Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Change the Titles of Equities Rule 7015 and Options Chapter XV, Section 3, and To Make Related Changes, 88311-88312 [2016-29292]
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Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices
Order, the Applicant informed the
advisory client of the capacity in which
it may act with respect to the
transaction and that it received the
advisory client’s consent (if the
Applicant informs the client orally of
the capacity in which it may act with
respect to such transaction or obtains
oral consent, such records may, for
example, include recordings of
telephone conversations or
contemporaneous written notations);
and (c) documentation sufficient to
enable assessment of compliance by the
Applicant with sections 206(1) and (2)
of the Advisers Act in connection with
its reliance on this Order.3 In each case,
such records will be maintained and
preserved in an easily accessible place
for a period of not less than five years,
the first two years in an appropriate
office of the Applicant, and be available
for inspection by the staff of the
Commission.
11. The Applicant will adopt written
compliance policies and procedures
reasonably designed to ensure, and the
Applicant’s chief compliance officer
will monitor, the Applicant’s
compliance with the conditions of this
Order. The Applicant’s chief
compliance officer will, on at least a
quarterly basis, conduct testing
reasonably sufficient to verify such
compliance. Such written policies and
procedures, monitoring and testing will
address, without limitation: (a)
Compliance by the Applicant with its
disclosure and consent requirements
under this Order; (b) the integrity and
operation of electronic systems
employed by the Applicant in
connection with its reliance on this
Order; (c) compliance by the Applicant
with its recordkeeping obligations under
this Order; and (d) whether there is any
evidence of the Applicant engaging in
‘‘dumping’’ in connection with its
reliance on this Order.4 The Applicant’s
chief compliance officer will document
the frequency and results of such
monitoring and testing, and the
Applicant will maintain and preserve
such documentation in an easily
accessible place for a period of not less
asabaliauskas on DSK3SPTVN1PROD with NOTICES
3 For
example, under sections 206(1) and (2), an
adviser may not engage in any transaction on a
principal basis with a client that is not consistent
with the best interests of the client or that
subrogates the client’s interests to the adviser’s
own. Cf. Investment Advisers Act Release No. 2106
(Jan. 31, 2003) (adopting Rule 206(4)–6).
4 See Report of the Securities and Exchange
Commission, Investment Trusts and Investment
Companies, H.R. Doc. No. 279, 76th Cong., 2d Sess.,
pt. 3, at 2581, 2589 (1939); Hearings on S.3580
Before a Subcommittee of the Commission on
Banking and Currency, 76th Cong., 3d Sess. 209,
212–23 (1940); Hearings on S. 3580 Before the
Subcomm. of the Comm. on Banking and Currency,
76th Cong., 3d Sess. 322 (1940).
VerDate Sep<11>2014
17:54 Dec 06, 2016
Jkt 241001
than five years, the first two years in an
appropriate office of the Applicant, and
be available for inspection by the staff
of the Commission.
By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2016–29298 Filed 12–6–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79447; File No. SR–
NASDAQ–2016–163]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Change the
Titles of Equities Rule 7015 and
Options Chapter XV, Section 3, and To
Make Related Changes
December 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 November
28, 2016, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II 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 rename the
title of rules that assess fees for
connectivity to systems operated by the
Exchange or FINRA under Equities Rule
7015 and Options Chapter XV, Section
3, and to make related changes to other
rules that reference the renamed rules.
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
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00115
Fmt 4703
Sfmt 4703
88311
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 purpose of the proposed rule
change is to rename related text in Rule
7015 and Chapter XV, Section 3, to
more accurately reflect the services
being provided and eliminate an
outdated term. Both Rule 7015 and
Chapter XV, Section 3, include
connectivity to services that are not
related to connecting to the Exchange
trading system, such as TradeInfo,3
Specialized Services Related to FINRA/
NASDAQ Trade Reporting Facility,4 and
the NASDAQ IPO Workstation.5 As a
consequence, the Exchange believes that
it is appropriate to rename the title of
Rule 7015 as ‘‘Ports and other Services’’
and rename the title of Chapter XV,
Section 3, as ‘‘NASDAQ Options
Market—Ports and other Services,’’
which the Exchange believes more
accurately describe the depth and
breadth of services provided to members
under those rules.
The Exchange is also proposing to
amend reference to the title of Rule 7015
in Rule 7007(a), which is titled
‘‘Collection of Exchange Fees and Other
Claims and Billing Policy,’’ and is also
amending reference to the title of
Chapter XV, Section 3, found under
Section 7(c)(2) of Chapter XV to reflect
the amended titles of Rule 7015 and
Chapter XV, Section 3.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(5) of the Act,7
3 TradeInfo is an Internet-based tool that, among
other things, allows users to view all of the
NASDAQ order and execution information for their
entire firm for both equities and options through a
single interface. TradeInfo may be subscribed to
under both Rule 7015 and Chapter XV Section 3.
4 Specialized Services Related to FINRA/
NASDAQ Trade Reporting Facility includes
WebLink ACT or Nasdaq Workstation Post Trade,
and ACT Workstation. See Rule 7015(e).
5 The NASDAQ IPO Workstation provides
subscribing member firms with the IPO Indicator
service, which provides information on order
execution that would be received in an IPO during
the launch process.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\07DEN1.SGM
07DEN1
88312
Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices
in particular, in that it is designed to
promote just and equitable principles of
trade, 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, by
clarifying applicability of rules whose
current titles could confuse market
participants. Specifically, the Exchange
is eliminating the term ‘‘Access’’ and
replacing it with the phrase ‘‘Ports and
other’’ because the new titles will more
accurately describe the depth and
breadth of services provided to members
under Rule 7015 and Chapter XV,
Section 3. As explained above, the
various connectivity and services
offered under Rule 7015 and Chapter
XV, Section 3, include services listed
that are not related to connecting to the
Exchange such as TradeInfo,
Specialized Services Related to FINRA/
NASDAQ Trade Reporting Facility, or
the NASDAQ IPO Workstation. These
services allow members to view
information and are not related to
connecting to the Exchange. Thus, the
changes proposed herein do not impact
the fees, connectivity or services
described under Rule 7015 and Chapter
XV, Section 3, but rather merely clarify
and harmonize the terminology used to
better align it with what is provided
under the rules.
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. The
Exchange believes that, to the extent it
has any impact on competition, the
proposed change will promote
competition by making it clear to all
market participants and exchange
competitors what is provided under
Rule 7015 and Chapter XV, Section 3.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
17:54 Dec 06, 2016
Jkt 241001
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
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
VerDate Sep<11>2014
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and
subparagraph (f)(6) of Rule 19b–4
thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of its filing. However, Rule 19b–
4(f)(6)(iii) 10 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposed rule change
will become operative on filing. The
Exchange stated that the proposed rule
change promotes the protection of
investors and the public interest by
clarifying and harmonizing the
terminology used in the Exchange’s
rules. Waiver of the operative delay
would allow the Exchange, without
delay, to rename the rules to make clear
what the rules cover, therefore, the
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest. Therefore, the
Commission designates the proposed
rule change to be operative upon
filing.11
At any time within 60 days of the
filing of such 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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2016–163 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–2016–163. 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–2016–163, and should be
submitted on or before December 28,
2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Brent J. Fields,
Secretary.
[FR Doc. 2016–29292 Filed 12–6–16; 8:45 am]
BILLING CODE 8011–01–P
8 15
9 17
PO 00000
Frm 00116
Fmt 4703
Sfmt 9990
12 17
E:\FR\FM\07DEN1.SGM
CFR 200.30–3(a)(12).
07DEN1
Agencies
[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88311-88312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29292]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79447; File No. SR-NASDAQ-2016-163]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Change the Titles of Equities Rule 7015 and Options Chapter XV, Section
3, and To Make Related Changes
December 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 November 28, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II 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 rename the title of rules that assess fees
for connectivity to systems operated by the Exchange or FINRA under
Equities Rule 7015 and Options Chapter XV, Section 3, and to make
related changes to other rules that reference the renamed rules.
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to rename related text
in Rule 7015 and Chapter XV, Section 3, to more accurately reflect the
services being provided and eliminate an outdated term. Both Rule 7015
and Chapter XV, Section 3, include connectivity to services that are
not related to connecting to the Exchange trading system, such as
TradeInfo,\3\ Specialized Services Related to FINRA/NASDAQ Trade
Reporting Facility,\4\ and the NASDAQ IPO Workstation.\5\ As a
consequence, the Exchange believes that it is appropriate to rename the
title of Rule 7015 as ``Ports and other Services'' and rename the title
of Chapter XV, Section 3, as ``NASDAQ Options Market--Ports and other
Services,'' which the Exchange believes more accurately describe the
depth and breadth of services provided to members under those rules.
---------------------------------------------------------------------------
\3\ TradeInfo is an Internet-based tool that, among other
things, allows users to view all of the NASDAQ order and execution
information for their entire firm for both equities and options
through a single interface. TradeInfo may be subscribed to under
both Rule 7015 and Chapter XV Section 3.
\4\ Specialized Services Related to FINRA/NASDAQ Trade Reporting
Facility includes WebLink ACT or Nasdaq Workstation Post Trade, and
ACT Workstation. See Rule 7015(e).
\5\ The NASDAQ IPO Workstation provides subscribing member firms
with the IPO Indicator service, which provides information on order
execution that would be received in an IPO during the launch
process.
---------------------------------------------------------------------------
The Exchange is also proposing to amend reference to the title of
Rule 7015 in Rule 7007(a), which is titled ``Collection of Exchange
Fees and Other Claims and Billing Policy,'' and is also amending
reference to the title of Chapter XV, Section 3, found under Section
7(c)(2) of Chapter XV to reflect the amended titles of Rule 7015 and
Chapter XV, Section 3.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\
[[Page 88312]]
in particular, in that it is designed to promote just and equitable
principles of trade, 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, by clarifying
applicability of rules whose current titles could confuse market
participants. Specifically, the Exchange is eliminating the term
``Access'' and replacing it with the phrase ``Ports and other'' because
the new titles will more accurately describe the depth and breadth of
services provided to members under Rule 7015 and Chapter XV, Section 3.
As explained above, the various connectivity and services offered under
Rule 7015 and Chapter XV, Section 3, include services listed that are
not related to connecting to the Exchange such as TradeInfo,
Specialized Services Related to FINRA/NASDAQ Trade Reporting Facility,
or the NASDAQ IPO Workstation. These services allow members to view
information and are not related to connecting to the Exchange. Thus,
the changes proposed herein do not impact the fees, connectivity or
services described under Rule 7015 and Chapter XV, Section 3, but
rather merely clarify and harmonize the terminology used to better
align it with what is provided under the rules.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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. The Exchange believes that, to
the extent it has any impact on competition, the proposed change will
promote competition by making it clear to all market participants and
exchange competitors what is provided under Rule 7015 and Chapter XV,
Section 3.
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
Because the foregoing proposed rule change does not (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of its filing. However,
Rule 19b-4(f)(6)(iii) \10\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay so that the proposed rule
change will become operative on filing. The Exchange stated that the
proposed rule change promotes the protection of investors and the
public interest by clarifying and harmonizing the terminology used in
the Exchange's rules. Waiver of the operative delay would allow the
Exchange, without delay, to rename the rules to make clear what the
rules cover, therefore, the Commission believes that waiver of the 30-
day operative delay is consistent with the protection of investors and
the public interest. Therefore, the Commission designates the proposed
rule change to be operative upon filing.\11\
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change 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-2016-163 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-2016-163. 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-2016-163, and should
be submitted on or before December 28, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2016-29292 Filed 12-6-16; 8:45 am]
BILLING CODE 8011-01-P