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]

Download as PDF 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, mstockstill on DSK3G9T082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:46 Feb 27, 2017 Jkt 241001 [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 http://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 28FEN1 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). VerDate Sep<11>2014 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 (http://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 (http://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). VerDate Sep<11>2014 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 28FEN1

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]


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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 http://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).

---------------------------------------------------------------------------

[[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\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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 (http://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 (http://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\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-03846 Filed 2-27-17; 8:45 am]
 BILLING CODE 8011-01-P