement of Penny Pilot); 67325 (June 29, 2012), 77
FR 40127 (July 6, 2012) (SR-NASDAQ-2012-075) (notice of filing and
immediate effectiveness and extension and replacement of Penny Pilot
through December 31, 2012); 68519 (December 21, 2012), 78 FR 136
(January 2, 2013) (SR-NASDAQ-2012-143) (notice of filing and
immediate effectiveness and extension and replacement of Penny Pilot
through June 30, 2013); 69787 (June 18, 2013), 78 FR 37858 (June 24,
2013) (SR-NASDAQ-2013-082) (notice of filing and immediate
effectiveness and extension and replacement of Penny Pilot through
December 31, 2013); 71105 (December 17, 2013), 78 FR 77530 (December
23, 2013) (SR-NASDAQ-2013-154) (notice of filing and immediate
effectiveness and extension and replacement of Penny Pilot through
June 30, 2014); 79 FR 31151 (May 23, 2014), 79 FR 31151 (May 30,
2014) (SR-NASDAQ-2014-056) (notice of filing and immediate
effectiveness and extension and replacement of Penny Pilot through
December 31, 2014); 73686 (December 2, 2014), 79 FR 71477 (November
25, 2014) (SR-NASDAQ-2014-115) (notice of filing and immediate
effectiveness and extension and replacement of Penny Pilot through
June 30, 2015) and 75283 (June 24, 2015), 80 FR 37347 (June 30,
2015) (SR-NASDAQ-2015-063) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change Relating to Extension of the
Exchange's Penny Pilot Program and Replacement of Penny Pilot Issues
That Have Been Delisted.) See also NOM Rules, Chapter VI, Section 5.
---------------------------------------------------------------------------
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.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Chapter XV, Section 2, entitled
``NASDAQ Options Market--Fees and Rebates'' to amend the Customer and
Professional Penny Pilot Options Rebates to Add Liquidity. Each of the
proposed rule changes will be detailed below.
Customer and Professional Penny Pilot Options Rebates To Add Liquidity
Today, the Exchange offers tiered Penny Pilot Options Rebates to
Add Liquidity to Customers and Professionals based on various criteria
with rebates ranging from $0.20 to $0.48 per contract. Participants may
qualify for Customer and Professional Penny Pilot Options Rebates to
Add Liquidity by adding a certain amount of liquidity as specified by
each tier.\6\
---------------------------------------------------------------------------
\6\ Tiers 6 and 7 are calculated based on Total Volume. Total
Volume is defined as Customer, Professional, Firm, Broker-Dealer,
Non-NOM Market Maker and NOM Market Maker volume in Penny Pilot
Options and/or Non-Penny Pilot Options which either adds or removes
liquidity on NOM. See note ``b'' in Section 2(1) of Chapter XV. The
Exchange utilizes data from OCC to determine the total industry
customer equity and ETF options ADV figure. OCC classifies equity
and ETF options volume under the equity options category. Also, both
customer and professional orders that are transacted on options
exchanges clear in the customer range at OCC and therefore both
customer and professional volume would be included in the total
industry figure to calculate rebate tiers.
---------------------------------------------------------------------------
Note ``e'' of Chapter XV, Section 2(1)
The Exchange proposes to amend current note ``e'' to permit
Participants that qualify for the Tier 8 Customer and Professional
Penny Pilot Options Rebate to Add Liquidity \7\ to achieve a higher
rebate. Currently, note ``e'' states: ``[P]articipants that add
Customer, Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer
liquidity in Penny Pilot Options and/or Non- Penny Pilot Options of
1.15% or more of total industry customer equity and ETF option ADV
contracts per day in a month will receive an additional $0.02 per
contract Penny Pilot Options Customer Rebate to Add Liquidity for each
transaction which adds liquidity in Penny Pilot Options in that month.
Participants that add Customer, Professional, Firm, Non-NOM Market
Maker and/or Broker-Dealer liquidity in Penny Pilot Options and/or Non-
Penny Pilot Options of 1.40% or more of total industry customer equity
and ETF option ADV contracts per day in a month will receive an
additional $0.05 per contract Penny Pilot Options Customer Rebate to
Add Liquidity for each transaction which adds liquidity in Penny Pilot
Options in that month.'' The Exchange is amending note ``e'' to clearly
denote that there will now be three ways to earn an additional rebate
for Participants that qualify for the Tier 8 Customer and Professional
Penny Pilot Options Rebate to Add Liquidity. The first two additional
rebates currently apply today, and will be demarcated as ``1'' and
``2.'' The Exchange proposes to pay a new additional $0.05 per contract
rebate to Participants that qualify for the Tier 8 rebate of $0.48 per
contract, from October 22, 2015 through October 30, 2015, for a total
of $0.53 per contract,
[[Page 69757]]
provide the Participant meets the requisite criteria. The new incentive
would require the Participant to: (a) Add Customer, Professional, Firm,
Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot
Options and/or Non-Penny Pilot Options above 0.85% of total industry
customer equity and ETF option ADV contracts per day from October 22,
2015 through October 30, 2015 in a month and (b) add liquidity in all
securities through one or more of its Nasdaq Market Center MPIDs \8\
that represent 1.00% or more of Consolidated Volume from October 22,
2015 through October 30, 2015. Consolidated Volume shall mean the total
consolidated volume reported to all consolidated transaction reporting
plans by all exchanges and trade reporting facilities during a month
\9\ 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 an equity member's trading activity, expressed as a
percentage of or ratio to Consolidated Volume, the date of the annual
reconstitution of the Russell Investments Indexes shall be excluded
from both total Consolidated Volume and the member's trading activity.
---------------------------------------------------------------------------
\7\ Tier 8 of the Customer and Professional Rebate to Add
Liquidity Tiers pays a $0.48 per contract rebate to Participants
that add Customer, Professional, Firm, Non-NOM Market Maker and/or
Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny
Pilot Options above 0.75% or more of total industry customer equity
and ETF option ADV contracts per day in a month or Participant adds
(1) Customer and/or Professional liquidity in Penny Pilot Options
and/or Non-Penny Pilot Options of 30,000 or more contracts per day
in a month, (2) the Participant has certified for the Investor
Support Program set forth in Rule 7014, and/or (3) the Participant
qualifies for rebates under the Qualified Market Maker Program set
forth in Rule 7014.
\8\ MPIDS are four character alpha code market participant
identifiers used to report trades.
\9\ For purposes of this filing, the Consolidated Volume shall
only apply to volume from October 22, 2015 through October 30, 2015.
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The Exchange believes that this new added incentive will encourage
Participants to add even more liquidity on NOM to earn a higher rebate.
Also, the Exchange is not only providing Participants another manner in
which to earn a higher options rebate by participating in the options
market, but is also permitting equities volume to qualify for the
options rebate, thereby benefitting the Nasdaq Market Center as well as
the NOM market, by incentivizing order flow to these markets.
Note ``d'' of Chapter XV, Section 2(1)
Currently, note ``d'' of Chapter XV, Section 2(1) states that
Participants that qualify for Customer or Professional Rebate to Add
Liquidity Tiers 7 \10\ or 8 in a given month will be assessed a
Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-
Dealer Fee for Removing Liquidity in Penny Pilot Options of $0.50 per
contract. Currently, the Professional, Firm, Non-NOM Market Maker, NOM
Market Maker or Broker-Dealer Fee for Removing Liquidity in Penny Pilot
Options is $0.54 per contract for these Participants.\11\
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\10\ Customer and Professional Rebate to Add Liquidity Tier 7
pays a $0.47 per contract rebate to Participants that have Total
Volume of 150,000 or more contracts per day in a month, of which
50,000 or more contracts per day in a month must be Customer and/or
Professional liquidity in Penny Pilot Options. ``Total Volume'' is
defined as Customer, Professional, Firm, Broker-Dealer, Non-NOM
Market Maker and NOM Market Maker volume in Penny Pilot Options and/
or Non-Penny Pilot Options which either adds or removes liquidity on
NOM.
\11\ SPY transactions are assessed a $0.50 per contract Fee for
Removing Liquidity in Penny Pilot Options for all Participants
except Customer.
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The Exchange proposes to remove the incentive to obtain a lower
Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-
Dealer Fee for Removing Liquidity in Penny Pilot Options for
Participants that qualify for Tier 7 of the Customer and Professional
Penny Pilot Options Rebate to Add Liquidity as of October 22, 2015.
This incentive will remain for Participants that qualify for Tier 8, as
is the case today. The Exchange desires to incentivize market
participants to add liquidity in the highest tier in order to obtain
the lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or
Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options. Note
``d'' will be amended to remove Tier 7. Additionally, from October 1,
2015 through the date of this filing, no member has qualified for the
lower Professional, Firm, Non-NOM Market Maker, NOM Market Maker or
Broker-Dealer Fee for Removing Liquidity in Penny Pilot Options of
$0.50 per contract with Tier 7.
Typographical Correction
The Exchange proposes to remove the period at the end of Customer
and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 to
conform the rule text.
2. Statutory Basis
NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\12\ in general, and with
Section 6(b)(4) and 6(b)(5) of the Act,\13\ 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. Customer volume is important because it continues
to attract liquidity to the Exchange, which benefits all market
participants. Further, with respect to Professional liquidity, the
Exchange initially established Professional pricing in order to ``. . .
bring additional revenue to the Exchange.'' \14\ The Exchange noted in
the Professional Filing that it believes ``. . . that the increased
revenue from the proposal would assist the Exchange to recoup fixed
costs.'' \15\ Further, the Exchange noted in that filing that it
believes that establishing separate pricing for a Professional, which
ranges between that of a Customer and market maker, accomplishes this
objective.\16\
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\12\ 15 U.S.C. 78f.
\13\ 15 U.S.C. 78f(b)(4) and (5).
\14\ See Securities Exchange Act Release No. 64494 (May 13,
2011), 76 FR 29014 (May 19, 2011) (SR-NASDAQ-2011-066)
(``Professional Filing''). In this filing, the Exchange addressed
the perceived favorable pricing of Professionals who were assessed
fees and paid rebates like a Customer prior to the filing. The
Exchange noted in that filing that a Professional, unlike a retail
Customer, has access to sophisticated trading systems that contain
functionality not available to retail Customers.
\15\ See Professional Filing.
\16\ See Professional Filing. The Exchange also in the
Professional Filing that it believes the role of the retail Customer
in the marketplace is distinct from that of the Professional and the
Exchange's fee proposal at that time accounted for this distinction
by pricing each market participant according to their roles and
obligations.
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Customer and Professional Penny Pilot Options Rebates to Add Liquidity
Note ``e'' of Chapter XV, Section 2(1)
The Exchange's proposal to amend note ``e'' to provide for an
additional means to earn a higher rebate for Participants that qualify
for the Tier 8 Customer and Professional Penny Pilot Options Rebate to
Add Liquidity is reasonable because the opportunity to earn a higher
rebate of $0.53 \17\ per contract, provided the qualifications are met,
will incentivize Participants to transact an even greater number of
qualifying Customer and/or Professional volume, which liquidity will
benefit other market participants by providing them the opportunity to
interact with that liquidity. The Exchange's proposal to permit
Participants to obtain a higher rebate of $0.53 per contract, provided
they qualify for the Tier 8 rebate and the new criteria \18\ by adding
volume from October 22, 2015 through October 30,
[[Page 69758]]
2015,\19\ which criteria includes the addition of options and equity
volume, is reasonable because the Exchange is encouraging market
participants to send order flow to both the options and equity markets
to receive the rebate. Incentivizing Participants to add options
liquidity through the payment of an additional rebate is not novel and
exists today.\20\ Today, the Customer and Professional Penny Pilot
Options Rebate to Add Liquidity Tier 8 includes, as part of the
qualifying criteria, a certification for the Investor Support Program
\21\ as set forth in Rule 7014 and qualification in the QMM
Program.\22\ These two programs are equity programs which require
participation in the form of adding liquidity. The concept of
participating in the equities market as a means to qualify for an
options rebate exists today. The Exchange's proposal would require
Participants to add liquidity in all securities through one or more of
its Nasdaq Market Center MPIDS that represent 1.00% or more of
Consolidated Volume during the month.\23\ Consolidated Volume shall
mean the total consolidated volume reported to all consolidated
transaction reporting plans by all exchanges and trade reporting
facilities during a month \24\ 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 an equity member's
trading activity, expressed as a percentage of or ratio to Consolidated
Volume, the date of the annual reconstitution of the Russell
Investments Indexes shall be excluded from both total Consolidated
Volume and the member's trading activity.
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\17\ Tier 8 pays a rebate of $0.48 per contract and the
additional rebate proposed for note ``e'' would be a $0.05 per
contract rebate for a total of $0.53 per contract.
\18\ New note ``e'' requires Participants to (a) add Customer,
Professional, Firm, Non-NOM Market Maker and/or Broker-Dealer
liquidity in Penny Pilot Options and/or Non-Penny Pilot Options
above 0.85% of total industry customer equity and ETF option ADV
contracts per day from October 22, 2015 through October 30, 2015 and
(b) add liquidity in all securities through one or more of its
Nasdaq Market Center MPIDs that represent 1.00% or more of
Consolidated Volume from October 22, 2015 through October 30, 2015
in order to receive an additional $0.05 per contract Penny Pilot
Options Customer Rebate to Add Liquidity.
\19\ Monthly volume prior to October 22, 2015 will not count
toward the calculation of this rebate incentive.
\20\ Today, note ``e'' provides two opportunities to earn a
higher rebate. Participants that add Customer, Professional, Firm,
Non-NOM Market Maker and/or Broker-Dealer liquidity in Penny Pilot
Options and/or Non- Penny Pilot Options of 1.15% or more of total
industry customer equity and ETF option ADV contracts per day in a
month receive an additional $0.02 per contract Penny Pilot Options
Customer Rebate to Add Liquidity for each transaction which adds
liquidity in Penny Pilot Options in that month; or Participants may
add Customer, Professional, Firm, Non-NOM Market Maker and/or
Broker-Dealer liquidity in Penny Pilot Options and/or Non-Penny
Pilot Options of 1.40% or more of total industry customer equity and
ETF option ADV contracts per day in a month to receive an additional
$0.05 per contract Penny Pilot Options Customer Rebate to Add
Liquidity for each transaction which adds liquidity in Penny Pilot
Options in that month.
\21\ For a detailed description of the Investor Support Program
or ISP, see Securities Exchange Act Release No. 63270 (November 8,
2010), 75 FR 69489 (November 12, 2010) (NASDAQ-2010-141) (notice of
filing and immediate effectiveness) (the ``ISP Filing''). See also
Securities Exchange Act Release Nos. 63414 (December 2, 2010), 75 FR
76505 (December 8, 2010) (NASDAQ-2010-153) (notice of filing and
immediate effectiveness); and 63628 (January 3, 2011), 76 FR 1201
(January 7, 2011) (NASDAQ-2010-154) (notice of filing and immediate
effectiveness).
\22\ A QMM is a NASDAQ member that makes a significant
contribution to market quality by providing liquidity at the
national best bid and offer (``NBBO'') in a large number of stocks
for a significant portion of the day. In addition, the NASDAQ equity
member must avoid imposing the burdens on NASDAQ and its market
participants that may be associated with excessive rates of entry of
orders away from the inside and/or order cancellation. The
designation ``QMM'' reflects the QMM's commitment to provide
meaningful and consistent support to market quality and price
discovery by extensive quoting at the NBBO in a large number of
securities. In return for its contributions, certain financial
benefits are provided to a QMM with respect to a particular MPID (a
``QMM MPID''), as described under Rule 7014(e).
\23\ For purposes of this filing, the Consolidated Volume shall
only apply to volume from October 22, 2015 through October 30, 2015.
\24\ Id.
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The Exchange is not only providing Participants with a manner in
which to earn an additional options rebate, but also expanding the
qualifications to permit participation in the equities market to
qualify for the additional rebate. This participation benefits the
Nasdaq Market Center as well as the NOM market by incentivizing order
flow to these markets. As with existing tiers that require
participation in both the Nasdaq Market Center and NOM, this additional
rebate recognizes the prevalence of trading in which members
simultaneously trade different asset classes within the same strategy.
Because cash equities and options markets are linked, with liquidity
and trading patterns on one market affecting those on the other, the
Exchange believes that pricing incentives that encourage market
participant activity in NOM also support price discovery and liquidity
provision in the Nasdaq Market Center. Further, because the proposed
incentive which is being added in note ``e'' require significant levels
of liquidity provision, which benefits all market participants, and
because activity in NOM also supports price discovery and liquidity
provision in the Nasdaq Market Center due to the increasing propensity
of market participants to be active in both markets and the influence
of each market on the pricing of securities in the other, this proposal
is reasonable. Moreover, the incentive has the potential to make the
applicable higher rebate available to a wider range of market
participants by introducing an additional means of qualification.
Finally, other options exchanges today pay rebates to participants that
add order both options and equity order flow.\25\
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\25\ BATS Exchange Inc. (``BATS'') and NYSE Arca, Inc. (NYSE
Arca'') offer Cross-Asset Step-Up Tiers on its equity market. See
BATS BZX Exchange Fee Schedule. See also NYSE Arca Equities Schedule
of Fees and Charges for Exchange Services and NYSE Arca Options Fees
and Charges.
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The Exchange's proposal to amend note ``e'' to provide for an
additional means to earn a higher rebate for Participants that qualify
for the Tier 8 Customer and Professional Penny Pilot Options Rebate to
Add Liquidity is equitable and not unfairly discriminatory because all
Participants may qualify for Tier 8 and the additional incentive.
Qualifying Participants will be uniformly paid the rebate provided the
requirements are met for the time period from October 22, 2015 through
October 30, 2015. The Exchange's proposal to permit Participants to
receive an additional $0.05 per contract rebate in addition to the Tier
8 rebate of $0.48 per contract, provided they qualify for Tier 8 and
add options and equity volume as specified in the new note ``e''
criteria,\26\ is equitable and not unfairly discriminatory because
market participants today may qualify for a comparable or a higher
rebate through alternative means that does not require participation in
NOM.
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\26\ See note 20.
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Note ``d'' of Chapter XV, Section 2(1)
The Exchange's proposal to remove the incentive in note ``d'' for
Participants that qualify for Tier 7 and continue to apply the
incentive for Participants that qualify for Tier 8 is reasonable
because the Exchange desires to incentivize market participants to add
liquidity in the highest tier in order to obtain the lower
Professional, Firm, Non-NOM Market Maker, NOM Market Maker or Broker-
Dealer Fee for Removing Liquidity in Penny Pilot Options.\27\ This
proposal will shift the applicability of note ``d'' to the highest
rebate tier only.
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\27\ Currently, the Professional, Firm, Non-NOM Market Maker,
NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in
Penny Pilot Options is $0.54 per contract for these Participants,
except in SPY where it is $0.50 per contract for these Participants.
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The Exchange's proposal to remove the incentive in note ``d'' for
Participants that qualify for Tier 7 and continue to apply the
incentive for Participants that qualify for Tier 8 is equitable and not
unfairly discriminatory because the Exchange will uniformly apply the
incentive to all Participants that qualify for Tier 8.\28\ No
[[Page 69759]]
Participant will receive the incentive in note ``d'' for qualification
in Tier 7 as of October 22, 2015 and all Participants that have met the
Customer and Professional Penny Pilot Options Rebate to Add Liquidity
in Tier 8 would continue to receive the note ``d'' incentive.
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\28\ To date for the month of October 2015, no member has
qualified for the lower Professional, Firm, Non-NOM Market Maker,
NOM Market Maker or Broker-Dealer Fee for Removing Liquidity in
Penny Pilot Options of $0.50 per contract with Tier 7.
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Typographical Correction
The Exchange's proposal to remove the period at the end of Customer
and Professional Penny Pilot Options Rebate to Add Liquidity Tier 8 for
consistency is reasonable, equitable and not unfairly discriminatory.
B. Self-Regulatory Organization's Statement on Burden on Competition
NASDAQ does not believe that the proposed rule change will impose
any burden on competition not necessary or appropriate in furtherance
of the purposes of the Act.
Customer and Professional Penny Pilot Options Rebates to Add Liquidity
New Note ``e'' of Chapter XV, Section 2(1)
The Exchange's proposal to adopt a new note ``e'' incentive does
not impose an undue burden on intra-market competition because all
Participants are eligible to qualify for the Tier 8 Customer or
Professional Rebate to Add Liquidity Tier, provided they meet the
qualifications for that tier, and additionally all Participants may
qualify for the additional requirements in new note ``e''.\29\ Further,
this new additional note ``e'' rebate will be uniformly paid to those
Participants that are eligible for the rebate.
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\29\ See note 20.
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Furthermore, incentivizing Participants to add not only options,
but equities volume does not impose an undue burden on intra-market
competition because cash equities and options markets are linked, with
liquidity and trading patterns on one market affecting those on the
other, the Exchange believes that pricing incentives that encourage
market participant activity in NOM also support price discovery and
liquidity provision in the Nasdaq Market Center. Further, the pricing
incentives require significant levels of liquidity provision, which
benefits all market participants on NOM and the Nasdaq Market Center.
Moreover, the changes have the potential to make the applicable
incentives available to a wider range of market participants by
introducing an additional means of qualification.
Note ``d'' of Chapter XV, Section 2(1)
The Exchange's proposal to remove the incentive in note ``d'' from
Participants that qualify for Customer and Professional Penny Pilot
Options Rebate to Add Liquidity Tier 7 and continue to apply the
incentive to Participants that qualify for Customer and Professional
Penny Pilot Options Rebate to Add Liquidity Tier 8 does not impose an
undue burden on intra-market competition because the Exchange will
uniformly apply the incentive to all Participants. No Participant will
receive the incentive in note ``d'' for Tier 7 qualification as of
October 22, 2015 and all Participants that have met the criteria for
Customer and Professional rebate Tier 8 would continue to receive the
note ``d'' incentive. Further, there are no Participants that qualified
for the Tier 7 incentive from October 1, 2015 through the date of this
filing.
The Exchange's proposal addressed herein does not impose an inter-
market burden on competition because the Exchange operates in a highly
competitive market in which many sophisticated and knowledgeable market
participants can readily and do send order flow to competing exchanges
if they deem fee levels or rebate incentives at a particular exchange
to be excessive or inadequate. These market forces support the Exchange
belief that the proposed rebate structure and tiers proposed herein are
competitive with rebates and tiers in place on other exchanges. The
Exchange believes that this competitive marketplace continues to impact
the rebates present on the Exchange today and substantially influences
the proposals set forth above. Other options markets offer similar
rebates to incentive market participants to direct order flow to their
markets. The Exchange believes that continuing to offer rebates and
increasing those rebates and providing opportunities to earn higher
rebates will benefit the marketplace by continuing to reward liquidity
providers and thereby offering other market participants an opportunity
to interact with this order flow.
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.\30\
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\30\ 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-2015-115 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-2015-115. 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.,
[[Page 69760]]
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2015-115, and should
be submitted on or before December 1, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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\31\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-28508 Filed 11-9-15; 8:45 am]
BILLING CODE 8011-01-P
