Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees Under Rules 7015(b) and (g), 20426-20428 [2016-07937]
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Federal Register / Vol. 81, No. 67 / Thursday, April 7, 2016 / Notices
Dated: April 4, 2016.
Crystal Robinson,
Committee Management Officer.
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2016–116, CP2016–147.
[FR Doc. 2016–07956 Filed 4–6–16; 8:45 am]
Stanley F. Mires,
Attorney, Federal Compliance.
BILLING CODE 7555–01–P
[FR Doc. 2016–07941 Filed 4–6–16; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: April 7, 2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on March 31, 2016,
it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 204 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2016–114,
CP2016–145.
SUMMARY:
Stanley F. Mires,
Attorney, Federal Compliance.
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: April 7, 2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on March 31, 2016,
it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 205 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2016–115,
CP2016–146.
SUMMARY:
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016–07939 Filed 4–6–16; 8:45 am]
BILLING CODE 7710–12–P
[FR Doc. 2016–07940 Filed 4–6–16; 8:45 am]
Product Change—First-Class Package
Service Negotiated Service Agreement
ACTION:
Postal
Notice.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: April 7, 2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on March 31, 2016,
it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add First-Class
Package Service Contract 49 to
mstockstill on DSK4VPTVN1PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
16:35 Apr 06, 2016
POSTAL SERVICE
Product Change—First-Class Package
Service Negotiated Service Agreement
ServiceTM.
Jkt 238001
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: April 7, 2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on March 31, 2016,
it filed with the Postal Regulatory
Commission a Request of the United
SUMMARY:
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Fmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77495; File No. SR–
NASDAQ–2016–046]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Fees Under Rules 7015(b) and (g)
April 1, 2016.
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 March 29,
2016, The NASDAQ Stock Market LLC
(‘‘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
BILLING CODE 7710–12–P
POSTAL SERVICE
AGENCY:
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016–07942 Filed 4–6–16; 8:45 am]
Product Change—Priority Mail
Negotiated Service Agreement
ACTION:
States Postal Service to Add First-Class
Package Service Contract 50 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2016–117, CP2016–148.
Sfmt 4703
The Exchange proposes to amend the
Exchange’s access services fees at Rules
7015(b) and (g) to increase the port fees
charged to members and non-members
for ports used to enter orders into
Exchange systems, in connection with
the use of the FIX, RASH and OUCH
trading telecommunication protocols.
While these amendments are effective
upon filing, the Exchange has
designated the proposed amendments to
be operative on April 1, 2016.
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.
1 15
2 17
E:\FR\FM\07APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
07APN1
Federal Register / Vol. 81, No. 67 / Thursday, April 7, 2016 / Notices
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
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The Exchange is proposing to amend
Rules 7015(b) and (g) to increase the
monthly fees it charges for ports used to
enter orders in the Nasdaq Market
Center for the trading of equities, in
connection with the use of the FIX,
RASH, and OUCH trading
telecommunication protocols.
Specifically, the Exchange is proposing
to increase the fee assessed for a FIX
Trading Port from $550/port/month to
$575/port/month, to increase the fee
assessed for a RASH port from $550/
port/month to $575/port/month, and to
increase the fee assessed for an OUCH
port from $550/port/month to $575/
port/month.
The Exchange is proposing to increase
charges assessed for these connectivity
options in light of a recent upgrade to
the hardware supporting the ports to
FPGA technology.3 FPGA technology is
a hardware-delivery mechanism and an
upgrade to the software and softwareand-hardware based mechanisms
previously used for FIX, RASH, and
OUCH trading ports. By taking
advantage of hardware parallelism,
FPGA technology is capable of
3 The Exchange has previously implemented
FPGA hardware and increased the fees proposed in
this filing in connection with the use of the FIX,
RASH, and OUCH trading ports; however, due to
technical issues with the implementation the
Exchanged determined to roll back the FPGA
implementation and associated increased fees. See
Securities Exchange Act Release No. 75882
(September 10, 2015), 80 FR 55698 (September 16,
2015) (SR–NASDAQ–2015–110); see also Securities
Exchange Act Release No. 77077 (February 8, 2016),
81 FR 7597 (February 12, 2016) (SR–NASDAQ–
2016–014). The Exchange has resolved prior issues
with the technology and implemented the FPGA
hardware on FIX, RASH, and OUCH trading ports
beginning February 8, 2016. Since implementation,
the Exchange has not encountered any issues with
the new hardware, and has observed improvements
to the predictability of the telecommunications
ports, as was anticipated.
VerDate Sep<11>2014
16:35 Apr 06, 2016
Jkt 238001
processing more data packets during
peak market conditions without the
introduction of variable queuing
latency. In other words, upgrading to
FPGA technology improves the
predictability of the
telecommunications ports and thereby
adds value to the user experience. In
terms of messaging, the data content and
sequencing on the new FPGA
technology hardware of the upgraded
trading ports is the same as on the
legacy software-based versions of the
Exchange’s ports that were replaced.
The Exchange is offering new
technology in order to keep pace with
changes in the industry and evolving
customer needs as new technologies
emerge and products continue to
develop and change. The Exchange is
increasing the subscription fees for the
upgraded ports to offset the costs
associated with offering the new
hardware, which include procuring,
shipping, installing, and maintaining
the new equipment and codebase.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,4
in general, and with Section 6(b)(5) of
the Act,5 in particular, in that the
proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
The Exchange continuously strives to
offer members state of the art technology
to enhance their trading experience and
thereby enhance the national market
system. Incremental enhancements such
as the advent of FPGA technology has
[sic] helped make the U.S. markets the
deepest, most liquid markets in the
world. The FPGA hardware applied to
the trading ports improves their
predictability. Thus, the new hardware
further perfects the mechanism of a free
and open market and a national market
system.
The Exchange believes the proposed
rule change is consistent with Section
6(b)(4) of the Act 6 in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
4 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
6 15 U.S.C. 78f(b)(4).
5 15
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Sfmt 4703
20427
members and issuers and other persons
using any facility or system which the
Exchange operates or controls, and it
does not unfairly discriminate between
customers, issuers, brokers or dealers.
Specifically, the Exchange believes
that the proposed increased fees are
reasonable because they are based on
the costs associated with purchasing
hardware (capital expenditures) and
supporting and maintaining the
infrastructure (operating expenditures)
for the FPGA enhancement. The
Exchange also believes that the
proposed fees are equitable and not
unfairly discriminatory because the fees
apply equally to all users of the FPGAenhanced ports and the fees applied in
direct proportion to the number of ports
used by each member.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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. In terms of
inter-market competition, the Exchange
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, the Exchange
must continually adjust its fees to
remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. Because
competitors are free to modify their own
fees in response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited.
In this instance, the Exchange does
not believe that the proposed rule
change will result in any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act, as amended. To the
contrary, the Exchange believes that the
proposed rule change is pro-competitive
in that the enhancements improve the
competitiveness of the Exchange and
the overall quality of the national
market system. If, as the Exchange
believes, the FPGA enhancement
provides the Exchange a competitive
advantage, other exchanges will quickly
respond by enhancing their own
markets in the same way. Such
innovation and imitation is the very
E:\FR\FM\07APN1.SGM
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Federal Register / Vol. 81, No. 67 / Thursday, April 7, 2016 / Notices
essence of the competition the Exchange
Act is designed to promote.7
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.8
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:
mstockstill on DSK4VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2016–046 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–2016–046. 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
7 The Chicago Mercantile Exchange is currently
using FPGA technology in order entry ports for the
trading of futures. See https://www.cmegroup.com/
globex/files/NewiLinkArchitecture2014.pdf.
8 15 U.S.C. 78s(b)(3)(A)(ii).
VerDate Sep<11>2014
16:35 Apr 06, 2016
Jkt 238001
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2016–046, and should be
submitted on or before April 27, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Brent J. Fields,
Secretary.
[FR Doc. 2016–07937 Filed 4–6–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77499; File No. SR–BATS–
2016–04]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing of
Amendment No. 2, and Order Granting
Accelerated Approval of a Proposed
Rule Change, as Modified by
Amendment No. 2, To List and Trade
Shares of the SPDR DoubleLine Short
Duration Total Return Tactical ETF of
the SSgA Active Trust
April 1, 2016.
I. Introduction
On February 4, 2016, BATS Exchange,
Inc. (‘‘BATS’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’ or
‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
list and trade shares (‘‘Shares’’) of the
SPDR DoubleLine Short Duration Total
Return Tactical ETF (‘‘Fund’’) of the
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
SSgA Active Trust (‘‘Trust’’) pursuant to
BATS Rule 14.11(i). A notice of the
proposed rule change was published in
the Federal Register on February 12,
2016.3 On March 8, 2016, the Exchange
filed Amendment No. 1 to the proposed
rule change. On March 24, 2016, the
Exchange withdrew Amendment No. 1
and filed Amendment No. 2 to the
proposed rule change.4 On March 25,
2016, pursuant to Section 19(b)(2) of the
Act,5 the Commission designated a
longer period within which to approve
the proposed rule change, disapprove
the proposed rule change, or institute
proceedings to determine whether to
disapprove the proposed rule change.6
The Commission received no comments
on the proposal. The Commission is
publishing this notice to solicit
comments on Amendment No. 2 from
interested persons, and is approving the
proposed rule change, as modified by
Amendment No. 2, on an accelerated
basis.
II. The Exchange’s Description of the
Proposal
The Exchange proposes to list and
trade the Shares under BATS Rule
14.11(i), which governs the listing and
3 See Securities Exchange Act Release No. 77078
(February 8, 2016), 81 FR 7599.
4 In Amendment No. 2, which replaced the
original filing in its entirety, the Exchange: (1)
Modified the name of the Fund by replacing the
word ‘‘Term’’ with ‘‘Duration;’’ (2) clarified that,
under normal circumstances, at least 80% of the
Fund’s net assets (plus the amount of borrowings
for investment purposes) will be invested in its
principal holdings; (3) stated that the Fund may
invest up to 20% of its portfolio in securities issued
or guaranteed by state or local governments or their
agencies or instrumentalities; (4) clarified which
assets held by the Fund would trade on markets
that are members of the Intermarket Surveillance
Group or that have entered into a comprehensive
surveillance agreement with the Exchange; (5)
clarified the application of the investment
restrictions to derivatives and restricted securities;
(6) described how fixed income instruments,
including municipal securities, would be valued for
purposes of calculating the net asset value of the
Fund; (7) clarified that all statements and
representations made in the filing regarding the
description of the portfolio, limitations on portfolio
holdings or reference assets, or the applicability of
Exchange rules and surveillance procedures
constitute continued listing requirements for listing
the Shares on the Exchange; (8) stated that the
issuer has represented to the Exchange that it will
advise the Exchange of any failure by the Fund to
comply with the continued listing requirements,
and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will surveil for
compliance with the continued listing
requirements, and if the Fund is not in compliance
with the applicable listing requirements, the
Exchange will commence delisting procedures
under Exchange Rule 14.12; and (9) made other
technical amendments. Amendment No. 2 is
available at: https://www.sec.gov/comments/sr-bats2016-04/bats201604.shtml.
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No. 77451,
81 FR 18660 (March 31, 2016).
E:\FR\FM\07APN1.SGM
07APN1
]]>Agencies
[Federal Register Volume 81, Number 67 (Thursday, April 7, 2016)]
[Notices]
[Pages 20426-20428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07937]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77495; File No. SR-NASDAQ-2016-046]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Fees Under Rules 7015(b) and (g)
April 1, 2016.
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 March 29, 2016, The NASDAQ Stock Market LLC (``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 the Exchange's access services fees
at Rules 7015(b) and (g) to increase the port fees charged to members
and non-members for ports used to enter orders into Exchange systems,
in connection with the use of the FIX, RASH and OUCH trading
telecommunication protocols. While these amendments are effective upon
filing, the Exchange has designated the proposed amendments to be
operative on April 1, 2016.
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.
[[Page 20427]]
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 is proposing to amend Rules 7015(b) and (g) to
increase the monthly fees it charges for ports used to enter orders in
the Nasdaq Market Center for the trading of equities, in connection
with the use of the FIX, RASH, and OUCH trading telecommunication
protocols. Specifically, the Exchange is proposing to increase the fee
assessed for a FIX Trading Port from $550/port/month to $575/port/
month, to increase the fee assessed for a RASH port from $550/port/
month to $575/port/month, and to increase the fee assessed for an OUCH
port from $550/port/month to $575/port/month.
The Exchange is proposing to increase charges assessed for these
connectivity options in light of a recent upgrade to the hardware
supporting the ports to FPGA technology.\3\ FPGA technology is a
hardware-delivery mechanism and an upgrade to the software and
software-and-hardware based mechanisms previously used for FIX, RASH,
and OUCH trading ports. By taking advantage of hardware parallelism,
FPGA technology is capable of processing more data packets during peak
market conditions without the introduction of variable queuing latency.
In other words, upgrading to FPGA technology improves the
predictability of the telecommunications ports and thereby adds value
to the user experience. In terms of messaging, the data content and
sequencing on the new FPGA technology hardware of the upgraded trading
ports is the same as on the legacy software-based versions of the
Exchange's ports that were replaced.
---------------------------------------------------------------------------
\3\ The Exchange has previously implemented FPGA hardware and
increased the fees proposed in this filing in connection with the
use of the FIX, RASH, and OUCH trading ports; however, due to
technical issues with the implementation the Exchanged determined to
roll back the FPGA implementation and associated increased fees. See
Securities Exchange Act Release No. 75882 (September 10, 2015), 80
FR 55698 (September 16, 2015) (SR-NASDAQ-2015-110); see also
Securities Exchange Act Release No. 77077 (February 8, 2016), 81 FR
7597 (February 12, 2016) (SR-NASDAQ-2016-014). The Exchange has
resolved prior issues with the technology and implemented the FPGA
hardware on FIX, RASH, and OUCH trading ports beginning February 8,
2016. Since implementation, the Exchange has not encountered any
issues with the new hardware, and has observed improvements to the
predictability of the telecommunications ports, as was anticipated.
---------------------------------------------------------------------------
The Exchange is offering new technology in order to keep pace with
changes in the industry and evolving customer needs as new technologies
emerge and products continue to develop and change. The Exchange is
increasing the subscription fees for the upgraded ports to offset the
costs associated with offering the new hardware, which include
procuring, shipping, installing, and maintaining the new equipment and
codebase.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\4\ in general, and with
Section 6(b)(5) of the Act,\5\ in particular, in that the proposal is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange continuously strives to offer members state of the art
technology to enhance their trading experience and thereby enhance the
national market system. Incremental enhancements such as the advent of
FPGA technology has [sic] helped make the U.S. markets the deepest,
most liquid markets in the world. The FPGA hardware applied to the
trading ports improves their predictability. Thus, the new hardware
further perfects the mechanism of a free and open market and a national
market system.
The Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act \6\ in that it provides for the equitable
allocation of reasonable dues, fees and other charges among members and
issuers and other persons using any facility or system which the
Exchange operates or controls, and it does not unfairly discriminate
between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
Specifically, the Exchange believes that the proposed increased
fees are reasonable because they are based on the costs associated with
purchasing hardware (capital expenditures) and supporting and
maintaining the infrastructure (operating expenditures) for the FPGA
enhancement. The Exchange also believes that the proposed fees are
equitable and not unfairly discriminatory because the fees apply
equally to all users of the FPGA-enhanced ports and the fees applied in
direct proportion to the number of ports used by each member.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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. In terms of inter-market
competition, the Exchange 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, the Exchange must continually adjust its
fees to remain competitive with other exchanges and with alternative
trading systems that have been exempted from compliance with the
statutory standards applicable to exchanges. Because competitors are
free to modify their own fees in response, and because market
participants may readily adjust their order routing practices, the
Exchange believes that the degree to which fee changes in this market
may impose any burden on competition is extremely limited.
In this instance, the Exchange does not believe that the proposed
rule change will result in any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act, as
amended. To the contrary, the Exchange believes that the proposed rule
change is pro-competitive in that the enhancements improve the
competitiveness of the Exchange and the overall quality of the national
market system. If, as the Exchange believes, the FPGA enhancement
provides the Exchange a competitive advantage, other exchanges will
quickly respond by enhancing their own markets in the same way. Such
innovation and imitation is the very
[[Page 20428]]
essence of the competition the Exchange Act is designed to promote.\7\
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\7\ The Chicago Mercantile Exchange is currently using FPGA
technology in order entry ports for the trading of futures. See
https://www.cmegroup.com/globex/files/NewiLinkArchitecture2014.pdf.
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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.\8\
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\8\ 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-2016-046 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-2016-046. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-NASDAQ-2016-
046, and should be submitted on or before April 27, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-07937 Filed 4-6-16; 8:45 am]
BILLING CODE 8011-01-P
