Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Port-Related Fees at Rules 7015 and 7016(b) To Eliminate Prorated Billing, 12148-12150 [2017-03846]
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12148
Federal Register / Vol. 82, No. 38 / Tuesday, February 28, 2017 / Notices
Agency name
Organization name
Position title
Department of Labor .....................
Office of Congressional and Intergovernmental Affairs.
Office of the Administrator ............
Legislative Officer .........................
DL150067
11/05/2016
Idea Lab Director ..........................
SB150043
11/12/2016
Small Business Administration ......
Authority: 5 U.S.C. 3301 and 3302; E.O.
10577, 3 CFR, 1954–1958 Comp., p. 218.
California 94129–0052, Telephone:
415.561.5300.
U.S. Office of Personnel Management.
Kathleen M. McGettigan,
Acting Director.
Dated: February 22, 2017.
Nancy J. Koch,
General Counsel.
[FR Doc. 2017–03870 Filed 2–27–17; 8:45 am]
[FR Doc. 2017–03854 Filed 2–27–17; 8:45 am]
BILLING CODE 6325–39–P
BILLING CODE 4310–4R–P
PRESIDIO TRUST
SECURITIES AND EXCHANGE
COMMISSION
Notice of Public Meeting
The Presidio Trust.
Notice of public meeting.
AGENCY:
ACTION:
In accordance with § 103(c)(6)
of the Presidio Trust Act, 16 U.S.C.
460bb appendix, and in accordance
with the Presidio Trust’s bylaws, notice
is hereby given that a public meeting of
the Presidio Trust Board of Directors
will be held commencing 6:00 p.m. on
Thursday, March 23, 2017, at the
Officers’ Club, 50 Moraga Avenue,
Presidio of San Francisco, California.
The Presidio Trust was created by
Congress in 1996 to manage
approximately eighty percent of the
former U.S. Army base known as the
Presidio, in San Francisco, California, as
a national site.
The purposes of this meeting are to
take action on the minutes of previous
Board meetings; to provide the
Chairperson’s report; to receive reports
from Board members; to provide the
Chief Executive Officer’s report; to
discuss the Presidio Trust’s proposed
goals for the next five years and to
gather public input on those priorities
and ways to achieve them; to receive a
recommendation from the Presidio
Institute Advisory Council on the use of
Fort Scott; and to receive public
comment.
Individuals requiring special
accommodation at this meeting, such as
needing a sign language interpreter,
should contact Mollie Matull at
415.561.5300 prior to March 16, 2017.
DATES AND TIME: The meeting will begin
at 6:00 p.m. on Thursday, March 23,
2017.
ADDRESSES: The meeting will be held at
the Officers’ Club, 50 Moraga Avenue,
Presidio of San Francisco.
FOR FURTHER INFORMATION CONTACT:
Nancy Koch, General Counsel, the
Presidio Trust, 103 Montgomery Street,
P.O. Box 29052, San Francisco,
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SUMMARY:
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[Release No. 34–80088; File No. SR–
NASDAQ–2017–017]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange’s Port-Related Fees at Rules
7015 and 7016(b) To Eliminate Prorated
Billing
February 22, 2017.
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 February
9, 2017, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III, below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s port-related fees at Rules
7015 and 7016(b) to eliminate prorated
billing.
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
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00070
Fmt 4703
Sfmt 4703
Request No.
Date vacated
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 3 is to harmonize the billing
practices for subscription to Nasdaq
ports and other services provided under
Rules 7015 4 and 7016(b) 5 with those of
the Nasdaq’s Options Market (‘‘NOM’’)
by no longer applying a prorated fee for
subscriptions that are effective other
than the first of any given month.6 The
Exchange does not prorate NOM
connectivity subscriptions; thus,
Options Participants 7 are assessed a full
month’s fee for a connectivity
subscription if they direct the Exchange
to make the subscribed connectivity live
on any day of the month, including the
last day thereof. The Exchange notes
that the NASDAQ PHLX does not
prorate port connectivity under both
[sic] its equity and options rules.8
3 The Exchange initially filed the proposed
pricing changes on February 1, 2017 (SR–
NASDAQ–2017–009). On February 9, 2017, the
Exchange withdrew that filing and submitted this
filing.
4 Rule 7015 is titled ‘‘Ports and other Services’’
and provides the options for connecting to the
Nasdaq equity market together with the fees
associated with such connectivity.
5 Rule 7016(b) concerns the fees assessed for Pretrade Risk Management service ports. Pre-trade Risk
Management provides Members with the ability to
set a wide range of parameters for orders to
facilitate pre-trade protection for FIX, Rash, OUCH
and FLITE ports.
6 See NOM Rules Chapter XV, Section 3(b).
7 As defined by NOM Rules Chapter I, Section
1(a)(40).
8 See Securities Exchange Act Release No. 78665
(August 24, 2016), 81 FR 59693 (August 30, 2016)
(SR–PHLX–2016–85) (eliminating prorated billing
E:\FR\FM\28FEN1.SGM
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Federal Register / Vol. 82, No. 38 / Tuesday, February 28, 2017 / Notices
mstockstill on DSK3G9T082PROD with NOTICES
Currently, connectivity on Nasdaq’s
equity market under Rules 7015 and
7016(b) is prorated based on the day
that it is activated, with the Nasdaq
Member 9 only fee liable for the
remaining days of the partial month.
The Exchange has found that prorating
billing has resulted in complexity and
increased costs associated with the
billing process. As a consequence, the
Exchange is harmonizing the billing
process with that of the Exchange’s
Options market and is not permitting
prorated billing effective February 1,
2017.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,10 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,11 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, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes that
elimination of prorated fees under Rules
7015 and 7016(b) is reasonable because
it will reduce complexity and costs
associated with the billing process, and
will harmonize it with the process
applied to Options Participants. As
noted above, Members are currently able
to choose when they want a new
connectivity subscription to become
effective and thus make the
determination of when they wish to
become fee liable. Members will
continue to choose when they become
fee liable under the proposed change,
but now the Exchange will assess the
full month’s fee regardless of when the
port is subscribed. Thus, Members must
weigh whether subscription to a service
covered by the rules for less than a full
month is worth the full monthly fee.
The Exchange believes that
elimination of prorated fees under Rules
7015 and 7016(b) is an equitable
allocation and is not unfairly
discriminatory because it will apply to
all new subscribers to the port-related
services under Rules 7015 and 7016(b),
who are free to choose the date on
which their subscription becomes active
and thus fee liable. Moreover, the
Exchange believes the proposed change
is an equitable allocation and is not
unfairly discriminatory because it will
as applied to PSX ports under Access Services
Fees).
9 As defined by Rule 0120(i).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(4) and (5).
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18:46 Feb 27, 2017
Jkt 241001
harmonize the billing process with that
of NOM. Thus, the Exchange will apply
the same process to both its Options
Participants and Equities Members.
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, although eliminating
prorated fees for subscriptions under the
rules may result in an increase in fees
for new subscriptions to the extent a
Member determines to subscribe to a
service under Rules 7015 or 7016(b) on
a day other than the first day of a given
month, the Exchange notes that it is
doing so to both simplify the process
and harmonize it with the process
applied to the Exchange’s Options
Participants. Moreover, Members may
choose the day on which such services
become effective and may therefore
choose the first day of a month, which
would result in no fee increase. Last, the
proposed change does not impose a
burden on competition because the
Exchange’s services are completely
voluntary and subject to extensive
competition both from other exchanges
and from off-exchange venues. In sum,
if the changes proposed herein are
unattractive to market participants, it is
likely that the Exchange will lose
market share as a result. Accordingly,
the Exchange does not believe that the
proposed changes will impair the ability
of members or competing order
execution venues to maintain their
competitive standing in the financial
markets.
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
12149
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.12
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 rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2017–017 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–2017–017. 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
12 15
E:\FR\FM\28FEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
28FEN1
12150
Federal Register / Vol. 82, No. 38 / Tuesday, February 28, 2017 / Notices
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–NASDAQ–2017–017 and
should be submitted on or before March
21, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Robert W. Errett,
Deputy Secretary.
Institution and settlement of
administrative proceedings;
Adjudicatory matters;
Resolution of litigation claims; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed; please
contact Brent J. Fields from the Office of
the Secretary at (202) 551–5400.
Dated: February 23, 2017.
Brent J. Fields,
Secretary.
[FR Doc. 2017–03928 Filed 2–24–17; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80090; File No. SR–ISE–
2017–12]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend Rule 715 and Rule
721
Sunshine Act Meeting
February 22, 2017.
[FR Doc. 2017–03846 Filed 2–27–17; 8:45 am]
mstockstill on DSK3G9T082PROD with NOTICES
BILLING CODE 8011–01–P
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a closed meeting
on Thursday, March 2, 2017 at 11 a.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (a)(5), (a)(7),
(a)(9)(ii) and (a)(10), permit
consideration of the scheduled matter at
the closed meeting.
Acting Chairman Piwowar, as duty
officer, voted to consider the items
listed for the closed meeting in closed
session.
The subject matter of the closed
meeting will be:
Institution and settlement of
injunctive actions;
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 February
13, 2017, the International Securities
Exchange, LLC (‘‘ISE’’ 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 Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 715 (Types of Orders) and Rule 721
(Crossing Orders) to codify its Qualified
Contingent Cross (‘‘QCC’’) with Stock
Order functionality.
The text of the proposed rule change
is available on the Exchange’s Web site
at www.ise.com, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
1 15
13 17
CFR 200.30–3(a)(12).
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18:46 Feb 27, 2017
2 17
Jkt 241001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00072
Fmt 4703
Sfmt 4703
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 codify functionality
currently offered to members—i.e., QCC
with Stock Orders. The QCC with Stock
Order is a piece of functionality that
facilitates the execution of stock
component of qualified contingent
trades. In particular, a QCC with Stock
Order is a QCC Order entered with a
stock component to be communicated to
a designated broker-dealer for
execution.3 QCC with Stock Orders
assist members in maintaining
compliance with Exchange rules
regarding the execution of the stock
component of qualified contingent
trades, and help maintain an audit trail
for surveillance of members for
compliance with such rules.
Currently, although the Exchange has
rules on QCC Orders, those rules do not
specify how the stock component of
such transactions is to be executed. In
particular, those rules do not describe
how this process may be facilitated by
the Exchange electronically
communicating the stock component to
a designated broker-dealer for execution
on the behalf of the member. The
proposed rule change will increase the
transparency of this process to the
benefit of members and other market
participants that execute QCC Orders on
the Exchange, including those that use
the QCC with Stock Order functionality
described in this filing.
A QCC Order is comprised of an
originating order to buy or sell at least
1000 contracts that is identified as being
part of a qualified contingent trade,4
3 See
Proposed Rule 715(t).
Rule 715(j). A ‘‘qualified contingent trade’’
is a transaction consisting of two or more
component orders, executed as agent or principal,
where: (a) At least one component is an NMS Stock,
as defined in Rule 600 of Regulation NMS under the
4 See
E:\FR\FM\28FEN1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 38 (Tuesday, February 28, 2017)]
[Notices]
[Pages 12148-12150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03846]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80088; File No. SR-NASDAQ-2017-017]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange's Port-Related Fees at Rules 7015 and 7016(b) To
Eliminate Prorated Billing
February 22, 2017.
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 February 9, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's port-related fees at
Rules 7015 and 7016(b) to eliminate prorated billing.
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 \3\ is to harmonize the
billing practices for subscription to Nasdaq ports and other services
provided under Rules 7015 \4\ and 7016(b) \5\ with those of the
Nasdaq's Options Market (``NOM'') by no longer applying a prorated fee
for subscriptions that are effective other than the first of any given
month.\6\ The Exchange does not prorate NOM connectivity subscriptions;
thus, Options Participants \7\ are assessed a full month's fee for a
connectivity subscription if they direct the Exchange to make the
subscribed connectivity live on any day of the month, including the
last day thereof. The Exchange notes that the NASDAQ PHLX does not
prorate port connectivity under both [sic] its equity and options
rules.\8\
---------------------------------------------------------------------------
\3\ The Exchange initially filed the proposed pricing changes on
February 1, 2017 (SR-NASDAQ-2017-009). On February 9, 2017, the
Exchange withdrew that filing and submitted this filing.
\4\ Rule 7015 is titled ``Ports and other Services'' and
provides the options for connecting to the Nasdaq equity market
together with the fees associated with such connectivity.
\5\ Rule 7016(b) concerns the fees assessed for Pre-trade Risk
Management service ports. Pre-trade Risk Management provides Members
with the ability to set a wide range of parameters for orders to
facilitate pre-trade protection for FIX, Rash, OUCH and FLITE ports.
\6\ See NOM Rules Chapter XV, Section 3(b).
\7\ As defined by NOM Rules Chapter I, Section 1(a)(40).
\8\ See Securities Exchange Act Release No. 78665 (August 24,
2016), 81 FR 59693 (August 30, 2016) (SR-PHLX-2016-85) (eliminating
prorated billing as applied to PSX ports under Access Services
Fees).
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[[Page 12149]]
Currently, connectivity on Nasdaq's equity market under Rules 7015
and 7016(b) is prorated based on the day that it is activated, with the
Nasdaq Member \9\ only fee liable for the remaining days of the partial
month. The Exchange has found that prorating billing has resulted in
complexity and increased costs associated with the billing process. As
a consequence, the Exchange is harmonizing the billing process with
that of the Exchange's Options market and is not permitting prorated
billing effective February 1, 2017.
---------------------------------------------------------------------------
\9\ As defined by Rule 0120(i).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\11\ 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, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that elimination of prorated fees under Rules
7015 and 7016(b) is reasonable because it will reduce complexity and
costs associated with the billing process, and will harmonize it with
the process applied to Options Participants. As noted above, Members
are currently able to choose when they want a new connectivity
subscription to become effective and thus make the determination of
when they wish to become fee liable. Members will continue to choose
when they become fee liable under the proposed change, but now the
Exchange will assess the full month's fee regardless of when the port
is subscribed. Thus, Members must weigh whether subscription to a
service covered by the rules for less than a full month is worth the
full monthly fee.
The Exchange believes that elimination of prorated fees under Rules
7015 and 7016(b) is an equitable allocation and is not unfairly
discriminatory because it will apply to all new subscribers to the
port-related services under Rules 7015 and 7016(b), who are free to
choose the date on which their subscription becomes active and thus fee
liable. Moreover, the Exchange believes the proposed change is an
equitable allocation and is not unfairly discriminatory because it will
harmonize the billing process with that of NOM. Thus, the Exchange will
apply the same process to both its Options Participants and Equities
Members.
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, although eliminating prorated fees for
subscriptions under the rules may result in an increase in fees for new
subscriptions to the extent a Member determines to subscribe to a
service under Rules 7015 or 7016(b) on a day other than the first day
of a given month, the Exchange notes that it is doing so to both
simplify the process and harmonize it with the process applied to the
Exchange's Options Participants. Moreover, Members may choose the day
on which such services become effective and may therefore choose the
first day of a month, which would result in no fee increase. Last, the
proposed change does not impose a burden on competition because the
Exchange's services are completely voluntary and subject to extensive
competition both from other exchanges and from off-exchange venues. In
sum, if the changes proposed herein are unattractive to market
participants, it is likely that the Exchange will lose market share as
a result. Accordingly, the Exchange does not believe that the proposed
changes will impair the ability of members or competing order execution
venues to maintain their competitive standing in the financial markets.
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.\12\
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\12\ 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-2017-017 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-2017-017. 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
[[Page 12150]]
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-NASDAQ-2017-017 and
should be submitted on or before March 21, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-03846 Filed 2-27-17; 8:45 am]
BILLING CODE 8011-01-P
