Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees Assessed Under Rule 7015(h), 39739-39740 [2016-14313]

Download as PDF Federal Register / Vol. 81, No. 117 / Friday, June 17, 2016 / Notices Pricing for these services is determined by the exchanges and/or market center. • Each ID that is given web access is subject to a $500 [250] monthly fee. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78051; File No. SR– NASDAQ–2016–078] * Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fees Assessed Under Rule 7015(h) June 13, 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 May 31, 2016, The NASDAQ Stock Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) a proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq is proposing changes to amend the fees assessed under Nasdaq Rule 7015(h). The changes are being filed for immediate effectiveness and will become operative June 1, 2016. The text of the proposed rule change is available at nasdaq.cchwallstreet.com, at Nasdaq’s principal office, and at the Commission’s Public Reference Room. The text of the proposed rule change is below. Proposed new language is in italics; proposed deletions are in brackets. sradovich on DSK3TPTVN1PROD with NOTICES * * * * * 7015. Access Services The charges under this rule are assessed by Nasdaq for connectivity to the following systems operated by NASDAQ or FINRA: The Nasdaq Market Center, FINRA Trade Reporting and Compliance Engine (TRACE), the FINRA/NASDAQ Trade Reporting Facility, FINRA’s OTCBB Service, and the FINRA OTC Reporting Facility (ORF). The following fees are not applicable to the NASDAQ Options Market LLC. For related options fees for Access Services refer to Chapter XV, Section 3 of the Options Rules. (a)–(g) No change. (h) VTE Terminal Fees • Each ID is subject to a minimum commission fee of $500 [250] per month unless it executes a minimum of 100,000 shares. • Each ID receiving market data is subject to pass-through fees for use of these services. U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 16:48 Jun 16, 2016 * * * A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Nasdaq is proposing to increase the fees assessed members under Rule 7015(h) for use of VTE terminals. A VTE terminal is a basic front-end user interface used by Nasdaq members to connect to, and enter orders in, The Nasdaq Market Center. Members using VTE terminals pay the exchanges and market centers separately for data feeds and services provided by Nasdaq, other exchanges or market centers through VTE. Such fees are filed with the SEC and separately assessed by the exchanges and market centers at the same rate irrespective of the method of accessing the data feeds. These data feeds provide information that is necessary for users to enter orders through VTE. The two fees assessed under Rule 7015(h) relate to optional web access and commissions. Rule 7015(h) currently assesses monthly a minimum commission fee of $250 per ID for users executing orders totaling less than 100,000 shares per month, and a web access fee of $250 per ID. Nasdaq last increased fees assessed under Rule 7015(h) in 2013 when it raised the fee for access to the terminal via the web from $125 monthly to $250 monthly, and raised the minimum commission fee for users executing orders totaling less than 100,000 shares per month from $125 monthly to $250 monthly.3 In light of increasing costs, Nasdaq is proposing to increase the fee for access to the terminal via the web 3 Securities Exchange Act Release No. 65014 (August 2, 2011), 76 FR 48189 (August 8, 2011) (SR–NASDAQ–2011–101). 1 15 VerDate Sep<11>2014 * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. Jkt 238001 PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 39739 from $250 monthly to $500 monthly, and increase the minimum commission fee for users executing orders totaling less than 100,000 shares per month from $250 monthly to $500 monthly. Nasdaq notes that web connectivity is one option available to Nasdaq users for accessing the VTE terminal. Another option is access through extranet connectivity, where a user contracts directly with a third-party extranet provider and pays fees to that provider. With respect to minimum commission fees, members that execute total orders above the 100,000 share threshold will continue to not be assessed a commission fee. Based on Nasdaq operation of the VTE since it was acquired from INET, Nasdaq believes that the pricing changes are warranted in order to appropriately balance the decreasing demand for the product with increasing platform, overhead, and technology infrastructure costs. Given that VTE is based on outdated technology and that members have other options for connecting to, and entering orders in, The Nasdaq Market Center, Nasdaq plans to phase out the service in its entirety on or before January 31, 2017. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,4 in general, and furthers the objectives of Sections 6(b)(4) of the Act,5 in particular. The Exchange believes it is consistent with Section 6(b)(4) of the Act because 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. All similarly situated members are subject to the same fee structure, and access to this Nasdaq service is offered on fair and non-discriminatory terms. Nasdaq has not increased the fees assessed under Rule 7015(h) since 2013 despite incurring a substantial decrease in subscribership, resulting in higher per-subscription costs as fixed costs are spread among fewer users. Moreover, during this time Nasdaq has also experienced increased costs associated with ongoing support of the VTE platform, which include platform, overhead and technology infrastructure costs. In order to continue to offer this service, Nasdaq must increase the subscriber fees as proposed to cover the overall general increase in cost to support the service, and to cover the 4 15 5 15 E:\FR\FM\17JNN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(4). 17JNN1 39740 Federal Register / Vol. 81, No. 117 / Friday, June 17, 2016 / Notices increased cost resulting from a smaller subscriber base. The proposed fees realign the balance of the costs discussed above to the fees received for the service so that it is similar to the ratio at the time of the last fee increase. Nasdaq notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. Use of VTE terminals is entirely optional and members can avail themselves of numerous other means of accessing The Nasdaq Market Center. Members are not obligated to subscribe to VTE terminals and may cancel an existing subscription at any time, with the obligation to pay only for full the monthly fee for the month canceled. As noted above, Nasdaq plans to ultimately phase out the service in 2017 in light of declining subscribership, the age of the technology, and because members have other options for connecting to, and entering orders in, The Nasdaq Market Center. As such, the Exchange believes that the proposed fees are reasonable. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. The proposed fees merely allow Nasdaq to recapture the increasing platform, overhead and technology infrastructure costs it incurs in support of the service, which are magnified on a per subscription basis given a declining subscriber base. The fees are applied uniformly among subscribing member firms, which are not compelled to subscribe to the service and may access the information provided through other means. For these reasons, any burden arising from the fees is necessary in the interest of promoting the equitable allocation of a reasonable fee. sradovich on DSK3TPTVN1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.6 At any time within 60 days of the filing of the proposed rule change, the Commission 6 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Sep<11>2014 16:48 Jun 16, 2016 Jkt 238001 summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NASDAQ–2016–078 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–2016–078. 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 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–2016–078, and should be submitted on or before July 8, 2016. PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–14313 Filed 6–16–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] In the Matter of Advanced Life Sciences Holdings, Inc., Anoteros, Inc., Emperial Americas, Inc., Nord Resources Corporation, and UNR Holdings, Inc.; Order of Suspension of Trading June 15, 2016. It appears to the Securities and Exchange Commission (‘‘Commission’’) that there is a lack of current and accurate information concerning the securities of Advanced Life Sciences Holdings, Inc. (‘‘ADLS 1’’) (CIK No. 1322734), a void Delaware corporation located in Woodridge, Illinois with a class of securities registered with the Commission pursuant to Securities Exchange Act of 1934 (‘‘Exchange Act’’) Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–K for the period ended December 31, 2010. On March 3, 2014, the Commission’s Division of Corporation Finance (‘‘Corporation Finance’’) sent a delinquency letter to ADLS requesting compliance with its periodic filing requirements but ADLS did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual) (‘‘Commission Issuer Address Rules’’). As of June 8, 2016, the common stock of ADLS was quoted on OTC Link operated by OTC Markets Group Inc. (formerly ‘‘Pink Sheets’’) (‘‘OTC Link’’), had six market makers, and was eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2–11(f)(3). It appears to the Commission that there is a lack of current and accurate information concerning the securities of Anoteros, Inc. (‘‘ANOS’’) (CIK No. 1390292), a revoked Nevada corporation located in Rolling Hills, California with a class of securities registered with the Commission pursuant to Exchange Act 7 17 CFR 200.30–3(a)(12). short form of each issuer’s name is also its stock symbol. 1 The E:\FR\FM\17JNN1.SGM 17JNN1

Agencies

[Federal Register Volume 81, Number 117 (Friday, June 17, 2016)]
[Notices]
[Pages 39739-39740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14313]



[[Page 39739]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78051; File No. SR-NASDAQ-2016-078]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Fees Assessed Under Rule 7015(h)

June 13, 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 May 31, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') a proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    Nasdaq is proposing changes to amend the fees assessed under Nasdaq 
Rule 7015(h).
    The changes are being filed for immediate effectiveness and will 
become operative June 1, 2016.
    The text of the proposed rule change is available at 
nasdaq.cchwallstreet.com, at Nasdaq's principal office, and at the 
Commission's Public Reference Room.
    The text of the proposed rule change is below. Proposed new 
language is in italics; proposed deletions are in brackets.

* * * * *

7015. Access Services

    The charges under this rule are assessed by Nasdaq for 
connectivity to the following systems operated by NASDAQ or FINRA: 
The Nasdaq Market Center, FINRA Trade Reporting and Compliance 
Engine (TRACE), the FINRA/NASDAQ Trade Reporting Facility, FINRA's 
OTCBB Service, and the FINRA OTC Reporting Facility (ORF). The 
following fees are not applicable to the NASDAQ Options Market LLC. 
For related options fees for Access Services refer to Chapter XV, 
Section 3 of the Options Rules.
    (a)-(g) No change.

(h) VTE Terminal Fees

     Each ID is subject to a minimum commission fee of $500 
[250] per month unless it executes a minimum of 100,000 shares.
     Each ID receiving market data is subject to pass-
through fees for use of these services. Pricing for these services 
is determined by the exchanges and/or market center.
     Each ID that is given web access is subject to a $500 
[250] monthly fee.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, Nasdaq included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of those statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Nasdaq is proposing to increase the fees assessed members under 
Rule 7015(h) for use of VTE terminals. A VTE terminal is a basic front-
end user interface used by Nasdaq members to connect to, and enter 
orders in, The Nasdaq Market Center. Members using VTE terminals pay 
the exchanges and market centers separately for data feeds and services 
provided by Nasdaq, other exchanges or market centers through VTE. Such 
fees are filed with the SEC and separately assessed by the exchanges 
and market centers at the same rate irrespective of the method of 
accessing the data feeds.
    These data feeds provide information that is necessary for users to 
enter orders through VTE. The two fees assessed under Rule 7015(h) 
relate to optional web access and commissions.
    Rule 7015(h) currently assesses monthly a minimum commission fee of 
$250 per ID for users executing orders totaling less than 100,000 
shares per month, and a web access fee of $250 per ID. Nasdaq last 
increased fees assessed under Rule 7015(h) in 2013 when it raised the 
fee for access to the terminal via the web from $125 monthly to $250 
monthly, and raised the minimum commission fee for users executing 
orders totaling less than 100,000 shares per month from $125 monthly to 
$250 monthly.\3\ In light of increasing costs, Nasdaq is proposing to 
increase the fee for access to the terminal via the web from $250 
monthly to $500 monthly, and increase the minimum commission fee for 
users executing orders totaling less than 100,000 shares per month from 
$250 monthly to $500 monthly.
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 65014 (August 2, 2011), 
76 FR 48189 (August 8, 2011) (SR-NASDAQ-2011-101).
---------------------------------------------------------------------------

    Nasdaq notes that web connectivity is one option available to 
Nasdaq users for accessing the VTE terminal. Another option is access 
through extranet connectivity, where a user contracts directly with a 
third-party extranet provider and pays fees to that provider. With 
respect to minimum commission fees, members that execute total orders 
above the 100,000 share threshold will continue to not be assessed a 
commission fee.
    Based on Nasdaq operation of the VTE since it was acquired from 
INET, Nasdaq believes that the pricing changes are warranted in order 
to appropriately balance the decreasing demand for the product with 
increasing platform, overhead, and technology infrastructure costs. 
Given that VTE is based on outdated technology and that members have 
other options for connecting to, and entering orders in, The Nasdaq 
Market Center, Nasdaq plans to phase out the service in its entirety on 
or before January 31, 2017.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\4\ in general, and furthers the objectives of Sections 
6(b)(4) of the Act,\5\ in particular. The Exchange believes it is 
consistent with Section 6(b)(4) of the Act because 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. All similarly situated members 
are subject to the same fee structure, and access to this Nasdaq 
service is offered on fair and non-discriminatory terms.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Nasdaq has not increased the fees assessed under Rule 7015(h) since 
2013 despite incurring a substantial decrease in subscribership, 
resulting in higher per-subscription costs as fixed costs are spread 
among fewer users. Moreover, during this time Nasdaq has also 
experienced increased costs associated with ongoing support of the VTE 
platform, which include platform, overhead and technology 
infrastructure costs. In order to continue to offer this service, 
Nasdaq must increase the subscriber fees as proposed to cover the 
overall general increase in cost to support the service, and to cover 
the

[[Page 39740]]

increased cost resulting from a smaller subscriber base.
    The proposed fees realign the balance of the costs discussed above 
to the fees received for the service so that it is similar to the ratio 
at the time of the last fee increase. Nasdaq notes that it operates in 
a highly competitive market in which market participants can readily 
favor competing venues if they deem fee levels at a particular venue to 
be excessive. Use of VTE terminals is entirely optional and members can 
avail themselves of numerous other means of accessing The Nasdaq Market 
Center. Members are not obligated to subscribe to VTE terminals and may 
cancel an existing subscription at any time, with the obligation to pay 
only for full the monthly fee for the month canceled. As noted above, 
Nasdaq plans to ultimately phase out the service in 2017 in light of 
declining subscribership, the age of the technology, and because 
members have other options for connecting to, and entering orders in, 
The Nasdaq Market Center. As such, the Exchange believes that the 
proposed fees are reasonable.

B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will result 
in any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended. The proposed fees 
merely allow Nasdaq to recapture the increasing platform, overhead and 
technology infrastructure costs it incurs in support of the service, 
which are magnified on a per subscription basis given a declining 
subscriber base. The fees are applied uniformly among subscribing 
member firms, which are not compelled to subscribe to the service and 
may access the information provided through other means. For these 
reasons, any burden arising from the fees is necessary in the interest 
of promoting the equitable allocation of a reasonable fee.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\6\ At any time within 60 days of the filing 
of the proposed rule change, the Commission summarily may temporarily 
suspend such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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-2016-078 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-2016-078. 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 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-2016-078, and should 
be submitted on or before July 8, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-14313 Filed 6-16-16; 8:45 am]
 BILLING CODE 8011-01-P
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